AREC

AMERICAN RESOURCES CORP

Basic Materials | Micro Cap

-$0.05

EPS Forecast

$3.16

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-10-03
EX-99.1 2 arec_ex991.htm EX-99.1 arec_ex991.htm

EXHIBIT 99.1

 

 

American Resources Corporation Reports Fourth Quarter and Full

Year 2021 Financial Results and Provides Business Outlook

 

Company highly aligned with major U.S. priorities in both infrastructure and

electrification

 

On track be the first in the U.S. to produce isolated and purified critical and rare earth

elements (REEs) and bring the most environmentally-safe refining solutions to the

domestic marketplace

 

Significant increase in carbon demand and price realization being seen as Company

scales operations and on track this March to realize operating profit

 

Current specialty and metallurgical carbon backlog represents approximately $110

million

 

Strong balance sheet provides financial strength and flexibility to execute on its

innovation, collaboration and growth plans

 

Company to host update conference call today at 4:30 PM ET

 

March 29, 2022 | Source: American Resources Corporation

 

FISHERS, INDIANA / ACCESSWIRE / March 29, 2022 / American Resources Corporation (NASDAQ:AREC) (“American Resources” or the “Company”), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced financial results for the fourth quarter and full year ended December 31, 2021. The Company will host a conference call and webcast, today, March 29, 2022, at 4:30 PM ET (details below).

 

Mark Jensen, Chairman and CEO of American Resources Corporation commented, “Throughout 2021 we further established our pillars of growth and believe the year was marked by tremendous success in transforming our Company to expand our near term and future potential and opportunities. In retrospect and as a point of reference, we began unveiling the patents and technology behind our rare earth ‘Capture – Process – Purify’ process chain in early 2021. Today, we are only a few months away from being the first in the U.S. to produce isolated and purified critical and REEs and bringing the most environmentally-safe refining solutions to the domestic marketplace. 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. 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.”

 

 

 

 

2021 Key Division Highlights

 

 

 

American Rare Earth

 

 

 

 

·

Advanced its innovation by entering into exclusive patent and technology licensing agreements on 16 patents and technologies to establish the foundation of American Rare Earth’s “Capture – Process – Purify” process chain and entered into three sponsored research partnerships to further develop and refine the most environmentally friendly methods to capture, process and purify critical and REEs from waste streams and end-of-life products.

 

 

 

 

·

Achieved a high purity (99.5%) of the rare earth magnet metals neodymium (Nd), praseodymium (Pr) and dysprosium (Dy) and battery metals lithium (Li), cobalt (Co), nickel (Ni) and manganese (Mn) from end-of-life permanent magnets and NMC batteries from electric vehicles using its patented chromatography process and technology.

 

 

 

 

·

Advanced its efforts to onshore the final isolation and purification stage of critical and REEs with its site selection of its first two critical and REE isolation and purification facilities; both in Noblesville, IN, and began the build phase of its initial two commercial production trains at its first facility. This facility will be the first facility in the United States capable of producing isolated and high-purity critical and REEs while focusing on the sustainability and circular supply chain.

 

 

 

American Carbon

 

 

 

 

·

Announced plans to restart its Wyoming County, WV mining complex along with receiving preliminary approval from the state of West Virginia for the issuance of $45 million tax-exempt industrial development bonds for advanced carbon and rare earth and critical mineral processing.

 

 

 

 

·

Acquired E4-2 mineral reserves to secure the long-term viability and of its Perry County Resources complex and further reduces its operating costs.

 

 

 

Corporate

 

 

 

 

·

Elevated its shareholder-focused and value-creative culture by pricing the initial public offering of American Acquisition Opportunity Inc. (NADSAQ: AMAOU), a blank check company in which the Company has an indirect investment, and sub-licensed two of its exclusive patents for the production of graphene to Novusterra Inc. for a 50% equity stake in the privately-held company and a portion of future cash flows from the sale of graphene from that entity.

