Earnings call transcript Q1 2023

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Operator

Good day ladies and gentlemen and welcome to the American Resources Corporation’s First Quarter 2023 Conference Call. All lines have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation. [Operator Instructions] Please note this conference is being recorded.

At this time, it is my pleasure to turn the floor over to your host Mark LaVerghetta. Sir, the floor is yours.

Mark LaVerghetta

afternoon good and you everyone. Thank American On to and I like Corporation, everyone behalf business to call of welcome conference our would XXXX Resources first update. quarter ReElement weeks call though the provide to markets division. positioned our also on Technologies discuss for just Even discuss our and update always American conference we business Metals, accomplishments conducted about this serve, we an and six Carbon, within our ago, our opportunity how we welcome uniquely our update American and we

That then question-and-answers incremental on call the Financial being and today provide since update Chairman and some Also Resources’ me CEO; said, we Chief get Officer. will Kirk is our last American our Mark the call. part and call with a Jensen, into of Taylor,

kick the to forward-looking Now Reform Securities materially normal could differ on it of our statements like factors, to other of statement. constitute Act. cause today’s discussed from risks, forward-looking call are off, which actual results meaning everyone Private forward-looking I'd cautionary results statements. the the the subject remind Certain to discussed statements in uncertainties, Litigation and These within before statements we

statements, in risk filings. forward-looking keep are considering should other in which our out cautionary mind uncertainties, When laid press you releases and SEC the statements, factors, and

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

believe today, into Lastly, need for the anyone I dial-in you'll by wanting question a to queue. ask to phone get to

a from few Kirk comments Taylor. are We start today Kirk? with going

Kirk Taylor

afternoon. minutes everyone a this here us and Mark Thank thank couple you spending you, with for

start with I'll some First, highlights. financial

which showcase addressable of and XXXX focus strategic solidifying believe creation. for our The first company markets, position positioning execution, value our long-term within months continued our have to our we several

and to value-creating on we Today, we recently initiatives comments year-end pertaining have had on our on I where commented works. mentioned, earnings certain our some As fronts. I'll our had focus call, in highlighted the just execution accomplishments just Mark all that

in Wyoming update First, I'll on Virginia. our West County, bond offering net tax

we as waste new incremental previously well Virginia a revenue in with cap state facility our West tax of positioning $XX in million County credits solid Wyoming of and bonds. disposal activity, the driver commitment as allocation mining federally the complex As as $X.X growth market mentioned, the million state for are coal from volume private form a of

processing of processing capital technology of non-dilutive existing as fund the from as and facility and to mineral These before cobalt certain two deep expansion streams well elements landfill. waste will our carbon a our facility, critical technological utilizing the pathogen development lithium construction such new sources the improvements underground capture mines, electrolysis the the as to

be States, for this facility to issuance policy interest first from. showcase inflation. enacted rate by the This delayed was element will learn We the a fully-integrated Federal and believe critical combat multi-decade processing United Reserve to to in high mining due everybody aggressive the the

the With the reopened advisers have interest title of are municipal and receptive that of our rates, feel recent stabilization our again, project. to markets

our with allocation. above executing advisers work to on continue We the

a Next, I'll given company, to stand-alone discussed evolution We've ReElement spin-off our strategic talk spin-off its previously Technologies. and ReElement a public division about platform. of positioning also the into refining Technologies our wholly-owned as technology intention world-leading

States Form registration Friday, XX Form review the questions both raised to On address filed -- amended subject our by comments filed May currently or and review numbers timing and process. with Securities past update XX Exchange we for XX/XX/XXXX is under filing registration their our initial The SEC. XXth, this past This XXth, is and January all XX United to Commission. statement and we statement the amended

a sponsor, company part dynamic we Opportunity process. on not main require merge with this AMAO as Acquisition of comment out its cash Inc. we financing that complicated dilutive American highly flowing leaseback as IPO-ed I'll When did to Next, sought

agreement the to Royalty between first AMAO in the statement December, with with definite Corporation, working and Form Management announced Last since AMAO June, filed by comments merge S-X Last the and a provided whereas with the registration AMAO SEC its merger have been public planning through conjunction the RMC company. merger RMC become SEC.

