Q2 2024 American Resources Corp Earnings Call

August 19, 2024

Speaker Change: Okay, one moment.

Speaker Change: Greetings and welcome to the American Resources Corporation second quarter 2024 conference, call.

Speaker Change: At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

Speaker Change: If you require operator assistance during the conference, please press star zero on, your telephone keypad. As a reminder, this conference is being recorded.

Speaker Change: It is now my pleasure to introduce you to your host, Mark LaVerghetta, Executive Vice, President.

Speaker Change: Thank you, Mark.

Speaker Change: You may begin.

Speaker Change: Thanks, Lacey.

Speaker Change: And good afternoon, everyone.

Speaker Change: On behalf of American Resources Corporation, I'd like to welcome everyone to our second, quarter of 2024 conference call and business update.

Speaker Change: We always welcome this opportunity to provide an update on our businesses and discuss our, accomplishments we've made over the past several months and how we're uniquely positioned within the markets that we serve for American infrastructure, American metals, and re-element technologies divisions.

Speaker Change: Also on the call with me today is Mark Jensen, our Chairman and CEO, and Kirk Taylor, our, Chief Financial Officer.

Speaker Change: We'll provide some prepared remarks and then we'll get into the Q&A part of the call.

Speaker Change: So before we kick it off, I'd like to remind everyone of our normal cautionary statement.

Speaker Change: Certain statements discussed on today's call could constitute forward-looking statements, within the meaning of the Private Security Litigation Reform Act. These forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from the results discussed in the forward-looking statement.

Speaker Change: 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.

Speaker Change: We also do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Speaker Change: Lastly, for anyone wanting to ask a question today, I believe you have to dial in by phone, to get in the queue.

Speaker Change: First on the prepared remarks, and before we get into that, I'd like to recognize our, Chief Financial Officer, Kirk Taylor, again, as we continue to work through our recent changes and upgrades in our new PCAOB Registered Public Accountants as we continue to execute on our strategic plan of action of unbundling certain assets from the American Resources Holding Company.

Speaker Change: We're conducting current and past audits on each of our entities to prepare them as, standalone companies as we've discussed in the past.

Speaker Change: We'd also like to thank our new PCAOB Registered Public Accountants at GBQ, partners for their, hard work, timeliness, and professionalism in enabling us to execute on their plan and meet our deadlines without having to take any further extensions.

Speaker Change: We strive to be transparent as possible with how we are positioning American Resources, in each of our subsidiaries and the milestones that we are achieving.

This time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

Operator: This time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker Change: If you require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.

Speaker Change: It is now my pleasure to introduce you to your host, Mark LaVerghetta, Executive Vice President.

Mark LaVerghetta: It is now my pleasure to introduce you to your host, Mark LaVerghetta, Executive Vice President. Thank you, Mark. You may begin. Thanks, wasted. And good afternoon, everyone.

Mark LaVerghetta: Thank you, Mark.

Mark LaVerghetta: On behalf of American Resources Corporation, I'd like to welcome everyone to our second quarter of 2024 conference call and business update. We always welcome this opportunity to provide an update on our businesses and discuss our accomplishments we've made over the past several months. And how are you uniquely positioned within the markets that we serve for American infrastructure, American metals, and re-element technologies divisions.

Speaker Change: You may begin.

Speaker Change: Thanks, wasted.

Mark LaVerghetta: And good afternoon, everyone.

Mark LaVerghetta: Also, the call with me today is Mark Jensen, our chairman and CEO and Kirk Taylor, our chief financial officer. We'll provide some prepared remarks and then we'll get into the Q&A part of the call.

Speaker Change: On behalf of American Resources Corporation, I'd like to welcome everyone to our second quarter of 2024 conference call and business update.

Mark LaVerghetta: But before we kick it off, I'd like to remind everyone of our normal cautionary statement. Certain statements discussed on today's call could constitute forward-looking statements within the meaning of the private security litigation reform act. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from the results discussed in the forward-looking statement. 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 any forward-looking statement, whether as a result of new information, future events or otherwise.

Speaker Change: We always welcome this opportunity to provide an update on our businesses and discuss our accomplishments we've made over the past several months.

Operator: Lastly, for anyone wanting to ask a question today, I believe you have to dial in by phone to get into Q.

Speaker Change: And how are you uniquely positioned within the markets that we serve for American infrastructure, American metals, and re-element technologies divisions.

Mark LaVerghetta: First, on the prepared remarks, before we get into that, I'd like to recognize our chief financial officer Kirk Taylor again. As we continue to work through our recent changes and upgrades in our new PCA or the registered public accountants, as we continue to execute on our strategic plan of action among bundling certain assets from the American resources holding company. We're conducting current and past audits on each of our entities to prepare them as standalone companies, as we've discussed in the past.

Mark LaVerghetta: We'd also like to thank our new PCA or the registered public accountants at the GBQ partners for their hard work, time awareness, and professionalism in enabling us to execute on their plan and meet our deadlines without having to take any further extensions. We strive to be transparent as possible with how we are positioning American resources in each of our subsidiaries and the milestones that we are achieving. Looking back, it's been remarkable how far we've come and how fast we've done it since we first announced our re-element technology divisions only about three and a half years ago.

Speaker Change: Looking back, it's been remarkable how far we've come and how fast we've done it since, we first announced our re-element technology divisions only about three and a half years ago.

Speaker Change: And we try to recap our accomplishments on a quarterly basis, and we find ourselves selectively, choosing which milestones to highlight.

Speaker Change: Our milestones are supported and driven by our substantial platform of assets, our groundbreaking, intellectual property and technology, and our best-in-class team.

Speaker Change: ReElement has positioned itself as a world leader in deploying efficient, low-cost, and, environmentally safe critical mineral refining capacity outside of China.

Speaker Change: We have positioned ourselves at the forefront in providing real critical mineral refining, and sustainable solutions to the world, and to diversify away from a single-source monopolistic economy, which is afforded by China. Our application of chromatographic separation technology to the industry enables us to produce, high-purity critical mineral products at high throughput and at a competitive, if not lower-cost, in China.

Speaker Change: As much of the world is moving to develop a more diversified critical mineral supply, chain, we are leading in providing efficient refining solutions to bridge upstream production and recycling to downstream manufacturing in a collaborative way.

Speaker Change: While a more diversified and resilient supply chain is still very much developing around, the world, as demand for critical minerals is increasing in a big way, to meet the needs of our energy transition, national security, and more advanced consumer technology applications, China has put the pillars in place in leading the world in a more diversified supply of, ultra-pure, manufacturing-grade critical mineral products.

Mark LaVerghetta: And we try to recap our accomplishments on a quarterly basis, and we find ourselves selectively choosing which milestones to highlight. Our milestones are supported and driven by our substantial platform of assets, our groundbreaking intellectual property and technology and our best in class team. A re-element is positioned itself as a world leader in deploying efficient low cost and environmentally safe critical mineral refining capacity outside of China. We've positioned ourselves at the forefront in providing real critical mineral refining and sustainable solutions to the world and a diversify away from a single source monopolistic economy, which is afforded by China.

Speaker Change: Our approach to the market includes operating and scaling our own facilities, including, our Noblesville Commercial Qualification Facility, our Kentucky Lithium Complex, and our Marion, Advanced Technology Center, as well as our AssetLite Powered by ReElement offering.

Speaker Change: Our ability to produce ultra-pure critical mineral products solves probably the most, complex part of the supply chain's challenges and is bolstered by our great team, our extensive asset base, and our breakthrough technology.

Mark LaVerghetta: Our application of chromatographic separation technology to the industry enables us to produce high-purity critical mineral products at high throughput and at a competitive, if not well-recost in China. As much as the world is moving to develop a more diversified critical mineral supply chain, we are leading and providing efficient refining solutions to bridge upstream production and recycling to downstream manufacturing in a collaborative way. While a more diversified and resilient supply chain is still very much developing around the world as demand for critical minerals is increasing in a big way, to meet the needs of our energy transition and national security and more advanced consumer technology applications, re-element has put the pillars in place and leading the world at a more diversified supply of ultra-pure manufacturing-grade critical mineral products.

Speaker Change: And that really is the value proposition of ReElement technologies.

Speaker Change: While we believe our current stock price does not properly reflect the value of ReElement, or the sum of all of American Resources' parts, we are confident in our platform of assets and the path that they are on to create significant shareholder value.

Speaker Change: From a corporate standpoint, our goal is to continue to execute on our strategic directive, and continue to spin off the majority of both American Infrastructure Corporation and ReElement Technologies Corporation and standalone companies and execute on the D-SPAC merger between American, Metals and AITR that we've previously announced.

Speaker Change: With that, I'd like to turn the call over to our Chairman and CEO, Mark Jensen.

Mark LaVerghetta: Our approach to the market includes operating and scaling our own facilities, including our Nobleville Commercial Qualification Facility, our Kentucky Lithium Complex, and our Marion Advanced Technology Center, as well as our asset light powered by re-element offering. Our ability to produce ultra-pure critical mineral products solves probably the most complex part of the supply chain's challenges and is bolstered by our great team, our extensive asset base, and our breakthrough technology. And that really is the value proposition of re-element technologies.

Mark LaVerghetta: While we believe our current stock price does not properly reflect the value of re-element or the sum of all of American resources parts, we are confident in our platform of assets and the path that they are on to create a significant shareholder value.

Mark LaVerghetta: From a corporate standpoint, our goal is to continue to execute one of our strategic directives and continue to spin off the majority of both American infrastructure corporation and re-element technologies corporation and to stand along companies and execute one of the deep-back merger between American metals and AITR that we previously announced.

Speaker Change: Also, the call with me today is Mark Jensen, our chairman and CEO and Kirk Taylor, our chief financial officer.

Mark Jensen: With that, I'd like to turn the call over to our chairman and CEO, Mark Jensen. Mark? Thanks, Mark. I appreciate it. And thank you all for joining today. We'll go through this pretty quickly here, but really excited about the position of where each one of our asset bases and what each one of our divisions are currently positioned and where they're going here in the future. As we've stated several times, we're extremely well positioned within the divisions to create value for our shareholders.

Speaker Change: We'll provide some prepared remarks and then we'll get into the Q&A part of the call.

Speaker Change: But before we kick it off, I'd like to remind everyone of our normal cautionary statement.

Speaker Change: Certain statements discussed on today's call could constitute forward-looking statements within the meaning of the private security litigation reform act. These forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from the results discussed in the forward-looking statement. 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.

Speaker Change: We also do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Mark Jensen: And ultimately, I'm locking that value through the separation of these divisions. So the management teams and the shareholders can drive value from the respective divisions. Over the course of the last six months, we have been putting the puzzle pieces together to capitalize on the opportunities and momentum across each of these divisions with the respective management teams. And I can say today, we are in a position to unlock that value and drive value for the shareholders while also reducing the risk profile of each one of those divisions.

Speaker Change: Lastly, for anyone wanting to ask a question today, I believe you have to dial in by phone to get into Q.

Speaker Change: First, on the prepared remarks, before we get into that, I'd like to recognize our chief financial officer Kirk Taylor again.

