Earnings call transcript Q2 2023

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Operator

Good day, everyone, and welcome to today’s American Resources Corporation Second Quarter 2023 Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call may be recorded and I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Mark LaVerghetta, Head of Corporate Finance and Communications. ahead. go Please

Mark LaVerghetta

businesses our American that We good Corporation, markets division. and on ReElement our On of business several behalf quarter for provide made opportunity Thank our past an American would afternoon, accomplishments like Resources update. and call I XXXX to we over welcome Metals, to American this Technologies the our of to update you, conference everyone. always welcome second and positioned how within we’ve the Carbon, and months we and discuss are uniquely serve everyone

today Also relating on meetings en the Chief Kirk call is to CEO, route is to and lithium Officer; Mark currently Jensen, Financial Chairman ore for our partnership Africa Taylor, opportunities.

prepared the get So then remarks, Kirk and question-and-answer of we into I call. the some provide part will will

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

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

get dial questions need into in to today, phone anyone I ask believe to Lastly, for the queue. will wanting by to you

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

Kirk Taylor

sharing and you, updates. here Thank everyone, of results listen to a Mark, minutes you, business about our QX thank couple and afternoon this for

unique so, In past for of committee, positioning have with the believe value our we creation. and these platform our have embarked as our of direction our unlock better on several to strategic some shareholders company’s positions unbundle each for go a months, continued of our each standalone long-term which will within assets value of our the markets, on detail position initiatives. further in entity we and doing conjunction on execution solidifying several initiatives company. our I addressable strategic we into Over to all

of First, the spin-off ReElement Technologies.

technology we’ve minerals. wholly-owned ReElement division using into previously world-leading to platform This our standalone critical groundbreaking give a chromatography technology as As a and public our refine intention discussed, strategic its refining spin-off to is will positioning company. innovation patented our Technologies

January, past questions begin with the we filed XX Form necessary filed address raised SEC. and had Subsequently, the to by comments Statement and our information This the we Registration the that update to amendments financial have SEC process.

ReElement time, sec.gov can filings All under of this at we found questions related our all And addressed be at this the comments SEC. and have to Technologies. from

critical strategic a X fund us plans next-generation mineral This investment Feedback thus Tier from capital advise refining this raising at level. far a engaged also investors ReElement’s process, while is We’ve top a positive. as commencing interest through also subsidiary to and have growth been process initial the platform. very bank potential pure-play to

as or process to year, we year will this We later much to. early our communicate this able next have and expect are progress completed as

Statement American sec.gov the public company. into operating dedicated to growth, better a from with wholly-owned as morning, public standalone off filed under into a American platform spin-off Carbon Corporation. with well and we In the separate conjunction enables business spinning strategic team. and Carbon Form its of spin-off division approved the This committee our via our Board filing capital of Directors, can Carbon Corporation. recommendation initial our for our SEC Carbon on own American allocation, Registration be Second, to The XX found separate American

basic of share X shares, X Resources of of Carbon American which receive common In for shares structure, every approximately will American American shareholders are terms Resources owned.

payments Additionally, of American million Resources Corporation time. will over royalty form from of in period a Carbon American to up receive $XXX the

facility and secured will Additionally, of upon normal in PubCo American Carbon Carbon, as American have spin-off option course $XX American fuel place for financing we million additional to its in under facility equity we $XXX an to Carbon factory a operating the And and growth. support are with negotiations the acquisition of business. that million be

financing the go West approximately for most bond County, Carbon platform million of alongside will American streamline represents be coal tax-exempt well We Virginia, announced a will capacity these met $XX the cumulatively operation $XXX in facilities the already million standalone closed feel space. the capitalized Carbon. which development expansion of Wyoming financing Both for of and and a American

Further, at in monetization Carbon platform we’ve spin the it ways other looked than of out. other

focused we As monetizing highly our leases, of we operations, through either remain have divestitures. on reiterated, carbon platform or assets substantial

closed successfully carbon facility to million tax-exempt offerings Development and metallurgical we that industrial West processing Economic development bond communicated fund Virginia which the our Coal will Wyoming County improvements Authority, previously $XX existing also to our at expansion We’ve technological Complex.

