American Resources Corp (NASDAQ:AREC) said on Wednesday it has completed a multi-year transformation away from metallurgical coal into a rare earth and critical mineral supply chain platform.
As part of the restructuring, American Resources has separated its legacy coal operations and its affiliated refining entity, ReElement Technologies Corporation, into standalone companies no longer consolidated within its financial statements. The company said the move simplifies its corporate structure and improves financial transparency.
The company's wholly owned subsidiary, Electrified Materials Corporation, will focus on aggregating and preprocessing recycled critical mineral inputs, including magnets and batteries, to produce feedstocks for further refining through ReElement's platform.
CEO Mark Jensen said the company is now focused on sourcing and securing ownership positions in high-quality critical mineral feedstock across conventional, unconventional and recycled sources, targeting both domestic and allied international demand.
"Today, we are no longer defined by legacy operations, but by our ability to source, aggregate, invest into and align critical mineral feedstocks with growing domestic and allied demand through our strategic affiliation with ReElement," Jensen said.
The company said its independent auditors have removed a previously disclosed going concern qualification, reflecting what management described as a strengthened financial position that also includes $32.4 million in strategic investments and $93.2 million in stockholder's equity, with minimal debt.
For the full year 2025, American Resources reported net income of $55.4 million, or $0.63 per share, driven primarily by a gain on the deconsolidation of its legacy operations. Total stockholder's equity improved to $93.2 million from negative $80.9 million at year-end 2024.
The firm reported $72.5 million in cash and short-term investments as of December 31, 2025.
“By leveraging best-in-class technologies and maintaining a disciplined, low-cost operating model, we are building a scalable business designed to support the production of rare earth and critical minerals for commercial and defense applications while delivering long-term, sustainable value for our shareholders,” Jensen added. “Our platform offers a derisked diverse strategy to sourcing of critical and rare earths, not relying on one mine or one region to solve the problem.”
The company said it is evaluating multiple rare earth and critical mineral assets across Southeast Asia, Africa and North America to support its trading activities and feedstock supply for ReElement, and plans to expand its leadership team with expertise in global commodity sourcing and trading as it looks to scale the business.
Shares of American Resources traded up 10% on the update.