Kirk Taylor: As we continue to work through our recent changes and upgrades in our new PCA or the registered public accountants, as we continue to execute on our strategic plan of action among bundling certain assets from the American resources holding company.

Mark Jensen: It's important to understand and to reiterate, as we continue to undergo a growth from a consolidated and restructure of carbon operations to focusing on monetizing and deploying that asset base for growth and for cash flow, as well as developing a technology and innovation hub that is truly revolutionary in terms of how critical minerals and rare earth elements are refined today outside of China, that cost structure that is lower than China. The stock price today does not reflect what we believe the value of the company is, and ultimately we also understand that it's probably confusing the public market today of how to value our company. Because of the three different divisions as they have grown and as we have positioned those business lines to be standalone entities. We look to unlock that this year.

Speaker Change: We're conducting current and past audits on each of our entities to prepare them as standalone companies, as we've discussed in the past.

Speaker Change: We'd also like to thank our new PCA or the registered public accountants at the GBQ partners for their hard work, time awareness, and professionalism in enabling us to execute on their plan and meet our deadlines without having to take any further extensions.

Speaker Change: We strive to be transparent as possible with how we are positioning American resources in each of our subsidiaries and the milestones that we are achieving.

Mark Jensen: So our goal is for American infrastructure and real estate technologies to be separate companies by the end of this year. And our team, our financial team, our audit team is putting the puzzle pieces in place to enable that to happen, as well as American metals to be a standalone company through the SPAC merger, which valued through a fair in this opinion at $170 million valuation. Our focus is on preparing and positioning these business for growth, building out the management teams to drive these businesses forward, and to unlock that value and provide a clear concise message to the market of what each one of these divisions can accomplish.

Speaker Change: Looking back, it's been remarkable how far we've come and how fast we've done it since we first announced our re-element technology divisions only about three and a half years ago.

Speaker Change: And that really is the value proposition of ReElement technologies.

Speaker Change: And we try to recap our accomplishments on a quarterly basis, and we find ourselves selectively choosing which milestones to highlight.

Speaker Change: Our milestones are supported and driven by our substantial platform of assets, our groundbreaking intellectual property and technology and our best in class team.

Mark Jensen: Recently we have distributed 25% approximately 25% of American infrastructure with the goal of either merging the industry and an existing public company or getting it spun off your form 10 merger, a form 10 dividend to our investor base so that American infrastructure can focus on its own growth division of the business. Similarly, real estate technologies, our goal ultimately is for this to be a standalone entity. Real estate technologies is having a phenomenal start this year and beginning of the second half of this year, where it's positioning itself as a premier refining technology company to the critical and rare element space.

Speaker Change: With that, I'd like to turn the call over to our Chairman and CEO, Mark Jensen.

Speaker Change: Mark?

Speaker Change: Thanks, Mark.

Speaker Change: A re-element is positioned itself as a world leader in deploying efficient low cost and environmentally safe critical mineral refining capacity outside of China.

Speaker Change: I appreciate it.

Mark Jensen: And we'll talk a little bit further about that here shortly. And then ultimately the SPAC merger with American metals and the ICR. There's a lot going on behind the scenes in American metals, which we'll touch on a little bit of that today, in terms of its positioning around the pre-processing and recycling of critical minerals, as well as fairest metals and other highly important electric side metals.

Mark Jensen: Let me dive a little bit in here into the American carbon business line. As we've discussed, our core divisions of this business are focused on either signing leases or bringing these operations into production in the near term. Our McCoy Elforn Complex, we have signed a lease with an operator and our goal is to restart the mines this year, hopefully here there shortly in the near term. This is position is one of the lowest cost metallurgical carbon, high-ball metallurgical carbon assets in the country.

Mark Jensen: The efforts we put forth to reduce holding costs through reclamation, as well as positioning and setting up these mines to bring in a top tier operator, which we have done. To unlock this value, we'll drive cash flow to the bottom line of American infrastructure through a royalty based structure, focusing purely on cash flow and reduction of capex required from us, as well as operational risk. Our Wyoming County Complex is probably one of the most exciting complexes and having... We've done a tremendous amount of development, off-site, to bring that equipment on-site to unlock this mine here in the near term.

Mark Jensen: This is a mid-vall, metallurgical, carbon operations. One of the few is not the only greenfield mid-vall mines in the country that can be deployed in low-cap ex-mobiles. We are also in negotiations with a multinational customer that has expressed interest in buying 80,000 tons a month at a very attractive price from both the McCoy and Wyoming County complexes. They'll be in town into our office this year this week to further those discussions with the hopes of putting that deal and getting that deal put in place, along with some other opportunities we are working on, to drive near-term revenue growth for our Wyoming County division as well as our McCoy complex. By blending these two products together, you're creating a v-premier, met carbon quality of product for the steel mills across not only our country, but also the world.

Mark Jensen: Furthermore, at the American Infrastructure Division, we have our rarest element component of the business. The Wyoming County complex has had third-party verified characterization of rarest elements of over 500 parts, 550 parts per million. From unconventional resources, by far and above the highest rare concentrate that we have seen from any carbon-based feedstock in the country, there's been other players within our industry that have announced it closer to the 400 level, but 550 parts per million tied in on the back end of an existing mining complex going into production here in the near-term is the most economical resource we've seen from this, and being a by-product label, it be able to generate cash flow because we're not developing it solely for that. We're developing it to produce mid-vol, met carbon to the steel industry and generating value from the rarest elements as a by-product off the back end of that processing plant.

Speaker Change: And thank you all for joining today.

Speaker Change: Mark?

Speaker Change: We'll go through this pretty quickly here, but I'm really excited about the position, of where each one of our asset bases and each one of our divisions are currently positioned and where they're going here in the future.

Speaker Change: Thanks, Mark.

Speaker Change: As we've stated several times, we're extremely well-positioned within the divisions to create, value for our shareholders.

Speaker Change: And ultimately, unlocking that value through the separation of these divisions so the management, teams and the shareholders can drive value from their respective divisions.

Speaker Change: I appreciate it.

Speaker Change: Over the course of the last six months, we've been putting the puzzle pieces together to, capitalize on the opportunities and the momentum across each of these divisions with the respective management teams.

Speaker Change: And thank you all for joining today.

Speaker Change: And I can say today, we are in a position to unlock that value and drive value for the, shareholders while also reducing the risk profile of each one of those divisions.

Speaker Change: It's important to understand and to reiterate as we continue to undergo a growth from a, consolidator and restructure of carbon operations to focusing on monetizing and deploying that asset base for growth and for cash flow, as well as developing a technology and innovation hub that is truly revolutionary in terms of how critical minerals and rare earth elements are refined today outside of China at a cost structure that is lower than China's.

Speaker Change: The stock price today does not reflect what we believe the value of the company is. And ultimately, we also understand that it's probably confusing in the public market today of how to value our, company because of the three different divisions as they have grown and as we have positioned those business lines to be standalone entities.

Speaker Change: We look to unlock that this year.

Speaker Change: So, our goal is for American Infrastructure and ReElement Technologies to be separate companies by the end of, this year.

Speaker Change: As we've stated several times, we're extremely well-positioned within the divisions to create, value for our shareholders.

Speaker Change: And our team, our financial team, our audit team is putting the puzzle pieces in place to enable that to happen, as well as American Metals to be its own standalone company through the SPAC merger, which valued, through a fairness opinion, at $170 million valuation.

Speaker Change: And ultimately, unlocking that value through the separation of these divisions so the management, teams and the shareholders can drive value from their respective divisions.

Speaker Change: Our focus is on preparing and positioning these business for growth, building out the management teams to drive these, businesses forward, and to unlock that value and provide a clear, concise message to the market of what each one of these divisions can accomplish.

Speaker Change: Recently, we have distributed 25%, approximately 25% of American Infrastructure with the goal of either merging the, SPAC into an existing public company or getting it spun off through a Form 10 merger, a Form 10 dividend to our investor base so that American Infrastructure can focus on its own growth division of the business.

Speaker Change: Similarly, ReElement Technologies, our goal ultimately is for this to be a standalone entity.

Speaker Change: ReElement Technologies is having a phenomenal start this year and beginning of the second half of this year where it's, positioning itself as a premier refining technology company to the critical and rare earth element space.

Speaker Change: And we'll talk a little bit further about that here shortly.

Mark Jensen: We hope to have some very positive announcements coming out of Wyoming County and McCoy Elkhorn here shortly.

Mark Jensen: We're also entertaining leases for our Perry County complex, as well as our Dean complex once we get through with the litigation we are pursuing against our former lesson.

Speaker Change: And then, ultimately, the DSPAC merger with American Metals and AITR.

Speaker Change: And I can say today, we are in a position to unlock that value and drive value for the, shareholders while also reducing the risk profile of each one of those divisions.

Speaker Change: We've positioned ourselves at the forefront in providing real critical mineral refining and sustainable solutions to the world and a diversify away from a single source monopolistic economy, which is afforded by China. Our application of chromatographic separation technology to the industry enables us to produce high-purity critical mineral products at high throughput and at a competitive, if not well-recost in China.

Mark Jensen: Let me dive here into realmen technology. Realmen technologies, we started off many years ago focused on the ability to produce rare elements from carbon-based materials, and then when we secured the technologies from Purdue University we've expanded that footprint substantially to the highest value denominator within the industry, and now focusing on rare earth ores from end-of-life magnets, rare earth or rare oxides from end-of-life magnets, rare earth oxides from rare earth ores, as well as battery ores with the emphogenine, cobalt, nickel from end-of-life batteries, as well as from the ore-based resources.

Speaker Change: As much as the world is moving to develop a more diversified critical mineral supply chain, we are leading and providing efficient refining solutions to bridge upstream production and recycling to downstream manufacturing in a collaborative way.

Speaker Change: There's a lot going on behind the scenes in American Metals, which we'll touch on a little bit of that today in terms of its, positioning around the pre-processing and recycling of critical minerals, as well as ferrous metals and other highly important electricity metals.

Speaker Change: We look to unlock that this year.

Speaker Change: So, our goal is for American Infrastructure and ReElement Technologies to be separate companies by the end of, this year.

Speaker Change: Similarly, ReElement Technologies, our goal ultimately is for this to be a standalone entity.

Speaker Change: Let me dive a little bit here into the American Carbon business line. As we've discussed, our core divisions of this business are focused on either signing leases or bringing these operations, into production in the near term. Our McCoy-Elthorn complex, we have signed a lease with an operator, and our goal is to restart the mines this year, hopefully here very shortly in the near term. This is positioned as one of the lowest cost metallurgical carbon, high vol metallurgical, carbon assets in the country.

Speaker Change: The efforts we put forth to reduce holding costs through reclamation, as well as positioning, and setting up these mines to bring in a top tier operator, which we have done, to unlock this value will drive cash flow to the bottom line of American infrastructure through a royalty based structure, focusing purely on cash flow and reduction of capex required from us, as well as operational risk.

Speaker Change: Our Wyoming County complex is probably one of the most exciting complexes, and having, done a tremendous amount of development offsite to bring that equipment onsite to unlock this mine here in the near term.

Speaker Change: This is a mid-vol metallurgical carbon operation. It's one of the few, if not the only, greenfield mid-vol mines in the country that can be deployed, in low capex model.

