American Resources Corporation

And welcome to the American Resources Corporation second quarter 2022 conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark Lavaghetto, VP Corporate Finance and Communication. Please begin.

Thanks, Sarah. Good afternoon. On behalf of American Resources Corporation, I'd like to welcome everyone to our second quarter of 2022 conference call and business update. We welcome this opportunity to not only provide an update and discuss our accomplishments since our last update, but also on how we're uniquely positioned in both the carbon and critical and rare earth element markets. Also on the call today is Mark Jensen, American Resources Chairman and CEO, Kirk Taylor, our Chief Financial Officer, and Tom Salve, our President. Before we kick it off, I'd like to remind everyone that this call is being recorded. End of our normal cautionary statements. Certain statements discussed on today's calls constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subjects to risks, uncertainties, and other factors which could cause actual results to differ materially from the results discussed in the forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors, uncertainties, and other cautionary statements which are laid out in our press releases and SEC filings. We also do not undertake any obligations to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Lastly, we will be holding a question and answer session today, following our prepared remarks. And for anyone wanting to ask a question, you'll need to dial in by phone to get into the queue. We're going to begin today with a few comments from Kirk Taylor. Kirk?

Thanks, Mark. And thank you, everyone, for taking the time this afternoon to join us. The second quarter of 2022 signifies a continued production ramp that really began this past March. And in a market environment, it continues to be highly supply-constrained. As a reminder, our mining focus is on high-quality metallurgical carbon, as well as PCI specialty carbon. For the quarter, our total revenues of $16.2 million is a 78% sequential increase from our first quarter revenues this year. and are really not comparable to the revenue from prior periods when we were largely idle due to the COVID-19 pandemic. This highlights early growth attributes of our carbon business and the platform that we built. While mining is not completely linear, our carbon platform is uniquely positioned to be a meaningful contributor to much needed supply growth of metallurgical carbon and especially carbon products from our region where a lot of the mines are actually becoming exhausted and unable to expand. Also for the second quarter of 2022, we were able to generate adjusted EBITDA $11.5 million compared to an adjusted EBITDA loss of $537,000 in the prior year period and a positive 5.8 million in the first quarter of this year. Again, signifying the beginning of a significant inflection point for our mining operations. Our unique platform of assets is in a great position to deliver what we believe is an attractive return and value to our shareholders. This includes both our mining assets, which we are currently operating, as well as our leased out mining complexes, including the Dean Mining Complex. Over the past six months, we've been able to eliminate approximately $2.9 million of debt and payable and invested over $18.3 million of expense development costs to position both American Carbon and Re-Element for strong growth in high demand markets. We are currently experiencing and expect to maintain a certain degree of pricing power. This is especially true within Realment, where we are the only domestic producers of rare earth and critical minerals in the United States, as well as increased tax credits built into the Inflation Reduction Act. Our debt balance currently sits at approximately $12.1 million in total. of which $2.6 million is equipment financing, $8.9 million is in the form of convertible notes held by long-term partners, and $2.5 million is in the form of my development loan from an offtake partner. Our shares outstanding currently sit at just $66.5 million, all Class A common shares. Our cash on hand at the end of the quarter is approximately $4.8 million. We are in a great position to continue to expand and execute across all of our business lines. I'll turn it back over to Mark LaBerghetta for some comments on re-element. Mark.