the closing, Subsequent the Carbon all seen to certain accepted associated an approximately structure have value interest announced. previously due for million, increased of our the an in our and These which payments, with of several of implied an carbon American Directors which by $XXX we bid not for of consideration duration from and unsolicited was we to have include Board assets parties. enterprise all assets that

value a $XX.X million announced Complex previously of intent total binding per Deane that entered letter enterprise a to into associated $X.XX share. assets approximately or also We of certain Mining sell our consideration we for to

cash received million of per $XX enterprise a American to We’ve a non-binding party Perry of separate and assets party Carbon in of for from or non-binding consideration assets purchase the with million our complex also $X.XX letter County a to letter received non-affiliated approximately total a associated of More interest value, purchase non-affiliated Resources a approximately interest remaining also share. of consideration a or recently, share. from per we total $X.XX for $XXX

for There Management are and several reviewing strategic are obviously opportunities Board our appropriate. these updates of and currently options us course, will, to and explore. when committee provide

a We of and funded set levels. very to well team, production high world-class assets, operating world-class have path

pursue and will workforce these of determine best shareholders scenarios alike. and our our which each benefits We

our as I’ll we public Next, process complicated part highly to Opportunity, a financing cash that AMAO, of out its SPAC have require company main company. sought diluted not to we flowing sponsored, IPOed turn a as or did a as could thrive and that we dynamic AMAO American When which merge de-SPAC with Acquisition sponsor, Inc.

Royalty public company. merger RMC would a a announced AMAO merge Management June, become whereas Last definitive agreement Corporation, with to

resources, sustainability, RMC company current businesses operate on controlled by royalty identifying agriculture, reminder, next-generation in. and within a while constructively including expanding land, streams and a property, As revenue is sectors, assets that its focused cash natural intellectual environment, supporting flow the those undervalued communities

its from by XX, SEC, the and update the Form the SX May working and with numbers the XXXX Statement SEC. the have Xth, conjunction Last address and form since merger December, Registration AMAO planned comments been SEC. AMAO between AMAO to questions for received in to December S-X filed filed comments amended through On provided with RMC, and its

addressing comments S-X, further In and file updating SEC questions. numbers by and an will updated June, further as the required AMAO

over American all maximizes it shareholders value its the de-SPAC time a bleeds when proposed to shareholder merger, will and and stakeholders. remain Following Resources it interest will liquidate

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

our to for quarterly turn summary Resources. I’ll Now American

on the into new common industrial convertible associated Virginia the the of extinguishing took we quarter of note. with As issuance approximately amount second X.X of of was under million million development for the XXst Wyoming remaining The shares reminder, the Complex. a the County, of notes this company, converted development only on over of the January future bond West year, in debt the tax-exempt was $X.X Mining the XXXX approximately all of liabilities amounts convertible

was million are $XX.X A our over XX.X common just end of hand Cash Class XXXX shares August at shares. As XX, quarter today, approximately on the of second XXXX, outstanding million. current

to showcase able mission slightly forward. while operate flexibility are to at creation value to second our we quarter, positive driving operational the we are Over able flow cash our where

of is it probably given excess cash in Lastly, all FDIC worth our reiterating above the limits regional are held that bank the U.S.-based events recent bank. X Top

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

Mark LaVerghetta

market ever another markets while domestic in to ability very refining quarter and exciting also applaud to our within Thanks, execution methods and processing of positioning our technologies position competitive end exciting our truly minerals into at safe the our markets. continued a first of new of sustainable interesting like We I’d refining bring and cost most environmentally groundbreaking critical team sit leveraging with our developed. Kirk. divisions our on to all in

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

to to for better We execute we strategic allocation are value continue separate division extremely our to and teams. and plan on excited with about operating to position of unbundle capital all the opportunities our for and assets growth, entities, extract each

some into dive Let’s of these.

address this the Carbon. quarter. for First, I first will American revenue shortfall past

relationship supply was timing chains chain. supply carbon softened a customers production. over deliveries. China’s to our the largely quarter, Australia’s most product shifts logistics second market sourcing, and carbon and met product within bottlenecks significant and constrained idle Over the global We port created believe of which of the taking the result became quarter, the to we within when shift of chose this product in due second As around

flexibility back bond focus and take ReElement around mines want cost our of our we value highlights In Our production rather not American Carbon to but of and inventory division, given showcases Technologies, on not other ability the to expansion chose run expansion inventory, creating assets. up unnecessary we build to our do our such risks and our closing just associated operational divestitures with to potential focus ReElement as that tax-exempt initiatives, constraints. idle rather words, on also

near, We resolved are the within respond bottleneck being and seeing long-term. the will prices supply short-term over logistic and medium, chain the accordingly carbon issues believe and

on and pick to we some our where near-term at American realizing beginning restarting development on prepare the mining for production up Carnegie levels, left in where of year. our were market County to coal of off Wyoming capitalize vision our such, including demand are of in next quarter team, at the mines we the fundamental while As earlier best to operations we look executing operations Carbon the its

our on two in provide our just interest our letters and of to American assets mining we shareholders. mission the best Perry assets us monetize of Kirk of respectively, to are As ample to benefit receipt opportunities all mentioned, execute which Carbon Resources of for County carbon

made It’s mining worth platform assets and we produce, and quality our have to to we years along carbon have of right-size substantial embedded the significant the markets. reiterating, investments efforts provide the the to infrastructure that incremental products of with that have the a access we to growth restructuring global own, past operations over carbon and the unique organic given several streamline is carbon we high-quality

the provided, we we for news great believe With a Steel. billion by continue we a of to see as own today’s labor note, on with to have side today. of evidenced in We are U.S. consolidation I feel $X.XX we are the the see that position that beginning that bid fruits industry the drive making materialize. recent assets And we Cleveland-Cliffs updates