Speaker Change: We are also in negotiations with a multinational customer that has expressed interest in buying, 80,000 tons a month at a very attractive price from both the McCoy and Wyoming County complexes.

Speaker Change: They'll be in town to our offices here this week to further those discussions with the, hopes of putting that deal and getting that deal put in place, along with some other opportunities we are working on to drive near term revenue growth for our Wyoming County division, as well as our McCoy complex.

Speaker Change: By blending these two products together, you're creating the premier met-carbon quality of, product for the steel mills across not only our country, but also the world.

Speaker Change: Furthermore, at the American Infrastructure Division, we have our rare earth element component, of the business.

Speaker Change: The Wyoming County complex has had third-party verified characterization of rare earth elements, of over 550 parts per million.

Speaker Change: From unconventional resources, this is by far and above the highest rare earth concentrate, that we have seen from any carbon-based feedstock in the country.

Speaker Change: There's been other players within our industry that have announced it closer to the 400 level, but 550 parts per million tied in on the back end of an existing mining complex going into production here in the near term is the most economical resource we've seen from this.

Speaker Change: Being a byproduct, we'll be able to generate cash flow because we're not developing it, solely for that. We're developing it to produce mid-vol met-carbon for the steel industry and generating value, from the rare earth elements as a byproduct off the back end of that processing plant.

Speaker Change: While a more diversified and resilient supply chain is still very much developing around the world as demand for critical minerals is increasing in a big way, to meet the needs of our energy transition and national security and more advanced consumer technology applications, re-element has put the pillars in place and leading the world at a more diversified supply of ultra-pure manufacturing-grade critical mineral products.

Mark Jensen: What we have proven is that we can go head to head against China and produce rare earth oxides and battery-grade materials and lower cost structures than they can in the competitive environment over the long term, and we're going to continue to develop that technology and continue to optimize that technology to stay ahead of that curve.

Speaker Change: We hope to have some very positive announcements coming out of Wyoming County and McCoy Elkhorn, here shortly.

Speaker Change: And we'll talk a little bit further about that here shortly.

Speaker Change: We're also entertaining leases for our Perry County complex, as well as our Dean complex, once we get through with the litigation we are pursuing against our former lessons.

Speaker Change: And then, ultimately, the DSPAC merger with American Metals and AITR.

Speaker Change: Let me dive here into re-element technology.

Mark Jensen: We've also proven the F2C on concentrated brines. Lithium brines from DLE, we can take their flow sheets and simplify them dramatically, and we've worked, we're working with a couple members within the industry to help them achieve that, to make it the ELE mechanism.

Speaker Change: Re-element technology, we started off many years ago focused on the ability to produce, rare earth elements from carbon-based materials.

Speaker Change: This is a mid-vol metallurgical carbon operation. It's one of the few, if not the only, greenfield mid-vol mines in the country that can be deployed, in low capex model.

Speaker Change: And then when we secured the technologies from Purdue University, we've expanded that, footprint substantially to the highest value denominator within the industry.

Speaker Change: And now focusing on rare earth ores from end-of-life magnets, rare earth oxides from end-of-life, magnets, rare earth oxides from rare earth ores, as well as battery ores, lithium spodumene, cobalt, nickel from end-of-life batteries, as well as from the ore-based materials.

Speaker Change: Resources.

Speaker Change: By blending these two products together, you're creating the premier met-carbon quality of, product for the steel mills across not only our country, but also the world.

Speaker Change: What we have proven is that we can go head-to-head against China and, produce rare earth oxides and battery grade materials at a lower cost structure than they can in the competitive environment over the long term.

Speaker Change: And we're going to continue to develop that technology and continue to optimize that technology to stay ahead of that curve.

Mark Jensen: What I'm super excited about is the direction that the business is going. We are running a hybrid model at every element. Our hybrid model is driven by the fact of building out our core facilities, our Marion facility, which has the ability to produce rare epoch size as well as battery materials, as well as our Kentucky lithium facility, that will process lithium-sposja-mean from lithium-herbinate to the battery materials. From there, those are the ability to drive cashless for investors, but also demonstrate our technology to the world at highly commercial scale.

Speaker Change: Our approach to the market includes operating and scaling our own facilities, including our Nobleville Commercial Qualification Facility, our Kentucky Lithium Complex, and our Marion Advanced Technology Center, as well as our asset light powered by re-element offering.

Speaker Change: Our ability to produce ultra-pure critical mineral products solves probably the most complex part of the supply chain's challenges and is bolstered by our great team, our extensive asset base, and our breakthrough technology.

Speaker Change: And that really is the value proposition of re-element technologies.

Mark Jensen: Over the course of the last few years, we've been operating our noble skills facility to get our products qualified with various customer bases. On the lithium side, it takes about a year, and we're through that with a number of parties. On the rareest oxide department, we've also been shipping out our oxides to our customers, which we are now either signing contracts with, have signed contracts with, or negotiating with.

Speaker Change: While we believe our current stock price does not properly reflect the value of re-element or the sum of all of American resources parts, we are confident in our platform of assets and the path that they are on to create a significant shareholder value.

Speaker Change: From a corporate standpoint, our goal is to continue to execute one of our strategic directives and continue to spin off the majority of both American infrastructure corporation and re-element technologies corporation and to stand along companies and execute one of the deep-back merger between American metals and AITR that we previously announced.

Speaker Change: With that, I'd like to turn the call over to our chairman and CEO, Mark Jensen.

Mark Jensen: From there further than that is developing our powered by re-element division. Powered by re-element is effectively refining as a service, where we provide our technology and our team locally at other company sites to reduce their cap ex, reduce their op ex, supplement their flow sheet or replace their flow sheet. The amount of interest we're having, this division, is substantial.

Speaker Change: Mark?

Speaker Change: Furthermore, at the American Infrastructure Division, we have our rare earth element component, of the business.

Speaker Change: The Wyoming County complex has had third-party verified characterization of rare earth elements, of over 550 parts per million.

Speaker Change: From unconventional resources, this is by far and above the highest rare earth concentrate, that we have seen from any carbon-based feedstock in the country.

Mark Jensen: Thanks, Mark.

Speaker Change: I appreciate it.

Mark Jensen: What's exciting about it is the asset light. The Viasa light meaning our customers will capex the facility and pay us a service is the top of that to deploy our technology for them, which enables us to grow rapidly and become the technology of choice across the critical and error space on the separation of purification step, the most complex step within this industry of the whole, and typically the most expensive step within this industry.

Speaker Change: And thank you all for joining today.

Mark Jensen: We'll go through this pretty quickly here, but really excited about the position of where each one of our asset bases and what each one of our divisions are currently positioned and where they're going here in the future.

Mark Jensen: We simplify that, and we deploy it, and ultimately replace those flow sheets permanently for the future. Our Novelsville facility can use to operate on a daily basis, producing lithium carbonate from LFP batteries. We are doubling the size of that facility and capacity of that facility here very shortly, if not tripling it, based on some minor investments that we can make, and that's the exciting aspect of our technology, either increasing our production trains or expanding our production trains at very low cap ex, expansion points to increase our production significantly.

Mark Jensen: Our varying facility, we're at the point now where we're scoping equipment, ordering equipment, deploying assets to the facility to be able to start production here in the future for both starting off initially for rare with oxides. Our Kentucky lithium site, we actually have our crews on site, they're delivering equipment this weekend to start the tear down of the form of coal mining complex and start laying the foundation for our Kentucky lithium refinery. We're excited about the infrastructure that we're able to utilize there, and the current attributes that that site offers to us, and the team that we have in place to be able to handle this facility.

Mark Jensen: Our feedstock focus today is pretty broad. We are the only player in the space that can produce both heavy rares as well as light rares in a refined basis, and we're going to stay ahead of that curve and be the largest producer of those in the United States from our Marion facility. Being able to process natural ores from hard rock lithium to rare earth ores from all over the world, and be able to deploy those here in the local environment.

Speaker Change: We've also proven the efficacy on concentrated brines.

Speaker Change: Lithium brines from DLE, we can take their flow sheets and simplify them dramatically.

Mark Jensen: Internationally, we have assigned our MOU with Jupiter project, probably the largest lithium line in the world, and they are currently in the development phase of that project, with the goal of bringing that project on next year. Also in discussions all throughout Europe, having numerous discussions on both the rarest and lithium side, as well as South America, Canada, Japan, and Australia. Our team is working on deployment of our technologies as we enjoy ventures, through powered by re-element or through our existing facilities.

Speaker Change: And we've worked, we're working with a couple members within the industry to help them achieve that, to make DLE economic.

Speaker Change: What I'm super excited about is the direction that the business is going.

Speaker Change: We, are running a hybrid model at ReElement. Our hybrid model is driven by the fact of building out our core facilities, our Marion facility, which has the ability to produce rare earth oxides as well as battery materials, as well as our Kentucky lithium facility that will process lithium spasmine for lithium carbonate to the battery materials.

Speaker Change: From there, those are the ability to drive cash flows for our investors, but also demonstrate our technology to the world at highly commercial scale.

Speaker Change: Over the course of the last few years, we've been operating our Noblesville facility to get our products qualified with various customer bases.

Speaker Change: On the lithium side, it takes about a year and we're through that with a number of parties.

Speaker Change: On the rare earth oxide department, we've also been shipping out our oxides to our customers, which we are now either signing contracts with, have signed contracts with, or negotiating with.

Speaker Change: From there, further than that, is developing our Powered by ReElement division. Powered by ReElement is effectively refining as a service, where we provide our technology and our team locally at other company sites to reduce their CapEx, reduce their OpEx, supplement their flow sheet, or replace their flow sheet.

Speaker Change: The amount of interest we're having in this division is substantial.

Speaker Change: What's exciting about it is this asset light. By asset light, meaning our customers will CapEx the facility and pay us a services fee on top of that to deploy our technology for them, which enables us to grow rapidly and become the technology of choice across the critical inner space on the separation and purification step, the most complex step within this industry as a whole, and typically the most expensive step within this industry.

Speaker Change: We simplify that and we deploy it and ultimately replace those flow sheets permanently for the future.

Speaker Change: Our Noblesville facility continues to operate on a daily basis, producing lithium carbonate from LFP batteries.

Speaker Change: We are doubling the size of that facility and capacity of that facility here very shortly, if not tripling it, based on some minor investments that we can make, and that's the exciting aspect of our technology, either increasing our production trains or expanding our production trains at very low CapEx expansion points to increase our production significantly.

Speaker Change: Our Marion facility, we are at the point now where we're scoping equipment, ordering equipment, deploying assets to the facility to be able to start production here in the future, starting off initially for rare earth oxides.

Speaker Change: Our Kentucky Lithium site, we actually have our crews on site. They're delivering equipment this weekend to start the teardown of the former coal mining complex and start laying the foundation for our Kentucky Lithium refinery.

Speaker Change: We're excited about the infrastructure that we're able to utilize there, and the current, attributes that that site offers to us, and the team that we have in place to be able to handle this facility.

Mark Jensen: But the sole focus is to get the facilities generating cash flows and deploying our technology quickly this year. The opportunity to provide low cost and environmentally safe, critical and rare at the element, refining around the world, in a collaborative manner to meet the needs of the energy storage markets are abundant. The market is looking to us, and more to provide solutions.

Speaker Change: Our feedstock focus today is pretty broad.

Speaker Change: We are the only player in the space that can produce both heavy rares, as well as light, rares, in a refined basis, and we're going to stay ahead of that curve and be the largest producer of those in the United States from our Marion facility, being able to process natural ores from hard rock lithium to rare earth ores from all over the world, and be able to deploy those here in the local environment.

Speaker Change: Internationally, we have signed our MOU with Jupiter Project, probably the largest lithium, mine in the world, and they are currently in the development phase of that project with the goal of bringing that project on next year.

Speaker Change: Also in discussions all throughout Europe, having numerous discussions on both the rare, earth and lithium side, as well as South America, Canada, Japan, and Australia.

Mark Jensen: This stranded capital, both on the strategic and finance side, is looking for ways to unlock their capital, and that comes down to the bottleneck within the world, which is refining. And we are highly confident that our technology and our suite of technologies will enable that to happen here in the near-term.

Mark Jensen: Re-element value proposition is unique. Our goal is to build into a multi-billion dollar business, and we believe we are well positioned within our assets and our team to be able to do that in a low-capac, low-opac manner. American Metals is, as we announced, is doing pre-processing for re-element. It does the dirty work of re-element in a safe, secure way. It helps break down and devise motors, power tools. It helps break down batteries. It helps establish the partnerships within the battery recycling space and partnerships.

Mark Jensen: As we've stated several times, we're extremely well positioned within the divisions to create value for our shareholders.

Mark Jensen: We have currently signed the definitive agreements with the SPAC merger AI Transportation Acquisition Corp, AITR, that will enable us to execute upon the separation of this division and grow this division. Prior and after the signing of the definitive agreements, we have been in numerous joint venture relationships throughout the US, but also the world, including Europe, as well as in India, and looking to execute upon those joint venture agreements here in the near term, which we hope to double share with you.

Mark Jensen: The value of our individual divisions, we believe, is substantially undervalued. At American Metals, with a fairness opinion, that was brought to us of 170 million would value the company at over five times the current market cap. We are currently pursuing growth, and the capital we're pursuing at re-element would value the company at over five times the current market cap.

Mark Jensen: And we have numerous patriotic capital funds that have stepped up, stating their desire to invest in the company and to invest in this round of capital that we're pursuing. American infrastructure has equipment that we've acquired that has a replacement value of over $270 million, from coal processing plants to underground equipment to surface equipment. The royalty model that we're deploying there is going to enable us to generate substantial cash flow and put the focus of our operating team on our Wyoming County division, which has a significantly attractive market to operate into today with the price of mid-volc coal versus our extraction.

Speaker Change: Our team is working on deployment of our technologies into joint ventures through Powered, by ReElement or through our existing facilities, but the sole focus is to get the facilities generating cash flows and deploying our technology quickly this year.

Speaker Change: The opportunity to provide low cost and environmentally safe critical and rare earth element refining, around the world in a collaborative manner to meet the needs of the energy storage markets are abundant.

Speaker Change: The market is looking to us and more and more to provide solutions.

Speaker Change: Stranded capital, both on the strategic and finance side, is looking for ways to unlock, their capital, and that comes down to the bottleneck within the world, which is refining.

Speaker Change: And we are highly confident that our technology and our suite of technologies will enable, that to happen here in the near term.

Mark Jensen: And ultimately, I'm locking that value through the separation of these divisions.

Mark Jensen: We believe that the current market does not reflect the value of our divisions and ultimately our focus is on getting these separated so we can unlock that value for all of our shareholders. We remain very confident in our position of all of our assets and the long-term value they provide to our shareholders.

Speaker Change: ReElement's value proposition is unique.

Speaker Change: So the management teams and the shareholders can drive value from the respective divisions. Over the course of the last six months, we have been putting the puzzle pieces together to capitalize on the opportunities and momentum across each of these divisions with the respective management teams. And I can say today, we are in a position to unlock that value and drive value for the shareholders while also reducing the risk profile of each one of those divisions.

Speaker Change: It's important to understand and to reiterate, as we continue to undergo a growth from a consolidated and restructure of carbon operations to focusing on monetizing and deploying that asset base for growth and for cash flow, as well as developing a technology and innovation hub that is truly revolutionary in terms of how critical minerals and rare earth elements are refined today outside of China, that cost structure that is lower than China.

Mark Jensen: We remain hyper-focused on unlocking that value and working behind the scenes to get all those puzzle pieces put in place including the re-audit of our numbers due to the replacement of our auditor as well as the positioning within the regulatory agencies to get these businesses separated. The evolution of our company and the transition of our technology-centric business and approach is well underway and better positions all of our American resources divisions for growth.

Speaker Change: Our goal is to build into a multi-billion dollar business, and we believe we're well, positioned within our assets and our team to be able to do that in a low cap ex, low op ex manner.

Speaker Change: The stock price today does not reflect what we believe the value of the company is, and ultimately we also understand that it's probably confusing the public market today of how to value our company.

Speaker Change: Because of the three different divisions as they have grown and as we have positioned those business lines to be standalone entities.

Mark Jensen: We have ample equipment and we do not foresee us needing to issue equity at the AREC level to raise capital. We will pursue subsidiary-based financing that is being offered to us today. Should we need additional capital to unlock this value?

Speaker Change: We hope to have some very positive announcements coming out of Wyoming County and McCoy Elkhorn, here shortly.

Speaker Change: We're also entertaining leases for our Perry County complex, as well as our Dean complex, once we get through with the litigation we are pursuing against our former lessons.

Speaker Change: Let me dive here into re-element technology.

Speaker Change: Re-element technology, we started off many years ago focused on the ability to produce, rare earth elements from carbon-based materials.

Speaker Change: We look to unlock that this year.

Speaker Change: So our goal is for American infrastructure and real estate technologies to be separate companies by the end of this year.

Mark Jensen: We also continue to explore and work through the capital raise which we mentioned every element and are working with numerous patriotic capital funds and understand the importance of our Department of Defense as well as our Department of Energy to source critical minerals produced locally in the U.S, and is the only refining company in the country that can refine both rare earth elements as well as battery material. We are very well-suited to protect and build our national security supply chain.

Speaker Change: And our team, our financial team, our audit team is putting the puzzle pieces in place to enable that to happen, as well as American metals to be a standalone company through the SPAC merger, which valued through a fair in this opinion at $170 million valuation.

Mark Jensen: I thank you all for joining today. I am highly confident in our ability to execute upon our business plan and excited about the progress we've made over the last few weeks, the last few months, to position these assets and to drive cash flow here in the near term to unlock the revenue potential of all of our assets.

Speaker Change: Our focus is on preparing and positioning these business for growth, building out the management teams to drive these businesses forward, and to unlock that value and provide a clear concise message to the market of what each one of these divisions can accomplish.

Speaker Change: Recently we have distributed 25% approximately 25% of American infrastructure with the goal of either merging the industry and an existing public company or getting it spun off your form 10 merger, a form 10 dividend to our investor base so that American infrastructure can focus on its own growth division of the business.

Mark LaVerghetta: We look forward to communicating here in the near future and being transparent about the objectives of the business as well as the execution on the business.

Speaker Change: And then when we secured the technologies from Purdue University, we've expanded that, footprint substantially to the highest value denominator within the industry.

Speaker Change: Resources.

Speaker Change: Similarly, real estate technologies, our goal ultimately is for this to be a standalone entity.

Operator: With that, I'd like to turn it back over to the moderator for Q and A. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Thank you.

Speaker Change: And we're going to continue to develop that technology and continue to optimize that technology to stay ahead of that curve.

Speaker Change: We've also proven the efficacy on concentrated brines.

Speaker Change: Lithium brines from DLE, we can take their flow sheets and simplify them dramatically.

Speaker Change: And we've worked, we're working with a couple members within the industry to help them achieve that, to make DLE economic.

Speaker Change: What I'm super excited about is the direction that the business is going.

Speaker Change: From there, those are the ability to drive cash flows for our investors, but also demonstrate our technology to the world at highly commercial scale.

Speaker Change: American Metals is, as we announced, is doing pre-processing for ReElement. It does the dirty work of ReElement in a safe, secure way.

Speaker Change: Over the course of the last few years, we've been operating our Noblesville facility to get our products qualified with various customer bases.

Speaker Change: It helps break down and device motors, power tools.

Speaker Change: On the lithium side, it takes about a year and we're through that with a number of parties.

Speaker Change: It helps break down batteries.

Speaker Change: It helps establish the partnerships within the battery recycling space and the partnerships.

Speaker Change: The amount of interest we're having in this division is substantial.

Speaker Change: We simplify that and we deploy it and ultimately replace those flow sheets permanently for the future.

Speaker Change: Our Noblesville facility continues to operate on a daily basis, producing lithium carbonate from LFP batteries.

Speaker Change: We've currently signed the definitive agreements with the SPAC merger, AI Transportation Acquisition, Corp., AITR, that will enable us to execute upon the separation of this division and grow this division.

Speaker Change: Prior and after the signing of the definitive agreements, we have been in numerous joint, venture relationships throughout not only the U.S., but also the world, including Europe as well as in India, and looking to execute upon those joint venture agreements here in the near term, which we hope to be able to share with you.

Jesse Sobelson: Our first question comes from the line of Jesse Solblisson with EF Hutton. Please proceed with your question.

Mark Jensen: Hi, everyone. A lot going on, but very interesting story here. I just wanted to focus in on the relevant piece of the business here. Firstly, in the press release, you mentioned demonstrating the purification of rare earth ores at 99.5% or magnet grade. Can you explain how this grade for rare earth ores is different from something and maybe refining lithium to be battery grade? Secondly, can you elaborate on this demonstration conducted and was it at a commercial scale?

Speaker Change: Real estate technologies is having a phenomenal start this year and beginning of the second half of this year, where it's positioning itself as a premier refining technology company to the critical and rare element space.

Speaker Change: And we'll talk a little bit further about that here shortly.

Speaker Change: And then ultimately the SPAC merger with American metals and the ICR.

Speaker Change: There's a lot going on behind the scenes in American metals, which we'll touch on a little bit of that today, in terms of its positioning around the pre-processing and recycling of critical minerals, as well as fairest metals and other highly important electric side metals.

Speaker Change: Our feedstock focus today is pretty broad.

Speaker Change: Also in discussions all throughout Europe, having numerous discussions on both the rare, earth and lithium side, as well as South America, Canada, Japan, and Australia.

Speaker Change: Let me dive a little bit in here into the American carbon business line.

Mark Jensen: If not, what was the scale demonstrated and what is the timeline to build this out and prove out this technology at a commercial scale? Thanks. Yeah, thanks Jesse, I appreciate that. So what we've seen within our technology and I'll work my way backwards on that and hopefully, if I miss a point, please jump in and correct me or ask a question again, but the uniqueness of our technology and what we've seen so far as we scaled it up well over a thousand x from lab scale, that was originally developed at Purdue University and obviously then further developed by us was that the FTC of our technology is better at higher volumes and that's due to the surface space area interface of our residents that we utilize.