On by and to filed accordingly. XXXX comments will to for and the update Form we timing amended and address AMAO SEC. to subject update May Xth, Again, questions raised S-X their its numbers review XXst, and again the respond December is

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

some existing was the all quarter. future obligations million $X.X and On of On January extinguishes liabilities XXXX, company. amounts million remaining in into last under XXst, converted the this convertible the highlights note the convertible common shares our of This amount of note. of X.X

and development our March of XXXX, our customers. top as a in $XXX,XXX, of than from As little traditional one equipment balance totaled is $XXX,XXX the debt $XXX,XXX financing, less of form approximately bit which XXst, a mine

sheet balance has is Our today. been never it than stronger

of As current just XXXX, of all shares XXst, Class March outstanding shares. over our A million totaled XX.X common

plus quarter our that the a marketplace into net continue the the at approximately contracted first customers. inventory we $X.X carbon contracted end large sell to level of hand on million, on Cash was of to

recent excess held bank are all Lastly, cash it reiterating, tier FDIC above regional worth of given US-based limits bank. event, a the top our by is probably

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

Mark LaVerghetta

Thanks Kirk.

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

the emphasize think that continue minerals, chain it ourselves for strategically is and to within As global we to important reiterate market. critical position I supply in position our

advanced ReElement minerals. platform refining critical for innovative is and an

a While we not within platform. high-value value are we recycling are recycling solely the component chain, believe we a

critical supply However, economy. minerals we is mineral-dependent sustainable highly the do believe towards recycling electrified move of we the our important market position as a highly in and

methods such value important the variety global an including our a in position also of lithium. refining hold We and as processing chain natural purifying of feedstocks, believe ores

noting our important it positioning, critical manufacturing in that innovative for to technology worth States. here our advanced is refining strategic a regards of minerals and of goods chain role and United the in Additionally, supply our domestic critically domestic holds our

China's lower cost. The global produce refine social environmentally use of refining dominance and the critical minerals ability standards both they and ores to lot products, allow environmental in where a has China do socially-toxic conventional capital at a these and their and methods. low with minerals natural to recycling process, to

conventional to be market going very here that believe methods deploying refining challenging. States We these the in United is

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

innovative conventional Our making toxic methods linchpin is advanced economy. believe displaces we US and refining the electrified in in those using China an the and competitive methods separation and used chromatographic purification, important within

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

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

the structure not and out that efficiently adapt have and we of catch needs Refining the Technologies' for massive or market, market it to to disproportionate a do modular Our investment the enables scale lay to design and meaning congruently wait with to CapEx and up.

certain and And a for reduce co-locate allowing custody mineral chain supply logistics concerns be larger model portion we customized can their that of refining or chain supply. capacities they deployed we and work with, to either a of can utilizing control hub aggregation a partners critical them

type into materials manufacturing ore we refine, Our waste, such meaning lithium batteries. is we to a handle of lithium refining it needed end-of-life ores material, well lithium choose technology scrap, as of is can to the as very flexible hydroxide, in production variety carbonate spodumene recycling, non-spec and or lithium-ion high-purity and which refine of virgin that as and the

the in storage of low-cost are manner believe around lithium needs opportunities provide world energy the the environmentally-safe We the collaborative market to to a and meet refining abundant.