ReElement Technologies.

an state, exciting that We’ve frequently a ReElement our entity we never for involved and very opinion represents strategic us. Technologies in has opportunity an incredibly with higher ceiling. division As our been

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

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

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

different a and gap – alone end platforms CapEx are the how That materialize to and bridging positioned. hard being to where to distinctively that our levels manufacturing scrap – volumes our when have their and life again, are said, is we are different distinctively going for in recycling time fundamentals. OpEx That of innovative in can bringing opinion, support

harsh to challenging. methods extremely expensive is refining an advanced and toxic maintenance. chemicals, China, in economy. and innovative build Our will making competitive to displace within believe waste these and in the using such the Deploying or used conventional as refining operate methods linchpin electrified here due chromatography, extraction solvent output, hydrometallurgical the States United we be conventional methods important domestically They the are very and

Can But remote is these most a Mongolia. they facilities located there of critical why purify separate reason minerals? Inner Yes. in of areas and are

urgent allows pure us with to ability end the and sources variety products. refine scrap, mineral in critical Meaning, impact, modular, of unconventional a low life to small footprint low-cost, of ores, spend a Our to ultra feedstocks needs. we from market’s produce grow congruently and less manufacturing

The the has we and critical of world in refining needed provide materials mineral the complacent until raw dominance or world advancements believe of we efficient value these that now, never we refining the market. needs And solution. really became innovation just The proposition is with maybe ReElement Technologies. most China’s and

battery lithium of of manufacturing, few laboratory at scrap LFP, in at which our milestones phosphate, scale. manufacturing commercial It’s well. at by XX.XXXX battery third-party needed verified recent purity. lithium iron independent an ultra-pure noting production recently worth ReElement cathode is as We the achieved carbonate, From a

first we batteries. a scale, LFP a which significant believe we milestone know pure achievement. at recycling lithium us of very ion life produced XX.XXX achieve of We of carbonate was are on the that top achieving lithium this end achievement to commercial comes worldwide, This

NMC milestones refine very lithium cost a Typically, to these been our hasn’t it’s chemistries. is unique and phosphate is ability difficult effectively from inherent and using lost. Usually, resides remotely battery effective. battery cobalt efficiently, and LFP cost it the to without chemistries, that makes conventional What nickel vary recover methods. And refining lithium iron battery within materials

to extract more to the ion battery quickly paradigm is the able it migrating from given for LFP ability lithium actually see are to And at we our towards high the us especially chemistry batteries. as more We EV, flip refine perspective, capture economical our where phosphate and is market, lithium purity.

for we lithium forward developments which market we and that us agreements we aggressively the now, pursuing Mark versus able a of spodumene are eventually in XX% puts technically ore Obviously, such strategic is lithium. refine why given about right are to on future expect currently to chemistry, position. Jensen pursuing is how communicating migrate This sourcing opportunities front. look NMC to great LFP We will battery also

with wind and other fostering to success we one the refining established partners, abundant. such provide programs manner which recycling energy opportunities announced, the collaborative have opportunities the needs and and believe good and lithium a developing cost the markets. world consumer with partnerships, broader market are to We already We’ve our we battery the low collaborative magnet success had continue have storage safe around automotive, meet power tool, pilot several to energy, the in and are early in where of have we environmentally as storage energy within we

a our long-term We The are as value-added service of these into are really capabilities and to partnerships. number confident developing excited opportunities pilot about continued programs we to seeing provide advanced commercial accelerate. refining next-generation

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

team to for frame we’ve like is we’ve believe date had achieved have it. that that groundbreaking of achieved essence. quick ReElement I’d our success in that the do the and we We recognize time to time the –

university our Eli behind engineering that our partners, world’s best believe have and we at foundations it’s from and had the from chromatography longstanding success also we revolutionary to perspective, our refining believe Purdue; technology at whether has best continue team, technical of team the We ReElement the to as drive commercializing and a our division, or together developing technology Lilly. from we team this experts put

