Earnings call transcript Q4 2022

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Operator

Greetings. Welcome to the American Resources Corporation’s Fourth Quarter 2022 Conference Call. [Operator Instructions] Please note this conference is being recorded. At this time, I will now turn the conference over to Mark LaVerghetta, Vice President, Corporate Finance and Communications. Mark, you may begin.

Mark LaVerghetta

Rob. Thanks, afternoon. Good American everyone of XXXX I like would call On our Resources fourth welcome to business year quarter to and behalf update. Corporation, and conference full this ReElement since our American our update on welcome We positioned an we discuss American Technologies Metals last to we within discuss accomplishments and Carbon, the and update markets always division. our our opportunity how business our uniquely also and provide for serve,

and Mark President. Also Taylor, CEO; on Chairman today American and Kirk our is Chief Sauve, Jensen, the Officer; Financial our Resources’ call Tom

like could results the Before our statements, forward-looking mind statement. we subject and to kick factors, These to today’s within filings. other it uncertainties remind materially and discussed Private results When uncertainties statements discussed risks, SEC of of press off, call cautionary Act. you I and in actual Securities the normal meaning should which differ statements considering out forward-looking Reform statements forward-looking in would keep are the forward-looking in laid our statements. factors, are in statements, to from releases cause other constitute everyone Certain risk which the the Litigation cautionary

to update whether We also not information, revise otherwise. undertake any a any forward-looking or do statement result events or obligation as future new of

get by to anyone And we ask Lastly, phone following today the a to will be holding wanting to for dial-in you session prepared remarks. queue. a our question-and-answer question, need into

Kirk We are from few comments our Chief going begin Taylor. Financial Officer, a to today with

Kirk Taylor

of at execution, accomplishments for have fourth on the fronts. interest afternoon. you positions our and your some When creation. is to our Mark all your quarter highlight beginning back our important continued that time XXXX focus showcase The value long-term thank and you, of Thank a to step take and and of execution our recent XXXX for and this everyone it company looking

strategic announced share evaluate to and Board unlock December of established opportunities our of had began XXXX, which the repurchased value to program, a out From company. special shares a committee standpoint, our repurchase during XXXX. upon XX,XXX XX, we And of as to a execute corporate team best committee, that

purchased we to anyone sec.gov public We division, it ReElement for meaningful company. its past this statement spin-off, spin-off under wholly ReElement’s value will with In into owned conjunction making American about this in to a again interested go that of to information interest of Technologies outstanding or our subsidiary ReElement would more filed back planned announced the believe And XXXX. subsequently a shareholders. to January Additionally, plan our X.X% Resources. XX ReElement. SEC we own reading I you Form contribute refer we search with our and

focus of have Novusterra, patents our asset value of nanostructure sold broad We and graphene showcasing our ability also monetize to base. our to exclusive carbon the rights and

execution a as Lastly, XXXX, of exemplifies balance converted common holder convertible over into value $X believing by well and our during January our our stock, company. strong all debt business sheet planning reduced in its last debt which largest and strengthens confidence and our million our further and as in as debt

during While into couple more we a of this achievements dive noting pillars throughout call, gone is have it business we in will detail worth through that our XXXX.

XX.X% For in technologies pure battery refining in commercial ReElement producing earth scale. have critical Technologies, by we critical mineral and success revolutionary groundbreaking elements our a elements commercializing achieved rare than greater

domestically. We to are this accomplish the first

upon. is rapid worth as reflecting Our worldwide critical advancing a in Technologies mineral ReElement execution refining in leader

environmentally of our took months first is leading refining under process. unique our XXXX, how differentiator April clear for October the rare we announced purification. material. a with critical XXXX, In facility, refining August advancement of and scale of separation successfully purification mineral our earth a of In chromatography division we multimodal is. and the XXXX, patent and November This for In intellectual recycled we it in element from our filing which we XXXX, critical separation X first of refining, earth our and announced commercial of property unveiled safe time. permitted success technology commercial element rare and permitting scale

timeline, believe also XXXX, And a capital ReElement facility material. an refining uniquely again at then to initial secured be recycled it this independent we success ReElement just from as positioned standalone our company. January commercial Over battery as scale announced in plans lithium we have brief have working the level. We public we

first critical our minerals, supply only our long-term have entered MOUs team including collaborative best-in-class bolster help and key companies We our in two to with manufacturing existence. sales domestic talent partnerships into secure domestic added to for chain the

XXXX us. marks for year a record

realized revenue, than million nearly as more and over This XXX% carbon again of restructure XXXX. our have which We showcases we acquire them. $XX increased assets opportunistically valuable

specialty to we and is are metallurgical our mining products supply region, uniquely a for much closing on focused a of our contributor lot While remain our not of platform completely be our shareholders. mines growth linear, and assets exhausted And where down. of meaningful carbon monetizing positioned from carbon needed becoming to is platform

also and the do options our discuss to actions will just that. we within We taking are control

and strategically position Technologies return Our our an our of including is in we to the deliver economy. as assets attractive process Metals ReElement which in our shareholders, positioning unique what well to platform within great as of value the electrification we is are American assets, our division, division mining a believe

both Carbon to growth costs the platforms high-demand for of able markets. Technologies our Over strong expense eliminate have $XX and ReElement million been and year, in approximately $XX debt payables past and development approximately invested American of we positions million

is mine $X.X financing traditional of of XX, December the of equipment total, balance top XXXX, form million totaled in As $XXX,XXX which our in debt development approximately one $X.X from and million our loan customers. of

into A in XX.X shares ongoing Class all note process, hand of on equity, are XX, the top Cash million. of on And current entire And part at totaled cash converted common just is January bank. $X.X is mentioned our the XXXX U.S. December convertible over at excess was approximately as reflected limits management of end million. of $X.X note risk As held common of our above XXXX, a outstanding balance two FDIC XXXX, lastly, approximately previously, as shares. which XX, domicile convertible the our

I’d now on like to turn our additional ReElement Mark? division. comments to our call over LaVerghetta some for Technologies Mark

Mark LaVerghetta

Thanks, Kirk.

