Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 28 Apr, 26 | AREC | Speculative Buy | USD 2.15 | USD 2.26 | USD 2.37 | 2 days | Closed |
7.91%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
American Resources Corporation engages in the production of rare earth and critical mineral concentrates for the infrastructure and electrification markets. It operates through the American Infrastructure (AIC), ReElements (RLMT), and Electrified Materials Corporation (EMC) segments. The American Infrastructure segment engages in the extraction, processing, transportation, and distribution of coal with a focus on metallurgical quality coal to the steel industry. Its ReElements segment provides final stage, separated, and purified rare earth and critical elements to the electrification industry supply chain, which are used to manufacture permanent magnets and battery materials. The Electrified Materials segment aggregates and processes used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steel. American Resources Corporation was founded in 2006 and is headquartered in Fishers, Indiana.
Reduction in Net Loss: USD 7.7 Mn in Q3FY25 vs USD 10.6 Mn in Q3FY24
Improvement in Operating Cash Outflow: USD (9.4) Mn in Q3FY25 vs USD (17.5) Mn in Q3FY24
High Interest Expense Burden: USD 1.98 Mn in Q3FY25 vs USD 1.97 Mn in Q3FY24
Sharp Decline in Total Revenue: USD 0.000165 Mn in Q3FY25 vs USD 0.235 Mn in Q3FY24
The company faces significant risk from its inability to generate consistent revenues while relying heavily on external financing to sustain operations
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 2.15 | 1.93 | 2.26 | 2.37 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Severe Revenue Contraction Impacts Operational Scale: American Resources Corporation reported a sharp decline in revenue during the latest reporting period, reflecting significant operational disruptions across its business segments. Total revenue fell drastically to USD 165 in Q3FY25 from USD 235,443 in Q3FY24, indicating a near-complete erosion of revenue-generating activities. The decline was primarily attributed to reduced contributions from metal recovery, service fee income, and rare earth oxide sales, highlighting a contraction in core operating segments.
Widening Losses Reflect Elevated Cost Structure: The company continued to report substantial net losses, although there was a marginal improvement on a year-over-year basis. Net loss stood at USD 7.7 million in Q3FY25 compared to USD 10.6 million in Q3FY24, reflecting some cost rationalization but still underscoring a structurally unprofitable business model. High operating expenses and weak revenue absorption remained key contributors to sustained losses.
Operating Performance Remains Under Pressure: Operating losses remained significant due to elevated general and administrative costs, professional fees, and development expenses. Segment-level operating loss was reported at USD 24.1 million in Q3FY25, significantly higher than USD 8.8 million in Q3FY24, indicating deteriorating operational efficiency. The increase reflects ongoing investments and cost burdens without corresponding revenue support.
Cash Flow Position Shows Partial Improvement: Despite weak earnings, the company demonstrated some improvement in cash flow management. Cash used in operating activities declined to USD 9.4 million in the latest period from USD 17.5 million in the prior year, indicating relatively better working capital management and cost controls. This suggests efforts to stabilize liquidity amid operational challenges.
Strategic Financing Supports Liquidity Position: The company relied heavily on financing activities to sustain operations, generating USD 9.2 million in cash inflows compared to USD 145.1 million in the prior period. Although financing inflows declined significantly, they continue to play a critical role in supporting liquidity, reflecting dependence on external capital to fund ongoing operations and investments.
Asset Base Moderation Reflects Portfolio Adjustments: Total long-lived assets declined to USD 36.7 million as of September 2025 from USD 40.2 million in December 2024, indicating asset rationalization or impairments across segments. This reduction may reflect strategic realignment or challenges in sustaining asset productivity under current operating conditions.
Strategic Transition Amid Execution Risks: The company is undergoing a strategic transition focused on rare earth processing and advanced materials; however, execution challenges remain evident in declining revenues and persistent losses. While capital raises and restructuring efforts provide short-term support, long-term sustainability will depend on restoring revenue streams and achieving operational scale.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to American Resources Corporation (NASDAQ: AREC) at the current market price of USD 2.15, as on 28 April,2026 at 6:50 am PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Coking Coal
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AREC American Resources Corp Class A |
0.14 9.24% | 1.72 | - | 2.75 | 2644.28 | 2.19 | 3294.53 | -8.879 |
| HCC Warrior Met Coal Inc |
0.89 1.13% | 79.89 | 6.78 | 11.40 | 1.84 | 1.72 | 1.50 | 3.91 |
| AMR Alpha Metallurgical Resources Inc |
2.80 1.95% | 146.56 | - | 2.66 | 1.24 | 1.61 | 0.98 | 21.88 |
| STMRF Stanmore Resources Limited |
- -% | 1.62 | 2.97 | 24.33 | 0.77 | 1.42 | 0.83 | 1.94 |
| MOGLF Mongolian Mining Corporation |
- -% | 0.88 | 4.23 | - | 0.86 | 0.73 | 1.02 | 2.84 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 28, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia