American Resources Corporation AREC has announced the development of a cutting-edge leaching solution that is modular, mobile and scalable. This novel solution allows for the extraction of rare earth concentrates from coal waste and other mining waste — materials that are often considered environmental burdens. 

The company intends to roll out these units across its 30,000-acre controlled property and license them to landowners and mining operators around the world, generating royalty-based revenues. The leachate produced from this process will be delivered to ReElement Technologies, where it will be refined into high-purity rare earth products for use by domestic and allied-nation magnet manufacturers.

ReElement Technologies has proven its ability to produce high-purity, individually separated rare earth oxides from coal waste. Additionally, the company is working with a U.S.-based partner to obtain rare earth concentrates extracted from mine water liabilities, further expanding a sustainable and domestically sourced supply chain for critical minerals. 

ReElement has demonstrated its capability to produce rare earth oxides from a wide variety of feedstocks, including end-of-life permanent magnets, virgin ores and waste materials from coal and mining operations. While traditional solvent extraction methods have made rare earth recovery from coal waste extremely complex and costly, ReElement’s advanced technology offers an efficient and economical solution. It enables the refinement of both heavy and light rare earth elements from these complex sources, while recovering additional valuable byproducts like alumina, silicon, yttrium, and others—something conventional methods cannot achieve.

American Resources' controlled properties, such as its site in West Virginia, hold millions of tons of previously mined coal waste. Early testing has revealed rare earth concentrations exceeding 500 ppm, confirming the potential to support the domestic supply chain through ReElement’s patented technology. To move this initiative forward, American Resources is launching a new platform aimed at securing additional funding to scale up the production of rare earth concentrates from coal and other mining waste. The company is also exploring various financing options, including a Form D offering and the possible implementation of a tokenized platform.

AREC stock has gained 0.8% in the past year compared with the 13.1% decline of the industry.

Image Source: Zacks Investment Research

AREC’s Rank & Key Picks

AREC currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Idaho Strategic Resources, Inc. IDR and ArcelorMittal S.A. MT

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 125.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Idaho Strategic Resources’ current-year earnings is pegged at 78 cents. IDR, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average earnings surprise of 77.5%. The company's shares have rallied 98.9% in the past year.

ArcelorMittal, which currently carries a Zacks Rank #2, beat the consensus estimate in three of the trailing four quarters, while missing once. In this time frame, it has delivered an earnings surprise of roughly 4.1%, on average. The company's shares have rallied 6.9% in the past year.

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ArcelorMittal (MT) : Free Stock Analysis Report

Carpenter Technology Corporation (CRS) : Free Stock Analysis Report

American Resources Corporation (AREC) : Free Stock Analysis Report

Idaho Strategic Resources, Inc. (IDR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research