American Resources Corporation

What they do

ARC's historical operations were Central Appalachian and Illinois basin coal mining and processing through six subsidiaries (McCoy Elkhorn, Knott County Coal, Deane Mining, Wyoming County, Perry County, ERC), producing metallurgical coal, pulverized coal injection coal and high-BTU bituminous coal. Diversification subsidiaries focused on recovered metal and steel (Electrified Materials Corporation) and rare earth element purification and end-of-life magnets and batteries (ReElement Technologies, formerly American Rare Earth). The 10-K states that as of December 25, 2025 ARC determined it was no longer the primary beneficiary of American Infrastructure Corporation, and on December 26, 2025 that ReElement was no longer a variable interest entity, leaving EMC as the only fully consolidated subsidiary. Mining operations have been idled since mid-2019.

Revenue drivers

• Metal recovery and sales — The only reported revenue line, generated $0 in 2025 and $34,070 in 2024; the 10-K states no metal recovery or sales activity occurred in 2025.
• Coal sales (historical) — Previously the principal source of metallurgical and pulverized coal injection revenue, but mining operations have been idled since mid-2019 and coal revenue is no longer consolidated into ARC's reported results.
• Critical minerals and rare earths — ReElement Technologies was focused on purification and monetization of rare earth element deposits and end-of-life magnets and batteries, but ARC deconsolidated ReElement as of December 26, 2025.
• Equity method investees — ARC reported a $84,063 loss from equity method investees in 2025 versus a $409,268 loss in 2024, indicating these holdings are a drag rather than a revenue source.

Recent performance

For the year ended December 31, 2025, ARC reported total revenue of $0, down from $34,070 in 2024, because it conducted no metal recovery or sales activities. Total operating expenses fell to $11,308,535 from $14,253,088, driven mainly by lower general and administrative costs ($9,557,890 vs. $11,417,208) and professional fees ($478,449 vs. $1,735,305). The company reported a net gain of $55,385,211, but this was entirely attributable to $73,219,707 of income from discontinued operations; the loss from continuing operations was $(17,834,496). Operating cash flow remained negative at $(10,488,000) for 2025, following $(21,200,000) in 2024.

Strategy

Management's stated approach has shifted from operating coal mines to holding contractual and financial interests in separate entities. The 10-K describes a 2025 restructuring in which ARC gave up majority stakes in American Infrastructure, ReElement and Electrified Materials while retaining interests that it believes provide power to direct key activities. The 10-Q MD&A (as amended) states these deconsolidated entities continue to be consolidated as variable interest entities, while the later 10-K reverses that for AIC and ReElement. ARC also describes itself as in the exploration stage, with no proven or probable reserves, and says future production, if any, would target metallurgical coal. The company states that the timing and extent of future revenues will depend on strategic, operational and market factors.

Risks

• Zero revenue and no active operations — ARC generated $0 of revenue in 2025 and reported that mining operations have been idled since mid-2019.
• Deconsolidation obscures the business — The loss of primary beneficiary status for American Infrastructure on December 25, 2025 and ReElement on December 26, 2025 makes reported results hard to compare with prior periods and leaves only Electrified Materials fully consolidated.
• Continuing operating losses and cash burn — The company reported a $(17,834,496) loss from continuing operations and $(10.4) million of operating cash outflow in 2025.
• Accounting and listing instability — ARC filed a delisting notice/listing-rule failure event on 2026-04-30 and again on 2026-08-26, and reported on 2026-07-24 and 2026-07-29 that it changed accountants and that previously issued financials were not reliable.

Outlook

Management states that the outlook for critical minerals, recycled metals, metallurgical coal and rare earths depends on pricing, regulatory uncertainties and global economic conditions, and notes that U.S. coal consumption and production have been driven by the global economy, a strong dollar and accelerating production cuts. The 10-K explicitly states there can be no assurance that revenue-generating activities will resume in the near term. No specific guidance on revenue, production restart or capital spending is provided in the excerpts.