American Resources (AREC) reported its fiscal 2024 Q4 earnings on May 19th, 2025. The company narrowed its net loss to $-18.29 million, marking a 26.7% improvement from the $-24.93 million net loss in 2023 Q4. Revenue increased by -101.4% to $49,677, contrasting last year’s negative figures. Guidance for the upcoming quarter projects revenues of $13.9 million and EPS of -$0.10, suggesting an alignment with previous expectations. The CEO expressed optimism, highlighting strategic investments in technology and workforce development.
RevenueThe total revenue of
soared to $49,677 in 2024 Q4, showing a remarkable turnaround from the negative $3.44 million reported in 2023 Q4.
Earnings/Net IncomeAmerican Resources narrowed losses to $0.23 per share in 2024 Q4 from a loss of $0.32 per share in 2023 Q4, a 25.6% improvement. The company also reduced its net loss by 26.7%, reporting a $-18.29 million loss compared to $-24.93 million in 2023 Q4. Despite the improvements, the EPS performance remains challenging for the company.
Post-Earnings Price Action ReviewThe strategy of buying
shares when revenues miss and holding them for 30 days has proven effective. Over the past year, this approach yielded a 15.4% gain, outperforming the 9.8% return from simply holding the stock. This strategic holding period facilitated a substantial recovery, evidenced by a 6.6% gain within 30 days. The methodology not only capitalized on price appreciation but also minimized risk, as the drawdown was notably lower—only 5.2% compared to 8.2% for holding alone. Investors benefited from this strategy, which mitigated potential loss while navigating volatile market conditions, showcasing a balance between risk management and profit maximization.
CEO CommentaryIn the Q4 earnings call, the CEO of American Resources emphasized the company’s commitment to navigating current challenges in the coal market while capitalizing on emerging opportunities. Despite reporting a net income of -$18.3 million, he highlighted significant strides in operational efficiency and cost management. Strategic investments in technology and workforce development were identified as pivotal growth drivers, positioning American Resources to better adapt to market fluctuations, with confidence in enhancing market positioning and delivering long-term shareholder value.
GuidanceAmerican Resources projects revenues for the upcoming quarter to be approximately $13.9 million, with an expected earnings per share (EPS) of -$0.10. The company anticipates continued investments in operational improvements to support these targets while managing CAPEX effectively. The leadership team is focused on stabilizing financial performance and is committed to providing updates as market conditions evolve, underscoring a proactive approach to navigating the industry landscape.
Additional NewsAmerican Resources Corporation has announced the development of a new rare earth leaching solution. This innovative technology allows the extraction of rare earth concentrates from coal and mine waste, aiming to break China's dominance over global critical mineral supply chains. The solution will be deployed across its properties and licensed globally, generating royalty-based revenue. Additionally, the company secured a $20M debt financing, boosting confidence and shares recently as they expand ReElement Technologies’ production capacity. Furthermore, ReElement Technologies announced the appointment of Anthony Carroll to the Board of Directors of its Africa Ltd. subsidiary, strengthening strategic oversight in critical mineral operations.
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