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American Resources Stock Soars: Buying Opportunity?

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Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Updated 4/17/2025, 2:33 pm ET 4/17/2025, 2:33 pm ET | 6 min 6 min read
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American Resources Corporation stocks have been trading up by 4.59 percent amid growing investor optimism and positive market sentiment.

Key Developments

  • ReElement Technologies, a branch of American Resources, expanded its production capacity dramatically, boosting the capacity by 50 times in its quest to address rising demand for magnet-grade dysprosium and terbium.
  • American Resources executed a $150M Bond Purchase Agreement for the Kentucky Lithium complex, targeting high production of battery-grade lithium carbonate and refinement of other critical minerals.
  • Following a pivotal $20M debt financing deal closure, American Resources’ stock surged by 40%, showing heightened market confidence in operational expansion.
  • To address future growth needs, Electrified Materials finalized a power upgrade in Indiana, leading into its next operational phase with advanced equipment installation.
  • American Resources raised additional capital in its private round to secure new commercial-scale equipment amid a backdrop of China’s export restrictions, securing a competitive edge in the market.

Candlestick Chart

Live Update At 13:32:20 EST: On Thursday, April 17, 2025 American Resources Corporation stock [NASDAQ: AREC] is trending up by 4.59%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

ReElement Technologies: A Beacon of Growth

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More Breaking News

ReElement Technologies, a notable unit of American Resources, is ambitiously transitioning its SEG+ ore concentrate refining process from a lab to a demonstration scale. This move has increased production capabilities by a staggering 50 times, addressing a high demand for ultra-pure heavy rare earth oxides like dysprosium and terbium vital for magnet applications in defense and commerce. It’s an impressive, strategic step, serving as a testament to their ability to meet market demands efficiently. The resultant shares’ surge by over 12%, post-announcement, pins down the excitement surrounding this development.

Financial Fortitude: Analyzing Earnings and Metrics

American Resources recently closed a significant $20M debt financing, providing an essential capital boost for future endeavors. The stock’s pivotal movement, displayed by a 40% price increase, reflects the stirring market confidence this deal injected. Financial statements, however, portray a mixed picture. AREC’s profitability metrics reflect a challenging financial landscape with concerning margins. Negative EBIT and PAT profits underscore these hardships, amidst an ebit margin of -10963, suggesting a struggle to transform revenue into actual operating profit. Nonetheless, the bond purchase deal heralds a new era, reflecting calculated moves to establish enduring financial growth.

In-depth insights reveal a per-share revenue of approximately $0.21, contributing to an enterprise value soaring to $47.45M. Despite skimming profitability, AREC’s reported revenue of $16.74M in Q3, 2024 presents a foundation’s volatility, in tandem with a daunting price-to-sales ratio of 214.86. This translates to a higher price Wall Street is willing to pay per dollar of sales, indicating perceived growth potential among investors despite negative financial indicators.

Refined Insights: News Impact on the Market

American Resources conquers a significant milestone with its $20M debt financing closure, sparking a pronounced 40% surge in share value. This infusion of capital is essential for the procurement and deployment of commercial-scale equipment, especially crucial following the elemental shift in China’s export strategies. Investors are rallying behind ReElement Technologies’ private round closure, cementing optimism around its ability to compete in producing critical minerals domestically.

This storyline of evolving strategic maneuvers extends to the bond purchase deal for their Kentucky Lithium complex, envisioning payment expansions amounting to $150M. Iconic goals loom ahead with targeted 15,000 metric tons yearly of battery-grade lithium carbonate and hydroxide production. The very blueprint underlines AREC’s ceaseless endeavor to secure frontline positioning in the energy transition race.

The implications of these carefully orchestrated blueprints can’t be overlooked, especially amid Electrified Materials’ successful power upgrade completion. This company division stands ready to scale up its operations in Indiana, integrating higher productivity machinations that bolster output potential horizontal across the company’s integrated operations. While charts provide visual interpretations of AREC stock’s movement, capturing glimpses of intraday fluctuations, they remain indicative of market reactions to developments threaded together through these pivotal announcements.

Market Repositioning: A Look Ahead

The evolving narrative at American Resources indicates a robust transformational journey unwinding a pathway of innovation and long-term sustainability. The expanded capacity and funded RI-led future projects thrust this penny-stock into a league of seismic potential. Stakeholders eye this amalgamated growth sweet spot with expectations hinged on it reshaping the balance in critical mineral supply, advancing ReElement Technologies as a spearhead force in the North American market.

Amid a landscape ripe with economic potential yet marred with financial constraints, AREC soldiers on, standing as a compelling opportunity for those willing to ride the tides of a burgeoning energy-driven future. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This quote resonates with those involved in AREC’s ambitious endeavors. With efforts converging on operational expansions and technological advancements, the key to unlocking enduring financial buoyancy lies in these ground-laying developments domino effectuating transformative market ripples.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”