American Resources Corporation Reports Third Quarter 2024 Financial Results and Provides Business Outlook
The first domestic, commercial producer of separated and high-purity REEs from ores and recycled permanent magnets and high-purity battery elements from ores, concentrated brines and recycled feedstocks
Company's patented chromatographic separation and purification process leading the world in efficient, environmentally-safe critical mineral refining
Company is rapidly adding strategic partners to synthesize a robust critical mineral supply chain
Company continues execution on subsidiary spin-offs; announces record date for ReElement spin-off
Company to host update conference call today at 4:30 PM ET
FISHERS, IN / ACCESSWIRE / November 14, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the modern infrastructure and electrification sectors, today announced financial results for the third quarter of 2024. The Company will host a conference call and webcast, today, November 14, 2024, at 4:30 PM ET (details below).
Mark Jensen, Chairman and CEO of American Resources Corporation commented, "We continue to experience significant progress in establishing our strategic positioning across our target markets. Our focus remains on preparing each business for growth as a separate, standalone entity, aligning with our Strategic Committee's plan to unlock the full value of American Resources. Key steps in this strategy include securing growth capital to scale operations and building world-class teams for each division. Our recent announcement regarding ReElement's record date and capital raise reinforces our commitment to these objectives, and further advances our path to growth and value creation and we continue to bolster our teams with best-in-class talent to execute on our mission."
"ReElement Technologies continues to position its breakthrough technology as a world-leading solution for efficient critical mineral refining and continues to be the highest value denominator of our business. Leveraging decades of research, development, and commercialization across various industries, we can produce ultra-pure critical minerals at competitive costs with high throughput. Our multi-mineral, multi-feedstock platform technology is not only environmentally safe but also flexible and modularly scalable, allowing us to deploy refining capacity worldwide, bridging upstream mining and recycling with downstream manufacturing. As we execute our strategy, it's clear that our solution stands apart, providing unparalleled value for strategic and financial partners while enhancing both energy transition and national security initiatives. Currently, we are producing both ultra-pure rare earth elements and critical battery minerals at our Customer Qualification Plant in Noblesville, Indiana - a unique achievement globally. Moreover, we've accomplished this using our own capital, with a vision to catalyze a robust critical mineral supply chain independent of China."
"We recently rebranded American Carbon as American Infrastructure Corporation to better represent a more diversified resource portfolio aimed at supporting global infrastructure markets, such as our recent acquisition in the iron ore space. Growth capital for American Infrastructure is largely supported by the closing of our previously announced $45 million tax-exempt bond offering for Wyoming County Coal (WCC). Additionally, we recently secured a lease for our McCoy Elkhorn complex with a proven operator, positioning it for near-term production. Both WCC and McCoy Elkhorn are premium facilities capable of producing high-quality mid-vol and high-vol carbon for the global steel industry. Through American Infrastructure's growth, we've consolidated valuable assets focused on high-margin, high-value products, making it strategically positioned as one of the last U.S.-based platforms for metallurgical carbon growth."
"We are actively positioning American Metals as a key aggregator and processor of recycled feedstocks. American Metals is uniquely situated to leverage ReElement's advanced refining capabilities, handling the preprocessing of end-of-life and off-spec batteries and magnets, which will also enhance ReElement's long-term margin profile. Through its affiliation with ReElement, American Metals has gained expertise in optimal and efficient processing methods to produce feedstock that can be refined back into ultra-pure critical minerals, while our partnership with LOHUM Cleantech, India's leading battery recycling and reuse company, further strengthens our market position. Additionally, we are making steady progress on our merger with AI Transportation Acquisition Corp., having received and prepared responses to comments from the SEC on our S-4 registration statement."
"As we continue to execute on our strategic plan, American Resource will continue to evolve by leveraging the unique capabilities and positioning of our current operating company's assets to diversify into other critical mineral and infrastructure resources to support energy transition and national security."
