American Resources Corporation (AREC, Financial) has introduced a groundbreaking leaching solution designed to extract rare earth concentrates from coal and mine waste, effectively tackling environmental challenges these materials pose. The innovation is characterized by its modular, mobile, and scalable nature, allowing for its deployment across the company's extensive 30,000-acre operations.
This new solution not only promises to address environmental liabilities but also opens up a revenue stream through licensing opportunities. American Resources plans to offer these units to landowners and mining operators worldwide, generating income via royalties. The extracted leachate will then be supplied to ReElement Technologies, which will refine it into ultra-pure rare earth products intended for domestic and ally nation magnet manufacturers.
ReElement Technologies has already demonstrated success in producing high-purity rare earth oxides from coal waste, reinforcing the potential impact of this collaboration. Additionally, ReElement is working with an American partner to extract rare earth concentrates from mine water, further establishing a sustainable and localized supply chain for these essential minerals.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for American Resources Corp (AREC, Financial) is $4.00 with a high estimate of $4.00 and a low estimate of $4.00. The average target implies an upside of 260.36% from the current price of $1.11. More detailed estimate data can be found on the American Resources Corp (AREC) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, American Resources Corp's (AREC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for American Resources Corp (AREC, Financial) in one year is $0.04, suggesting a downside of 96.4% from the current price of $1.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the American Resources Corp (AREC) Summary page.
