American Resources Corporation (AREC): history, ownership, mission, how it works & makes money

A Brief History of American Resources Corporation (AREC)

Foundation and Early Years

American Resources Corporation (AREC) was founded in 2017 with the goal of becoming a leading provider of metallurgical coal and a participant in the energy sector. The company is headquartered in Fishers, Indiana. In its early years, AREC focused on acquiring underperforming coal assets to stabilize and streamline operations.

Acquisitions and Growth

In 2018, AREC made significant acquisitions, including:

• The acquisition of the Knott County coal properties in Kentucky, which included multiple mining operations.
• The purchase of the Perry County assets, enhancing its coal production capabilities.

By the end of 2019, AREC reported an increase in coal production, reaching approximately 1.1 million tons per year.

Financial Performance

For the fiscal year 2020, AREC reported revenues of approximately $8.1 million, driven primarily by its mining operations. The company experienced a net loss of around $2.5 million due to the impact of the COVID-19 pandemic on global coal markets.

Recent Developments

In 2021, AREC announced plans to expand its operations and diversify its energy portfolio. The company introduced a focus on renewable energy initiatives, investing in technologies for sustainable energy production. As a result, in the third quarter of 2021, AREC increased its revenue to approximately $11.4 million, reflecting a rebound in coal demand.

Market Position and Stock Performance

American Resources Corporation trades on the NASDAQ under the ticker symbol AREC. As of October 2023, the stock price is approximately $3.15 per share. The market capitalization of AREC stands at around $110 million.

Operational Metrics

As of 2023, AREC operates several key mining projects:

Future Outlook

Looking ahead, AREC aims to enhance its production capabilities and solidify its presence in both traditional coal markets and emerging renewable energy sectors. The company is targeting an increase in overall production by at least 20% by 2025.

Conclusion on Strategic Vision

American Resources Corporation continues to navigate the complexities of the energy market with a strategic emphasis on growth, sustainability, and efficiency. The financial performance and market positioning of AREC reflect its ongoing commitment to these objectives.

A Who Owns American Resources Corporation (AREC)

Shareholder Composition

American Resources Corporation (AREC) has a diverse shareholding structure, with ownership distributed among institutional investors, retail investors, and insiders. As of the latest reporting, the ownership breakdown is as follows:

Major Institutional Shareholders

Several institutional investors hold significant shares in American Resources Corporation. Below is a list of major institutional shareholders:

Insider Ownership

Insider ownership plays a crucial role in American Resources Corporation's governance. Key insiders and their ownership stakes are detailed below:

Stock Performance

American Resources Corporation's stock performance can significantly affect ownership stakes. The following outlines key financial metrics:

Recent Developments

Recent changes in ownership structure, including acquisitions and divestitures, have been noteworthy:

• In Q2 2023, BlackRock increased its position by 200,000 shares.
• Institutional ownership rose by 5% in the last quarter.
• Several retail investors have increased their holdings following positive earnings reports.

Conclusion on Ownership Trends

The trends in shareholder composition and financial performance reflect the ongoing interest in American Resources Corporation by various investment types. The shifting dynamics in ownership may influence the company's strategic direction moving forward.

American Resources Corporation (AREC) Mission Statement

Company Overview

American Resources Corporation (AREC) is a leading provider of raw materials to the infrastructure and energy markets. The company is focused on the extraction and processing of natural resources, with an emphasis on sustainability and environmental responsibility.

Mission Statement

The mission of American Resources Corporation is to be the premier provider of natural resources, while maintaining a commitment to operational excellence and environmental stewardship. The company strives to deliver value to its stakeholders through innovation and sustainable practices.

Core Values

• Integrity: Adhering to the highest ethical standards in all operations.
• Sustainability: Committing to environmentally responsible practices.
• Innovation: Investing in technology and processes that improve operational efficiency.
• Safety: Prioritizing the health and safety of employees and communities.
• Collaboration: Building strong partnerships with stakeholders and communities.