 

 

 

 

·

Strengthened its balance sheet and financial flexibility by eliminating approximately $19 million of debt and payables and added over $30 million of equity capital.

 

 

 

 

 

 

“Looking forward to the remainder of 2022, our excitement over the opportunities we have in front of us continues to reach an all-time high. Our current specialty and metallurgical carbon backlog represents approximately $110 million. As our carbon production continues to scale and become more consistent, we’re confident in showcasing the low-cost and growth attributes of our platform with the investments we’ve made and with the future investments we’re planning at our Wyoming County, West Virginia complex. Over the first several weeks of 2022, once we managed through the Omicron variant, we have seen our rate of production become more consistent and will realize a profitable March month on a $5.25 to $6 million monthly revenue run rate,” continued Mr. Jensen.

 

“The opportunity for American Rare Earth continues to manifest at a very rapid pace and continues to be bolstered by our tremendous 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. 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. “

 

Expected Near-Term Catalysts

 

 

·

Continued increase in carbon production to meet backlog and growing market demand.

 

 

 

 

·

Closing of $45 million West Virginia tax-exempt industrial development bonds for Company’s Wyoming County advanced carbon and rare earth processing facility.

 

 

 

 

·

Additional American Rare Earth upstream and downstream partnerships to bolster feedstocks of end-of-life products for critical and REEs and offtake customers of recycled, sustainable and domestic sources of high-purity battery and magnet metals.

 

 

 

 

·

Broaden its suite of patented IP to efficiently produce critical and REEs using the lowest cost and most environmentally-safe methods.

 

 

 

 

·

Commencement of its first two commercial production trains producing isolated and high-purity battery and magnet metals.

 

 

 

Conference Call Information

 

American Resources management will host a conference call for investors, analysts and other interested parties today, Tuesday, March 29, 2022 at 4:30 PM ET.

 

Interested participants and investors may access the conference call by dialing (877) 407-4019 and referencing American Resources Corporation’s Fourth Quarter and Full Year 2021 Conference Call, or by the webcast link: here.

 

Financial Results for Fourth Quarter and Year-End December 31, 2021

 

For the full year of 2021, American Resources reported a net income loss of $32.4 million or a loss of $0.59 per share for the twelve months ended December 31, 2021, as compared with a net income loss $10.3 million or loss of $0.35 per share for the full year of 2020. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, accretion on asset retirement obligations, non-operating expenses, non-cash impairment and development costs (‘adjusted EBITDA”) loss of $4.7 million for the year ended December 31, 2021, as compared with an adjusted EBITDA loss of $2.77 million in 2020.

 

For the fourth quarter of 2021, American Resources reported a net income loss of $10.4 million, or a loss of $0.17 per share, as compared with a net income loss of $9.1 million, or a loss of $0.24 per share, in the prior year period. The Company earned an adjusted EBITDA of $1.3 million in the fourth quarter of 2021, as compared with an adjusted EBITDA loss of $2.0 million for the fourth quarter of 2020.

 

Fourth Quarter 2021 Summary

 

Total revenues were $4.54 million for the fourth quarter of 2021 compared to revenues of $13,875 during the fourth quarter of 2020. General and administrative expenses for the fourth quarter of 2021 were $1.3 million compared to $826,890 in the prior year period. American Resources incurred interest expense of $1.9 million during the fourth quarter of 2021 compared to $1.5 million during the fourth quarter of 2020. Development costs during the quarter were $8.09 million, compared to $5.14 million in the third quarter of 2021.

 

Full Year 2021 Summary

 

Full year 2021 revenues were $7.76 million compared to full year 2020 revenues of $1,059,691. The Company recommenced carbon production during 2021 following the COVID-19 induced idle period and has seen a steady sequential production and sales ramp while navigating various supply chain, labor and COVID variant related headwinds. The Company is currently realizing a higher and more consistent production schedule and expects to exit the current March month on a $5.25 - $6 million monthly revenue run rate and better positioned to meet its current 2022 order backlog of approximately $110 million. Development costs during 2021 were $18.1 million compared to $4.0 million during 2020 and better positions the Company to meet its demand while realizing strong pricing.

