American Resources Corporation

Greetings, and welcome to the American Resources Corporation third 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 zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Mark LaVarghetta, Vice President of Finance and Communications. Thank you, Mr. Lavarghetta. You may begin.

Thanks, Camilla. Good afternoon. On behalf of American Resources Corporation, I'd like to welcome everyone to our third quarter of 2022 conference call and business update. We always welcome these opportunities to provide an update and discuss our accomplishments since our last update and also to discuss how we're uniquely positioned with both divisions of our company, American Carbon and our Critical Minerals Division, Re-Element Technologies. Also on the call today is Mark Jensen, American Resources Chairman and CEO, and Kirk Taylor, Chief Financial Officer. Before we kick it off, I'd like to remind everyone of our normal cautionary statement. Certain statements discussed on today's call 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 obligation to update or revise forward-looking statement, 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 waiting or wanting to ask a question, you'll need to dial in by phone to get into the queue. I'm going to begin today with a few comments from Kirk Taylor. Kirk?

Thanks, Mark. Thank you, everyone, for joining us this afternoon. I'll start first with some financial highlights. We'll dive into results from the quarter. So the third quarter of 2020 showcased our focus on execution that continued to position our company for long-term value creation. When looking at that execution over the third quarter, it is important to take a step back and highlight some of our accomplishments on all fronts. From a corporate standpoint, we've established a special committee to evaluate strategic opportunities to best unlock value of the company. And subsequently, we've announced a share repurchase program. We've repurchased 7.5% interest in re-element so that American Resources now owns 100% of re-element technologies. And we've also announced our plan to spin off re-element into its own public company. Further, we sold the exclusive rights of our carbon nanostructure and graphene patents to Novastera for $16 million worth of Novastera Class A common shares. Again, these items are highlighting our ability to unlock shareholder value. Within re-element, we've achieved groundbreaking success in producing greater than 99.5% pure rare earth elements at a commercial scale, being the first to accomplish this domestically. It was a fabulous team effort by our entire group. We've also secured an initial independent working capital facility as we position re-element as a standalone company and allowing it to scale to meet market demands. Further on, we've added key talent at the technical level, at the commercialization level, and engineering level, adding to our best-in-class team. We've entered into our first long-term collaborative partnership to help secure our domestic supply chain for critical minerals, and we're looking forward to expanding those relationships. On the American carbon front, we've commenced initial production and sales at our Carnegie II metallurgical mine. We've also received a commitment totaling $4.9 million of federal new market tax credits for our company's Wyoming County coal expansion. These federal tax credits will be combined with the previously announced $45 million tax exempt industrial development bonds from the state of West Virginia. Moving into financial highlights. For the quarter, we realized revenues totaling $9.5 million. While this was a quarter-over-quarter decline due to our decision to idle Perry County in response to the historic flooding in the region, which we will discuss later on this call, it did showcase a 238% year-over-year increase. While mining is not completely linear, our carbon platform is uniquely positioned to be a meaningful contributor to much-needed supply growth. of metallurgical and specialty carbon products from our region where a lot of mines are currently being exhausted and have very short lives left. We remain focused on monetizing our platform of assets for our shareholders. We will also be discussing these items, our operations and actions further on in this call. Our unique platform of assets is in a great position to deliver what we believe is our attractive returns and value to our shareholders. This includes our mining assets, as well as a re-element technologies division, which we are in the process, again, of spinning off into its own standalone public company. Over the past nine months, we've been able to grow production, our revenue, and streamline our capital structure while investing over $22 million of expense development costs to position both American Carbon and re-element technologies platforms for strong growth in high demand markets. Our debt balance currently sits at approximately $12 million in total, of which $400,000 is made up of equipment financing, $9.4 million in form of convertible notes from one of our long-term partners, and $2.2 million in the form of a mine development loan from one of our top customers. Our shares outstanding currently sit at just 68.7 million Class A common shares. Our short-term available liquidity totals over $20 million, including almost nearly $5 million cash on hand, nearly $6 million in accounts receivable, and $10 million untapped equipment financing. I'd now like to turn the call over to Mark LaBregada for some comments on our re-element technologies division. Mark?