Financial Overview

As of the latest financial report in Q3 2023, American Resources Corporation's financial data is as follows:

Operational Commitment

American Resources Corporation emphasizes a commitment to operational excellence. The company has undertaken initiatives focused on:

• Resource Efficiency: Implementing practices that minimize waste and maximize output.
• Community Engagement: Fostering positive relationships with local communities.
• Workforce Development: Investing in employee training and professional development.

Environmental Stewardship

AREC has established several programs aimed at reducing its environmental footprint. Current statistics highlight:

• Carbon Emissions Reduction: Achieved a 20% reduction in carbon emissions over the past year.
• Reclamation Projects: Completed the reclamation of 250 acres of mining land.
• Renewable Energy Use: Committed to 30% renewable energy use by 2025.

Future Goals

Looking ahead, American Resources Corporation aims to:

• Expand its resource portfolio by acquiring additional mining sites.
• Improve technological capabilities to increase production efficiency by 15% within the next two years.
• Enhance community investment initiatives by increasing funding to $1 million by 2025.

How American Resources Corporation (AREC) Works

Business Overview

American Resources Corporation (AREC) is a company focused on the production and supply of metallurgical coal and related resources. The company operates primarily in the Central Appalachian region.

Core Operations

AREC’s main operations include:

• Coal Production
• Resource Development
• Logistics and Transportation

Financial Performance

As of the last reported period, American Resources Corporation reported the following financial figures:

Market Position

AREC is strategically positioned within the metallurgical coal market. Key statistics include:

• Market Capitalization: $100 million (as of October 2023)
• Annual Production Capacity: 2 million tons of met coal
• Employee Count: Approximately 200 employees

Resource Locations

The company’s mining operations are primarily located in:

• Kentucky
• West Virginia
• Virginia

Investment and Growth Strategies

AREC is focusing on several growth strategies, including:

• Acquisition of additional mining permits
• Investment in mining technology
• Expansion of logistics capabilities

Environmental Considerations

AREC places an emphasis on sustainable practices. The company has adopted various measures to minimize the environmental impact of its operations:

• Reclamation of mined lands
• Water management systems
• Efforts to reduce greenhouse gas emissions

Recent Developments

Recent developments include:

• Expansion of coal production by 15% in Q2 2023
• New partnerships with major steel manufacturers for long-term supply contracts

Stock Performance

The stock performance details for AREC are as follows:

How American Resources Corporation (AREC) Makes Money

Overview of Revenue Streams

American Resources Corporation (AREC) generates revenue primarily through the production and sale of metallurgical coal. The company focuses on carbon and mineral resource recovery, offering a range of products for various industries.

Metallurgical Coal Sales

AREC operates several mining operations and sells metallurgical coal to domestic and international customers, which is used in steel manufacturing. In 2022, the company reported coal sales revenue of approximately $40 million.

Logistics and Transportation

AREC also engages in logistics and transportation services, enhancing its coal distribution capabilities. These services contributed to approximately $5 million in revenue in 2022.

Partnerships and Joint Ventures

The company forms strategic partnerships and joint ventures to broaden its operational footprint. In 2022, AREC entered into a joint venture that generated $3 million in revenue.

Carbon and Mineral Recovery Initiatives

AREC focuses on environmental sustainability through carbon recovery initiatives. In 2022, revenue from these initiatives was around $1 million, showing the company’s commitment to clean energy.

Financial Performance

In 2022, the company's total revenue reached approximately $50 million, with a net income of about $7 million. As of the end of Q1 2023, AREC reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $3 million.

Market Trends and Pricing

Metallurgical coal prices have shown significant volatility. In 2022, prices averaged approximately $160 per ton, influenced by global supply and demand dynamics.

Future Growth Potential

AREC is positioned for growth through expansion initiatives and technological advancements in mining and carbon recovery. The estimated growth in coal demand by 2% annually in the U.S. steel industry is a favorable market signal.

Investment and Financing

The company has pursued various financing options, including equity offerings and debt financing, to fund mining operations and expansion projects. In 2022, AREC raised approximately $10 million through equity financing.

Conclusion

American Resources Corporation's revenue generation is largely driven by metallurgical coal sales, logistics, partnerships, and carbon recovery efforts, positioning the company within a competitive market landscape.