strategic state, for and frequently an we opportunity As exciting represents our Technologies incredibly ReElement division us. very

global critical We supply ourselves strategically in continue the for minerals. to chain position

and that market. for it within I to important and critical refining think advanced minerals. our is platform emphasize reiterate innovative is an position ReElement

as recycling we not We of are recycling a believe believe we the move dependent a value of is solely highly supply mineral economy. sustainable recycling our platform. we a are While meaningful minerals chain, electrified highly in towards do the position the and we important critical part market

ores, global However, in processing natural we also believe chain and important an refining purifying the value as our of position methods lithium. such hold

conventional capital Their our their advanced has Additionally of environmental regards our holds ability supply refining minerals deploying positioning, very, States critical methods and where for recycling, to our role methods. chain them do worth critically with these challenging. China’s they technology in is and lot of it We ores and produce these standards toxic allow our United a refining to dominance in social natural of a domestic cost. and manufacturing socially a in use believe very minerals to to innovative domestic global the critical environmentally and low will market that refine, important both refining strategic lower goods. and toxic noting that and conventional, at be minerals

the together supply we environmentally to a As intellectual as we put solve and economically which property, bottleneck chain, see and we safe. to set variety feedstocks which competitive highly refining, biggest developed out in of is our the very flexible

competitive the just and of in methods reiterate methods of pure and earth United displaces battery some in our producing used expeditious important making milestones. like and some separation timeline the China the scale. ultra-high significance chromatographic in using Kirk advanced our rare in we conventional to refining believe commercial within the purification linchpin economy. is innovative critical I the electrified Our a would milestones and States an of toxic of elements highlighted

we and rare First, the domestic purified first elements. earth and battery producer are of separated the commercial critical

in need to well as refine showcase to as minerals on adversaries necessary tech green is wind United we longer vehicles away advanced foreign can defense these migrate technology depend and from high to energy, and States electric no that applications. Our including

innovative clear supply specifically chromatography within is which differentiator several Our a technology in market reasons, bottleneck the addresses chain. refining for the the

a congruently enable Our out do modular and efficiently of and meaning structure CapEx refining needs to for capacities mineral for larger a scale where to adapt the can and lay the allowing customized reduce deployed with of model, they market the we refining wait partners, certain co-locate be investment using and to have and a to not it we their huge market, or technologies, design up portion supply critical catch logistics control aggregation them can hub chain either supply.

technology manufacturing as recycling, MOU this energy and to ores. or cost world choose ore believe refining the collaborative feedstocks waste, flexible earlier as lithium to scrap market to are storage we of that variety a year life spodumene around needs carbonate lithium-ion refine, the the very abundant. the and for – high-lithium opportunity low of of to virgin safe refine hydroxide, Our we needed into the to and environmentally meet to of materials handle type can lithium a We the is we is end of non-spec well provide meaning Similar production which high-lithium manner batteries. the refining signed in in

to chemistries. efficiently distinction or technology important our can economically battery specific the and for manufacturing is scrap. for and An to end-of-life battery phosphate can lithium-iron technology recycle market, we different that LFP Additionally evolving materials adapt our

effectively research, more we battery a only battery are LFP and their market From is seems chemistry. everyone know fact, towards that more economically. it broadly In can ones moving can this do adopted we own the of perspective our that that do the

sand advantage energy used to refine to we significant battery feel mass conventional work make to recycle recycling has high and our beyond evolved just having here and position try domestically. while as or methods as market, the black well those production China economically as a similar define black to cost the space our value-add value-add of not refining chemistry within the such, in with battery competitive material As within we hold storage ability

additional develop partnerships will to we chain. Given are our supply competitive capabilities, and we the refining throughout collaborative that confident continue value-added

feedstocks. have the rare partners, early We in And lab in for earth opportunities several partnerships ownerships advanced the These partnerships. critical really with earth cover are our continue to of developing collaborative first battery and we the United ones good and magnetic other from success lifecycle have we had rare establishing where magnets into magnet excited both success States. pilot are elements long-term developing as established manufacturing programs, we domestic a we that with such fostering minerals have magnet about complete USA variety earth rare in

Ultimately, our been science technology industries is beyond and innovative The manufacturing the a and purification such over a operations and scale. not around sugar world. for around experiment has is century high-performance in and pharmaceutical in refining large-scale utilized as commercial lab all technology well

us research and in able mineral mineral technology have produce to to China’s ultra-pure Our mineral can applied believe way with we undercut partners and adapted a critical and throughput be cost finding structure that compounds. to this high

our We continue value competitive value showcase will collaborative for ReElement distinction as are shareholders. garner confident our we and to significant Technology

Jensen now turn comments. Mark? to Mark over call the I’d additional some like to for

Mark Jensen

Thanks, Mark.

and our and business team position our would be business I in to more across prepare to platforms. going like also of work put resilient the for all hard thank effort First, XXXX to our into they our

earlier, mentioned we more increased production. million than as year-over-year carbon revenue $XX.X we As accelerated our of XXXX XXX%

our accomplished critical clinical sale this commercializing Having technology. While refining leading our Technology our Technology also commercialized ReElement we ReElement this the record us, leading, world-leading for division – division achieving our while mineral in developing carbon also our business to ReElement going key team accomplish the in and commercializing and growth factor able be place and building of for forward. our focus the is out a to industry, while

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in talent his in at – build talking extremely Chief up continue further will number two first helping have are to is He member expand able the brought We been valuable board we team business us a from on few place CATL, here helped employee people every the team team phenomenal. have them to are about we He Technology are thankful put upon. the for that team next element works he which weeks. excited next that as are and and is was expand we pool Officer. to And that board excited and the do itself in and ground he be he are and with the few that to months Bob’s that we the is same. working Galyen and we that the with We on Bob class. He the

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a to effectively be As leverage such, refining base. able our capacity, expand to and platform then produce metals efficiently ReElement’s revenue products can we be that great to to ReElement able believe deliver to American we is

and as we remain – non-dilutive very needing our provide communicated we cash, ample assets perceive sources us on strategic closing, raise the some especially capital we have steps to In confident do initial especially unlocking in our long-term to to not remain value already issue the position of have. liquidity do investors. so. of of to hyper-focused With equity our all the value We they of and and