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

this In do a fact, can we the differentiator are us. for that economically. only ones effectively It's we know that of huge

gives perspective, us in our more a everyone and own which advantage the it LFP moving is appears that From can research, market clear do market. ever-evolving chemistry, battery broadly recycling the adopting their towards battery

to just producing As as battery storage value-added as ability with position similar trying like black methods other We material a which value-add recycling chemistries high-cost within space, China. our where solvent only either recycling used do mass and here China to evolve refine economically feel China those a battery implement well we advantage sell benefits solution domestically. in clearly significant and conventional such, and are competitive to beyond material have we market, defining recycle within refining not extraction really to the energy back hold defined as for hydrometallurgy, refining, platforms or as the a such our

will here the supply States. finding cost-competitive value-added and which capabilities, in that confident chain, the United critical are competitive partnerships our the continue develop Given minerals additional we we keep and throughout collaborative are to

and Magna established partners as for lifecycle the in We rare States. developing magnet in circular partnerships complete the with had establishing here such early the first success domestic in United we've our earth ones

where really feedstocks. other battery rare And and of with a several earth develop we good collaborative and partnerships. cover programs variety to fostering that partnerships excited we both about we These pilot opportunities long-term continue success minerals are from in have really are elements critical

for It the in chromatography, as been has that sugar our commercial purification such over technology is all further operations manufacturing over large-scale we in has it refining also a that utilized industries advanced century as been reminding commercialize pharmaceutical around and worth world. and

can partners critical refining technology to a a be research we huge and that have Our mineral believe way adapt cost distinction. to undercut China's It's structure. in applied us

we able throughput such opinion. the going our solvent extraction, to challenge tough, refining that be ultra-pure hydrometallurgy with also and domestically be and in stated, to And China as produce a mineral performance, technologies and tough here minerals cost-competitive We high to compounds. or I think as is trying deploying same produce can

ReElement innovation know, mineral different within chain, all has the American ability believe value Technologies for to necessary which competitive the assume As which whether And been is foster a that lower leading are their on mission. supply as dominating us, efficient we will more Resources, China critical refining structure technologies methods, is we this an you call largely due we innovation the this cost proposition in whether to I think in highly team, refine. are, the to refining including management lot

structure cost shareholders. lower as continue Technologies collaborative we value and our competitive confident distinction, a for We're showcase significant our garner value to ReElement including will

I'd now it like Jensen comments. over Mark Mark? to turn additional to some for

Mark Jensen

Thanks Mark.

positioning First, while refining markets. like new the to quarter processing we're the to the applaud of I'd focusing this advantage for our exciting of take divisions our key technologies, efforts on, markets team our in which the leveraging also and and

history positioned demand. and which our the process, At no to ability has a produce, point refine very capitalize in to operate base, and on as business to we materials serve in high and talent better broad that markets are asset in raw our been our

peer parts execution, enterprise a the a our entities, also our substantial that for about or of to excited comparable the at we Given discount the whole currently is believe relative all are sum to opportunities extremely as the of valuation. value but

like markets within to are shifts There's currently, on relations within as back Carbon still markets strong demands it division and and start, I'd each which position. of market the Croatia, shifts Turkey, which well a American carbon been changes very China up as in domestic and to our marketplace. the Australia and historically into serviced here. markets dive recently the of opening geographic we've India, back briefly

additional seen that been market little strong There's same opened space. strong. including Supply domestically invested metallurgical remain point, the growth will being up. mills demand, steel decreasing, a believe while we've We capital being very the has into at

ourselves, assets, carbon whether sales. steadfast asset joint We operating on or them and do through focused our vendors, remain leases, monetizing

operational on our complex focus complex. being the Wyoming our side Elkhorn primary and County the With McCoy

shifted in Both our represent the our high-quality Wyoming cost McCoy cost we have County very recently McCoy structure. markets. products structure to mines represent a metallurgical lower, product, drive operated while low which taking and even very can high-vol advantage be carbon a around production current of carbon that

the restart in revenue plants the announced the Elkhorn complex loading the highest with Kentucky and state plants of recently also processing within providing have the of X,XXX We quality per tonnes region, ton, our on-site standing process two our enabling McCoy can This two us longest facility. our an to to services. while supplement impoundments of with over third-party the one at opportunity cut water us and further hour processing processing an cost of