 

The Company did not incur any income tax expense in 2021 as it was able to utilize its available net operating losses (“NOL”) carried forward from prior periods of approximately $24.2 million as of December 31, 2021.

 

 

 

 

AMERICAN RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

Revenue

 

 

 

 

 

 

 

 

 

Coal sales

 

$ 7,518,792

 

 

$ 524,334

 

 

$ 24,456,831

 

Processing services income

 

 

-

 

 

 

-

 

 

 

20,876

 

Metal recovery and sales

 

 

159,599

 

 

 

535,357

 

 

 

-

 

Royalty income

 

 

76,915

 

 

 

-

 

 

 

-

 

Total revenue

 

 

7,755,306

 

 

 

1,059,691

 

 

 

24,477,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of coal sales and processing

 

 

(7,088,951 )

 

 

(3,749,519 )

 

 

(26,086,814 )

Accretion

 

 

(1,096,283 )

 

 

(1,287,496 )

 

 

(1,482,349 )

Gain on purchase and disposal of asset, respectively

 

 

-

 

 

 

-

 

 

 

394,484

 

Depreciation

 

 

(1,980,026 )

 

 

(2,298,703 )

 

 

(4,588,136 )

Amortization of mining rights

 

 

(1,246,740 )

 

 

(1,251,357 )

 

 

(1,657,673 )

General and administrative

 

 

(3,774,464 )

 

 

(2,486,799 )

 

 

(7,659,048 )

Professional fees

 

 

(1,387,430 )

 

 

(1,076,548 )

 

 

(6,750,848 )

Production taxes and royalties

 

 

(1,306,150 )

 

 

(1,357,749 )

 

 

(4,222,175 )

Impairment of fixed assets

 

 

-

 

 

 

-

 

 

 

(27,688,030 )

Development

 

 

(18,098,670 )

 

 

(3,998,885 )

 

 

(7,236,653 )

Total expenses from operations

 

 

(35,978,714 )

 

 

(17,507,056 )

 

 

(86,977,242 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(28,223,408 )

 

 

(16,447,365 )

 

 

(62,499,535 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and (expense)

 

 

(232,994 )

 

 

20,537

 

 

 

2,072,862

 

Loss on settlement of payable

 

 

-

 

 

 

-

 

 

 

(22,660 )

Gain on interest forgiven

 

 

-

 

 

 

832,500

 

 

 

-

 

Gain on depreciation recapture

 

 

-

 

 

 

1,706,569

 

 

 

-

 

Gain on sale of stock

 

 

-

 

 

 

6,820,949

 

 

 

-

 

Amortization of debt discount and debt issuance costs

 

 

(8,637 )

 

 

(11,516 )

 

 

(7,725,076 )

Interest income

 

 

230,529

 

 

 

205,857

 

 

 

164,686

 

Interest expense

 

 

(4,159,813 )

 

 

(3,383,294 )

 

 

(2,908,579 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to American Resources Corporation shareholders

 

$ (32,394,323 )

 

$ (10,255,763 )

 

$ (70,918,302 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

 

$ (0.59 )

 

$ (0.35 )

 

$ (2.94 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

55,222,768

 

 

 

29,359,993

 

 

 

24,094,420

 

 

 

 

 

AMERICAN RESOURCES CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

 December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash

 

$ 11,492,702

 

 

$ 10,617,495

 

Receivables

 

 

3,175,636

 

 

 

38,650

 

Inventory

 

 

-

 

 

 

150,504

 

Prepaid fees and deposits

 

 

624,605

 

 

 

175,000

 

Receivables - other

 

 

-

 

 

 

234,240

 

Advances to related party

 

 

5,000

 

 

 

-

 

Total current assets

 

 

15,297,943

 

 

 

11,215,889

 

 

 

 

 

 

 

 

 

 

Cash - restricted

 

 

1,095,411

 

 

 

583,708

 

Property and equipment, net

 

