American Resources boosts rare earth refining capacity

FISHERS, IN - American Resources Corporation (NASDAQ:AREC), a small-cap company with a market capitalization of approximately $87 million, through its subsidiary ReElement Technologies, has strengthened its position in the critical minerals market by enhancing its rare earth refining capabilities. The stock has shown strong momentum, delivering a return of about 13% over the past six months, according to InvestingPro data. The company’s modular refinery platform is recognized as the only scalable solution in the United States for economically separating and purifying both heavy and light rare earth elements.

ReElement’s technology is particularly timely given recent export restrictions by China on critical minerals, which have underscored the need for a robust domestic supply chain. While the company is actively producing magnet-grade rare earth oxides and advancing discussions on multiple restricted critical and rare earth elements, InvestingPro analysis reveals significant financial challenges, including a substantial debt burden of $230 million and a concerning current ratio of 0.23, indicating potential liquidity constraints.

The platform’s multi-mineral, multi-feedstock approach allows ReElement to produce ultra-high purity materials at competitive costs. This innovative method is more rapid, cost-effective, and sustainable compared to traditional refining practices, addressing a significant bottleneck in the global critical mineral supply chain.

Mark Jensen, CEO of American Resources and ReElement Technologies, emphasized the importance of ReElement’s role in securing a domestic supply chain in light of these developments. "With China tightening control over rare earth exports, the importance of a domestic, cost-competitive refining capability has never been greater," Jensen stated. "We are the only U.S. company actively refining and separating heavy rare earth elements under Chinese export control today."

ReElement’s achievements include producing 99.5% separated neodymium and praseodymium oxides, over 99.5% dysprosium and terbium oxides, and high-purity antimony trisulfide and lithium carbonate, among other materials. The company is also advancing research and development for the domestic production of yttrium, gallium, germanium, and molybdenum.

The technology at the heart of ReElement’s operations is Ligand Assisted Displacement (LAD) chromatography, which offers several advantages, including the use of aqueous chemistry, lower capital expenditures, high versatility, and the ability to expand processing volumes modularly and scalably.

American Resources Corporation, through its affiliation with ReElement Technologies, is investing in and developing efficient operations across the critical mineral supply chain. This includes mining, recycling, and manufacturing, to meet the growing demand for materials essential for infrastructure and electrification markets. However, analysts anticipate a sales decline in the current year, with the company currently operating at a negative EBITDA of -$23.2 million. For deeper insights into AREC’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

This article is based on a press release statement.

In other recent news, American Resources Corporation has announced a significant breakthrough with its modular leaching technology designed to extract rare earth elements from coal and mine waste. This new system aims to transform coal waste into valuable rare earth concentrates, which will be refined by ReElement Technologies for use in magnet manufacturing. Additionally, American Resources has secured a $150 million pre-money valuation following a private capital round, which will fund new commercial-scale equipment for facilities in Indiana, enhancing its production capabilities in response to China’s export restrictions on critical minerals. The company has also extended a bond agreement to further develop its Kentucky Lithium LLC complex, which focuses on producing battery-grade lithium and refining rare earth oxides. In a move to boost production, American Resources has commissioned new equipment at its Noblesville facility, increasing output of high-purity rare earth oxides. Furthermore, the company has entered a tolling agreement for refining antimony ore, expected to generate over $29 million annually, emphasizing its strategic importance in the domestic critical minerals market. These developments highlight American Resources’ efforts to strengthen its position in the critical mineral supply chain amidst global challenges.

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