Speaker Change: As we've discussed, our core divisions of this business are focused on either signing leases or bringing these operations into production in the near term. Our McCoy Elforn Complex, we have signed a lease with an operator and our goal is to restart the mines this year, hopefully here there shortly in the near term.

Speaker Change: This is position is one of the lowest cost metallurgical carbon, high-ball metallurgical carbon assets in the country.

Speaker Change: The efforts we put forth to reduce holding costs through reclamation, as well as positioning and setting up these mines to bring in a top tier operator, which we have done.

Speaker Change: To unlock this value, we'll drive cash flow to the bottom line of American infrastructure through a royalty based structure, focusing purely on cash flow and reduction of capex required from us, as well as operational risk.

Mark Jensen: So we've demonstrated at commercial scale, we've been to the qualification process on the battery side, the quality that we produce on the magnet side for rare side to the 99.5% purity, which is really what the battery guys need as well as the 99.5 targeting on specific impurities. But the what we produce for our customer was they sent us a sample. So wasn't we weren't out there procuring the orders they asked if we could process their orders and they wanted a sample sent back to them.

Speaker Change: Our Wyoming County Complex is probably one of the most exciting complexes and having...

Mark Jensen: So there was a lab scale process process that they asked us to perform and that's just a body of material to gave us and they were very pleased with the results that we gave them back. And that was a very accurate and 99.5% for both the light rarest as well as the heavy rarest, which is really part of the major problem we have within our country and there is no heavy rarest production and we can obviously solve that for them.

Mark Jensen: But we've delivered back questions that was specifically for a customer that wanted us to process their orders, the attractiveness of our technology and the capex side of our businesses. The rarest orders is actually lower capex than our even the rarest magnet side, which is still a low capex model. So we're excited about the results and excited about the position of that. On the battery side 99.5 is what most people produce in 99.9% is a very easy product for our team to produce from a lithium carbonate perspective.

Mark Jensen: Now we will produce what the customer wants if they want a 99.5% will produce them a 99.5%. Did I address all your questions there? It essentially sounds like the production was based on their sample and just in terms of scaling. There isn't really a timeline there. It sounds like you guys are ready to go once maybe the partnerships are in place in order to build the facilities needed to that person. So we're starting now.

Mark Jensen: It's actually just our facility today giving a lithium spodge mean customer a tour of our facility. But we are we are currently identifying the equipment with the goal of in the next 30, 60 days to pull the trigger on the first equipment that will be going into the Marion facility specifically for rare side production. We have end of life magnet feed stock arrangements with large Detroit automotive with a number of wind, wind turbine companies such as GDP renewables as well as power tool companies that we recycle those rare oxide rare.

Speaker Change: We've done a tremendous amount of development, off-site, to bring that equipment on-site to unlock this mine here in the near term.

Speaker Change: This is a mid-vall, metallurgical, carbon operations.

Speaker Change: One of the few is not the only greenfield mid-vall mines in the country that can be deployed in low-cap ex-mobiles.

Mark Jensen: Oxides from the end of that magnet. And so we're not we're not necessarily waiting on them. We're moving forward as we speak to procure that equipment and get producing the margins on rare earth oxides for us extremely attractive right now in the market. And so we're we're moving as aggressively as we possibly can.

Speaker Change: We are also in negotiations with a multinational customer that has expressed interest in buying 80,000 tons a month at a very attractive price from both the McCoy and Wyoming County complexes. They'll be in town into our office this year this week to further those discussions with the hopes of putting that deal and getting that deal put in place, along with some other opportunities we are working on, to drive near-term revenue growth for our Wyoming County division as well as our McCoy complex.

Speaker Change: The value of our individual divisions, we believe, is substantially undervalued.

Speaker Change: At American Metals, with a fairness of opinion that was brought to us, of $170 million would, value the company at over five times the current market cap.

Speaker Change: By blending these two products together, you're creating a v-premier, met carbon quality of product for the steel mills across not only our country, but also the world.

Speaker Change: Furthermore, at the American Infrastructure Division, we have our rarest element component of the business.

Speaker Change: We are currently pursuing growth, and the capital we're pursuing at ReElement would, value the company at over five times the current market cap, and we have numerous patriotic pursuing.

Speaker Change: American infrastructure has equipment that we've acquired that has a replacement value of over $270 million, from coal processing plants to underground equipment to surface equipment.

Speaker Change: The Wyoming County complex has had third-party verified characterization of rarest elements of over 500 parts, 550 parts per million.

Jesse Sobelson: Ian. Great.

Speaker Change: The royalty model that we're deploying there is going to enable us to generate substantial cash flow and put the focus of our operating team on our Wyoming County division, which has a significantly attractive market to operate into today with the price of mid-vol coal versus our extraction costs.

Speaker Change: We believe that the current market does not reflect the value of our divisions, and ultimately our focus is on getting these separated so we can unlock that value for all of our shareholders.

Speaker Change: From unconventional resources, by far and above the highest rare concentrate that we have seen from any carbon-based feedstock in the country, there's been other players within our industry that have announced it closer to the 400 level, but 550 parts per million tied in on the back end of an existing mining complex going into production here in the near-term is the most economical resource we've seen from this, and being a by-product label, it be able to generate cash flow because we're not developing it solely for that. We're developing it to produce mid-vol, met carbon to the steel industry and generating value from the rarest elements as a by-product off the back end of that processing plant.

Mark Jensen: Yeah, just one quick follow up just on the technology itself and this is more of a bigger picture thing. You know, we talk a lot about recycling and refining there, but you know, there is a big push to potentially start working with, you know, Brian Lithium. Is your technology as applicable there as it is to, you know, the recycling side of the business we see today? Absolutely. So we've actually worked with two DLE companies today that direct collecting extraction companies for the brine.

Speaker Change: We remain very confident in our positioning of all of our assets and the long-term value they provide to our shareholders.

Speaker Change: We remain hyper-focused on unlocking that value and working behind the scenes to get all those puzzle pieces put in place, including the re-audit of our numbers due to the replacement of our auditor, as well as the positioning within the regulatory agencies to get these businesses separated.

Speaker Change: We hope to have some very positive announcements coming out of Wyoming County and McCoy Elkhorn here shortly.

Speaker Change: We're also entertaining leases for our Perry County complex, as well as our Dean complex once we get through with the litigation we are pursuing against our former lesson.

Speaker Change: The evolution of our company and the transition of our technology-centric business and approach is well underway and better positions all of our American Resources divisions for growth.

Speaker Change: We have ample liquidity, and we do not foresee us needing to issue equity at the AREC level to raise capital. We will pursue subsidiary-based financing that is being offered to us today should we need additional capital to unlock this value.

Speaker Change: We also continue to explore and work through the capital raise, which we mentioned at ReElement, and are working with numerous patriotic capital funds that understand the importance of our Department of Defense, as well as our Department of Energy, to source critical minerals produced, locally in the U.S. And as the only refining company in the country that can refine both rare earth elements as well as battery materials, we are very well-suited to protect and build our national security supply chain.

Speaker Change: Let me dive here into realmen technology.

Speaker Change: I thank you all for joining today. I am highly confident in our ability to execute upon our business plan and excited about the progress we've made over the last few weeks, the last few months, to position these assets and to drive cash flow here in the near term to unlock the revenue potential of all of our assets.

Speaker Change: Realmen technologies, we started off many years ago focused on the ability to produce rare elements from carbon-based materials, and then when we secured the technologies from Purdue University we've expanded that footprint substantially to the highest value denominator within the industry, and now focusing on rare earth ores from end-of-life magnets, rare earth or rare oxides from end-of-life magnets, rare earth oxides from rare earth ores, as well as battery ores with the emphogenine, cobalt, nickel from end-of-life batteries, as well as from the ore-based resources.

Speaker Change: We look forward to communicating with you in the near future and being transparent about, the objectives of the business as well as the execution upon the business.

Speaker Change: With that, I'd like to turn it back over to the moderator for some Q&A.

Speaker Change: What we have proven is that we can go head to head against China and produce rare earth oxides and battery-grade materials and lower cost structures than they can in the competitive environment over the long term, and we're going to continue to develop that technology and continue to optimize that technology to stay ahead of that curve.

Mark Jensen: And we significantly simplified their flow sheet. We reduced, we took six steps out of their flow sheet to get to battery-grade materials by doing so. And that's really where Powered by Realmen comes in, right? That's going to be the DLE side will be pretty much specifically a Powered by Realmen piece of business for us where they use our separation purification equipment in their facilities. We charge them a service for that and we lower their cost of production dramatically.

Speaker Change: We've also proven the F2C on concentrated brines.

Speaker Change: Lithium brines from DLE, we can take their flow sheets and simplify them dramatically, and we've worked, we're working with a couple members within the industry to help them achieve that, to make it the ELE mechanism.

Speaker Change: Thank you.

Speaker Change: What I'm super excited about is the direction that the business is going.

Speaker Change: The market is looking to us and more and more to provide solutions.

Speaker Change: Stranded capital, both on the strategic and finance side, is looking for ways to unlock, their capital, and that comes down to the bottleneck within the world, which is refining.

Speaker Change: And we are highly confident that our technology and our suite of technologies will enable, that to happen here in the near term.

Speaker Change: We are running a hybrid model at every element.

Speaker Change: ReElement's value proposition is unique.

Speaker Change: Our hybrid model is driven by the fact of building out our core facilities, our Marion facility, which has the ability to produce rare epoch size as well as battery materials, as well as our Kentucky lithium facility, that will process lithium-sposja-mean from lithium-herbinate to the battery materials.

Mark Jensen: It takes out all that precipitation and all the water extraction side of what they're trying to do. Right. Cool. Great. Well, thanks for the details here. I will let you guys take some of the questions that I appreciate you taking the time today. Thanks again. Excellent. Great questions. I appreciate it. Thank you.

Speaker Change: American Metals is, as we announced, is doing pre-processing for ReElement. It does the dirty work of ReElement in a safe, secure way.

Speaker Change: It helps break down and device motors, power tools.

Heiko Ihle: Our next question comes from the line of Heiko Uli with H.C. Rain White.

Mark Jensen: Please proceed with your question. Hey, Dair, thanks for taking my questions. I assume you can hear me. Okay. Yeah, Ken, good to hear from you. Awesome. Perfect. Hey, enough fairness opinion you talked about earlier that, you know, six X, the value. Can you give us some of the input factors used to derive that value and then also to leave you just a little bit more color on the fairness opinion, please? Yeah, I wish I actually could.

Speaker Change: From there, those are the ability to drive cashless for investors, but also demonstrate our technology to the world at highly commercial scale.

Speaker Change: Over the course of the last few years, we've been operating our noble skills facility to get our products qualified with various customer bases.

Speaker Change: We will now be conducting a question-and-answer session.

Speaker Change: It helps break down batteries.

Speaker Change: If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker Change: It helps establish the partnerships within the battery recycling space and the partnerships.

Speaker Change: The value of our individual divisions, we believe, is substantially undervalued.

Speaker Change: On the lithium side, it takes about a year, and we're through that with a number of parties.

Speaker Change: At American Metals, with a fairness of opinion that was brought to us, of $170 million would, value the company at over five times the current market cap.