We be which last grow continue near-term. to substantial quarter, cash market to sold will of the amount us ultimately, have and upon ample That inventory inventory the inventory, into in represents the generate we are to of end which enable market, our execute at which a and we continue cash had the to into effectively substantial business will [Indiscernible]. selling our the

our mentioned cash in equipment, also site ReElement either equipment, complex. division. through grow $XX over we and/or on based desire and represents through in our of sales and/or Carbon the business complex, asset division monetize our complex, have within that American our We've selling Perry generating County we that the We million process currently are either the the on that inventories the asset monetizing of to value to and believe

production. Deane our complex recently, Also has entered

from We we receiving that value as lessor remain to remains themselves cash for and that, complex strong. opportunity have has that current Deane been market to call strong. well that as shareholders our the drive believe the flows the continue And for

over focus run roughly which mine, X to over of as Carnegie balance the X get to the XX,XXX for sections that up, tons we production will us of complex to American out is scale year to we current a Our which Carbon XX,XXX of continue month and should time. do four

quality that incremental operations, carbon that carbon produce investments the growth we the The to we significant mining we've we to access and Our streamline quality own. platform provide with infrastructure the the restructuring have and of efforts given of unique is made products. have organic to along

Carbon, given County we growth And Wyoming as American of For production our carbon on mid-wall focused Complex. premium complex next remain pillar positioning ramping the at producers.

and the up putting that plant amount is order, processing operational electricity of from a good to in Lately, effort able substantial getting County it ramp team be an We're our perspective quickly on into complex. to Wyoming efficiently. production progressing place and in the

earlier, good the The from mentioned rate bond the taxes a million order. West our a we believe Federal also stabilization position in seen of close Kirk As on markets that credit focusing in state $XX we in Reserve. policy to very Virginia on are following have interest short aggressive

also coat fully-integrated a be elements in [ph]. meaning as are carbon earth is critical concentrator met spot. of complex It unique That a rare elements, and will seats cobalt the lithium first which complex, acts that and present within

we ReElement More you importantly, and coal later it's believe set using these a concentrate where our within the only up a profitably, produce Technologies. industry that in be method elements can extract the purified method, can

other of mines it in either of place excited out technology processing it and/or ultimately showcase We're to monetizing avenues. the to world on other adding it that and to get plants goal the in the the with being able license complex that to terms coal of to in

capital With able scale industry position as to up we're this revenue aggressively to showcase the source, perspective. and well the from a value closing excited a be of complex this within from it as non-dilutive

not upon Technologies cobalt, has are truly within the been the but is the to Within extraction made can the on needed made, involved for only The believe old China. within never also already a elements, for solvent which earth rely [Indiscernible]. market we the refining hydrometallurgical legacy for in a has be international has process, Mark -- which ending have never rare expand utilized process, domestic statements We only within an that that market, lithium, opportunities Mark more. already higher space has ReElement present been we what

only and providing but method shortly. by refining cost, more and a manner environmentally-sensitive to not space also lower a earth highly the disrupt critical in elements, to but showcasing it here very world a rare the do at look that being to to scalable We able

to a The service value-added to provide number capacity as accelerate. our we opportunities of are refining continued next-generation advanced seeing

We quickly showcases to of chain, structure refining supply our the opportunities portions which capacity. also of and across terms are the more move in cost performance, and seeing additional flexibility production and ability platform adding the the different of more our

opportunities, As Currently, feedstocks. manufacturing chemistries end-of-life programs various and into lithium are we waste for evaluate focused refining magnets, pilot programs for and ores the lithium and battery scrap, recycling of as and are pilot entering continually these we partnership on end-of-life different our types, battery well naturally-occurring as recycled spodumene market.

mineral supply to high throughput products, critical As showcase will we continue to producing to partnerships are into. ability in we including confident incremental ultra-pure performance, we enter refining collaborative our capacity our

our manufacturing most which We're technology, directly carbonate, battery also in can of XX.XX% used excited lithium recently be pure announcing a to performance process. the