Key Division Highlights
The Company continues to aggressively drive innovative, efficient and solution-based steps to strengthen its position within its respective end-markets while strategically evolving to enhance shareholder value. Recent divisional milestones include:
ReElement Technologies
Established a partnership with IRIS Metals, a lithium exploration and production company with hard rock lithium assets located in South Dakota, to develop domestic production of battery-grade lithium.
Established a partnership with Vulcan Elements, a manufacturer of neodymium-iron-boron permanent magnets in the U.S., to develop a fully domestic and sustainable rare earth magnet supply chain.
Commenced daily production of purified rare earth elements to include both light (Nd, Pr) and heavy (Dy, Tb) rare earths to 99.5%+ purity, while also integrating process automation to further increase capacity and efficiencies.
Promoted Dr. Yi Ding, Ph.D. to Chief Technology Officer. As Director of R&D, Dr. Ding helped commercialize the Company's multi-mineral, multi-feedstock platform technology.
Signed a Joint Employment Training Program Agreement with Ivy Tech Community College of Indiana focusing on technical training and apprenticeship programs for ReElement clean tech, critical mineral refining platform.
Received Military Critical Technical Data Agreement approval and certified under the United States / Canada Joint Certification Program.
Demonstrated its breakthrough technology in the separation and purification of rare earth ores to produce separated and purified rare earth elements at magnet grade (99.5%+). The demonstration process was conducted from an ore concentrate provided by a partner to showcase the Company's ability to extract, separate and purify the high-value elements in the ore body that can supply the rare earth magnet supply chain.
Entered into a partnership with UK-based Jupiter Lithium Ltd to develop Nigeria's first large-scale lithium deposit spanning 442 square kilometers of high-quality, lithium-rich terrain and poised to become a transformative project for Nigeria.
Successfully separated and purified lithium from feedstocks derived from lithium brine sources and has expanded its Powered by ReElement service offering to include integration into direct lithium extraction flow sheets.
Announced that it has been accepted as a member of the Defense Industrial Base Consortium to help address defense supply chain issues.
Established its asset-light, collaborative platform branded, Powered by ReElement, to focus on inline partnerships with other critical and rare earth mineral processors, recyclers or refiners that need to optimize certain components, or the entire separation and purification process within their solvent-based and/or hydrometallurgical process.
Successfully executed and closed a Bond Purchase Agreement with Hilltop Securities Inc. for $150,000,000 principal amount of Kentucky Industrial Building Revenue Bonds, Series 2024, for the Company's Kentucky Lithium LLC ("KYL") complex which will be used for the development and operation commissioning of the United States' first-of-its-kind critical mineral refining facility.
American Metals
Established a partnership with LOHUM Cleantech Ltd., India's leading battery recycling and reuse company, to develop a joint venture, along with ReElement Technologies, to develop the United States' first fully integrated battery recycling, repurposing and material refining entity.
American Infrastructure
Signed a lease for its McCoy Elkhorn mining complex, located in Pike County, Kentucky, with the goal of restarting operations this year, reducing operating risk and receiving a top line royalty stream from the complex.
Announced updated results of its rare earth element deposits at its Wyoming County Coal project in West Virginia with over 550 ppm as verified from an independent third-party laboratory. The ongoing project development is being funded by the Company's previously announced $45 million tax exempt bond.
Acquired a 51% ownership interest in a Jamaica-based, diversified mineral asset with a focus on iron ore, titanium and vanadium to further establishes American Carbon's foothold in the steelmaking supply chain.
Corporate
Announced a special dividend of shares in its wholly owned subsidiary, ReElement Technologies Corporation. The special dividend will be distributed on or about February 15, 2025 to shareholders of record as of December 31, 2024.
Distributed 25% of its ownership interest in American Infrastructure Corporation on the previously announced distribution date of August 9, 2024 to its underlying shareholders of record as of May 27, 2024; continuing to execute on it strategic plan to separate certain assets into standalone entities to unlock value.
