American Resources (AREC) Raises $73 Million as ReElement Inks Offtake Deal with POSCO—Has Sentiment Shifted?

• In October 2025, American Resources Corporation completed two significant private placements, raising approximately US$40 million and an additional US$33 million from institutional investors to support its rare earth element extraction and processing activities.
• The company’s portfolio firm, ReElement Technologies, is expanding production and recently signed a rare earth offtake agreement with POSCO International America Corp, signaling heightened momentum in American Resources’ rare earth initiatives.
• With this new funding supporting rare earth capacity expansion and offtake partnerships, we'll explore how these moves shape American Resources’ investment narrative.

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What Is American Resources' Investment Narrative?

For anyone considering American Resources, the big-picture story centers on betting that rare earth processing and innovative extraction technologies will become both commercially viable and attractive to large industry partners. The recent fundraises, totalling about US$73 million, appear material and may significantly address the company’s most pressing short-term catalyst: having enough capital to scale ReElement Technologies and meet new offtake obligations. These developments may also reduce the risk of funding delays, previously a major concern given continued losses and a reliance on external capital. However, challenges remain. Profitability is not anticipated soon, regulatory issues like late SEC filings and Nasdaq compliance continue to hang over the stock, and volatility has been high even amid its very large run-up this year. While the new partnerships and capital push rare earth growth to center stage, business execution and financial discipline are still critical areas to watch.

But with the company’s SEC compliance still unresolved, regulatory risk is not off the table. Upon reviewing our latest valuation report, American Resources' share price might be too optimistic.

Exploring Other Perspectives

Seven members of the Simply Wall St Community have estimated fair value for American Resources, spanning from just US$0.0035 to US$7.40 per share. Despite this wide spectrum of opinion, many remain focused on whether fresh capital and new contracts will translate into sustainable revenue and regulatory stability. If you’re keen to see why outlooks differ so much, you’ll find plenty to consider.

Explore 7 other fair value estimates on American Resources - why the stock might be worth less than half the current price!

Build Your Own American Resources Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your American Resources research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free American Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American Resources' overall financial health at a glance.

No Opportunity In American Resources?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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