ReElement as continue to our on add as vision, to and company We execute well further refining a standalone position top global as a have will leader. as talent and

do build into to the team of is a and goal the just business, believe Our multi-billion ReElement to that. line dollar we and have we sight

At royalties asset to continue expand will American focusing on look in value, environmentally refined our be its critical American will and assets Resources its any Technologies feed the we resources in from to utilizing interest cost-effective strategic ReElement plan. Resources, highest natural sales, to opportunities its our within acquire rarer asset industry is value can method. on generated to base sustainable execute mining high division cash and that

positioning remain remain provide value the value. We our confident very all in of closing, on In long-term they to that and our the hyper of unlocking we shareholders. assets focused

ample the have capital non-dilutive sources raise us to have liquidity some available. with not We and Resources of the we do foresee that at equity – AREC issue do especially American needing to to of cash, level

reiterate, to team and as of us achieve help maximizing our certain of value execution believe will that. the and to largest all Resources, our Just is of the continued assets the shareholders our American of committed unbundling businesses management

With that, call answers. turn moderator over and to the for back I’d the questions like to

Operator

[Operator Instructions] our And we’ll question Niehuser. from Mike take first

Your line open. is

Mike Niehuser

always. Hey, as release Mark. press Interesting

a a curious my that – enough to swing understand there’s Just carbon revenues such not lot like significant in side, positive in to And quite sense I just do a degradation not questions if I’m able if be to pausing of but or I’m cash or – for any in flexible the couple a to maintain to you. sure the it reduction assets flow. slowing? order interest it my made production you’re curious of on sounds the by

Mark LaVerghetta

well. Mike. questions Well, first, and of your appreciate support. your you’re Hey, all Hope doing

So…

Mike Niehuser

you. thank Yes,

Mark LaVerghetta

first degradation degradation. believe on no, answer The assets, the we of any don’t there’s

of landscape, met we’re from carbon. we weren’t mentioned business. met we businesses, produce taking on to blip chain, relatively how what the relatively all we’re supply look small the view the global we’re a a, given as coal, and going think I of call, as approach the a producer in through conservative And a just – in and for positioned platform at the I we within our on overall earlier

and customers. is we have base customer somewhat limited good Our

the to weren’t execution of all our the overall on platforms, sacrifice going of put ReElement Technologies, including ground. just to However, we inventory

of customer, main dynamics. became customer Our our supply just given some chain constraints, the

not dial overextend execution. back ourselves, production, chose we to on So on continued focus

to assess an variety options executed LOI a Deane continued We our Mining to that Complex. front out in us. We of of came sell

we’ve mentioned, Wyoming received bond multiple our all just we our closed issuance. in As on of County tax-exempt LOIs We assets.

given a of ground of just side on you. ReElement that head from on for forward. we’ve bunch a driving But So profile, weren’t was still our have and execution that sense we from an the standpoint the I just inventory to business. makes risk execution put continue going spend to to down we that – overall money the hope capital the

Mike Niehuser

Absolutely. Thanks for the answers.

Is to Sorry But that’s just County to Or to do dive going is you’ve been those there’s six What quarter? just and of a happen The mines Perry it I’m causing get interesting this like the I I’m for Deane it coincidence? this between that worked environment an and – lot to Wyoming answer. these all things is it’s the going so question. flurry can can Obviously, sounds to Carnegie to the between of of there into flexibility XX to you’re these in you asking come the And where a ahead on et just try cetera. and got right something where side the this with and activity things that sparked of business. reason guess, you Or away? LOIs. months? indication

Mark LaVerghetta

I the you – secret. don’t a read it’s lines. between it’s think I Well, No. Sure. think can

monetizing assets, – of includes of that our think assets. I and as and we’re we’re specific steadfast selling or focused all on assets those we’ve said,

of brought carbon the platform. last closing as a the the our take vol some fully tax-exempt mid of I met to – at region, bond carbon parties are back better capitalizing look our boundaries that Appalachia issuance virgin one in think the of of

of release gate unsolicited we out of post issuance. – press the we a Additionally, bid received an the closing that bond that coming

the in kicking and I call, to with I on aggressive mentioned you’ve were think U.S. why marketplace of the on that the earlier Cliffs had – the seen platform more at the people today certain them. assets Steel. bid that it tires And for looking get

folks is, production their and where supply aggressive example, feedstocks think, continue it. to I the for very have this cycle steel great job great resiliency, sourcing of done cycle Cliffs of focused and in global vertically in they commodity are the on They’re be market. we a sit chain a integrating.

that’s part well. I as of think it

of at looking and trend I think in steel markets it’s chain the their a vertically producers material. sourcing macro global integrating supply

Mike Niehuser

the something know else. County I Well, of Wyoming the quality that is

think chain a as I so, of clue you be that gives resiliency. kind others might And to at looking supply us how that for

So Mark. good another really good before Taylor, guy. big a on congratulations Also, – picture to competent I hands forget, that’s a answer,

think for be but careful what I So him, you great is this want.

oh, – shifting ahead. on And go

Mark LaVerghetta

you’ve Well, assets. with appreciate good Taylor appreciates day No. I I your that. you’ve, you like touring spent appreciate the we And I I’m know said, And a sure tireless, interest. – part that. spent of our

Mike Niehuser

He’s the man.

