American Resources Corporation Is Drilling Success From Carbon Rich Mines





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Published on Dec 2, 2019

It's no secret that some of the most lucrative and consistent ventures for investment have been the play through the resources of nature. From petroleum to fossil fuels and other minerals, asset rich basins have provided some companies the opportunity and leverage to expand their business models and financial interests exponentially. American Resources Corporation is poised to join that club. (NasdaqCM: AREC)
In fact, American Resources Corporation (ARC) is already on their way as one of the few companies actively developing innovative methods to extract and monetize high-grade metallurgical carbon without the casualty of environmental destruction. Instead, this company is filling both global demand and remaining environmentally conscious in how it does business. And, the rewards of appealing to both interests may set the stage for rapid and near-term revenue growth from the high-quality, carbon metallurgy market.
Moreover, by evaluating the entirety of the company, investors may find that not only is American Resources Corporation in the right market at the right time but that there is an apparent disconnect between intrinsic value and the company's current market cap. Here's why.

Exploiting Demand While Maintaining Environmental Integrity

Positioned well within a growing market for their products, American Resources Corporation is a high-end supplier of raw materials to the ever-rising global infrastructure marketplace. The company operates under a simple mission; extract, process, refine, transport, and market metallurgical carbon to steel industries worldwide to satisfy the burgeoning demand in the infrastructure market. Why is their product so valuable? Because over 74% of the total amount of steel in the world has an irreplaceable ingredient - metallurgical carbon. More importantly, ARC has access to tons of it.

And, with the US holding the title as the producer of the highest quality met carbon, what better place to target investment than the metallurgical carbon mining and refining companies. After all, it's perhaps the only real way to get exposure to the mining industry without the negative repercussions associated with some companies in the coal sector. Moreover, American Resources is executing its strategy on the understanding that metallurgical carbon is a vital raw material in the infrastructure industry; however, it is also very versatile, and serves as an active ingredient for products other than steel. And, even as met carbon is a raw material for production, it is also one of the finished products of coal. Thus, not all coal is dirty. In fact, coal should be more properly recognized as a natural and dynamic mineral resource where, during its refining, several important products are formed - one of which is specialty carbon.

Notably, that specialty carbon is the principal constituent of the fuel used in producing cement. Thus, specialty carbon is a vital ingredient to roughly 88.5 million tons of cement manufactured in the United States during 2018. Hence, for that market alone, billions of dollars in revenues are up for grabs. Beyond being a vital ingredient to produce both industrial supplies and fuel, specialty carbon is also utilized in technology-driven applications from computer chips to cell phones, air filtration, silicon metals, and even the transport sector. Thus it's safe to say that the resources of coal have infiltrated diverse industries in the world. Therefore, investing in its parent product, metallurgical carbon, may present a significant step in the direction of lasting wealth. And, that makes American Resources Corporation an intriguing consideration.


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