The and quality consistency the product a our key of that manufacturing battery marketplace. continually which will be adopted produce size of we the is how purity and within to

you recycling, through and The hear the where to recycling about a industry about refining that an Recycling significant industry. things within today. talk battery can market driver to We recycling parties. be many add means value ReElement exciting of market continues different

using into material smelted What's Technology means magnets, down ultimately be to to or into domestic where recycled the batteries, ReElement can reuse back that key Recycling market are today recycled breaking China them we forms and our selling either recyclers those within forms products most the and back over battery products. China. about is in new of into

of has which and to is few the players as in within needs the that the grow. of in continues country our key opportunity is big one battery-grade can the market a electric or and goods recycle itself, addressing infrastructure up We're in manufacturing of industry stood which domestic magnet-grade today, that ultimately back sustainability the to

Magna beyond phase what we recycling numerous We opportunities with the have our are seeing partners. in announced

magnets seeing for both those materials. and are opportunities We battery

feedstock commenced EV sources manufacturers, recycle most turbines or small and from also programs these tool and manufacturers tools, producers, critical from battery from battery OEMs, sources, large motors from as to companies recently black power pilot such several wind manufacturing have wind minerals operators, mass to We large industrial others.

several to develop, are line manufacturing We infrastructure needed of discussions stand OEMs well-held in battery electric the plans the auto to as broader with space. their to to and plan, up they fleet, their including also support more a continue transition

how it's value-added strategically be recycling, addressing positioning in of our needs. sustainability partner think we reiterating terms worth a to I In are

scale the we our we what as eliminating available, have ultimately the world, eliminates is for refining which only technology to risk believe be can feedstock shareholders. CapEx We in flexible CapEx risk, that

spend using out to that that We to XX a We extraction don't $X.X up production billion have build and take capacity. to go will refining to complex installment years ramp can expand our end-of-life or today. production ultimately can as money of capacity which process for grow, grows instead in battery waiting scrap feedstock the scrap the manufacturing we means to availability make

chain, programs ours. meaning other the And do economically-competitive the innovative it's capacity mentioned and as capacity. not recycling in bottleneck we have refining biggest refining than global earlier, supply the the Several

believe a used in States. And conventional be such we cost-effective being the China will refined deploy will as operated or extraction challenge not as hydrometallurgical United solvent in methods to be or

to and recycling, competitive feedstocks, handle chemistries with advantage. natural the rapidly quickly evolving battery a Our refine adapt as ability and variety of a to differentiator ability

battery continue of touch attractive Africa. on lithium as such to some very hydroxide With lithium to naturally high-purity quantities lithium refining, we market. regards briefly to including to like I'd occurring produce or the carbonate to opportunities products opportunities, see international

materials, from operations technology produced our been opportunities have of evaluated with regions, As several be to in from States. lithium the process the recently different standards ore-based Africa. partner to selective we meet for And we evaluation including very United mentioned, that in used we our refining have have

of as and refining other critical team's natural resources technology resources believe our best strategic which our linear Upon well XX experience, leverage American over in heavy resource to current for committee, meaning meaning the American as separation, as base our industry is advanced thereby and broadening our carbon we've processing other Resources. such -- operated review our minerals, and Resources' of we lithium media natural interest

will more the into feed a American reiterating level, emphasizing broader, the It division at resource which procurement, natural is diversified and take Resources place worth will processing feedstock. and ReElement initial as partnerships, base of the

especially ReElement is value-added clean reiterate, position refiner spin-off. advanced streamline we refining and platform and continue as its our is intention advanced keep to to an minerals focus and materials, Again, as a and of planned to for critical

in partnership his being As our Western to well independent and Director located are Africa with South we a capabilities network working refining through or a we the And long-term pursuing Africa, material region, region. refine the region leverage sourcing co-located. to experience are within to also lithium bring in that currently long-term this produced either and as refining his to as