We quarter Carnegie would feel From state very the also mines at themselves. production rest Carnegie and the on going roughly the put good we of about X, matter. run-rate the years to of X based month month over profitable levels tons year XX believe and for for for a into us in current XX XX,XXX the of second production next highly the the to that

generate are cash We monetize continue as come most so. the is capitalize positioned of attractive execution for the Just to for shareholder today. complex, assets reiterate, one online we assets opportunity to of opportunities are which are shareholders. McCoy where look expand in American County of all effective flow in to ultimately the business And balance profitable as your early a the to team this us virgin the management I divisions all that the entirety value very the on believe well-positioned will the the year today well they and opportunities continued cost and is us. to we the Complex, we to support as have showcase you the as thank to forward its bring the way of the execution committed believe we maximizing in ReElement continue time front probably continue Wyoming in to market a of and as our we of to businesses in whole Resources, our doing and as in as ways steps largest to our splitting which

the turn for some to And Q&A. moderator now, can over I

Operator

line first with Thank is H.C. And with question Ihle your Heiko our from the of proceed you. [Operator Please questions. Wainwright. Instructions]

Heiko Ihle

for my questions. Thanks taking there. Hey

Mark Jensen

Yes, joining. thanks for

Heiko Ihle

Of Elkhorn, any issues or At facing or of materials sort any either going with swimmingly? course. with are you everything issues labor is McCoy of supply guys supply chain

Mark Jensen

and are are that stabilization I two Yes. labor we see a starting McCoy a to mines. a new effectively perspective is environment I lot mean, today. – from will market they in actually say of

I to was places starting pretty places years less last we’re there much they really – still return the lot work So to suppliers to now, seeing quarter out they in say there was it we even good attractive X supplies, mean, are market. so stabilization the of then that than anymore. year, supply within would probably much normal, people are but of I challenges, will work, But don’t there fourth you I starting pretty to a were were see were of say ago. there’s

Heiko Ihle

enough. Fair

filled fair in So months? progress can X to even say be the last

Mark Jensen

we’ve capacity. less biggest But and a mean, processing plant revenue issue the customer, was, third having for great with the we one the say running it were our mean, processed I I I it predominantly capacity. Yes, sold colleague. customer, us struggling, to expand had at I we would great that to mean, than was was the processing was had we – that

our the to we easier was – processing is it. at time, bring to That to the started made So we own, plant. the we just when he mines, have just our it ship processing investment we was a art state of the customer,

our the we plant and processing drive bring Now, growth to which margins ago. X about own we revenue did had to weeks make to decision online,

here. that So now, region. job, coming also probably a was little because processing also really biggest right our of good, the bit of – in some but very the the capacity. which largest That there’s the quarter we the fourth actually, and that factor existing we thankfully going for And was was could processing not we significant are business, have and is limiting that but the only in to a the are third-party processing good mines first business growth good. region, own They capacity the of bring we in only think in that I capacity production our doing out possess the be not newest, the pretty probably

cash be flows pretty great. the was production at positioned online, business was Now with in the the now the at we’re The capacity throw first own and processing right now we’re coming it’s plant – off. slow. excited where about our quarter processing going And to

Heiko Ihle

Got it.

Okay, both one, this talking and quick then earlier partnerships, spend decent a your one And in press about release of on just amount perfect. you call. time the

partnerships, mostly guess may comes or to saying any uses is, that or when we that against are So comes should what there wide you expect just you’re of markets anything net, I to a see that I’m beneficial? you it are end be

Mark Jensen

On you the side, is ReElement are pointing? that

Heiko Ihle

Yes.

Mark Jensen

African sensitive IP. worldwide. obviously, The mean, certain the we we’re I we domestically to an aggressively we really the very about good we’ve – world are of obviously, working But our about bit the in in recycler, pretty feel and rich throughout. to nation MOU a protect that are of got little be where signed resource and Yes, with a areas aggressively nations going obviously – Japanese

waste in and additional material. recycled We else at opportunities how – to battery are mine shortly in their battery numerous for now co-location process right can their with be we some discussions. are Hopefully in manufacturer plant are that. can sit the designing industry recycling them, another our here here to Nobody manufacturing recycle technology do

and You don’t a It can’t plant battery matter months. take of next you to put manufacturing next next. it wouldn’t that. They a hydromet X they manufacturing would facility plant. want can in battery We their facility years do want hydromet to a a

couple to other So those have technology their our we it’s because even capacity, of are current about over in displacing the but Australia some our of conversations talking our Board over lithium been producers are cost. having members there to processing our lower –

to would the are believe that’s get I for position we’re all on successful look I that And you’ll be will our the at replace we from So team, We world, any going an extraction and market experience, you throughout that. today. at technology think States say solution by Bob’s our of focus – not United just as we our the focused if can means.

Heiko Ihle

helpful. all. That’s Thank you,

Mark Jensen

Thank you.

Operator

Mike proceed with Please Partners. Capital line the ROTH of with Our is next questions. question your Niehuser from

Mike Niehuser

Very taking Hi, on that analyst. the my answer last thanks for my is. or taking call – in last questions helpful the

the that $X Is at end I’m that worth the with and is earlier phase quarter, can the to what processing, is expansion fourth facilities, that close? the transitioning for investment the you of increased there if million that the narrative, in somehow And and ore, related. first capacity. out is quarter and the understand stockpiling said of was assuming processing I of So your with we’re related reason