 

22,903,154

 

 

 

22,498,659

 

Long-term right of use assets, net

 

 

726,194

 

 

 

-

 

Investment in llc- related party

 

 

2,500,000

 

 

 

-

 

Notes receivables

 

 

350,000

 

 

 

4,117,139

 

 

 

 

 

 

 

 

 

 

Total assets

 

$ 42,872,702

 

 

$ 38,415,395

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade payables

 

$ 3,135,566

 

 

$ 4,288,794

 

Non-trade payables

 

 

1,950,567

 

 

 

3,850,781

 

Accounts payable - related party

 

 

3,932,716

 

 

 

679,146

 

Accrued interest

 

 

1,325,286

 

 

 

1,043,519

 

Due to affiliate

 

 

74,000

 

 

 

74,000

 

Current portion of long term debt

 

 

5,283,647

 

 

 

10,997,692

 

Current portion of convertible debt (net of unamortized discount of $18,106 and $827,573)

 

 

571,618

 

 

 

-

 

 Current portion of lease liabilities, net

 

 

151,806

 

 

 

 

 

Total current liabilities

 

 

16,425,206

 

 

 

20,933,932

 

 

 

 

 

 

 

 

 

 

Notes payable (net of issuance costs of $0 and $405,667)

 

 

548,477

 

 

 

5,330,752

 

Convertible note payables (net of unamortized discount of $22,549 and $0)

 

 

8,620,412

 

 

 

14,300,907

 

Remediation liability

 

 

18,951,587

 

 

 

17,855,304

 

Lease liabilities, net

 

 

548,477

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

45,108,110

 

 

 

58,420,895

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit

 

 

 

 

 

 

 

 

Common stock: $.0001 par value; 230,000,000 shares authorized, 65,084,992 and 42,972,762 shares issued and outstanding

 

 

6,508

 

 

 

4,296

 

Additional paid in capital

 

 

163,441,655

 

 

 

113,279,452

 

Accumulated deficit

 

 

(165,683,571 )

 

 

(133,289,248 )

Total stockholders’ deficit

 

 

(2,235,408 )

 

 

(20,005,500 )

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ deficit

 

$ 42,872,702

 

 

$ 38,415,395

 

 

 

 

 

 

 

 

 

 

Shares Outstanding

 

 

65,084,992

 

 

 

40,522,762

 

 

 

 

 

AMERICAN RESOURCES CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

2021

 

 

2020

 

 

 

 

Cash Flows from Operating activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$ (32,269,839 )

 

$ (10,255,762 )

 

 

(70,918,302 )

Adjustments to reconcile net income loss) to net cash

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

1,980,026

 

 

 

1,855,236

 

 

 

4,588,136

 

Amortization of mining rights

 

 

1,246,740

 

 

 

939,672

 

 

 

1,657,673

 

Accretion expense

 

 

1,096,283

 

 

 

1,287,496

 

 

 

1,482,349

 

Accretion of Right to Use Assets

 

 

(11,960 )

 

 

-

 

 

 

 

 

Gain on purchase of assets

 

 

 

 

 

 

 

 

 

 

(394,484 )

Impairment loss

 

 

 

 

 

 

 

 

 

 

27,688,030

 

Amortization of debt discount

 

 

(571,559 )

 

 

-

 

 

 

7,725,076

 

Recovery of advances receivable

 

 

 

 

 

 

 

 

 

 

(177,686 )

Warrant expense

 

 

 

 

 

 

 

 

 

 

2,524,500

 

Warrant modification expense

 

 

 

 

 

 

 

 

 

 

2,545,360

 

Option Expense

 

 

1,093,603

 

 

 

230,050

 

 

 

 

 

Net Discount

 

 

206,724

 

 

 

-

 

 

 

 

 

Discount Amortization Conver

 

 

580,195

 

 

 

-

 

 

 

 

 

Liabilities reduced due to sale of assets

 

 

-

 

 

 

(3,271,974 )

 

 

 

 

Issuance of common shares for services

 

