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American Resources Corporation’s AREC subsidiary, ReElement Technologies Corporation, recently partnered with LVC Global Holdings to announce the launch of the newly formed joint venture (JV), ReElement Middle East. This is aimed at enhancing the processing of critical minerals and strategic metals in that region.
The Saudi Arabian region has an urgent need for localized and sustainable processing capabilities, which is expected to be fulfilled by ReElement Middle East. Cutting-edge refining technologies and advanced capabilities will be employed to reduce reliance on foreign processing, strategically aligning with Saudi Arabia's Vision 2030, which seeks to establish the country as a global hub for critical mineral resources.
As per the International Energy Agency, the global demand for critical minerals is set to quadruple by 2040. More than 75% of the world's critical minerals processing is concentrated in China, which makes the global supply chain vulnerable. Through this strategic alliance, LVC Global Holdings will secure a robust and resilient supply chain in the Middle East.
ReElement Technologies’ aim for sustainable solutions for processing and refining critical minerals to battery, magnet and semiconductor grade will also progress through this partnership.
AREC Stock’s Price Performance
AREC stock has lost 52.5% in the past year compared with the 17.5% decline of the industry.
Image Source: Zacks Investment Research
AREC’s Zacks Rank and Key Picks
AREC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, MAG Silver Corp. MAG and Fortuna Mining Corp. FSM. While CRS sports a Zacks Rank #1 (Strong Buy), MAG and FSM carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.77. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 190.2% in the past year.
The Zacks Consensus Estimate for MAG Silver’s current-year earnings is pegged at 75 cents per share. MAG surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 17.1%. The stock has gained 49% in the past year.
The Zacks Consensus Estimate for Fortuna Mining’s current-year earnings is pegged at 53 cents, indicating a year-over-year rise of 140.91%. FSM’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing in the other two, with an average earnings surprise of 53.6%. The stock has gained 20% in the past year.