Mr. Jensen continued, "Looking forward as we approach 2025, our belief in and the excitement over the opportunities we have in front of us continues to reach an all-time high. Our goal is to successfully spin-off ReElement Technologies and the majority of American Infrastructure with the appropriate value, capital structures and teams to execute as standalone businesses, and we feel confident we will accomplish that goal."
"The opportunity for ReElement Technologies continues to rapidly manifest as the world searches for more efficient critical mineral supply chain solutions. The unique attributes of our technology puts us in a lead position to successfully deploy meaningful critical mineral refining capacity outside of China. It has always been our approach that utilizing the similar, solvent-based separation and purification technologies, as used in China, will be a challenge for most of the world, and we are starting to see leaders in the supply chain migrate towards us for efficient solutions. As such, we believe we stand alone in our ability to produce ultra-pure products at large scale, and in an environmentally-safe and cost competitive process. This has enabled us to continue our focus on customer qualifications across multiple products and supply chains, procure quality feedstocks from around the world to feed our large-scale projects, secure offtake agreements with both planned magnet, cathode / battery manufacturers and advance the design, engineering and development of our planned large-scale, commercial facilities in Marion, Indiana and Knott County, Kentucky. Our rapid execution of this tremendous growth opportunity is evidenced by the technical expertise at our Noblesville, Indiana Commercial Qualification Plant, the acquisition of our Marion super-site, the procurement of approximately $45 million in tax incentives from the municipality of Marion, and the successful execution of a bond purchase agreement for $150 million of Kentucky Industrial Building Revenue Bonds for our first-of-its-kind Kentucky Lithium refinery, to name a few. Our focus and approach are to capitalize the development and growth of our Marion Advanced Technology Center in a similar, non-dilutive manner, and we continue to work through that process. Additionally, our international growth plans are substantial to support a massive shift in global trade and manufacturing. ReElement sits in a very opportunistic position at the intersection of energy transition and national security and we remain steadfast on executing in a calculated and expedited manner to build substantial value for our Company, shareholders and stakeholders alike."
Expected Near-Term Catalysts
Additional ReElement Technologies upstream and downstream partnerships to bolster feedstocks of end-of-life products, manufacturing scrap and ores for critical and REEs and offtake customers of sustainable and domestic sources of high-purity battery and magnet materials.
Closing of ReElement Technology's private funding round.
Continue to scale critical mineral refining capacity at its next two large-scale facilities in Marion, Indiana and Knott County, Kentucky and through co-located facilities with supply chain partners.
Broader international expansion of ReElement Technologies' world-leading critical mineral platform for both critical mineral-based ores and recycling partnerships.
Continue to add best-in-class talent to drive the execution of each division.
Monetization of American Carbon through its spin-off, increase in carbon production to meet market demand, leases, joint ventures and/or divestitures.
Conference Call Information
American Resources management will host a conference call for investors, analysts and other interested parties today, Thursday, November 14, 2024 at 4:30 PM ET.
Interested participants and investors may access the conference call by dialing 877-407-4019 and referencing American Resources Corporation's Third Quarter 2024 Conference Call, or by the webcast link: here.
Financial Results for Third Quarter 2024
For the third quarter of 2024, American Resources reported a net loss of $9.8 million or a loss of $0.13 per share, as compared with a net loss of $274,167 or $0.00 per share in the same period of the prior year. The Company realized an adjusted EBITDA loss of $6.9 million for the third quarter of 2024, as compared with adjusted EBITDA of $1.27 million for the third quarter of 2023.
Third Quarter 2024 Summary
Total revenues were $235,443, compared to total revenues of $5.81 million during the third quarter of 2023. General and administrative expenses for the third quarter of 2024 were $4.37 million compared to $1.72 million in the prior year period. American Resources incurred interest expense of $1.22 million during the third quarter of 2024 compared to $521,439 during the third quarter of 2023. Development costs during the quarter were $78,809 compared to $1.2 million during the second quarter of 2024 and better positions the Company within the markets in which it serves.