 

10,000

 

 

 

18,800

 

 

 

1,906,253

 

Loan forgiveness - NMTC

 

 

397,030

 

 

 

-

 

 

 

377,255

 

Issuance of warrants in conjunction with convertible notes

 

 

-

 

 

 

1,223,700

 

 

 

 

 

Loss on settlement of accounts payable with common shares

 

 

-

 

 

 

642,060

 

 

 

22,660

 

Return of common shares for property sale

 

 

-

 

 

 

(1,840,200 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in current assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(3,032,230 )

 

 

2,386,255

 

 

 

(1,000,917 )

Inventory

 

 

150,504

 

 

 

365,126

 

 

 

351,830

 

Prepaid expenses and other current assets

 

 

(449,605 )

 

 

(175,000 )

 

 

147,826

 

Accounts payable

 

 

(3,053,442 )

 

 

(4,301,976 )

 

 

1,164,080

 

Accrued interest

 

 

281,767

 

 

 

(1,826,244 )

 

 

1,643,075

 

Funds held for others

 

 

 

 

 

 

 

 

 

 

(79,662 )

Accounts payable related party- Due to Affliates

 

 

3,253,570

 

 

 

(97,649 )

 

 

243,502

 

Cash used in operating activities

 

 

(29,092,193 )

 

 

(13,847,255 )

 

 

(19,207,106 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Cash received (paid) for PPE, net

 

 

(3,068,943 )

 

 

417,857

 

 

 

(327,250 )

Cash received from acquisitions

 

 

 

 

 

 

 

 

 

 

650,000

 

Cash invested in note receivable

 

 

(350,000 )

 

 

-

 

 

 

 

 

Investment in LLCs

 

 

(2,500,000 )

 

 

 

 

 

 

 

 

Cash provided by investing activities

 

 

(5,918,943 )

 

 

417,857

 

 

 

322,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Principal payments on long term debt

 

 

(672,424 )

 

 

(1,103,191 )

 

 

(2,059,484 )

Sale of Common Stock for Cash

 

 

29,217,964

 

 

 

12,832,475

 

 

 

7,767,698

 

Cash received from warrant and option conversions

 

 

2,667,928

 

 

 

 

 

 

 

 

 

Proceeds from convertible note

 

 

600,000

 

 

 

14,411,949

 

 

 

599,980

 

Convertible Note Conversions

 

 

8,556,084

 

 

 

-

 

 

 

 

 

Capitalized Interest

 

 

1,677,192

 

 

 

-

 

 

 

 

 

Issuance of common shares for debt settlement

 

 

(5,648,698 )

 

 

-

 

 

 

 

 

Proceeds from long term debt (net of issuance costs $0 and $0)

 

 

-

 

 

 

28,000

 

 

 

8,660,527

 

Proceeds from related party

 

 

 

 

 

 

 

 

 

 

(9,861 )

Net (payments) proceeds from factoring agreement

 

 

-

 

 

 

(1,807,443 )

 

 

1,489,508

 

Cash provided by financing activities

 

 

36,398,046

 

 

 

24,361,790

 

 

 

16,448,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash

 

 

1,386,910

 

 

 

10,932,392

 

 

 

(2,435,988 )

Cash, beginning of year

 

 

11,201,203

 

 

 

268,811

 

 

 

2,704,799

 

Cash, end of year

 

$ 12,588,113

 

 

$ 11,201,203

 

 

$ 268,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Information

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$ 708,076

 

 

$ 327,239

 

 

 

557,663

 

Assumption of net assets and liabilities for asset acquisitions

 

 

 

 

 

 

 

 

 

 

6,623,999

 

Shares issues in asset acquisition

 

 

 

 

 

 

 

 

 

 

24,400,000

 

Discount on note due to beneficial conversion feature

 

 

 

 

 

 

 

 

 

 

7,362,925

 

Conversion of note payable to common stock

 

 

 

 

 

 

 

 

 

 

231,661

 

Issuance of shares as part of note payable consideration

 