Mark LaVerghetta

Yes.

Mike Niehuser

is? manufacturing on floor at you So lithium? guess, that I lithium lithium not the cutting over Is but I’m what shop? – left what’s could side, for room the on ROTH, define just guy scrap I that is at the a what from battery that

Mark LaVerghetta

Yes.

Everybody think, battery. way or on I from whether it’s that. we level like power uses I vehicles, earlier, perspective, believe electric it market, and our tools a said we things it energy small the to different at and a just storage, depends storage energy high explain application, general the – best it

using battery chemistry. phones typically or using cell Your LCO LCO laptop your

manganese Iron nickel a kind in LFP chemistries cobalt, of the the NMC, ion you an of which towards commodities a ion don’t lithium less the high migrating into that cobalt, is just nickel, LFP, lithium go have valuable. opinion, NMC, lithium relatively phosphate value. between – our carries been and phosphate. It’s phosphate, need more price are EVs mix the of given

in better two evolve see NMC characteristics pace. at is density, rapid energy higher carry you’re a energy state, we well. safety as energy but the the a technology to can little density battery difference to bit starting a So – the on that the inputs as between good And density. it LFP, continues provides

LFP and towards of less chemistry. more the feedstocks go safety, expensive production into density, market that battery the an as that energy the is So migrating

Ford you’re seen announced giga-factories, is, like. Tesla in – starting So LFP you’ve the

an And So a there’s sizing, EV cathodes battery spray lot is It’s coat a for migrating cathode you’re definitely messy the in or you waste. manufacturing process. a waste your you more trim towards process. of of chemistry. when lot LFP material, there’s When it batteries,

XX% to manufacturers trimming I But waste reduce I is they’ll they’ll to to want currently. given is battery about the to that. zero not know our very capability. be think going levels hard it it’s very inherent estimated – get understanding just there’s and low never

So there’s a lot of scrap material that goes into the process.

Our having into that, ability able recycle head we’re Pacific and back domestic it very collaborative that’s strategic manner to And parties and do modulate a to head with the region in for a manufacturing to of structure to manufacturing. matter China take when certain forms, shoring key everybody. and reduce prices cost on the at that ability competing to to we’re the scrap reduce able co-locate it gives logistics and Asia when because and matter, looking high input with purity advantage you’re us

Mike Niehuser

waste you of kinds pretty pretty is. theme So left much take of kind And in is the much regardless in this the from goes rain, of whatever with out conditions along what but that batteries, anything, different of anything. it it sprayed can not

amount as to the If that dump. able a minimal feedstock, purify of your goes the none to it understanding have of to goes it, you possible basic you’re so

you that such. I a taking and finding right it partner right the here. away place I at matter And prove can I’m it think just just do that’s the you depends of what guess on,

what I into drive that’s So that.

Mark LaVerghetta

Yes.

all You’re Auto amount highly the production. right. reducing of of waste on any are of manufacturers that, their from focused that out come total

for that to Our justify after only in value can recycling ability the we you because do to typically you cobalt NMC need cost your that, process, very go solutions us, provide structures. nickel efficient

to For us, is. high manner extract chemistry. battery ones Again, showcases scale very able and the effectively, form, efficiently that at structure in lithium low-cost that. purity commercial been low very a our from LFP cost the how cost have know only very we that it showcase we’re We can

Mike Niehuser

Okay.

upgrade off process that? timing you’ve a coming think could on a lines, How as along they become marketing with kick what those So shipment the soon to to going of able Africa. seek to And that do spodumene industry? Is that got companies you’re the – from lithium to maybe is to tackle mining be standardized going that? their lithium what’s in you

Mark LaVerghetta

Yes, good it’s a question.

think hard I timelines. to very ability think of effectively can always take timing to what predict is life or you it from given LFP from from it’s or our just if cost refine input, counterparty’s very, away doesn’t or I is perspective. NMC But from it’s scrap ore end manufacturing very perspective. the technology differ spodumene virgin a is and It’s whether the ore-based or really it input feedstock a structure similar lithium purity

of coming ores. We natural look from forward purifying to communicating occurring our milestones lithium

process We our lined We have technology what know out. our capabilities are.

then, about here it already it’s – We’re think, begun. to communicate hasn’t short-term and been fine think you those it, well, tuning in position And a as in milestones. right, those today, I think we’ll the be I

not again, raw The of partners today of and the looking our visiting reason our Mark some Jensen on some those to is partnerships call abroad source showcases our because it materials, of to what form advantages And is in. carbonate purity or expand he’s really to the battery that purifying industry high lithium ore needs. stores lithium-based natural into bring technological hydroxides those

Mike Niehuser

Well, modeling just me. a for question for

the you sale like and you couple some there’s in that sort dependent far ReElement production side slump a revenues, we as in there. there, move place lot to of As able assume either market there, to And it’s sort should of or looks with the just lithium the with start as carbon It out you rare revenues things quarter agreements. just County cetera, what narrowing on. earnest, come closer on assets, with Wyoming et everything be on or back a be going that’s there’s to like, activity mentioned as, going going of with into the these

Mark LaVerghetta

lot going a on. is There

decisions press about think at release. looking we’ve market I there’s on that seriously asset, we’re moving think are But We And our best restructuring showcase is is the a on today, We of as from very right? place. of some certain the think hard market carbon benefit our growth going believe talked work to towards very press in on divestiture But, options. I shareholders. call we’re valuable only the a putting our the platform the to given assets, attractive the that we asset assets front that I we’re the and I the earlier the and fact carbon that that value put again, efforts release valuable that make is think in decent we’ve all page, tried considering options. taken that

Mike Niehuser

meanwhile, the soon could a of cetera? something how the in move opportunities, et infrastructure as respectable Wyoming County additional with Well, existing the startup into

Mark LaVerghetta

some started over Wyoming We’ve development that Yes. County. at early of

would getting I think development position sometime start be next production started year, we over some to there. in

Mike Niehuser

Meaningful. Yes.

Okay. as or lithium, revenues seeing to from the ReElement tell might like, too when early we as, far start revenues? And

Mark LaVerghetta

with in magnet we’re have little And fourth manufacturing here I plans manufacturing There’s infrastructure partners think United States the two in with right? entire grand three this in produced we’ve magnet –we here the partnered the being United one thing to that’s gets of consider lot heard of States, being States. a produced very but of put United to that’s the stood There’s as up, a today. whole not

manufacturing We’re But for production. the energy happens. very little battery currently, on earth centrifuge discussions with giga with here in and them. rare Same today, storage factories

So continue to stockpile product. we

been programs continue where run facility. our at We pilot you’ve to our

lot in of much marketplace full partnerships. a suits purified our program a technology probably best up than the are or to currently. of we’re partners times, that’s showcasing pilot putting facility our dropping more valuable we few batch what is it taking nurturing into kilograms back commercial A running sound showcasing We’re efficacy product partners potential We us and partnerships process. really commercial that more think that and frequently our the into

Mike Niehuser

inquiring as But last to and take comments make Well, starting like are hogging but a mines you question, Yes. off capacity questions. far step sorry thank things It want know. And co-locating. taking shape call, your one Q&A. just could my the you the and just looks for couple of But I’m facilities? to for I’ll about as

Mark LaVerghetta

out Indiana good Noblesville, really the We’ve is running. R&D can technological facility in advantages as just through about currently, It’s run we the we Yes. talked of facility. an currently Well, our given actually chromatography, that throughput center, up tons XX-acre talked Marion, but expansion output past, pure to that out we’ve that scale, larger as… with campus, capacity in build much Initially, earth X,XXX we’ll rare oxides per of look annual, capacity, of our building Indiana, initially. well of about as

Mike Niehuser

say? many tons you did How

Mark LaVerghetta

currently of different of earth of lithium high of the a variety are model tons then And X,XXX Again, on just side let’s and be tons. the chemistry preprocessing from that NMC, oxides purity year black and tons of on cobalt bit inputs, was, lithium side. the rare chemistries input, little inputs, quality X,XXX battery looking to X,XXX nickel out side a mixture inputs, an earth to purified of critical recycled that carbonate, about minerals based but say advancing building of the to per a on off from about the we rare of the of at per a Eastern year things that harder sulfates. X,XXX in the And to it’s would X,XXX of Kentucky. we’re the third perspective, a equate mass

Mike Niehuser

Right. forget Thank that. don’t you – for

take starting Things done, congratulations. to shape, Well, continue Okay. are actually I’m to…. and

Mark LaVerghetta

Thanks, Michael.

