American Resources Corporation (NASDAQ:AREC) announced financial results for the fourth quarter and full year ended December 31, revealing the company swung to a profit.
For the fourth quarter, American Resources reported net income of $9.5 million, $0.14 per share, compared to a net loss of $10.4 million, $0.17 per share, in the prior year period. Total revenues was $4.68 million, compared to revenues of $4.54 million during the fourth quarter of 2021.
"Throughout 2022 we further established our pillars of growth and have uniquely positioned our businesses to capitalize on defined growth opportunities across the markets we serve,” CEO Mark Jensen said in a statement. “We believe the past year, where we realized record revenues, marks an exciting inflection point in our transformational evolution as a company.”
Jensen pointed to the company’s American Carbon division, calling it “uniquely positioned to provide incremental metallurgical carbon to a supply constrained global steel market, with a relatively much lower capital cost.”
Going forward, the company noted near-term catalysts including a continued increase in carbon production to meet growing market demand; the closing of $45 million worth of West Virginia tax-exempt industrial development bonds for the company's Wyoming County advanced carbon and rare earth processing facility; and showcasing commercial efficacy of using patented chromatography process to produce ultra-pure lithium hydroxide or carbonate from spodumene ore, among others.
"Looking forward to the remainder of 2023, our belief in and excitement over the opportunities we have in front of us continues to reach an all-time high,” Jensen said. “We have positioned our McCoy Elkhorn complex as American Carbon's primary growth asset as we continue to expand production at our set of Carnegie mines, as we restart our onsite processing capacity and have redeployed certain assets from Perry County to support additional growth.”
He continued, “Beyond Carnegie 1 and 2, we are planning and developing two, fully-permitted mines to supply our McCoy Elkhorn complex with additional low-cost, high-quality metallurgical carbon for the global steel industry. Over the past several months, we have stockpiled approximately $6 million of met carbon production at McCoy Elkhorn as we prepared our processing plant to fully come online.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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