American Resources Corp Q2 FY2023 earnings call

• Spin-off of ReElement Technologies: Filed Form 10 with SEC, addressed comments, engaged top Tier 1 investment bank, and commenced capital raising at subsidiary level. Expected completion later this year or early next year.
• Spin-off of American Carbon: Filed initial Form 10 with SEC, shareholders to receive ~1 share of American Carbon per 2 shares of American Resources, American Resources to receive up to $300M in royalty payments, secured $20M factory facility, and negotiating $100M equity financing.
• SPAC with AMAO: AMAO announced merger with Royalty Management Corporation, working through SEC comments on Form S-4.
• Quarterly Summary: Cash on hand at end of Q2 2023 was ~$51.5M, current shares outstanding ~78.2M, and slightly cash flow positive while driving value creation.
• ReElement Milestones: Achieved high-purity lithium carbonate production from LFP battery scrap, strategic position in LFP battery market migration.

American Carbon: In the second quarter, global met carbon market softening led to idling of production due to customer supply chain constraints. Revenue was affected, but no degradation to assets was expected. The platform is seen as valuable with multiple divestiture options. ReElement Technologies: Progressed with SEC filings for spin-off, engaged investment bank, and had positive investor interest. Achieved milestones in lithium refining, like producing 99.9978% pure lithium carbonate from LFP battery scrap. American Metals: Part of strategic positioning within the electrified economy but details were less emphasized in the transcript.

• ReElement spin-off expected to complete later this year or early next year.
• American Carbon spin-off with share distribution and royalty plans outlined.
• Continued execution on unbundling assets to unlock value for shareholders.

• Market dependence for carbon segment, as seen in Q2 revenue shortfall due to global market conditions.
• Supply chain bottlenecks impacting carbon production and delivery.
• Uncertainties in spin-off processes and potential delays due to SEC approvals and other regulatory factors.

Q: Concerned about degradation of carbon assets due to production pause.

A: No degradation expected, as the approach was conservative to avoid overextending, focusing on ReElement execution while assessing divestiture options.

Q: Timing of Wyoming County production start.

A: Sometime next year, early development has started there.

Q: Share buyback and valuation of carbon assets.

A: No share buyback in 2023 yet, carbon assets are valued highly with multiple divestiture options being seriously considered.

Q: Progress on ReElement spin-off.

A: Working with the SEC, maximizing shareholder value, and not prioritizing speed over ensuring strategic value is captured.