American Resources Corporation (AREC) Shares Soar 5.41% on Rare Earth Initiatives

American Resources Corporation (AREC) shares surged 5.41% today, marking the fourth consecutive day of gains, with a cumulative increase of 40.46% over the past four days. The stock price reached its highest level since April 2025, with an intraday gain of 17.12%.

The strategy of buying AREC shares after they reach a recent high and selling them one week later delivered moderate returns but came with significant volatility and risk. The strategy’s CAGR was 2.07%, trailing the benchmark by 100.00%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.02, the strategy indicated a low-risk approach, but the 107.97% volatility highlighted the significant price swings experienced.

The recent surge in American Resources Corporation's (AREC) stock price can be attributed to several factors related to its rare earth initiatives. The company has launched a new initiative aimed at creating a rare earth supply chain from urban mining to magnet production. This initiative includes ReElement providing toll processing services to convert recycled rare earth magnets into high-purity oxides. Additionally, ReElement Technologies secured a $911,519 grant for rare earth and critical mineral recovery. These developments have contributed to the positive momentum in AREC's stock price.