American Resources stock soars, after unveiling of new rare earth subsidiary

/ / News

Shares of American Resources Corp. nearly doubled in very active morning trading Wednesday, after the raw materials supplier unveiled its new subsidiary, American Rare Earth LLC, to organize and develop its portfolio of rare earth mineral sites. The stock shot up as much as 202% to an intraday high of $4.93, the highest price seen since February 2019, before paring gais to be up 96%, enough to make it the biggest gainer on major U.S. exchanges. Trading volume soared to 87.5 million shares, compared with the full-day average of about 53,000 shares. The company said it has indentified its first 10 rare earth mineral sites within its owned asset base in eastern Kentucky, which have already been evaluated and are being engineered to recover rare earth elements. “The need for rare earth elements is a growing economic theme given the growing global demand from industries such as technology, automotive, aerospace and renewable energy,” Chief Executive Mark Jensen said. “With China accounting for approximately 80 percent of the global supply, restoring the United States’ resource independence has become an increasingly important topic.” The expects to create 15 permanent jobs as result of its rare earth development, and targets creating 120 new jobs in the next few years. The stock has rocketed more than fivefold (up 407%) year to date, while the SPDR Materials Select Sector ETF has advanced 6.5% and the S&P 500 has gained 5.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.