The Company did not incur any income tax expense in the third quarter of 2024 as it reported a net loss for the period.
AMERICAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||
| September 30, |
|
| September 30, |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Coal sales |
| $ | - |
|
| $ | 5,721,840 |
|
| $ | - |
|
| $ | 16,120,841 |
|
Metal recovery and sales |
|
| 154,055 |
|
|
| 5,722 |
|
|
| 187,502 |
|
|
| 60,147 |
|
Royalty income |
|
| 81,388 |
|
|
| 80,963 |
|
|
| 146,055 |
|
|
| 496,682 |
|
Total revenue |
|
| 235,443 |
|
|
| 5,808,525 |
|
|
| 333,557 |
|
|
| 16,677,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating expenses (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of coal sales and processing |
|
| 1,784,863 |
|
|
| (98,310 | ) |
|
| 2,982,638 |
|
|
| 6,459,269 |
|
Accretion |
|
| 248,295 |
|
|
| 248,289 |
|
|
| 744,877 |
|
|
| 744,873 |
|
Depreciation |
|
| 361,874 |
|
|
| 582,201 |
|
|
| 1,431,433 |
|
|
| 1,777,244 |
|
Amortization of mining rights |
|
| 302,103 |
|
|
| 311,685 |
|
|
| 925,473 |
|
|
| 935,055 |
|
General and administrative |
|
| 4,365,822 |
|
|
| 1,719,751 |
|
|
| 8,068,922 |
|
|
| 4,669,189 |
|
Professional fees |
|
| 682,523 |
|
|
| 359,411 |
|
|
| 1,823,915 |
|
|
| 999,143 |
|
Production taxes and royalties |
|
| 876,503 |
|
|
| 1,126,719 |
|
|
| 1,323,596 |
|
|
| 2,720,402 |
|
Development |
|
| 78,809 |
|
|
| 1,801,612 |
|
|
| 2,996,853 |
|
|
| 10,582,150 |
|
Gain on sale of equipment |
|
| - |
|
|
| (575,000 | ) |
|
| (400,000 | ) |
|
| (1,625,000 | ) |
Total operating expenses |
|
| 8,700,792 |
|
|
| 5,476,358 |
|
|
| 19,897,707 |
|
|
| 27,262,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss from operations |
|
| (8,465,349 | ) |
|
| 332,167 |
|
|
| (19,564,150 | ) |
|
| (10,584,655 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from equity method investees |
|
| (164,845 | ) |
|
| (237,726 | ) |
|
| (396,205 | ) |
|
| 39,640 |
|
Other income and (expense) |
|
| (32,101 | ) |
|
| 150,000 |
|
|
| 140,904 |
|
|
| 503,000 |
|
Interest income |
|
| 71,767 |
|
|
| 2,831 |
|
|
| 110,916 |
|
|
| 21,595 |
|
Interest expense |
|
| (1,217,719 | ) |
|
| (521,439 | ) |
|
| (2,109,896 | ) |
|
| (1,588,486 | ) |
Total other income (expenses) |
|
| (1,342,898 | ) |
|
| (606,334 | ) |
|
| (2,254,281 | ) |
|
| (1,024,251 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss |
|
| (9,808,247 | ) |
|
| (274,167 | ) |
|
| (21,818,431 | ) |
|
| (11,608,906 | ) |
Less: Non-controlling interest |
|
| 15,465 |
|
|
| 95,710 |
|
|
| 80,888 |
|
|
| (79,945 | ) |
Net loss attributable to AREC shareholders |
| $ | (9,792,782 | ) |
| $ | (178,457 | ) |
| $ | (21,737,543 | ) |
| $ | (11,688,851 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net loss per share - basic and diluted |
|
| (0.13 | ) |
|
| (0.00 | ) |
|
| (0.28 | ) |
|
| (0.15 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average shares outstanding - basic and diluted |
|
| 77,400,289 |
|
|
| 76,245,984 |
|
|
| 77,400,289 |
|
|
| 76,245,984 |
|
AMERICAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, |
|