its value and the forms instead technology unique attributes resources value. Our us high-purity these ability this to of exploiting enables that of to regions with exporting natural increase into

of feedstock exemplify due in Opportunities the like sectors ReElement scalable needed environmental capacity. produce the modular energy, high deployed our chemistries, pure and its technology, for be and efficiently products ability and further of of platform and to this defense unique to design with attributes sensitivity and refining terms flexibility to our

capabilities this our and as Now, either our and/or company. will technologies a done be a internally partnership through using

to the ground-breaking like the achieved to and and deploy We is add we essence. team to timeframe We it and they've believe quick out we to the around recognize continue time with the top refining drive technology the that shout for team revolutionary best will we've talent put not it. continue that achieved of world. I'd do this a success, believe together ReElement

developing success we of as this members add if Additionally, [Indiscernible], continually ReElement a most members well our behind a through adding team whether recently has the team and the university number long-standing a best have team foundation we of as we the that and division. and ReElement technology commercializing believe that world's and that it's our our the technical Purdue, partners division, from perspective, team chromatography at experts engineering

continued company. upon well ReElement have as talent as stand-alone top execute a position as add to to We further vision and this

a ReElement and Directors one Board battery I've of industry post-spin-off a of these our Bob recent addition a in of is as Bob just off. Galyen, that adviser expert. battery the recent our of and additions at Directors, experts been Board industry mentioned, to technical spin Some top on

Corporation Steven of firm two in of of the Controller our us Energy AES accounting with to Frankowski, and years several segment. Steven ReElement. working Clean at reporting comes experience large the years financial

Daniel critical process Engineer Gomez, element Israel Process in and rare materials. lead engineering in of earth Lead element Archer, a charge materials. terms

and to deliver value entity our continue leader as will ReElement that refining significant the to We position shareholders. a global

Our to to goal the business have we is build that. ReElement and multibillion-dollar and of line team to the a we sight do believe

we Before by ferrous Metals I'd briefly comment like on question-and-answer, utilizing get we've out Metals. been into that American position American to flows for generating scrapping cash metals.

ReElement As not recycling we just mentioned platform, platform. earlier, refining an a but is advanced

the an are to the electrified division, which processor is We positioned economy. in American Metals and recycled be within aggregator ultimately metals

can Given are we ReElement's modulars, packs, tools. motors, take batteries, if capacity, refining battery entire and we asked

However, as refinery also pure want materials. ReElement a we to remain

ReElement an rare the believe end-of-life capacity recycle well materials motors materials ReElement's automated back earth is the those such, that a Metals and able black feed refining American mass battery we to elements be way and chain tools these, feed and domestic great into constituent platform to growth. processing rare leverage in supply refining capacity to earth product as the we elements have for the in developed process the out as a As by to high-value battery the extract

our initial strategic so. long-term in our assets on to In hyper-focused value do remain of steps already of communicated we closing, and our all remain shareholders. that our We provide the very unlocking we value and confident position we

of capital with raise We the have sources available. some have especially equity do we not cash, foresee of need to ample issuing of and non-dilutive liquidity the

largest believe division and execution in is steps Just splitting key as of continued to of doing of the in committed shareholders. our shareholder the American reiterate, the Resources, We ReElement our on value team the management the so. our for are maximizing all

part thing our that not equity being innovative, of our joining They're company proud and this We're a value. the that's bringing guns. built focused ultimately, Nobody that company are is on something hired of in being the about focused One business is we've high that team value, driving salaries. I'm we on equity we're the business proud of built. for individuals in,

we've the everybody build good value believe versus to has and that markets been team making interest both that shareholders We on is the our of and our focused of with our bad recruiting to to and we're business being why their guns. excited succeed sure and team company, about company excited of to the I'm able on been a add able currently ultimately, our the hired driving that's markets. key equity differentiator through business aligning

I thank today, for now Q&A. I all to joining moderator you the call like and would it to of some over for turn the

Operator

you. Thank Instructions] [Operator

And Please Wainwright. first from H.C. go from Ihle comes question Heiko our ahead.

