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    American Resources (AREC) Valuation Check After $200 Million Equity Facility For ReElement Expansion

    Simply Wall St·01/08/2026 09:27:50
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    American Resources stock reacts to new funding for critical minerals expansion

    American Resources (AREC) recently secured a $200 million equity facility aimed at expanding its ReElement Technologies refining platform, drawing fresh attention to how this capital access could influence the company’s role in critical mineral supply chains.

    See our latest analysis for American Resources.

    The funding news arrives after a sharp shift in sentiment, with American Resources' 1-year total shareholder return of about 4x contrasting with a 90-day share price return decline of 14.36%, while recent short-term momentum has picked up again, including a 39.52% 7-day share price return.

    If you are interested in other areas tied to electrification and future growth themes, this could be a useful moment to look at fast growing stocks with high insider ownership.

    With American Resources trading at $3.46 and sitting at what looks like a steep discount to a $6.75 analyst target and intrinsic estimates, you have to ask: is there real upside here, or is future growth already priced in?

    DCF valuation: is a very large upside gap sending a signal?

    Our DCF model estimates a fair value of $65.45 for American Resources versus a last close of $3.46. This points to a very large implied upside on paper.

    The SWS DCF model projects potential future cash flows for the business and then discounts them back to today using a required rate of return to arrive at the $65.45 figure. It is a theoretical construct, not a price target, and it is very sensitive to the long term assumptions that sit behind those cash flow projections.

    For American Resources, this result sits against a backdrop of very small reported revenue of about $95,000, a current net loss of $20.77m and negative shareholder equity. In that context, the DCF output reflects what happens when strong growth and margin assumptions are applied to a company that is still in an early, capital hungry phase of building out its critical minerals and electrified materials operations.

    Look into how the SWS DCF model arrives at its fair value.

    Result: DCF fair value of $65.45 (UNDERVALUED)

    However, that apparent valuation gap contrasts with real pressure points, including very small reported revenue of about $95,000 and a net loss of $20.77m.

    Find out about the key risks to this American Resources narrative.

    Build Your Own American Resources Narrative

    If you see the numbers differently, or simply prefer to work through the data on your own terms, you can build a custom view in minutes by starting with Do it your way.

    A great starting point for your American Resources research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    If you stop with just one company, you may miss opportunities that fit your style far better, so cast the net wider and pressure test your thinking.

    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.