American Resources Corporation Reports Significant Revenue Decline and Strategic Shift for Fiscal Year 2024

American Resources Corporation (ARC) reported a significant decline in financial performance for the fiscal year ended December 31, 2024, with total revenue dropping to $383,234 from $13.2 million in 2023. The decrease was primarily attributed to a sharp decline in coal sales, which fell to $15,002 from $12.6 million the previous year, alongside a reduction in royalty income. The company’s net loss attributable to shareholders increased to $40.1 million, compared to a loss of $38.5 million in 2023. This downturn reflects the ongoing challenges in the coal market, including adverse pricing conditions that led to the suspension of coal production activities.

In terms of operational changes, ARC has shifted its focus from coal production to diversifying its revenue streams through the development of new business segments, namely ReElement Technologies and Electrified Materials Corporation. These segments are aimed at the recovery and sale of metals and the purification of rare earth elements, respectively. The company has also undergone a name change for its subsidiary American Rare Earth LLC to ReElement Technologies LLC, reflecting its strategic pivot. As of December 31, 2024, ARC employed approximately 23 direct employees, a reduction from previous years, as the company continues to streamline operations in response to market conditions.

The company’s operational metrics indicate a significant shift, with coal production activities idled since mid-2019. The focus on metallurgical coal has not yielded meaningful sales, with only de minimis tons sold in 2024. The company’s coal production and holdings costs decreased to $2.5 million from $9 million in 2023, aligning with the suspension of production. Additionally, general and administrative expenses surged to $21 million, reflecting the costs associated with transitioning to new business models and ongoing operational adjustments.

Looking ahead, ARC's management expressed cautious optimism regarding the potential for revenue growth from its new business segments in 2025. However, the company remains in a precarious financial position, with a working deficit of $73.5 million and a cash balance of $604,485 as of year-end. The company plans to fund its liquidity needs through additional debt and equity financing, but the success of these efforts is uncertain. The management's outlook is contingent on the ability to generate sufficient cash flows from its new ventures to meet operational obligations and achieve profitability.