Mark Jensen

well. and of Yes. but efficiently, mean our – their still wasn’t first quarter our it I We one that just I running that – of the some production as up trick mean, just as internally plant, well. needed that’s customers did mean, slowed I which running

ore, the that the mean, period we stockpiling capacity expanded, processing the during then were running. Carnegie slowing So I up development And of and have Christmas X mine, of the because started expanding production, and own relatively we holidays, didn’t up our we time which, during also the slow. is

production to said, that, as us operating, which Now, put can would tons commensurate three business XX,XXX that operating, very sections will we a which expand at forward. which we hitting are month, and upon, mines, all say be going with today, plants the profitable XX,XXX we state think I they’re where a will a levels,

as customer Now, expanding our well. base we also are currently

we’re seeing to a – in little you thing right good are furnaces able lot Just and with we now. diversifying additional with, coming the production think we blast up bit is conversations will be open online a that of

to starting up. right now, quite is see tight right now demand are there logistics, open a of with bit the and So are relatively which we that

Mike Niehuser

But coal, correct? still all met

Mark Jensen

Yes, mines That’s where those cash lower Carnegie margin products. margin the line focusing coal. what focusing now, because that’s on the I’ll that’s what on everything, going and is the right cash high the just our in flow put yes. really forward generates McCoy bottom business. businesses they’re, for I mean, exploring Everything versus met

Mike Niehuser

was or of fourth the you mentioned the us Can that production. And Dean through you of give some quarters? the starting scale idea first

Mark Jensen

Yes.

it’s does, have does cash But they some opportunities month. delayed they’re doing looking they’ve And there, to a which and they’re very around expansion pretty $XXX,XXX they’re start brought been recently, phase what around up mining. what mining, hydro of revenue some hitting a attractiveness hitting up started And significant industry said XX,XXX around the are low in guess couple in month, being flow we’re very translate off there. thankfully, brought at going a do, would Not but is little right in of just over you’re starting But the a around this but when they they’re of or, mine. a that hydro very, targeting told, their cost tons expected. miners form what team form mining, new unexpected, they stride. a They’re So today. in into they mining, efficient bit in not development right production they’re

Mike Niehuser

cannibalize Virginia. that asset far West some you it to as you trying you it transitioned With the Perry, Got for moving with price of equipment get takin, Perry take present it. potential purchaser? that the it over and or degrade or as And like away of that in to the to if right mentioned the from would going County, Wyoming value to that a is as and

Mark Jensen

cost our County We high us million, to County I reclaim businesses mean, million, our of net value today, roughly today, to one we our our the assets values would the at coal margin $XX roughly we’re opportunities looking cash the revenue be investor flow we would value is in realization most coal can cash business $X mean, for looking at generating maximizing it. pay the for they to investors of value roughly of the come frank, attractive to maximizing our that us be in of that – Wyoming investors. County, the value cash. maximizing we of generation to like want sometimes the believe coal be believe have around from We if complex talk it, would a Wyoming would it buy to at there’s could front very $XX and million. business If Wyoming of deploy we I today. an in those look redeployed the aren’t

to open are that. We

as it our section and those for open run as bring the needs equipment mine, if to can most our assets well. investors, that in to Wyoming offers equipment, County, the was people lot a our are just and it that as all way high. want on We three of Perry today, doing assets County all sections But were could creative other three monetizing to do on those make be focused focus, and we that we but quite weren’t we there’s position, a not and at running there, offers in a And had have is they’re is complex, we put There that focus, that. we can money. to

those actually our of of them close, redeploying to County Wyoming Some were but value to the they quite there assets replacement close division, weren’t yet.

the analysis, right most creative will ultimately, what so, that. looking we’re equipment at the if aspect County, that and for but today. on redeploying our to do not value come the And or they move value, going either to wait we’re and we’re to and match quickly, hands sit to somebody maximize And is means assets need it’s redeploy going now, our at that infrastructure and cost to investors. and do assets for the and we our Wyoming And looking benefit what’s we’re

Mike Niehuser

there’s you’ll you million. accuse the $XX on for construction your budget. never sitting would hands, benefit the bond that I equipment And With Well, regards also it to over if course, that, correct I of is but think moving of that’s With balance by Wyoming sure. inflation. that’s County, will

flow you and these the able at go So going or think and you’re you to not need all going to the with to end to of together do equipment be markets? need equity are things cash day, to – the to raise

Mark Jensen

the $XX and million lot I during the the amount actually near-term can doing actually the offsetting that in of rebuilding ourselves I incentive offset investors that built a are aside quickly. will over tax are generation and $XX is phases doing it – would in setting mean, They’re doing the be we there very for million we of are I revenue mean, What to – that bit costs. of and believe ability extremely is No, I a we we during for development Also, de-risking is I we revenue those moves think quite is to of are development we of say those deliver mean, to already. revenue contingency. investor especially phase the even with growth, be by ready well infrastructure, tax capitalized, complex. already by that,

investing started that have already into We equipment.

already started We in infrastructure. have the investing

that’s and more both Now asset bond if risked the for and for taxes Wyoming, from a for monetizing and success us and good online thing investors. the the to redeploy deal de-risks the it’s de we over going likelihood investor assets extremely long-term. infrastructure be And our getting higher

Mike Niehuser

goes, that a real into sexy what’s as far seems bond if sense it a producer. it’s say carbon being as about looking And Is your move it. Got But you you about that able that closing building production the to going project, to ‘XX can if production? at? that, that and like are be

Mark Jensen

attractive there in I to markets bond phenomenal and No, are failed customers very we – all even, beating companies sometimes when takes and But this. mean, class select interest the job, this open, fully fully that our the can are I a of I I to bring go hold so mean, expressed my we that for there’s over extremely an road think good good banks now down There mean, interested how I is are what the are around be we investors this I right and people I things on desire mean, have the like control. I in understand markets. region that me a world when outside certain we takes just team also the had were control numerous some mind bond it legacy to mining in am a to place – to month product. have with navigating off timeframes deal advisors we don’t online hilltop caveat but and there, doing put our one environment. to many ago, make going sure think is want it’s can we not be

want what seeing to the unemployment market we think even So quickly. that’s a current is nearly last want interest is what to it. do which climbing it’s deals with to today, make But right, the because have with it I also environment. we months sure to the online rates, That’s we’re – And now we stabilizing, it been think get rate mean, done interest we’re thing want navigate pricing I rates impossible the and probably over important banks, tax thing. below just is X get good those most bond a would killed rising environment I

to good we So it. environment for get starting pretty are

Mike Niehuser

in that am build much at Mark, imminent closure long County they once stabilize Washington I County? interrupting, pretty – sorry apologize, would wondering and Once Wyoming be start market for and point, benefit how stabilized or from seeing then some to