Heiko Ihle

questions. for Thanks Hey there. taking my

Mark Jensen

absolutely. Yes, Thanks for joining.

Heiko Ihle

in Multiples Gladly. than the higher pretty your obviously, space right high reasons, now, green energy are, obvious business. for legacy

the But the to SpinCo mean, move how You board? got one of tech get I can coming up. firm more a clean multiple the across

legacy it had have completed. feels impact for you see. mean, the they to you'll overall in market is Because the co overall, far really company for once you're the all a company doing get good multiple concerned thus like the expected spin-off the are positioning with would phrased but differently, this, the Or job I hasn't

Mark Jensen

clear, think I didn't all but as touched of call in I And make it maybe trying briefly, question. get great a timely that a just our the through that's on Yes, manner listeners. for to

one, But an feedback ReElement. large from believe drive the investing is mutual that ReElement funds market we've open in and based amount had of in value significant that in we a interest of post-spin-off will the on of have

a just only but elements fully-integrated concentrator a carbon metallurgical rare County complex, low-cost, say process. will rare will there, in and Wyoming very value, very, from the producer be earth not earth including we we'll be I a driving producer of

on also but base working of are as that conversations and mining been we've in But the had the only opportunity and Africa we expand to domestically, visited to well. evaluate our including also some there, over Africa, of mines regions in I've and not personally analyze the

but in also advantage Take only that heavy has not core just across opportunities skill set dense processing industry to critical as flotation, the the or team our of mineral that of well. skill in industry, the the terms leverage set, processing, carbon media froth media

the of capitalize decades American no mining Thompson there's be division today. be utilize part have to experience opportunity Carlos exploring and that that and umbrella, sector a the in we Resources to being mining reason asked the Some within of the shouldn't of individuals skill set we're that

the do mistaken think Mining opportunity believe spin-off. of amount in I spin-off. in of Resources business post-ReElement people technology I front of processing with a I our that our a what and skill of approached post-ReElement utilize So, to significant it American -- the significant set, has amount are skill happened think division, core value set drive at proper, being opportunity terms to

Heiko Ihle

makes one you just for McCoy Can us And cash walk please? sense. that through of flow free from expectations the quarter-by-quarter more, Yes, please. then Elkhorn,

Mark Jensen

absolutely. Yes,

So, -- value-added and most as where other events cash of component seen And disasters year, flow. you've last on monetize been have based and our could certain over be. the to and looking assets on the at we've business focus adjusted pivoted the natural we

high very distribution is see perspective and focusing McCoy that two, of a they're the operational And is, McCoy in on operator carbon unique geographic shift those from we of we're one, very-- quality. Wyoming, they're across transition low-cost the why world. -- two very what to we're an starting

different on also leasing good been we out, very monetizing position substantial plays approached continue Deane a complex, or a few that as generate in flow while think it. parties by selling we've divisions, cash from And those to the either we're it

that then division and/or and/or could amount of be redeployed into balance current there's other the on value put just We cash sheet. divisions believe the a there substantial

these opportunities complexes point. that's from a the -- us. that and some evaluate to a at while because them steady, flow we're need business, to because focusing generate -- of don't we why the But those of of presented don't They ability cost are of two lot being other make They need CapEx. stable on structure cash this

set cost McCoy is up. absolutely liability. Carlos, Head of an the We the there. done that job phenomenal division and has environmental spent reducing of money lowering

sheet balance -- off we debt million the on we million And one us had think another just which got $X we that our long-standing of also converted, to $X release. our mine. I of wanted that Debt-wise, restart investor $X.X million of loan our gave paid customers debt to. a

the Ultimately, spin-off ReElement benefit process that from done. probably wanted we've AMAO and to the

we'll very a environment. take of operation advantage now, able the to it's market streamlined So, and low-cost be current

Heiko Ihle

that’s me. I'll in back queue. Well, very Thank for much. good. you Very get it

Mark Jensen

Thanks. Appreciate it.