 

 

 

 

 

 

 

 

 

297,831

 

Conversion of preferred series A shares to common shares

 

 

 

 

 

 

 

 

 

 

161

 

Conversion of preferred series C shares to common shares

 

 

 

 

 

 

 

 

 

 

1

 

Return of shares related to employee settlement

 

 

 

 

 

 

 

 

 

 

11

 

Warrant exercise for common shares

 

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

Reconciliation of Non-GAAP Measures

Reconciliation of Adjusted EBITDA to Amounts Reported Under U.S. GAAP

 

 

 

For the three months ended Dec. 31, 2021

 

 

For the twelve months ended Dec. 31, 2021

 

 

For the three months ended Dec. 31, 2020

 

 

For the twelve months ended Dec. 31, 2020

 

Net Income

 

 

(10,440,772 )

 

 

(32,394,323 )

 

 

(9,097,560 )

 

 

(10,255,762 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest & Other Expenses

 

 

1,898,848

 

 

 

4,159,813

 

 

 

2,908,579

 

 

 

3,383,294

 

Income Tax Expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Accretion Expense

 

 

179,374

 

 

 

1,096,283

 

 

 

305,636

 

 

 

1,287,496

 

Depreciation

 

 

615,806

 

 

 

1,980,026

 

 

 

443,467

 

 

 

2,298,703

 

Amortization of Mining Rights

 

 

308,605

 

 

 

1,246,740

 

 

 

311,685

 

 

 

1,251,357

 

Amortization of Debt Discount & Issuance

 

 

-

 

 

 

8,637

 

 

 

2,879

 

 

 

11,516

 

Non-Cash Stock, Warrant & Option Comp. Expense

 

 

614,938

 

 

 

1,093,603

 

 

 

115,026

 

 

 

345,076

 

Development Costs

 

 

8,088,810

 

 

 

18,098,620

 

 

 

2,770,552

 

 

 

3,998,885

 

Non-Cash Impairment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

PCR Restructuring Expenses

 

 

-

 

 

 

-

 

 

 

225,269

 

 

 

452,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjustments

 

 

11,706,381

 

 

 

27,683,722

 

 

 

7,083,093

 

 

 

13,029,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

1,265,609

 

 

 

(4,710,601 )

 

 

(2,014,467 )

 

 

2,773,308

 

 

 

(1)

Adjusted EBITDA is defined as net income before net interest expense, income tax expense, accretion expense, depreciation, non-cash stock compensation expense, transaction and other professional fees, and development costs. Adjusted EBITDA is not a measure of financial performance in accordance with GAAP, and we believe items excluded from Adjusted EBITDA are significant to a reader in understanding and assessing our financial condition. Therefore, Adjusted EBITDA should not be considered in isolation, nor as an alternative to net income, income from operations, cash flow from operations or as a measure of our profitability, liquidity, or performance under GAAP. We believe that Adjusted EBITDA presents a useful measure of our ability to incur and service debt based on ongoing operations. Furthermore, similar measures are used by analysts to evaluate our operating performance. Investors should be aware that our presentation of Adjusted EBITDA may not be comparable to similarly titled measures used by others.

 

 

 

 

About American Resources Corporation

 

American Resources Corporation is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, 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.

 

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

 

Special Note Regarding Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company’s actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation’s control. The words “believes”, “may”, “will”, “should”, “would”, “could”, “continue”, “seeks”, “anticipates”, “plans”, “expects”, “intends”, “estimates”, or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

 

PR Contact

Precision Public Relations

Matt Sheldon

917-280-7329

matt@precisionpr.co

 

Investor Contact:

JTC Team, LLC

Jenene Thomas

833-475-8247

arec@jtcir.com

 

RedChip Companies Inc.

Todd McKnight

1-800-RED-CHIP (733-2447)

Info@redchip.com

 

Company Contact:

Mark LaVerghetta

Vice President of Corporate Finance and Communications

317-855-9926 ext. 0

investor@americanresourcescorp.com