Mark Jensen

mean, Yes, we are I quickly. mobilize going to

already to team have be the narrowed it We that’s down up there. going on development

Our of current it. phases had operating to team, Thompson the already site led been the doing numerous engineering by Tarlis times planning

dirt dirt. it anyways, there, before near-term be years, be it’d not be the days quarters think will – probably even moving here it’ll it not we before start I months, closes. think would before start I in we moving – They are

Mike Niehuser

goes, production I far As as don’t…

Mark Jensen

put work fund. tax the which X some I is we mean, in will months. cap revenue generating start there bond is could to got We Yes. and

that’d revenue, development – the a state. for pretty producing X at plant it’s, are building and we can then infrastructure idled used But cushion that bringing be within are have from and We within for revenue pretty bit being good of processing be months, we but myself, generating though. on some and other months start in plants already we little – not safe the can

Mike Niehuser

to But I’m working – aren’t a an are a is you’re have to you’re that totally existing plant there plant, build or little ignorant here on? going is

Mark Jensen

our the that that built various equipment directly two and plan up, have that are plant the and upgrade infrastructure that We is going we been that attractive set it, way way way using complex said, at processing County and already is the – is lot a mines Wyoming we there onsite. Yes, and is developed already deep developed have way we the plant projects. to the into that has – were would have we it’s we the that really of a already

the So upgrading out well onsite a plant the is mines focus deep we There that Southern developing load is – accesses simultaneously. that Rail. VNS, real will Norfolk and as will be the

we – So the one ago, that it’s reason on it million bought of complex a what plan got can we be this quickly, existing and over within paid it’s years it in why mined mines has Kentucky, the deep is it $XX that for the Carnegie number we bought a very to mines. fully two site strata similar is to upgraded we already at the permitted

straightforward development a already it’s And development relatively what’s plan. and a risk today. And, so there plan given on site a low

Mike Niehuser

get I a for lot Don’t of appreciate the of Wyoming a have years. couple going Excellent, doesn’t thank press except on you on. And last that bond the that, tutorial – for that. County you in lot

you thank for patience. So your

is I’m it wondering, the you a people, able right, I And just of until But it Black ability really the their of to the ship. on time your this sometimes of but of opportunity. like, you I kind am bag tough lithium technologies it’s out co-locate, companies talking the want there’s or – disruptive to lots have to that got you’re dominate of be if concentrate there’s cost. in and is quite to it there, the to work many if me like just an Box tell And the wondering know, have for penetrating that, to so each – I have the flexibility, interested don’t ReElement, it to that easy kind going there’s to own an that in like, spodumene, position going scarce. lithium really be seems dozens Moving you’re if to like just to really companies a sounds I’m the having one resource be tricks terms of I the reason am those of in in that that. really to market lithium space, critical out, I items be, and the being the produce seen to But to concentrate. it’s overstate seems excellent lower questions, really it this companies are you thing is where to of that want top rises And difficulty just lithium to able able that long

the you spodumene? the of level to fitting as initial how go-to from so be for see technology do industry able to extraction lithium in an And to, production being you

Mark Jensen

Yes, solvent that’s of And technology chemical of use we we’re settlers, them alternative a show using able extraction, versus pressure a efficient times, really good question. not the and And heat columns. high show a time, to high why those very what series be within way. hundreds a of at are even energy is fraction using columns that’s, our When we’re of in using thousands mixtures not our either. – – or and is our is that is use the showcased

right? – efficient So matters, of don’t cost logistics what matter. The Everything matters, but realize structure form it’s of a processing. a lot very of is people most

So when typically refined, a if a is a you’re the raw lithium spodumene dealing halfway with that there’s world be can you’re commodities, that you’re we get meaning can’t more transporting be across rock X% XX% huge cost commodity, localize can. people to lithium to to that. a high, pure. transporting to to the XX.XX% purified halfway we But Most importantly, world ore, across

So, to opportunity is African be purified. to is, of a thousands of there hundreds huge transported has such China today from nations, that spodumene lithium why Africa been is of tons

meaning and right putting timely processed, because in material we a one, area been works can of three our but that that process scales a our resin, the showcase mines. have we you processed different material proven do facility. But processing And it six better. are our localize testing even already have that it so We to volume at area as because to what is have in that’s is of a nations, it that the area, the be the we ability quickly. it the plant is products agreements the can That imports, the And The surface scale, what interface. can big the surface there that predominantly to can of throughout deal. to could already been deploy and columns, we structure. cost technology small Basically, up now And multiple place resin lowers it months. in the more which surface ability very build bigger months be African we and multiple have more do, then lot in

the battery think big industry localization side So, side, but not I spodumene do of battery also only the a is manufacturing the that on deal.

the forth transportation and wants If showcasing you off-take costs, transporting that multiple I an mean sort of partners the have you in takes sign saving we our times, with everybody that offset us can equation. working number are to everybody money back are highways of technology, been take OEM that things time. and And the immediately a weep. off you and

that We feel comfortable and also it. make select and they to us sure with want to select they want our partners,

have in fifth, technology their for are and that with Now, facility as we sixth, that parties the fourth, now eighth meeting design facility. the speak co-locating we seen are them a third, one certain right for we including

it’s big So, opportunity. a

And big on of is the That’s under a pilot perspective opportunity, million Their opportunities. Now, are there. that is permitted to I a and would that a these mined These nuts, potential mean we big targeting mechanized of we can over huge. the metric say and first program. children, attractive there the of initial production spodumene produce. be a not It’s revenue the to labor, year things fair right the But how are over tons on working XX,XXX an can of are that tons phase bat, mines aren’t year substantial revenue a some is opportunities build opportunities, there. plan. quickly. us exploration spodumene pretty really from off misconception X one are I are are and big a for a mines, African revenue big these are exploration

working We on are aggressively that.