Mike Niehuser

Mark. Thanks,

Operator

Samuels [Operator Instructions] question next take our from Fisher. with We’ll Michael

is line open. Your

Michael Samuels

Yes, your million cost a up $XX questions. sale Mark. looking was current I when quarter, of almost this was went million. your but down why quarter, just yet at of processing, it one, our went have Number and coal a couple $X sales I

That that was was high? how one so So thing.

the And is, we year ago. last announced back time another the the in any had Did so far? question some – shares you this buy too question I I – buyback other have

Mark LaVerghetta

coal do in points. on you jump the want maybe processing? cost of to Kirk, Two

Kirk Taylor

Yes.

And really is it’s we next through – and it’s just evening aspect a when it the your of through that expense off costs, when sheet it inventory the quarter. sold timing the you to see so you P&L balance capture take should over that out coal when

Our coal fairly are chunky. shipments

or before the the day more the after it inventory can shipment large day impactful quarter, some one provide have cost you swings. if So

six, more an picture. you nine, get over So XX as of that at you look three, even months,

announce a one committee they that program, Regarding up. share buyback that points of the the brought strategic we is did

during call, any end XXXX. year-end buy But we during or did XXXX. the discussed, we shares As back bought of not the back on have disclosed we earnings

Michael Samuels

letters I so mean, down. letters this down, stock and just intent, intent, a of down, I’m the to you’re the looking, you’ve continues could share. saying be we’ve you’re $X.XX like happened had intent. got go down, to in and down, And saying of letter And be that just of worth talk us watching hour after here

at a looking get you if from a think $X.XX And going just buyback to least be that. so would you’re would at you at $X.XX,

the the the of were then mentioned were we ReElement. spin-off had with of to other we like Resources. share going the do year, Carbon American for beginning American we going shares at last then every you same And X I to is, X that But call also also, question

would we off why both sections at each? So spinning a be share half

Mark LaVerghetta

Kirk, to…? to want want me do take continue or You you that one, to

Kirk Taylor

Yes. no. Oh,

So yes.

business to So, go through the be through strategic again, we options operating deserve does the committee, public as each company. standalone its

[track as at on them, track more to teams American as the operating those so to own. those remain be would they executed, we lie execute to world-class manager give on outside on Once It run deserve seem a Resources give it looked current would would to model. their do And are company. show opportunities that listed to flexibility opportunities. show talent, It building of public business it flexibility some take NASDAQ the customers],

as and community those business progress have plans clear well and to the a message base. again, we of on structure as the each and defined So workforce to as to subsidiaries, them customer investment

feels public of to again, and their so, And own be deserve Board they management company. that the Committee each Strategic the

Michael Samuels

Okay. And question… then last

Mark LaVerghetta

If in I add can on…

Michael Samuels

ahead. Go

Mark LaVerghetta

– each carry of value. can they they the Carbon multiples, drive than in We the them. that operate would reason It's to American, different well. that I with that things ReElement forward carry market differently too. and on have a Hence, probably me, unbundling would Those separate public capitalize Technologies. in in well. given opportunities the front multiple entity. both of also as the different we They of If that excuse American them in We assets think add just as to extract differently that, would look markets

separating to for an makes and do So capital operational then growth, well a it multiples from as public and lot so. governance marketplace, sense the allocation perspective of in

plays. that sit the the ReElement split refining, be And we then looking variety a given march of very able element carbon refine cost of different advantage the we're because It's would can refining minerals any just where Again, assets, in play. American high American over lithium or to potential post strategic at Resources divestiture to Resources of continue to of lithium natural to critical that refine. into leverage broaden forms. resource hard Again, purity Africa, effectively would a

Michael Samuels

enough Will batteries? able you to get be

Mark LaVerghetta

we're coal, Well, now, ore us now natural for which bridge from now, that an to is all product, it because that's opportunities iron which years exploring just are to are differentiates any going The are XX Is life? years of occurring years is right strategically it become from other us from the going of just ore, when now? that or be unique – like thing. helps gap mine-based spodumene, these to XX batteries end right, five again, like

here end access today. bridge takes being I producing that the scrap. available set, input on That nobody helps market on dependent is of or our when gap recycling has mix very infrastructure life and a larger products earlier, mix is deployed, is lot Getting but large in like United market the of high-quality widely a in manufacturing yet. being been said on ores for the Mandate much lithium to things us But isn't in attractive up, volumes scrap us. hands feedstock. manufacturing your or is recycling whole capital is of The States stood

Michael Samuels

we the SEC applied know Okay. you you questions ReElement thought And back answered then I I And last had the question. side. them. It's and been for from a while now since

So the along of spin-off on far right now? how ReElement are we

Mark LaVerghetta

announced that. Oh, relative. a spade some really mining time think refining Mike, we reason strategic was is to spade. inside from doing a called of perspective company, clean for the why There’s embedded a tech just company us strategic coal advantages I because it initially having

announcing piece Resources. aren't but managers. Some to have But allowed a buy. They of managers within American a they portfolio we can't maybe it planned portfolio that buy gives want it spin-off, ReElement,

there's some incentives grants aspects that, other and different, in lot strategies opportunities as developing the chain well. government-based sense a of commercial makes And whole at supply looking within from other or partnerships that of

this maybe be wanted plan. our early announced So the we is because it there's a process in reason we of why record to on

Michael Samuels

we clearance] wanted the forward. go [But if to

Mark LaVerghetta

Kirk, you want to….

