Executive Summary

Q1 2024 was operationally transitional with minimal revenue ($0.09M) and a wider net loss of $(6.23)M, driven by idled coal operations while management focused on spin-outs and project development .
Major financing milestones secured: $150M tax‑exempt bond for the Kentucky Lithium refinery and continued progress at Marion, IN; company underscores ReElement’s cost and purity advantages (e.g., lithium carbonate and REE oxides) .
Reported adjusted EBITDA contains a material inconsistency: the press text states positive $4.84M, but the GAAP reconciliation shows adjusted EBITDA of $(4.84)M; we anchor on the reconciliation and flag the discrepancy as a disclosure risk .
Strategic catalysts: planned spin‑offs of ReElement and American Carbon in 2024, expected progression to WCC (Wyoming County Coal) first deep‑mine production, Marion ramp in 2024, and expanding ReElement partnerships (auto OEM, EDPR) .
No S&P Global consensus estimates were available to benchmark results (tool access limit); thus, beats/misses vs. Street could not be assessed.

What Went Well and What Went Wrong

What Went Well

Closed $150M tax‑exempt bond for Kentucky Lithium; building a multi‑site U.S. refining footprint (Marion, IN and Knott County, KY) to scale lithium/REE refining .
Partnerships broadened across the value chain: auto OEM magnet recycling, EDPR wind turbine magnet recycling; accepted to the Defense Industrial Base Consortium, positioning for defense‑supply opportunities .
Management emphasized liquidity and non‑dilutive financing; CEO: “We have ample liquidity and don't foresee us needing to issue equity, at the ARC level at these prices.”

What Went Wrong

Revenue collapsed to $0.09M as coal sales were zero in Q1 2024 (vs. $8.72M coal sales in Q1 2023); Q3 2023 revenue was $5.83M—highlighting volatility during the transition .
Net loss widened to $(6.23)M; adjusted EBITDA reconciliation shows $(4.84)M, contradicting the positive $4.84M noted in the press text—creating non‑GAAP disclosure inconsistency risk .
Investor concerns on spin‑off timing/listing liquidity surfaced in Q&A; mgmt reiterated intent to list but could not give certainty pending audit/exchange processes .

Financial Results

Quarterly trend (oldest → newest). Q4 2023 quarter-specific metrics were not disclosed in the 8‑K (full-year only).

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$5.83	N/A – company disclosed FY only	$0.09
Net Income ($USD Millions)	$3.48	N/A – company disclosed FY only	$(6.23)
Diluted EPS ($)	$0.05	N/A – company disclosed FY only	$(0.03)
Adjusted EBITDA ($USD Millions)	$4.75	N/A – company disclosed FY only	$(4.84) (per reconciliation)

Year-over-year (Q1 2023 vs Q1 2024)

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$8.87	$0.09
Net Loss ($USD Millions)	$(3.10)	$(6.23)
Diluted EPS ($)	$(0.04)	$(0.03)
G&A Expense ($USD Millions)	$1.32	$2.06
Development Costs ($USD Millions)	$5.63	$2.40
Interest Expense ($USD Millions)	$0.58	$0.25

Revenue mix by period (oldest → newest)

Revenue Component	Q3 2023	Q1 2023	Q1 2024
Coal Sales ($)	$5,721,840	$8,723,185	$0
Metal Recovery & Sales ($)	$5,723	$20,609	$29,352
Royalty Income ($)	$100,963	$124,662	$64,667
Total Revenue ($)	$5,828,526	$8,868,456	$94,019

Selected KPIs and balance sheet highlights (oldest → newest)

KPI	Q3 2023	Q4 2023 (12/31)	Q1 2024 (3/31)
Cash used in Operating Activities ($M)	N/A	N/A	$(8.13)
Restricted Cash ($M)	$41.60	$6.80	$177.64
Bonds Payable, net ($M)	$43.20	$44.15	$192.43
G&A ($M)	$1.30	N/A	$2.06
Development Costs ($M)	$1.33	N/A	$2.40
Weighted Avg Shares (Basic/Diluted)	76,245,984	75,422,390 (FY avg)	76,886,957

Disclosure note on non‑GAAP: The press release narrative claims “adjusted EBITDA of $4.84M” in Q1 2024, but the reconciliation table shows $(4.84)M; we rely on the reconciliation and flag the inconsistency .