Speaker Change: The confirmation tone will indicate your line is in the question queue.

Mark Jensen: It was it was not a fairness opinion that we paid for. So that was a fairness opinion that the SPAC itself put together. So we're that was we obviously gave them a full data and access of the business and the opportunities and the partnerships we have in place under the American middle business line. And they conducted that fairness opinion without any involvement from us, which ultimately is what we're supposed to do.

Speaker Change: We look forward to communicating with you in the near future and being transparent about, the objectives of the business as well as the execution upon the business.

Speaker Change: You may press star 2 if you would like to remove your question from the queue.

Speaker Change: With that, I'd like to turn it back over to the moderator for some Q&A.

Speaker Change: We remain very confident in our positioning of all of our assets and the long-term value they provide to our shareholders.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Mark Jensen: So I don't we don't have a lot of the details around it. We've just seen the language that will be included in the S4, which we hope to get filed here once we get the. Then the quarterly numbers for American metals completed here shortly. If we get that if we get access to it, obviously we'll put that out today. If we can if they. Yeah, I think it will make you look pretty good.

Mark Jensen: If if the numbers you're talking about, you know, come in the way they are and then if the input factors make sense. Yeah, I will work with our lawyers. If we can, we will. I assume in the S4 that there will be language around that, but that's a lawyer question. Which I'm not. Yeah, I'm not one of those either. Fair enough. See, in all these spinoffs and in all the corporate M&A that's right or you know, the best to share is everything that's going on with the company.

Speaker Change: One moment, please, while we poll for questions.

Speaker Change: Thank you.

Mark Jensen: Can you walk us through item by item? How much cash has actually been brought in the door and how much more you're trying or you're assuming you're going to be getting call it between now and the end of the year. Yeah, I will do my best. So at re-element, we have credit facilities in which we've been operating on. We've received some revenues from customers, such as our Japanese partner. But the re-element division, what we are talking to, the Patriotic Capital Funds about is between the 10 to 20 million RAs of which saw a circle, most of that already, at a significant premium to the current market.

Speaker Change: On the rareest oxide department, we've also been shipping out our oxides to our customers, which we are now either signing contracts with, have signed contracts with, or negotiating with.

Speaker Change: From there further than that is developing our powered by re-element division.

Mark Jensen: The uniqueness of the re-element model today, combined with taxes and bonds, and toward that financing, as well as customer pre-phase, that could be the last amount of capital we need to raise at the re-element level, with the focus of the business turning to powered by re-element. And so that puts us in a really attractive spot, along with the taxes and bonds we have for Kentucky, which we hooked on back here shortly, through the development of that facility, as well as the opportunity to bring that production line online, as well as we are pursuing the tax and bonds for our Marion facility, which is probably one of the most attractive opportunities I've ever seen, given we already have all the infrastructure and spend all the money doing that, to build that facility out and have it ready for prime time today.

Speaker Change: Powered by re-element is effectively refining as a service, where we provide our technology and our team locally at other company sites to reduce their cap ex, reduce their op ex, supplement their flow sheet or replace their flow sheet.

Speaker Change: The amount of interest we're having, this division, is substantial.

Mark Jensen: The American carbon division, we obviously are developing our complex, and there will be a state-of-the-art complex within our Wyoming County division. We are negotiating with the customer to date that wants to come to the table with a very big order and prepay for all of that revenue as well. So hopefully here in the near term we can provide some updates on that if it comes to fruition or not. But then also credit facilities we've had on the equipment leasing side and the ability to draw additional capital based on that.

Speaker Change: We will now be conducting a question-and-answer session.

Speaker Change: If you would like to ask a question, please press star 1 on your telephone keypad.

Mark Jensen: We have a significant asset basis that's relatively unlovered at the American infrastructure side of the business, that we can continue to expand that business. But the uniqueness for the business is where Wyoming is getting close to just finishing the face-up and all the equipment being delivered there from an infrastructure perspective. There's not a lot of additional capital that needs to be spent on American infrastructure role. The McCoy complex is already set up so it's not a, it becomes from one of the few mining companies in the met carbon space, that's really not a mining company other than our focusing on our Wyoming division, which is the focus of the business, is a CapEx-like model going forward just generating cashless streams by leasing out the core assets that we focused on developing over time.

Speaker Change: The confirmation tone will indicate your line is in the question queue.

Speaker Change: You may press star 2 if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: What's exciting about it is the asset light.

Speaker Change: One moment, please, while we poll for questions.

Speaker Change: Thank you.

Speaker Change: The Viasa light meaning our customers will capex the facility and pay us a service is the top of that to deploy our technology for them, which enables us to grow rapidly and become the technology of choice across the critical and error space on the separation of purification step, the most complex step within this industry of the whole, and typically the most expensive step within this industry.

Mark Jensen: American metals has been traditionally a revenue driver on relatively small scale from the reclamation side of the mining properties where we've cleaned up and reclaimed over $30 million of liability that we acquired through the eight acquisitions we made over the last eight years. And then we are merging with the SPAC. We'll see how much capital stays in trust, but we also have credit facilities available for American metals. Should we want to grow faster than the SPAC capital in itself?

Speaker Change: We simplify that, and we deploy it, and ultimately replace those flow sheets permanently for the future.

Speaker Change: Our Novelsville facility can use to operate on a daily basis, producing lithium carbonate from LFP batteries.

Mark Jensen: And the fact capital doesn't stand trust. We're how much of a state in trust. We're figuring that out as we speak. But the business doesn't need a substantial amount of capital today outside of what we just discussed right there. We have a low overhead. We don't have a significant capital need. The main focus is just getting equipment into our marine facility as we speak and getting the Wyoming County division. Ryan. That answer your question, I go. That's pretty comprehensive. I appreciate that. Thank you very much. Awesome.

Heiko Ihle: Thank you.

Speaker Change: We are doubling the size of that facility and capacity of that facility here very shortly, if not tripling it, based on some minor investments that we can make, and that's the exciting aspect of our technology, either increasing our production trains or expanding our production trains at very low cap ex, expansion points to increase our production significantly.

Speaker Change: Our varying facility, we're at the point now where we're scoping equipment, ordering equipment, deploying assets to the facility to be able to start production here in the future for both starting off initially for rare with oxides.

Speaker Change: Our Kentucky lithium site, we actually have our crews on site, they're delivering equipment this weekend to start the tear down of the form of coal mining complex and start laying the foundation for our Kentucky lithium refinery.

Bobby Zenovis: Our next question comes from the line of Bobby Zenovis with BG Capital Group. Please proceed with your question. Thank you, Mark. Thanks for the time today. Just to follow up on Michael's train of thought. If you added up, and I'm glad you've got your accountant on the line as well, if you added up the value of the equipment, the value of what you believe American element, fairness of opinion is, and the rest of the properties, might as the get.

Bobby Zenovis: Did you give the shareholders on this call a rough idea of what that asset base is that would be in the next audited financials, and then we would be able to take that number, put it in today's share price, and figure out with 80 million shares of the equipment alone should be valuing this company at $1.50 plus. With the fairness of opinion from American element, it should be a multiple of that going forward, but I just like to hear your accountant sort of, you must have those ballpark numbers and the research you've had done on the on the company when you anticipate that being updated as well, and thank you.

Speaker Change: Our first question comes from the line of Jesse Sobelson with EF Hutton.

Speaker Change: Please, proceed with your question.

Speaker Change: Hi, everyone.

Speaker Change: A lot going on, but a very interesting story here.

Bobby Zenovis: I'll take quick stab at Kirk once interrupt me. You can, and I appreciate the question, Bobby. So if you look at our equipment, one, they don't show up on our gap financials, and happy to give anybody a tour of any of our operations down in Kentucky and West Virginia to see the infrastructure and the equipment that we possess, but how we acquire these assets, they don't show up on our balance. Because we bought them mostly through 363 bankruptcy sales, so we bought the assets, and we bought them timely.

Speaker Change: I just wanted to focus in on the, relevant piece of the business here.

Speaker Change: A lot going on, but a very interesting story here.

Speaker Change: Firstly, in the press release you mentioned demonstrating the purification of rare earth ores at 99.5 percent or magnet grade.

Speaker Change: We're excited about the infrastructure that we're able to utilize there, and the current attributes that that site offers to us, and the team that we have in place to be able to handle this facility.

Speaker Change: Can you explain how this grade for rare earth ores is different from something and maybe refining lithium to be battery grade?

Speaker Change: I just wanted to focus in on the, relevant piece of the business here.

Speaker Change: Firstly, in the press release you mentioned demonstrating the purification of rare earth ores at 99.5 percent or magnet grade.

Speaker Change: Can you explain how this grade for rare earth ores is different from something and maybe refining lithium to be battery grade?

Speaker Change: Secondly, can you elaborate on this demonstration conducted and was it at a commercial scale?

Speaker Change: If not, what was the scale demonstrated and what is the timeline to build this out and prove out this technology at a commercial scale?

Speaker Change: Thanks.

Speaker Change: Our feedstock focus today is pretty broad.

Speaker Change: Yeah, thanks, Jesse.

Speaker Change: I appreciate that.

Speaker Change: We are the only player in the space that can produce both heavy rares as well as light rares in a refined basis, and we're going to stay ahead of that curve and be the largest producer of those in the United States from our Marion facility.

Bobby Zenovis: We bought them in 2016 when nobody else wanted to. But the replacement value of these assets would be roughly around $300 million, what on the new equipment we've required, and put in place for our Wyoming County division. Now we have about 50, 55 million kind of, or about a little less than 52 million, 53 million. Counting the taxes and bond, which we have substantial cash under still, as well as, which we're completing the Wyoming County complex, as well as about $8 million of equipment leases that is going down substantially over time.

Speaker Change: Being able to process natural ores from hard rock lithium to rare earth ores from all over the world, and be able to deploy those here in the local environment.

Speaker Change: Internationally, we have assigned our MOU with Jupiter project, probably the largest lithium line in the world, and they are currently in the development phase of that project, with the goal of bringing that project on next year.

Speaker Change: Also in discussions all throughout Europe, having numerous discussions on both the rarest and lithium side, as well as South America, Canada, Japan, and Australia.

Speaker Change: Our team is working on deployment of our technologies as we enjoy ventures, through powered by re-element or through our existing facilities.

Bobby Zenovis: So take that roughly 300 million of replacement value, 170 million is the fairness opinion under American metals. And then, as I stated, on the real and the side, a minimum of $150 million valuation is what we're working with Patriotic Capital Fund as the initial value, which we believe is substantially higher than that, based on comps. That would put it at roughly 600 million minus 50 million. Based on 80 million shares outstanding, I'm not saying that should be the stock price, I'm saying those are the numbers that we believe the assets are worth, and that's the focus of unlocking that value in the public domain.

Speaker Change: But the sole focus is to get the facilities generating cash flows and deploying our technology quickly this year.

Speaker Change: The opportunity to provide low cost and environmentally safe, critical and rare at the element, refining around the world, in a collaborative manner to meet the needs of the energy storage markets are abundant.

Speaker Change: The market is looking to us, and more to provide solutions.