Kirk Taylor

Yes.

that SEC it the getting spinning just strategic trying wanted process. maximize out that we're not sure just a with at shareholder is now to to out. think spun this public along and value proper of point, discussion sake We I and we're and for make company

value comments upon. it So through don't this to we and really comment we or really the go into wanted one that's I process, is want our act point being go, want or of there to think it, to as I keep to get so. far no open, we options get probably I as the actionable have to when –

Mark LaVerghetta

Right. do – But or it's think is execute I out Mike, the a, showcased like past, things strategic; is I've ReElement not always but, the I've not me of to you've on to in objective – also in regards it's we talked spin-off, our ReElement quickly, said ability repeatedly b, right? spin talked is to we've here. the primary so. not speed And the to when

speed market let if easy the investors strategic discovering market capital through the think let primary ReElement value how raising it value and off to we process drop into I public the Or hit we objective, through partnerships. public figure were can out by separate the help could the button it. and

Michael Samuels

Okay. No, I understand.

you. Okay. Thank

Mark LaVerghetta

Thank you. We appreciate it.

Operator

KBB from take next with Steve Asset we'll Management. And Instructions] [Operator Segal our

Your line is open.

Steve Segal

lot going been magnet was there I new know the I just question but as far or was talked talked in about ask any this new – The so lithium I partnerships? you area to was as we just a things well, Has far answered, wondering, call. Mark. lot Hey, developments a in

Mark LaVerghetta

magnet the or the on side On of things lithium?

Mark LaVerghetta

magnet side? Yes,

Mark LaVerghetta

in have to manufacturers, where our variety today strong a very programs continue We feedstocks pilot powerful auto large we of pipeline from OEMs. intake

supply their back able into our in critical providing sources chain sustainable – do We raw of the of technology, showcasing continue those to showcase what to our materials. efficacy we're

where getting closer there’s them yes, haven't we're side. by able continues – there a announce the on be progress magnet we're to – name. I made. to We yet gotten developments So, say and publicly to getting just we're would point But

sustainable one Steve, – flexibility look different ability our us to differentiated is allows as platform it think an our of looking high well. take I is products the and thing back at also of powertrain purity feedstocks, from to recycle at into to highlight, EV the entire

rather for an to recycle handle of looking well versa NMC OEM's So the take just only battery and can chemistry. we to ability vice back ability out and them a team battery talk at the magnets as us EV, motor recycler, battery than to our gives and

we're much a drive able a We proposition – is I and pilot to continue we high would to And, perspective, we with broader auto's those have communicate yes, appealing to. from we communicating success. of an milestones forward at. programs what forward feel to when say, But degree look those look

Steve Segal

far – as about Okay. question And then that. sorry like, the other is, the as

you – and the Carnegie the progress you starting, when get some have that? can far LOI to seal. in Because, timeframe As type the Wyoming for goes still as right? is get the reopened whole in meantime, and on or there a of Like,

Kirk Taylor

and customer County earlier our there. did our on market when our hang back execution developing our as forward why Yes. narrow. that the as And hat Carnegie forward, – mention talked far We not as We're about the up just we is is think fairly getting both to base path. I I Wyoming mines to running on on we feel broadening that's drive operational We're call from an going standpoint customer our we've need well paths one base not working right? solidifying.

divesting we continue like we to of well, explore the as while avenues that other platform the forward drive platform. execution pieces entire So or alternative

Steve Segal

Right.

Okay. Thank you.

Mark LaVerghetta

Thank it. you. I appreciate

Steve Segal

you Appreciate guys.

Operator

this the the to back program questions I'll at it [Operator appears additional time. no Instructions] turn we closing for or any And that speakers remarks. have more

Mark LaVerghetta

thank, to the participate Well your forward time you with and in your busy call. We your out your future. schedules on everyone, of today's to executing to near you Resources and took interest behalf I'd like in for in look American again. communicating Thanks,

Operator

program. This today's any your Thank you and time. participation does may disconnect for you at conclude

American Resources (AREC) 14 Aug 232023 Q2 Earnings call transcript