American Resources Subsidiary Advances Rare Earth Processing Bi Investing.com

FISHERS, IN – American Resources (NASDAK:) Corporation (NASDAK:AREC) through its subsidiary ReElement Technologies Corporation announced significant progress in the production of rare earth elements from mine waste. The subsidiary has demonstrated a proprietary process that enables the extraction of mixed rare earth oxides (MREO) from carbon waste streams, with concentrations consistently above 500 parts per million. According to InvestingPro According to the data, the company, currently valued at $95.23 million, faces significant operational challenges with an EBITDA of -$23.16 million over the last twelve months.

The company’s in-house surveyors have identified over 128 million tons of pre-mined waste material available for processing, with a focus on an estimated 8 million tons from their West Virginia property. This development could represent a breakthrough for the industry, providing a sustainable and cost-effective source of rare earth elements, which are key to a variety of technologies, including electric vehicles and electronics. however, InvestingPro the analysis reveals regarding financial ratios, including a current ratio of 0.23 and a significant debt load of $229.89 million, which may affect the company’s ability to take full advantage of this opportunity.

Mark Jensen, CEO of American Resources, highlighted the economic viability of using the by-product and waste economy of coal to produce rare earth oxides. He highlighted the potential benefits for the battery and defense sectors due to the high concentrations of aluminum oxide and silica in the waste material.

ReElement’s processing platform aims to offer a robust critical minerals supply chain independent of China, which currently refines over 90% of the world’s rare earth elements. The company’s refining process, which includes ligand-assisted displacement (LAD) chromatography, is touted as a cost-effective and environmentally safe alternative to conventional methods.

The development comes amid escalating trade tensions between China and the United States, particularly over key minerals. China’s recent export ban on specific critical minerals and the importance of dysprosium in advanced semiconductor manufacturing underscore the strategic importance of ReElement’s domestic processing capabilities.

ReElement is expanding its operations, which include a partnership with American Infrastructure Corporation, to refine concentrated rare earth materials into ultra-pure products. The subsidiary also provided an update on its supersite in Marion, Indiana, which is poised to become the largest combined rare earth and lithium refining facility in the United States.

This press release indicates that ReElement Technologies, through its innovative refining process, is well positioned to address supply chain and national security challenges by providing a domestic source of rare earths and critical minerals. Although the company’s strategic positioning seems promising, InvestingPro data shows significant revenue challenges with a 98.13% decline in the last twelve months. InvestingPro subscribers can access 12 additional key insights and a comprehensive Pro Research Report, which offers an in-depth analysis of AREC’s financial health and growth prospects.

In other recent news, American Resources Corporation detailed significant strategic moves and progress toward multiple public listings during its Q3 2024 earnings call. The company highlighted upcoming spin-offs from ReElement Technologies and American Infrastructure, with ReElement set for public listing shortly after December 2024 Despite market challenges, American Resources expressed confidence in its growth potential.

The company also discussed its transformation, focusing on environmental remediation, rare earth element production and the profitability of the metallurgical carbon market. American Infrastructure is moving to a royalty-based model, while American Metals partners with LOHUM Cleantech for battery recycling. The company is working on a merger with AI Transportation Acquisition Corp. and plans to spin off American Metals.

ReElement Technologies is developing a new facility in Marion, Indiana, targeting significant revenue growth through 2025 and preparing for a public listing. Despite challenges in the current market environment and public listing delays for Novusterra and American Carbon due to audit challenges, the company remains optimistic about its potential profitability. These are just some of the recent developments for American Resources Corporation.

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