Speaker Change: This stranded capital, both on the strategic and finance side, is looking for ways to unlock their capital, and that comes down to the bottleneck within the world, which is refining.

Bobby Zenovis: That's why we're operating this business, so there's some more clearly under easy to understand business flying for everybody doing this. Investing. But we do believe based on those values that were substantially undervalued and we're not just sitting or saying that, we're putting action into work, action, putting forth the effort to create the action to unlock that value and realize that value, which we believe would still undervalue our re-element division based on the growth profile that we have within the marketplace.

Speaker Change: And we are highly confident that our technology and our suite of technologies will enable that to happen here in the near-term.

Speaker Change: Re-element value proposition is unique.

Bobby Zenovis: Thank you. Is that clear enough or need more clarification? No, I think that's it. I'm just like I'm sure the rest of the shareholders are a little shocked with the asset based alone at the company where the stock is trading. And I think when the next research report comes out of the clarity and the next sets of financials come out to show this thing is actually substantially undervalued, but we'll wait till that point.

Speaker Change: Our goal is to build into a multi-billion dollar business, and we believe we are well positioned within our assets and our team to be able to do that in a low-capac, low-opac manner.

Bobby Zenovis: But thank you. Yeah, absolutely. And I think also the, I mean, if you look at the re-element side, we didn't expect to generate revenues from Power Bay re-element this year, yet we're bidding on two projects already and have a third in the works that can generate a couple million dollars of revenue just on the upfront component of it based on the demand that the market needs. And really, honestly, the downturn and lithium pricing is a huge opportunity for us because everybody's realizing that our technology is what unlocks that.

Speaker Change: American Metals is, as we announced, is doing pre-processing for re-element.

Speaker Change: It does the dirty work of re-element in a safe, secure way.

Bobby Zenovis: So bringing signing the lease with our mining customer to get them into production, working on this project, which could be substantial revenue on Wyoming, as well as the revenue generation that's kicking in on the re-element side through Power Bay re-element as well as building out the facilities to generate our own internal revenues beyond Power Bay re-element is substantial. And I think that's where we're focused on keeping our head down to drive this value for our investors and keep costs extremely low so that falls to the bottom line. Thank you.

Speaker Change: It helps break down and devise motors, power tools.

Kyle Gallagher: Our next question comes from a line of Kyle Gallagher with Merrill Lins. Please proceed with your question. Hi, Mark. Good to talk to you again. Just wanted to kind of continue down that path of revenues on the rare earth side. You had mentioned, I think, in the call, you had said you were through the qualification process with some of your customers and entering into contracts for purchases that sound like. It's part of you expanding the Noblesville location to be able to fill orders and start realizing revenue or is Noblesville simply a qualification that really won't be revenue generating and it's going to be kind of all run through Marion.

Speaker Change: It helps break down batteries.

Speaker Change: Secondly, can you elaborate on this demonstration conducted and was it at a commercial scale?

Speaker Change: So, what we've seen within our technology, and I'll work, my way backwards on that, and hopefully, if I miss a point, please jump in and correct me, or re-ask the question again, but the uniqueness of our technology and what we've seen so far is we've scaled it up well over 1,000x from lab scale.

Mark Jensen: Good question, Kyle, and I appreciate it. So correct. The reason why we're expanding Noblesville is the sheer amount of volume of material that we're getting asked to test and also because we're getting POs from our customers that they want us to deliver product on. So we're expanding that to be able to deliver that product faster to expand our revenue base. Now, the way I wouldn't look at Noblesville as the focus for revenue generation for ourselves.

Speaker Change: If not, what was the scale demonstrated and what is the timeline to build this out and prove out this technology at a commercial scale?

Speaker Change: Thanks.

Speaker Change: Yeah, thanks, Jesse.

Speaker Change: I appreciate that.

Mark Jensen: The big return on capital we get is in our Marion facility. If you look at a capex of a lithium refinery or a rare earth refinery. Most of it's in the separation purification step, but also, but ultimately for us, a majority of that's in the building and infrastructure because our separation purification step is very low capex. And so our goal, which the attractiveness of Marion today is we have all of our natural gas finally installed.

Mark Jensen: We have our water. We have our utilities installed, which could be a really long lead time item for most, but we've got renovated this building. We're finishing the roof here in the next few weeks, but that doesn't hold us back from ordering equipment from the section that we're moving into. That's where the revenue is really kicking. If you look at the rare earth oxide line, we have we're looking at building this out at a 2000 metric ton of year rare earth oxide line with a payback period post start of commencement of operation in about two years.

Speaker Change: That was originally developed out of Purdue University, and obviously then further developed by us, was that the efficacy of our, technology is better at higher volumes, and that's due to the surface area interface of our resins that we utilize.

Speaker Change: So, we've demonstrated at commercial scale, we've been through the qualification process on the battery side.

Speaker Change: The quality that we produce on the magnet side for rare earth oxides is at 99.5% purity, which is really what the battery guys need as well, is 99.5% targeting on specific impurities.

Mark Jensen: Today based on average price, I would put it about a hundred and sixty million in revenue, and the only producer in the country that produces dispersion as well as terbium from these products which is in strong that man let alone the new dynium and unprecedented dynium that we produce from both ores as well as nagging material. That's where the revenue is really going to come from but more importantly I would also say powered by re-element.

Speaker Change: But what we've produced for our customer was they sent us a sample, so we weren't out there procuring the ores.

Mark Jensen: Most people are realizing the hydramet doesn't work and the change in chemistry of batteries as well as magnets and everything else is creating a huge problem within the industry. And so a lot of people were scoping out building a hydramet plant and now they realize they can't do that because chemistries are changing and now they're coming to us to help them design that process in a partnership way and to truly optimize everybody's flow sheets and make it simpler and better.

Speaker Change: It helps establish the partnerships within the battery recycling space and partnerships.

Speaker Change: They asked if we could process their ores, and they wanted a sample sent back to them.

Speaker Change: So, it was a lab-scale process that they asked us to perform, and that's just the volume of material they gave us, and they were very pleased with the results that we gave them back at greater than 99.5% for both the light rare earths as well as the heavy rare earths, which is really part of the major problem you have within our country, is there is no heavy rare earth production, and we can obviously solve that for them.

Speaker Change: So, we've demonstrated at commercial scale, we've been through the qualification process on the battery side.

Speaker Change: We have currently signed the definitive agreements with the SPAC merger AI Transportation Acquisition Corp, AITR, that will enable us to execute upon the separation of this division and grow this division.

Mark Jensen: And with that we get near-term revenue generation for re-element in a very low risk way for us, low-cap X model for us and we look forward to talking a lot more about powered by re-element over the next few months. Yeah are you able to give any sort of color or information kind of on you know kind of general size of some of the purchase orders like I mean is it is it a scenario where they just say hey we'll we'll pay you know X per per ton you know up to you know a thousand tons or whatever the number is.

Speaker Change: But we've delivered that customer.

Speaker Change: But what we've produced for our customer was they sent us a sample, so we weren't out there procuring the ores.

Speaker Change: They asked if we could process their ores, and they wanted a sample sent back to them.

Speaker Change: That was specifically for a customer that wanted us, to process their ores.

Speaker Change: But we've delivered that customer.

Speaker Change: Prior and after the signing of the definitive agreements, we have been in numerous joint venture relationships throughout the US, but also the world, including Europe, as well as in India, and looking to execute upon those joint venture agreements here in the near term, which we hope to double share with you.

Speaker Change: That was specifically for a customer that wanted us, to process their ores.

Speaker Change: The value of our individual divisions, we believe, is substantially undervalued.

Mark Jensen: How are generally those structured and is there anything you can kind of give us more detail on what those look like generally speaking? Yeah I mean if you look at it they're traditionally index based. So we would like to live on the indexes today. We ultimately think the indexes are at a low point. I think lithium will drop the low 10 here shortly but I think it'll pop back up at that $25 number going into the end of next year.

Speaker Change: At American Metals, with a fairness opinion, that was brought to us of 170 million would value the company at over five times the current market cap.

Speaker Change: The attractiveness of our technology and the CapEx side of our business is the rare earth ores is actually lower CapEx than even the rare earth magnesite, which is still a low CapEx model.

Speaker Change: So, we're excited about the results and excited about the position of that.

Speaker Change: We are currently pursuing growth, and the capital we're pursuing at re-element would value the company at over five times the current market cap.

Speaker Change: And we have numerous patriotic capital funds that have stepped up, stating their desire to invest in the company and to invest in this round of capital that we're pursuing.

Speaker Change: On the battery side, 99.5% is what most people produce, and 99.9% is a very easy product for, our team to produce from a lithium carbonate perspective.

Speaker Change: Now, we will produce what the customer wants.

Speaker Change: If they want a 99.5%, we'll produce them a 99.5%.

Speaker Change: Did I address all your questions there?

Mark Jensen: On the rarest I rarest oxide level today you're you're sitting at for neodymium preceding near about $50 a kilogram for dispersion near about $250 a kilogram. Blended average price based on the weight of the elements that we produce would put it is about $65 to $70 a kilogram. So that's where our maybe slightly upwards of that. That's where the from the Marion initial production combined with nobles will put us at that $160 million dollar number roughly.

Speaker Change: Yes.

Speaker Change: Essentially, it sounds like the production was based on their sample, and just in terms of scaling, there isn't really a timeline there.

Speaker Change: It sounds like you guys are ready to go once maybe the partnerships are in place in order to build the facilities needed.

Speaker Change: Is that fair to say?

Speaker Change: So, we're starting.

Speaker Change: That was actually just our facility today giving a lithium spodumene customer a tour of our facility, but we are currently identifying the equipment with the goal of in the next 30, 60 days to pull the trigger on the first equipment that will be going into the Marion facility specifically for rare earth oxide production.

Mark Jensen: The off takes we have we have we have the USA rarest off take we have partnerships with three or four of the smaller ones and then we have that could be very big ones and then we have a very large mosa national company that was the one that sent us the ore based sample that they wanted a process for one of their OEM customers and then we have a few more on the on the ore side that we're working with but those are all coming into fruition right now and developing as we build out the facility but we typically would like to stay on the indexes. We don't want to go into fixed price contracts. We think it's with the cost of low cost of our production. We think we're best suited to maximize margin for our customers by living on the index pricing.

Speaker Change: We have end-of-life magnet feedstock, arrangements with large Detroit automotives, with a number of wind turbine companies such as VDP Renewables, as well as power tool companies that we recycle those rare earth oxides from, the end-of-life magnet.

Speaker Change: So, we're not necessarily waiting on them.

Speaker Change: We're moving forward as we speak to procure that equipment and get producing.

Speaker Change: So, we're not necessarily waiting on them.

Speaker Change: The margins on rare earth oxides for us is extremely attractive right now in the market. So, we're moving as aggressively as we possibly can.

Speaker Change: We're moving forward as we speak to procure that equipment and get producing.

Speaker Change: Great.

Kyle Gallagher: Great and then just lastly I just want to make sure I heard you correctly. Were you saying that you expect to start having Marion up and running and and and product going out the door? in 2024. Not Marion in 2024. We're starting to buy equipment from Marion now. We've just got the facility rebuilt and renovated. Nobleville will, but then powered by Reelman, we also believe we'll be starting to generate revenue in 2024, which is really the core focus in the business going forward.