on quickly. and months almost fruition worked pretty to now for have it’s it eight We coming

Mike Niehuser

undeniable, you Great. That’s being my But laid guess producing you and just unique is that that the to have is And of different original is nuances out technology. just you is each have into the your the part or, of cost and I then it’s, about benefit of terms it just I material that has ore as flexible a one the for of to process that super. – it process. question columns sense in high have these transportation, that, by so my the of distracted the lithium huge your technology, present learned a chromatography condition, it with I is, effective of The material I side your was, mines get right savings. purity types in was isn’t

need by a And would universally it in opposed considered company something so as cost could every take they – proprietary, that it something be develop just seems like it years very to be like like…? going feeling would and a to

Mark Jensen

watched battery you met flexibility which a causes what’s purity within is are of unique can him, battery. make sure Bob, with he causes our to because labs technology Because impurities process technology any analysis I run he or of he don’t on through is virtual to board mean, also first we through is what’s what the simulations balance our also joined proof that then have chemicals months bodies, technical We goal. Wang purity. a and star. I then us Yi need that, and the call the years works. that’s dial oftentimes in own matters. Dr. ore balance thankful only join bring by are super ratios. the to can is our combustion to ability what our game He or to change industry. very calculations, I obviously one I the simulation is our the to one run felt like, we is control those the just great, run And we with or We run and he team, will So, plug of mass we mean technology showcase for based trade purity. mean mass materials. and But Bing but we do magnet that our in event, how mean possess what guys All efficacy which an plug because to our that together is mean data, coming it of software about That’s and better. most That XX virtually. but can him tell team don’t the that like, I I put the respected quickly. hard need chemistries. that that Ictus and simulations now agreed unique changer software towards secrets we about was that’s Purity in spend a are weeks Dr. probably in do lithium research running I And us, changer. we that to respected of our When in fires run that him you thing for a we is in comfortable in our not have we high recently machines tanks our is of advisory can based on is team, and absolute it only the Board, he patents the technology, on the the on a that most extraction means move he and solvent battery is express and the of have To facility our rock our our game emulsion to can our that’s the have our the not to any orders software, to important. to that, he And gratitude believes it’s am calculations and on body

Mike Niehuser

timing kind of seeing that you need facility have that you Does are be build the what’s able that? online, or got to reduce the co-location the to Does is that that – in for and Indianapolis opportunity? that the

Mark Jensen

Yes.

our have Indiana. going facility. We announced be to not in did it’s second say We

We are for – the been approved bid that has facility.

we Now, are on documents. waiting

We so still facility opportunities we would displace need it. have the and over renovating a facility. But our on no, weigh existing We not started already. already bigger co-location

So, facility need site. co-locate huge for people selected, to at to our also we our we a the that meet larger scale facility, this but – XX we facility. The partnership it’s opportunities acres,

producers, partners ability us, so we battery in producers, bring the magnet And can producers. to of alongside get

in there, are be our then, have all a scale that excess conversations site. And it them, site. it be of we will – also because will capacity about large our first But it will will at be We co-location. with from internal lot

Mike Niehuser

long this how been have I Got on call. answers. just apologize. I I your have it. I realized enjoyed

the you magnitude lithium more involved purification be several what a demand. with that the As as are and metals far Is of as other market and far magnitudes look big to metal, it’s than lithium, the does of acceptance size going particular the as like like one?

Mark Jensen

just the is cobalt ores lithium so said, because being us mean, went right have profitable. some make the I think now, some in largest I That back up, just We operations mean I opportunity Yes. we large. that prices of opportunities really down. market we front are have because that today, of went projects actually down, shut can because help prices those environment there are

and lithium. other think I so And and materials you to than the they are you other the that’s ores going more nickel explore get. cobalt On batteries, you produce will

Mike Niehuser

you cobalt about mines Are talking there?

Mark Jensen

Yes.

Mike Niehuser

rare for keeping Yes. it’s to Last from and Okay. And long. think earth ReElement do do the revenues year? I you going to see question, we see metals starts the this battery and apologize. this are on meaningful apologize I

Mark Jensen

USA really the side, by on lot Earth going I USA, on the we really year, the they class world will we I year, be for a the From us. making these to and and I Earth which a mean business producer. AML I recycling running hearing, AML, already They end think be bigger I well. that Rare are by I everything some battery close, on could led metals money significant And our the being doing will I projects actually and of side side. pretty And think really some there’s team. move unlock are working mean I both know know, of quickly. mean mean then process. breakdown up is I USA think well, of part are of they this well the and on am are Rare are revenue magnet I help getting –

things we could be those end year, we are outside generating partners the think of of on wait control, our I substantial things. of some by the are So, our there for But times, there pretty revenue.

good that those timeframes. advancing though, about we quickly Now, said, they being are feel and

Operator

Thank you.

of Please KBB Management. next your comes the question Steve Our from question. with proceed Segal line with Asset

Steve Segal

Hey my questions have was asked Most and Mark. Congratulations, of already answered the already. especially. all benchmarks that ReElement, accomplished have been with you asked

if was just I you about can talk wondering a Novusterra. bit So, little

Mark Jensen

Yes, absolutely.

initial So, well. Novusterra we ended that Novusterra will ties into – sold we to to as those pre-stock, Complex patents Novusterra. what the It’s part actually be pre-feedstock – But equity for selling fact. County process of rights in the Wyoming the exclusive up in

but what ability we said the have end see we our have of earlier, out can people to members, of all set year the last is, align in with dedicatedly the of you As interests that. also team focused

moved brought there have our management they on notice was now so And operational in the team a control. over restructured. We And new team, dedicated of there. part focus

as really Defense. one exciting a already one they with of Defense is, have well. second got been did are, sub-license Kenai the military now and first what’s the Novusterra with about Now, for we the divisions, contract approved Kenai

on knock his it way kind easier will doesn’t do smaller process was than and one they comfortable assess is the will the are guy, Kenai have DoD it agreements but technology. the attractive is it be will the raise to getting partnerships They the They work, it be wants are go So, commercialization before. of But with dedicated them. technology goal is a company the of perfectly, through very work tying ultimately, line. team, of CFO, the the and they that feels deal. money. there new the company parties it Josh related that $XX in of then be a public wrong it to guy Novusterra Novusterra and won’t internally then re-file, The onboard. And the need – he million here new will electrolysis He much that is has a that the he that which them, is itself based through had phenomenal and structuring those into through development so with process. a really with and profitable the signed a the that prior, on Not Brumbaugh, can back has shortly, wood Defense. come to wanted He recreate lot who audits it. that And kind anything entity, to

the It’s really nicely. milestone. feel it. They in team about They are on progressing and we So, are it. it dedicated good place. on focused are The is hitting they