| December 31, |
|
| September 30, |
| ||||
| 2024 |
|
| 2023 |
|
| 2023 |
| ||||
Assets |
|
|
|
|
|
|
|
|
| |||
Current assets: |
|
|
|
|
|
|
|
|
| |||
Cash and cash equivalents |
| $ | 840,330 |
|
| $ | 1,600,253 |
|
| $ | 246,122 |
|
Short-term investments |
|
| 151,326 |
|
|
| 1,347,907 |
|
|
| 703,593 |
|
Interest receivables |
|
| 85,991 |
|
|
| - |
|
|
| - |
|
Receivables |
|
| - |
|
|
| - |
|
|
| 4,390,826 |
|
Inventories |
|
| 2,029,812 |
|
|
| 54,000 |
|
|
| 2,166,526 |
|
Prepaid expenses and other current assets |
|
| 1,866,001 |
|
|
| 1,867,652 |
|
|
| 1,917,642 |
|
Total current assets |
|
| 4,973,460 |
|
|
| 4,869,812 |
|
|
| 9,424,709 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
| 165,311,402 |
|
|
| 33,774,385 |
|
|
| 43,150,507 |
|
Property and Equipment, net |
|
| 17,489,780 |
|
|
| 20,235,124 |
|
|
| 18,159,421 |
|
Right-of-use assets, net |
|
| 22,095,710 |
|
|
| 886,621 |
|
|
| 665,346 |
|
Investment in other entities - Related Parties |
|
| 1,719,308 |
|
|
| 3,477,300 |
|
|
| 4,079,636 |
|
Notes Receivable, net |
|
| 280,000 |
|
|
| 379,022 |
|
|
| 379,022 |
|
Total Assets |
| $ | 211,869,660 |
|
| $ | 63,622,264 |
|
| $ | 75,858,641 |
|
Liabilities and Deficit |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables |
| $ | 5,039,002 |
|
| $ | 6,641,125 |
|
| $ | 4,292,562 |
|
Non-trade payables |
|
| 2,653,638 |
|
|
| 2,661,099 |
|
|
| 2,815,086 |
|
Accounts payable - related party |
|
| 4,674,392 |
|
|
| 2,355,696 |
|
|
| 2,544,796 |
|
Accrued interest |
|
| 514,844 |
|
|
| 468,134 |
|
|
| 126,815 |
|
Other current liabilities |
|
| 147,055 |
|
|
| 100,000 |
|
|
| 200,000 |
|
Current portion of long term debt |
|
| 804,656 |
|
|
| 804,656 |
|
|
| 804,656 |
|
Operating lease liabilities |
|
| 677,945 |
|
|
| 88,794 |
|
|
| 60,545 |
|
Finance lease - related party, current |
|
| 1,437,985 |
|
|
| - |
|
|
| - |
|
Other financing obligations, current |
|
| 7,620,971 |
|
|
| 7,392,741 |
|
|
| 19,246,736 |
|
Total current liabilities |
|
| 23,570,488 |
|
|
| 20,512,245 |
|
|
| 30,091,196 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Remediation liability |
|
| 22,033,677 |
|
|
| 21,288,799 |
|
|
| 21,040,507 |
|
Bond payable, net |
|
| 193,337,587 |
|
|
| 43,535,159 |
|
|
| 43,509,757 |
|
Convertible promissory note - related party |
|
| 894,172 |
|
|
| - |
|
|
| - |
|
Other financing obligations, net of current portion |
|
| 4,405,239 |
|
|
| 10,099,795 |
|
|
| - |
|
Finance lease - related party, non-current |
|
| 18,528,012 |
|
|
| - |
|
|
| - |
|
Operating lease liabilities, non-current |
|
| 2,180,081 |
|
|
| 849,463 |
|
|
| 655,562 |
|
Total liabilities |
|
| 264,949,256 |
|
|
| 96,285,461 |
|
|
| 95,297,022 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Commitments and contingencies (Note 8) |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' deficit: |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; 230,000,000 shares authorized, 77,400,289 and 76,247,370 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively |
|
| 7,742 |
|
|
| 7,627 |
|
|
| 7,627 |
|
Additional paid-in capital |
