American Resources Corporation (NASDAQ:AREC) posted its 4Q and full-year 2021 results that showed the firm generating strong revenues amidst an order backlog of over $100 million.
The resource company generated just over $4.5 million in the three-month period to end December 2021, compared to revenues of $13,875 in the same year-ago quarter.
Adjusted EBITDA, or earnings before interest, tax, amortization and depreciation came in on the positive side at $1.3 million compared to a loss of $2 million in 4Q 2020.
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CEO Mark Jensen told shareholders that the Fishers, Indiana-based firm is “a few months away” from becoming the first company in the US to produce isolated and purified critical and rare earth elements (REEs).
“Solidifying our position not only addresses our national supply chain and sustainability challenges of critical and REEs, but also eliminates the need to depend on foreign nations, such as China, for the final stage of refinement for these increasingly important raw materials,” Jensen said in a statement.
“As we become the nation's first producer of highly-purified critical and REEs, which we believe is a monumental milestone, we are also steadily increasing our carbon production in one of the strongest markets we have ever seen."
For the 2021 financial year, the company generated revenue of $7.7 million compared to $1.1 in the 2020 year. The bulk of the revenue came from coal sales, which contributed $7.5 million to the bottom line. The firm’s adjusted EBITDA loss came in at $4.7 million as compared with an adjusted EBITDA loss of $2.77 million in 2020.
Meanwhile, the group’s current specialty and metallurgical carbon backlog represents approximately $110 million, Jensen told shareholders, adding that its rate of production has become more consistent and will realize a profitable March month on a $5.25 to $6 million monthly revenue run rate.
The CEO added that the American Rare Earth division “continues to manifest at a very rapid pace,” bolstered by its team and partnerships.
“We wholeheartedly believe that the greatest impact we can make to our domestic supply of critical and REEs is to provide the most efficient and environmentally-safe solutions for the final stage of separation and purification while providing a sustainable and circular supply of materials,” Jensen said. “We will be showcasing our ability to achieve this on a commercial scale this year and will commensurately continue to bolster our upstream and downstream partnerships."
The company had a cash balance of around $11.5 million as of December 31, 2021.
Contact Angela at angela@proactiveinvestors.com
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