Guidance Changes

Metric/Topic	Period	Previous Guidance	Current Guidance	Change
Spin‑off of ReElement & American Carbon	2024	“Goal to spin‑off both in 2024”	“Goal to successfully spin‑off both this year; confident we will accomplish that goal”	Maintained
WCC (Wyoming County Coal) first deep‑mine production	2024	“Confident we will be producing from its first deep mine later this year”	Reiterated development progressing; bond-funded; focus on production “later this year”	Maintained
Marion (IN) facility operations	2024	Project described; incentives closed	“Goal is to have operations up and running… this year”	Updated timing clarity
Spin‑off cash costs	Spin‑out process	Not quantified previously	“Sub $0.25 million” per spin‑out, excluding added audit work	New detail
Near‑term catalysts	2024	Partnerships, scaling, monetization of carbon	Additional REE/battery partnerships; scaling Marion/Knott; talent; monetization via spin‑off/leases/JVs/divestitures	Expanded qualitative roadmap

No quantitative revenue/EPS/margin guidance was provided; messaging remained qualitative around milestones and project timing .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
Spin‑offs (ReElement, American Carbon)	Filed Form 10; intent to separate; royalty back to AREC; evaluating sale vs spin	“Goal to successfully spin‑off both this year”; working audits/exchange; record date for ReElement “in the next couple of weeks”	Advancing; timing specificity increased
Tax‑exempt bonds / financing	$45M WCC bond; $150M KY lithium prelim approvals; incentives at Marion	Closed $150M KY lithium bond; pursuing Marion bond; avoid equity at ARC level	Strengthened non‑dilutive funding
ReElement technology & cost claims	Purity milestones and platform flexibility; chromatography vs solvent extraction; IRA positioning	Cost assertions: Li2CO3 “~$5/kg” at scale; REO “sub‑$1/kg”; modular scale; DLE integration	More aggressive cost leadership messaging
Supply chain/IRA/tariffs	Seeking IRA compliance; redirecting global trade flows; Africa feedstocks	Tariffs viewed as tailwind vs China; IRA‑compliant supply ambition; DIB Consortium membership	Elevated geopolitics/national security framing
American Carbon operations	Restart plans for Carnegie, WCC development; Q3 revenue from development	No Q1 carbon revenue; ramp post spin‑out; WCC spend ~$20M to date	Execution deferred to 2H24

Management Commentary

Strategic separation: “Our goal is to successfully spin-off both ReElement Technologies and American Carbon this year… we feel confident we will accomplish that goal.”
Equity discipline: “We have ample liquidity and don't foresee us needing to issue equity, at the ARC level at these prices.”
Cost leadership in refining: “Ability to produce lithium carbonate at around $5 a kilogram… [and] rare earth oxides at sub‑$1 a kilogram at scale” .
Marion timing: “Our goal is to have operations up and running there this year within the calendar year” .

Q&A Highlights

WCC bond deployment: ~$20M spent; remaining funds for mine development toward near‑term production; targeting ramp post spin‑out .
Spin‑off process costs and timing: management targets “sub $0.25M” per spin‑out for fees; pursuing public listings but timing depends on auditors/exchanges .
Marion ramp: certificate of occupancy received; industrial gas installation underway; intent to begin operations in 2024; Noblesville capacity expanding in parallel .
Revenue cadence: From Q4 call—“In the first quarter, you will not see a lot of revenue. In the second quarter, you'll start to see all that” (consistent with Q1 results) .

Estimates Context

S&P Global consensus (EPS/Revenue/EBITDA/Target Price/Recommendation) was unavailable due to a data access limit at query time; therefore, we cannot assess beats/misses vs. Street or estimate revisions. If needed, we can refresh once access resumes.

Key Takeaways for Investors

Disclosure risk: the adjusted EBITDA inconsistency (press text vs. reconciliation) is material; rely on reconciliation showing $(4.84)M and monitor future non‑GAAP clarity .
Execution swing factors in 2024: spin‑off completions (structure, timing, listings), Marion operational start, and WCC first‑mine production are the primary stock catalysts per company disclosures .
Funding de‑risking vs. leverage: project bonds (WCC, Kentucky Lithium) provide non‑dilutive capital but materially increase bonds payable; restricted cash ballooned to $177.6M dedicated to projects .
Revenue trough likely behind Q1: with coal idle in Q1 and management reiterating post spin‑out ramp and Marion start this year, sequential improvement is plausible—but must be validated with Q2/Q3 prints .
ReElement thesis: if claimed cost/purity leadership is validated at scale, refining partnerships and offtakes (auto OEM, EDPR, DLE partners) could drive step‑function growth; watch qualification wins and monetization .
Governance/process: listing/liquidity questions around spin‑outs surfaced on the call; investors should track audit/exchange progress and distribution mechanics to avoid value leakage or prolonged illiquidity .
Model inputs: absent Street estimates and no numeric guidance, anchor on disclosed operating milestones and cash deployment pace; use development spend, restricted cash usage, and bond drawdown as leading indicators .

Additional notes:

We found no other Q1 2024 company press releases beyond the 8‑K earnings release during our document search window (Jan–Jun 2024).
Prior two quarters: Q3 2023 provided detailed quarterly results; Q4 2023 8‑K provided full‑year 2023 results and qualitative updates but not standalone Q4 figures .

American Resources Corp (AREC)·Q1 2024 Earnings Summary