|
| 182,761,566 |
|
|
| 181,278,761 |
|
|
| 180,202,880 |
|
Accumulated deficit |
|
| (234,294,164 | ) |
|
| (212,475,733 | ) |
|
| (198,452,536 | ) |
Total stockholders' equity |
|
| (51,524,856 | ) |
|
| (31,189,345 | ) |
|
| (18,242,029 | ) |
Non-controlling interest |
|
| (1,554,740 | ) |
|
| (1,473,852 | ) |
|
| (1,196,352 | ) |
Total deficit |
|
| (53,079,596 | ) |
|
| (32,663,197 | ) |
|
| (19,438,381 | ) |
Total liabilities and stockholders' deficit |
| $ | 211,869,660 |
|
| $ | 63,622,264 |
|
| $ | 75,858,641 |
|
The accompanying footnotes are integral to the unaudited consolidated financial statements.
AMERICAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
| For the nine months ended |
| |||||
|
| September 30, |
| |||||
|
| 2024 |
|
| 2023 |
| ||
Cash Flows from Operating activities: |
|
|
|
|
|
| ||
Net loss |
| $ | (21,899,319 | ) |
| $ | (11,608,907 | ) |
Adjustments to reconcile net income (loss) to net cash |
|
|
|
|
|
|
|
|
Depreciation expense |
|
| 1,431,433 |
|
|
| 1,777,244 |
|
Amortization of mining rights |
|
| 925,473 |
|
|
| 935,055 |
|
Accretion expense |
|
| 744,878 |
|
|
| 744,871 |
|
Amortization of right-to-use assets |
|
| (4,445,253 | ) |
|
| 76,205 |
|
Accretion of right-to-use assets |
|
| 3,202,161 |
|
|
|
|
|
Amortization of issuance costs and debt discount |
|
| 83,225 |
|
|
| 25,402 |
|
Investment in other entities - Related Parties, net |
|
| 396,204 |
|
|
| (39,640 | ) |
Gain on sale of equipment |
|
| (400,000 | ) |
|
| (1,625,000 | ) |
Noncash stock based compensation expense |
|
| 2,511,894 |
|
|
| 2,316,769 |
|
Issuance of common shares for services |
|
| 143,575 |
|
|
| - |
|
Unrealized gain on short-term investments |
|
| 4,973 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in current assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
| - |
|
|
| (3,730,070 | ) |
Inventories |
|
| (1,975,812 | ) |
|
| (1,719,836 | ) |
Prepaid expenses and other current assets |
|
| 1,651 |
|
|
| (1,131,065 | ) |
Accounts payable |
|
| (1,609,584 | ) |
|
| (332,838 | ) |
Accrued interest |
|
| 46,710 |
|
|
| 19,930 |
|
Accounts payable related party |
|
| 2,318,696 |
|
|
| (1,750,436 | ) |
Operating leases liabilities |
|
| 1,919,769 |
|
|
| (74,325 | ) |
Other Liabilities |
|
| 47,055 |
|
|
| 200,000 |
|
Cash used in operating activities |
|
| (16,552,271 | ) |
|
| (15,916,641 | ) |
|
|
|
|
|
|
|
| |
Cash Flows from Investing activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
| 388,438 |
|
|
| (283,790 | ) |
Proceeds from sale of equipment |
|
| 400,000 |
|
|
| 1,625,000 |
|
Cash invested in note receivable |
|
| 99,022 |
|
|
| - |
|
Proceeds from short-term investments, net |
|
| 1,191,608 |
|
|
| (703,593 | ) |
Non-cash income from notes receivable |
|
| (85,991 | ) |
|
| - |
|
Cash (used in) provided by investing activities |
|
| 1,993,077 |
|
|
| 637,617 |
|
|
|
|
|
|
|
|
| |
Cash Flows from Financing activities: |
|
|
|
|
|
|
|
|
Cash received from warrant conversions |
|
| 32,339 |
|
|
| - |
|
Proceeds from convertible promissory note - related party |
|
| 894,172 |
|
|
| - |
|
