American Resources Corporation (NASDAQ:AREC) told investors it is focused on monetizing the group's carbon assets as it posted third quarter results, which showed a rise in revenue.
For the three months to September 30, 2022, the firm reported total revenue of US$9.5 million, up from US$2.8 million in the third quarter of 2021.
It also noted that its carbon sales had increased 240% year-over-year as the platform was well positioned to "capitalize on continued market strength and opportunities over the next several years".
READ: American Resources division ReElement receives manufacturing readiness grant from Indiana Economic Development Corporation
"Given the current energy, geo-political and infrastructure backdrops, our carbon platform holds considerable value to the company, and the market, to be a long-term incremental supplier of high-quality carbon," said Mark Jensen, the CEO of the firm, which has assets in Kentucky and West Virginia.
"Our McCoy Elkhorn complex continues to perform well contributing to the majority of our carbon sales during the third quarter of 2022 and generating approximately 45% production growth quarter-over-quarter with the initial contribution from our Carnegie 2 mine," he added.
"In total, we realized sales on over 37,600 tons at an average sales price of over $250. We continue to assess options with our Perry County complex.
"Whether operating it ourselves, contracting out its operations, joint venturing or selling it, we continue to evaluate options to maximize its value for our shareholders. We continue to focus on strategic actions within our control and we are confident we will be able to execute on the best option for Perry County Resources in the near term."
First domestic commercial producer or high-purity REEs
The company boss also highlighted its ReElement Technologies division's recent milestone of being the first domestic, commercial producer of isolated and high-purity rare-earth elements, producing greater than 99.5% pure neodymium, dysprosium and praseodymium at commercial scale.
The company said it was on track to commercially produce battery elements from recycled lithium-based batteries in the fourth quarter of this year.
Among the expected near-term catalysts are the closing of US$45 million West Virginia tax-exempt industrial development bonds and US$4.9 million of New Market Tax Credits for ITS Wyoming County advanced carbon and rare earth processing facility.
The net loss for the quarter was US$5.2 million, down from a loss of US$8.9 million in the third quarter of 2021.
American Resources is focused on extracting and processing metallurgical carbon, which is used in steelmaking. It is also involved in critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled.
American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon and rare earth mineral deposits are concentrated
Contact the author at giles@proactiveinvestors.com