American Resources Corporation (NASDAQ:AREC) has reported its second-quarter financial results, and CEO Mark Jensen is optimistic about the trajectory the company is on in 2023.
"Throughout the past several months we've continued to execute on our strategic plan of action to monetize our unique platform of assets while continuing to solidify our strategic positioning within the value chain of our addressable markets,” Jensen said in a statement.
American Resources has drawn interest from parties looking to acquire the company’s carbon assets, Jensen noted. The company recently executed a binding LOI to sell certain assets associated with its Deane Mining complex and has received separate non-binding LOIs from other parties to purchase the remaining assets of American Carbon and Perry County Resources.
During the quarter, American Resources reported revenue of $1.98 million and a net loss of $0.01 per share. Adjusted EBITDA was $112,971 in the second quarter of 2023, compared to an adjusted EBITDA loss of $13,702 a year earlier.
Jensen singled out the company’s ReElement Technologies division, which recently achieved ultra-pure (99.9978%) lithium carbonate (Li2CO3) from its exclusively licensed and patented multi-modal chromatography technology.
“Our ReElement Technologies division continues to be the most exciting enterprise we have ever been a part of as it establishes itself as a world leader of innovative critical mineral refining technology,” Jensen said.
“The critical and rare earth elements we refine are imperative to operate our modern-day technology including electric vehicles, clean energy and defense applications. ReElement's patented chromatographic separation and purification technology addresses the biggest bottleneck within our domestic and global supply chain, and we believe innovative, cost-competitive refining is imperative for the United States to compete.”
Looking ahead, American Resources intends to spin off ReElement Technologies into a standalone public company and has already filed a Form 10 registration statement with the US Securities and Exchange Commission (SEC).
"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 remain steadfast on monetizing our carbon platform and with the recent number of offers to purchase our assets, we have attractive opportunities for our shareholders to execute on that mission.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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