Steve Segal

that And area? the be located that be in Would where would you Wyoming think? located

Mark Jensen

Yes.

license I on Wyoming. that Earth throughout think Board and will a a taken to out be before being as I it, I Rare believe up products to also up ability here it’s of pollutant the licensed utilized. it And I end my would that’s third-parties am Kentucky. waste to out be goes material then the because monetize with and But not anymore. them, Members conversations technology from that process And – unique technology well. really licensed as otherwise the to there it will end

Steve Segal

ash, the that’s fly And the for ash? for right,

Mark Jensen

Well, predominantly starting off with so. waste materials, carbon

Steve Segal

Okay.

Mark Jensen

out couldn’t coal within post-processing the can be and as fine are optimal ground, well as on the which is byproduct recovered rare using Tying and in particulates is that feedstocks critical from recover it. the ultimately that’s those earth a this, for electrolysis, the elements you sitting where also that free of present feedstock

Steve Segal

Right.

Okay. you. Great. Thank

Mark Jensen

Excellent. Thank you, Steve.

Operator

Next Lynch. proceed question is with with questions. Please from line Kyle Gallagher Merrill of your

Kyle Gallagher

Mark. Hey

informative, just all of great not lost on with a the your and patience off, of you here. you guys time questions, man, sacrificing that Very it’s the as all thank First us, call. for are

on you thank So, that.

Mark Jensen

taking Thank you we time. guys, the guys appreciate you

Kyle Gallagher

runway am have, of I electrolysis the broadly am guys’ to side, you of – wondering Absolutely. kind it’s of kind type just as trying if the the length a then speak on the portfolio, concerned? like, you around of your chromatography specifically protection centered side. patent as what rare I understand just of and like, kind to could ReElement patent far is

Mark Jensen

Yes.

level, in walk will through it I So, those but a little will dive high relatively bit. I

for technologies on life has for XX magnets about years of produce that the chromatographic left the to processing XX batch separation it. years On

thereafter. provisional originally it was a was it So, as filed patent, then and filed

Purdue actually which process ago, life that patent few actually that And patent, chromatography multimodal filed relatively a it. on worth And roughly on the new then patent just to are years these will filed of So, months we so was the as provisional. that a run modifying battery worked XX with patents. have continuous actual we

is through Ohio Botte, a genius. Our developed Dr. on She were University filed technologies electrolysis by who our Board. is

most the her working I met give my beyond life, so… have my of ladies One I hardest wife. talented ever to got in props,

Kyle Gallagher

Smart man.

Mark Jensen

life roughly patents patents we roughly the about including XX sold for Novusterra on are price, have five Those there about years the patents them. to

long So, all of portfolio. we patent our on have a pretty runway

on working least patents six process at months. of hopefully three get two materials. And additional here also about one are or we filed around for chain Now, next our the those various within

Kyle Gallagher

lines to then it’s speak little I for am Got of last here am trying trying guys your bottleneck just call, I feel far a between the the characterization? in process positioned thing the to side kind that hope of and like, on just the you specifically kind it. just do it And level, is read rare ReElement the think and a recycling bit me. listening but to to a have and you business maybe fair what as I business, you understand the as look at the elements. on you and high guys’ purification of earth think, these ReElement can

that them just bit provide your the to are the a partner? technology the side you process are for securing kind portion to maybe right process to sure plenty the more ramping simply Could companies, guys you, offtake, As working with business? the make of, what hey, of more little that agreements, clarity there ramping is on that just is it it’s point to the you that business those see is and of offtake feedstock see the bottlenecks these business? it up, on companies, just do you Is you or there of of see plenty feedstock, of

Mark Jensen

industry, offtake those running. the going prior there relationships what actually don’t that am the had I a wise, up with the backwards. people way aren’t Offtake those has signed But people and question Yes. your been to firms people, through of from lot firms. work end realize of is in my

States anticipating battery that in announced are by manufacturers the have running most United So, XXXX. XXXX, production

That So, everybody they actually believe domestically problem. supplying searching are for offtakes are IRA material. compliant a being yet. don’t said, not to material going be we One, is

tell refines our we the gives than Ascend – today. to compliant that then elements more That’s effectively We the on lot to also how in our has battery back They material. better a IRA going a Our flexibility a And competitors, rare us. ore. highly unique other where do country material, version a purified have process produce have nobody Ascend. to there earth product they like customer side, customers us to than have the have lot Lifecycle take – changes new things flexibility. isolated, more elements they trying to cam can to them as enables and you that a technology or and ability produce That of the

So, of and issues based conversations we do our the anticipate on not on having based feedback with off-takes.

over, everything have, which I to there. think into that we is could purities palm sell XXx the a especially this produce industry we great

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so what doing the six we have been last that’s And over months.

