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AREC Nasdaq· American Resources Corporation
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AREC Nasdaq· American Resources Corporation
Earnings report Q3 2023

American Resources Corporation Reports Increase in Revenue in Latest Quarter

Segments of revenue

In the latest quarter, American Resources Corporation (AREC) reported total revenue of $5.83 million. This revenue was generated from various segments, including coal sales, metal aggregating, processing and sales, and royalty income. Coal sales accounted for the majority of the revenue at $5.72 million, followed by metal aggregating, processing, and sales at $5,723, and royalty income at $100,963.

Strengths

The primary driver for the increase in revenue in the latest quarter was the significant increase in coal production since the Covid-19 global pandemic. This increase in production led to higher coal sales, contributing to the overall revenue growth. The management of AREC has focused on expanding mining activities, development projects, and asset purchases, which have resulted in increased depreciation expenses but have also contributed to revenue growth.

Challenges

Despite the increase in revenue, AREC incurred a net loss attributable to shareholders of $5.23 million in the latest quarter. This loss can be attributed to various factors, including higher coal sales and processing expenses, development costs, and production taxes and royalties. Additionally, the company faced challenges related to increased mining activities and development activity, which led to higher operating expenses.

Noteworthy

It is worth noting that the revenue reported in the latest quarter represents a significant improvement compared to the same period in the previous year. In the corresponding quarter of the previous year, AREC reported revenue of $9.51 million, indicating a decrease in revenue. However, the company's management has successfully addressed the challenges posed by the Covid-19 pandemic and has managed to increase revenue in the current quarter.

Summary

American Resources Corporation reported an increase in revenue in the latest quarter, primarily driven by higher coal production. Despite incurring a net loss, the company's focus on expanding mining activities and development projects has contributed to revenue growth. However, challenges related to increased operating expenses and higher costs associated with mining activities remain. Overall, AREC's performance in the latest quarter reflects positive momentum in revenue generation, indicating potential growth opportunities for the company.

Source documents

Form 10-Q  filed on Nov 14, 2023
57 pages scanned

Reference data

Company financials Q3 revenue 66.4k
Analyst estimates Q3 EPS missed by NaN%
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