Repayment on long term debt |
|
| - |
|
|
| (1,112,850 | ) |
Proceeds from the exercise of stock option |
|
| 156,900 |
|
|
| - |
|
Proceeds from tax exempt bonds, net |
|
| 149,719,203 |
|
|
| 43,484,355 |
|
Proceeds received from other financing obligation |
|
| 95,592 |
|
|
| 7,637,639 |
|
Repayments of other financing obligation |
|
| (5,561,918 | ) |
|
| (4,329,186 | ) |
Cash provided by (used in) financing activities |
|
| 145,336,288 |
|
|
| 45,679,958 |
|
|
|
|
|
|
|
|
| |
Increase (decrease) in cash |
|
| 130,777,094 |
|
|
| 30,400,934 |
|
Cash and cash equivalents, including restricted cash, beginning of period |
|
| 35,374,638 |
|
|
| 12,995,695 |
|
Cash and cash equivalents, including restricted cash, end of period |
| $ | 166,151,732 |
|
| $ | 43,396,629 |
|
|
|
|
|
|
|
|
| |
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cashless exercise of warrants |
| $ | - |
|
| $ | - |
|
Acquisition of financing lease |
| $ | 15,892,497 |
|
| $ | - |
|
Dividend-in-kind of Novustera, Inc. common stock to shareholders |
| $ | 1,361,788 |
|
| $ | - |
|
The accompanying footnotes are integral to the unaudited consolidated financial statements
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted EBITDA(1) to Amounts Reported Under U.S. GAAP
|
| For the Three Months Ended September 30, 2024 |
| For the Three Months Ended September 30, 2023 |
Net Income |
| (9,808,247) |
| (274,167) |
|
|
|
|
|
Interest & Other Expenses |
| 1,217,719 |
| 2,831 |
Income Tax Expense |
| - |
| - |
Accretion Expense |
| 248,295 |
| 248,289 |
Depreciation |
| 361,874 |
| 582,201 |
Amortization of Mining Rights |
| 302,103 |
| 311,685 |
Non-Cash Stock, Warrant & Option Comp. Expense |
| 748,641 |
| 395,052 |
|
|
|
|
|
Total Adjustments |
| 2,878,632 |
| 1,540,058 |
|
|
|
|
|
Adjusted EBITDA |
| (6,929,615) |
| 1,265,891 |
Adjusted EBITDA is defined as net income before net interest expense, income tax expense, accretion expense, depreciation, non-cash stock compensation expense, transaction and other professional fees. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and we believe items excluded from Adjusted EBITDA are significant to a reader in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flow from operations or as a measure of our profitability, liquidity, or performance under GAAP. We believe that Adjusted EBITDA presents a useful measure of our ability to incur and service debt based on ongoing operations. Furthermore, similar measures are used by analysts to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by others.
About American Resources Corporation
American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated.
American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.
About ReElement Technologies Corporation
ReElement Technologies Corporation, a wholly owned subsidiary of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
Investor Contact:
JTC Team, LLC
Jenene Thomas
(908) 824 - 0775
RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
SOURCE: American Resources Corporation
View the original press release on accesswire.com