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feedstock, mean on batteries I the is The giants our on life. he with we our is of feedstock is to of I probably our is which Now, say, Director come of are technologies. yes, on team, the standing the are end will is regards refining starting Engineering, to – to shoulders side, the there

a there, the feedstocks But of on us ores, amount are nature. magnets, supplying education very here the nations and building. people, next side, feedstocks we rear the can those stuff On is throwing in we them magnets. process developed can a we still discuss are way them are the and an to Jeff which we one week developing magnets the Magnet what’s I about innovative logically which then works them. starting see have very who game talk there, a we manufacturers nicely. the to do with effectively able that’s, is into Actually cost we the Jay earth are working is with it’s because have processes we some to absolutely just largest progress internally the that hard be developing of Campbell, hopefully, drive world tremendous magnets idea another to to and amount really through feedstocks. comes windmill be and thinking an resource those by we us. to they But recycle very came innovative that telling that can we And process developed ways working able those now to are delivering are break wind call our for the away, Peterson, cost cost effectively going changer. smart effectively progressing side, in small of But rich who that Alongside, with guys two, this. shortly, to process now, of recycle farms how to feedstocks them which It’s down.

get trying think exist, time, in able to think I post I everybody time a to don’t to energy that what compliance, It’s is is bottleneck. the does the would the chemical then across going once trying probably tremendous locally. whole. associated to are tremendously there keep have to doing feedstocks is process it else mass, you doing, not the and build they as else operate States black to the is are United hydromet. to I it. But difficult the it’s but industry we costs going probably profitably. ability a biggest In So, be nobody refine with And and say operating, alone

Tom Sauve

jump can color, an Kyle. to here add in some I

with and end is more the feedstocks side to continent, closer be spodumene. of ore producing the hands pivoted, those to lithium exporting As a technology not batteries bottleneck. African the life, looked other to for feedstock, to in become permit yes, raw on Especially get But it’s for because processed. grow. flexibility through is is or the bottlenecks end from adoption supply United Currently, regards of in and EV those projects supply. They there need is Getting of come the on biggest types form probably recycling life. the are the we of have of of States. those And there us. reform. of of technologies, explored today And occurring that navigate feedstock at that’s China our will us why sources also our sources allows natural they Obviously, in spodumene key lithium lithium to lot today a it being but developed are

everybody in to I years, as understand growing constraints is XX all hope takes as somewhere up that constraints congruently market the up, add really fits And everything standpoint supply on think have we co that. But we and chain, purified here supplies and States. the well just our to locate methods is can deployed, will those United pick having between deploying here feedstock think that sense. if feedstocks where be – the the the resources, the other probably like there feed value side, And refining that those navigate to given the recycling between the that supplies within because make standpoint, that environmental technology years those and in regulatory that can and which problem United massive can we labor or a abroad of get it, are capacity here. big the flexibility it, space – the States there running in our to a XX that not can going an that’s recycling and of which from chasm why makes cause attempt if we in we we with CapEx good technology, to a solves well as don’t producing and where mine

Kyle Gallagher

to it. a here the new Thanks watch fun company online. bringing guys. lot Yes. it’s Appreciate really the these of And technologies development and been

So, thanks again guys.

Mark Jensen

your Thank you for time.

Operator

Thank you.

from of your Derrick in questions final Our the questions. proceed private Please investor. line Stone, with

Derrick Stone

ReElement, required off? more there or American kind is means can for from SEC input the feedback you – us that with any – for of timing the what filing, any Concerning the of the tell that Resources, spin additional might

Mark Jensen

Yes.

just with understanding So, just Form and nature. the filed came back team work SEC would XX. good pretty initial of questions, stuff standard very how questions, the The we that some management

We have had quarter responded – those to answers those also to to But ready we in re-file but fourth our and the waiting stale numbers have it. without would we questions, are there. filing

audit. our we needed a way So, for

that we within intend Their too through to it happening. and prevent We push now go we was from filed, are again. But we re-file get the standard. filed I happen XX-K pretty but that we the that to that So, Form are XX re-file were can’t this there. questions working that detail, the fruition. needed process. have We would can could and got from into just nothing to much next quickly through amended to that relatively think it week

Tom Sauve

Derrick spin say said the Mark And catastrophic comment are to we multibillion well. We right that worth all is of an for process. through of exercise line in do said we really the value, as on of to stands dollar speed. as commensurate mean on represented focused as to we SEC far out, just we it’s comments feel our shareholders. or and the to we shareholders. We be and well. a I for we of for add shareholders company. speed. And the I sight we But about of our out work. think extracting of work which good can to as questions comments not – we creating the think Technology to we will an value. there of spinning into I the – the want don’t of out – ReElement the we it spin want for want is our team as value value value that make exercise think continue division timing and is that. We hard build that out is are ReElement the we to nothing a some the This do process. to additional sure Like have sake where out want was from of comment have it those in Mark for is that goes This ReElement spin that our all extracting intention sake just We not and spin

Derrick Stone

there re-file? from SEC, So, be you could round another of questions the when

Tom Sauve

a lots and It’s we absolutely, say, It’s that’s hard possibility. see. definitely can’t. But of wait to

Derrick Stone

to then a a Is situation that there and have the year again. to it cause XX-Q XX-K going where is just a first for wait quarter And re-file for the be that? for once you

Tom Sauve

It’s Yes. hard of the to speak timing it. on

Mark Jensen

the it But with and investors the We we in would sale I we is numbers move obviously, that on a come we so re-filed, of best to hard. it. do I time there it’s lot the – mean potentially. it’s hope be Yes, the believe to give need by you the would to that. wish – out, could if of clarity go quickly. XX-Q again, If interest

they but as we it protecting going SEC us. is the does. they can, that what possibly to will are fact mean And quickly do We as it I do. we all move appreciate the what of although

will run So, they process. their

any we possibly as as as will additional answer forward to their they and should can respond as questions, this questions expeditiously process we quickly We push have can.

Derrick Stone

Thank Alright. you.

Mark Jensen

Thank you.

Operator

to the closing going Thank for floor Mark any to you. LaVerghetta I remarks. am back turn

Mark LaVerghetta

Yes.

as shareholder far this largest lightly. shareholders, and do. shareholders are American Resources, build here ReElement take we call the As everybody our time spent on to thank long-term they and at We as for don’t group as our we conference being the American of well it as that’s team what to Resources, value plan we valued we for

today So, future again, interest to future and progression keeping everybody time thanks look and forward updated for your and for in updates. we you the

Operator

This will today’s conference. you. conclude Thank

your time. for your Thank participation. You you at may disconnect lines this

American Resources (AREC) 30 Mar 232022 Q4 Earnings call transcript