Operator

Thank you.

is Our Stone. Mark go ahead. Please next question from

Unidentified Analyst

the $X.X see QX it current under from I to from last on of end year of commenting went over to QX, the Yes, end down cash. $XXX,XXX. million

projections So, the QX, in cash QX, of spinoff? can comment also timing that's ReElement the impacted light for of on how cetera? you by the et And that,

Mark Jensen

timing at brought value. of you file current of million mean, ReElement cash market of I quarterly spinoff, at the balance cash had -- market, current in to the not about still do nothing Yes, million I around with inventory but after the week how but the reports, production the of balance $X we think cost, has $X.X cash,

a the from quarterly position, timing So, just cash it's filed. of reports are how

I business the the equipment mean, business. ultimately, has to sheet But it's contracted we of it. equipment either -- $X.X cash which need the also Perry complex, focus it's monetize raise not or million And continue about County to to have from continue to been balance the the to that sell. equity grow -- put on capital. That's the of we don't But with we'll

than that quickly We're pushing establish are believe but carbon currently expand discussions want which advanced beyond investors to that value. carbon, to is that as the spin-off We strategic our in that committee invest -- We that goal want do so. invest today, unlock to real possibly The in investor to the the unlock mining different and may in of will base as focus the value. can. to is ReElement division, we is the to

We get part that goal ultimately, the most our because the for And investors and that the the investors Board. is done in of committee believe unlock process the bank of -- are and a investment process. to Board for advised the the being will in value strategic that by and amount Board

American it Resources We getting million X.X share. I shares trades will substantial about a Currently, value. also and believe back. have AMAO approximately believe around $XX that net create we at

that investors. about as possibly as to which additional So, for value SEC value create approved in another hope through at the quickly the million and current $XX get we we will market, can,

audit also unlock hopefully goal shortly. and another of advancing as awarded which -- in well progressing per the finalizing being contract, S-X process hiring awarded for talk CFO Basically, then Force its new Defense One that forward is that in is to also the [Indiscernible] partnership contract shareholders. process its of a very And the the Sierra, with filing that additional Nova more-- value area with creating we its been Air didn't through of about we another

Unidentified Analyst

going spin-off? are side tell which Metals ReElement the you me American with to Can

Mark Jensen

American good that's and stages evaluating Board currently in procuring is strategic committee its of question. one shredding and lines, for for the Yes, a the Metals two batteries is that. final first one magnets. The

evaluate the will run as it Resources' the as may into But American post spinning team be that the and -- of its the under we'll umbrella. well spin-off that we Resources held company well Currently, division own up ReElement, off end to American that. separate with in

Unidentified Analyst

to need the S-X filing? be that addressed in Does

Mark Jensen

Form to it be filing it yes. off, In XX spin the a -- it separate have would but if -- we

being right as now, today, it's the American of level spin-off. ReElement at So, the Resources post

Unidentified Analyst

Thank right. All you.

Operator

are this no at there further questions time. And

Mark Jensen

Excellent. Well, don't our join for for excited the want you of out We're for of like excited -- time. We your that you and to us, we to thank have us. all We We're of you of know I'd about time front I we about opportunity and listen day take all what lightly. divisions. your in we to us appreciate took joining.

company. and currently of about environment set our front and the us. the market how is continually management platforms, dead of we're We're the on playing -- across -- our driving We creating value all largest that excited on we is out in shareholders have as the of value and focus

Operator

This We today's And your thank does you thank you. conference. conclude for participation.

at great disconnect day. time a may You lines have and your this

American Resources (AREC) 15 May 232023 Q1 Earnings call transcript