Speaker Change: The margins on rare earth oxides for us is extremely attractive right now in the market. So, we're moving as aggressively as we possibly can.

Kyle Gallagher: It's just coming together a little bit faster than we thought on the powered by Reelman's side. Marion will take a little bit of time to build out, but we'll start doing pre-processing and then build into full processing that could feed, the pre-processing could feed Nobleville in the meantime, but we're building it out pretty quickly, and we'll get with the operational team to provide guidance on that once we get a little bit more clarity on it on the timeframe for Marion. Great. Thanks, Mark. I'll jump back and kill. Excellent. Thank you.

Mark Sloan: Our next question comes from the line of Mark Sloan as a private investor. Please proceed with your question. Thank you. How does the American metals back deal flow through to American resources shareholders? Yes. American metals is 100% owned by American resources today.

Speaker Change: We believe that the current market does not reflect the value of our divisions and ultimately our focus is on getting these separated so we can unlock that value for all of our shareholders.

Mark Jensen: Once we get a little bit further down with the once we get a little bit further down the path on the S4, getting through effectiveness, we will distribute a portion of those shares to our underlying investors, which they will own, which will be a separate standalone public company. But the majority of that is currently, or all of it is currently held by American resources today. What percentage are you expecting to be distributed to the shareholders?

Speaker Change: We remain very confident in our position of all of our assets and the long-term value they provide to our shareholders.

Speaker Change: We remain hyper-focused on unlocking that value and working behind the scenes to get all those puzzle pieces put in place including the re-audit of our numbers due to the replacement of our auditor as well as the positioning within the regulatory agencies to get these businesses separated.

Speaker Change: Great.

Speaker Change: The evolution of our company and the transition of our technology-centric business and approach is well underway and better positions all of our American resources divisions for growth.

Mark Jensen: I'm not exactly sure yet. I don't have the meat with the boards on that. I don't think the board has dictated the amount of the percentage that's going to be distributed today yet, but obviously it'll be either way their home of value in American resources or it'll be distributed.

Speaker Change: We have ample equipment and we do not foresee us needing to issue equity at the AREC level to raise capital. We will pursue subsidiary-based financing that is being offered to us today.

Speaker Change: Should we need additional capital to unlock this value?

Mark Jensen: Once the board makes that determination of how much we're going to distribute, that'll be communicated through public press release as well as an A.K.

Speaker Change: Yeah, just one quick follow-up just on the technology itself, and this is more of a bigger picture thing.

Speaker Change: Great.

Speaker Change: We talk a lot about recycling and refining there, but there is a big push to potentially start working with brine lithium.

Speaker Change: Yeah, just one quick follow-up just on the technology itself, and this is more of a bigger picture thing.

Speaker Change: Is your technology as applicable there as it is to the recycling side of the business we see today?

Speaker Change: We talk a lot about recycling and refining there, but there is a big push to potentially start working with brine lithium.

Speaker Change: Is your technology as applicable there as it is to the recycling side of the business we see today?

Speaker Change: Absolutely.

Speaker Change: We also continue to explore and work through the capital raise which we mentioned every element and are working with numerous patriotic capital funds and understand the importance of our Department of Defense as well as our Department of Energy to source critical minerals produced locally in the U.S, and is the only refining company in the country that can refine both rare earth elements as well as battery material.

Mark Jensen: How much of the total value of the SPAC is actually going to American resources? Forget about the distribution. How much is going to American resources versus how much is going to the other side of the SPAC deal? They value the American metals at 170 million. It ultimately depends on how much capital stays in the chat. The sponsor will get a piece of the equity. If the full 62 million stays in trust, then it'd be 170 million plus 62 million plus the sponsor shares.

Speaker Change: We are very well-suited to protect and build our national security supply chain.

Speaker Change: We look forward to communicating here in the near future and being transparent about the objectives of the business as well as the execution on the business.

Speaker Change: With that, I'd like to turn it back over to the moderator for Q and A.

Speaker Change: Thank you.

Speaker Change: We've actually worked with two DLE companies today, direct lithium extraction companies for the brines, and we significantly simplified their flow sheet.

Speaker Change: We will now be conducting a question and answer session.

Speaker Change: We took six steps out of their flow sheet to get to battery grade materials by doing so, and that's really where Powered by ReElement comes in.

Speaker Change: If you would like to ask a question, please press star one on your telephone keypad.

Mark Jensen: Roughly at 240, 250 million are all in value, roughly estimating, but American resources will own that 170 million dollar value. 170 to American resources because humanized value. That is the value that they have proposed to us and it wasn't a definitive agreement.

Speaker Change: The confirmation tone will indicate your line is in the question queue.

Speaker Change: You may press star two if you would like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Mark Jensen: One other separate question. What is the timeline on completing your 10Q? 10Q for American Resources? For American Resources, yes, since there was a notice filed last week about a delay. Yeah, it was filed today. Our audit chair was traveling, unfortunately, out of the country. And we needed him to sign that our internal management team does not sign off on the quarterly reports. You need your audit chair to do that, and he was unfortunately traveling overseas. So he was unable to do that, so we had to file the NT.

Speaker Change: One moment, please, while we pull for questions.

Speaker Change: The DLE side will be pretty much specifically a Powered by ReElement piece of business for us, where they use our separation purification equipment in their facilities. We charge them a service for that, and we lower their cost of production dramatically.

Speaker Change: Thank you.

Speaker Change: It takes out all that precipitation and all the water extraction side of what they're trying to do.

Speaker Change: Our first question comes from the line of Jesse Solblisson with EF Hutton.

Speaker Change: Right.

Speaker Change: Please proceed with your question.

Speaker Change: Cool.

Speaker Change: Hi, everyone.

Speaker Change: Great.

Speaker Change: A lot going on, but very interesting story here.

Speaker Change: I just wanted to focus in on the relevant piece of the business here.

Mark Jensen: All right, thank you for answering my question. Excellent, thank you. Thank you.

Speaker Change: Firstly, in the press release, you mentioned demonstrating the purification of rare earth ores at 99.5% or magnet grade.

Keith Goodman: Our next question comes from the line of Keith Goodman with the Maxim Group. Please proceed with your question. Thank you guys, most of my questions are answered. I just had a question about the patriotic capital, as you called it, or I guess the potential of raising some money from patriotic capital funds, I think is the way you described it. What is that capital going to be used for? That's directly for real women.

Speaker Change: Can you explain how this grade for rare earth ores is different from something and maybe refining lithium to be battery grade?

Speaker Change: Secondly, can you elaborate on this demonstration conducted and was it at a commercial scale?

Speaker Change: If not, what was the scale demonstrated and what is the timeline to build this out and prove out this technology at a commercial scale?

Keith Goodman: Yeah, that would be, that's a private, so we're not raising, as we stated publicly, we're not deluding our investors at the American resources level. We would be doing subsidiary based finance things for the division include pursuit capital. We have had a number of patriotic capital funds express interest in a structure that would value the business potentially higher than we're at that today. The, and we are working through that with them as we speak, but a patriotic capital fund is a, and there's three or four of them that have approached us, that we've known in the industry that are trying to develop the national security supply chain and investing along that path.

Speaker Change: Thanks.

Speaker Change: Yeah, thanks Jesse, I appreciate that.

Speaker Change: So what we've seen within our technology and I'll work my way backwards on that and hopefully, if I miss a point, please jump in and correct me or ask a question again, but the uniqueness of our technology and what we've seen so far as we scaled it up well over a thousand x from lab scale, that was originally developed at Purdue University and obviously then further developed by us was that the FTC of our technology is better at higher volumes and that's due to the surface space area interface of our residents that we utilize.

Keith Goodman: And so that, that capital will go directly into re-element. The attractiveness of it is, some of that will go into the Marion Facility to buy equipment in the near term, but most of it will be just working capital that could from the balance sheet, add the cushion of capital on the balance sheet of re-element, as we pursue the spin-offs and get the company in its own separate public company. But there's, the good thing about the business today, it hasn't been ordering equipment.

Keith Goodman: There's not a huge need for capital at the real level, other than expanding the existing facilities. So right now you're doing tests, they're kind of for that. So right now you're doing testing on in no bills bill. And you're shipping at some point, you're going to ship, you're obviously not charging for the testing that you're doing there. But if you, I'm not mistaken, you, as I said, you have the purchase order.

Speaker Change: Absolutely.

Speaker Change: Well, thanks for the details here.

Speaker Change: We've actually worked with two DLE companies today, direct lithium extraction companies for the brines, and we significantly simplified their flow sheet.

Speaker Change: We took six steps out of their flow sheet to get to battery grade materials by doing so, and that's really where Powered by ReElement comes in.

Speaker Change: It takes out all that precipitation and all the water extraction side of what they're trying to do.

Speaker Change: Right.

Speaker Change: I will let you guys take some of the questions, but I appreciate you taking the time today.

Speaker Change: Cool.

Speaker Change: Thanks again.

Keith Goodman: That's changing. Okay, so, so you have a, so you have purchase order or purchase orders, I think you indicated, I'm not sure. But that you're producing in no bills bill, obviously it's a small facility. The goal is to get Marion up and running, so you can produce larger volumes and charge for delivery of that. Or you're going to pivot, and everything's going to become powered by reality. Yeah, we're still building out.

Speaker Change: Great.

Speaker Change: Well, thanks for the details here.

Speaker Change: Excellent.

Speaker Change: Great questions.

Speaker Change: I appreciate it.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Heiko Ely with HC Rainwhite.

Speaker Change: I will let you guys take some of the questions, but I appreciate you taking the time today.

Speaker Change: Please proceed with your question.

Keith Goodman: You're going to produce some, and you're going to do repair power. That's correct. So it's the hybrid. So when we initially developed a model, and we moved towards a part by re-element, business offering, which we believe is a huge merit, and I could walk you out briefly here again. We initially said we were going to build our commercial facilities in Marion and Kentucky, and that will be the ability to showcase the low-cost, low-capac scalability of our technology and the commercial environment to generate substantial revenues and cash flow to our investors.

Speaker Change: Hey, there.

Speaker Change: Thanks again.

Speaker Change: Thanks for taking my questions.

Speaker Change: I assume you can hear me okay?

Speaker Change: Excellent.

Speaker Change: Yeah, I can.

Speaker Change: I can hear from you.

Speaker Change: Great questions.

Speaker Change: I appreciate it.

Speaker Change: Thank you.

Speaker Change: Awesome.

Speaker Change: So we've demonstrated at commercial scale, we've been to the qualification process on the battery side, the quality that we produce on the magnet side for rare side to the 99.5% purity, which is really what the battery guys need as well as the 99.5 targeting on specific impurities.

Speaker Change: Our next question comes from the line of Heiko Ely with HC Rainwhite.

Speaker Change: Perfect.

Speaker Change: Please proceed with your question.

Speaker Change: Hey, that fairness opinion you talked about earlier that, you know, 6x the value, can you give us some of the input factors used to derive that value and also maybe just a little bit more color on the fairness opinion, please?

Speaker Change: Hey, there.

Speaker Change: Yeah, I wish I actually could.

Speaker Change: This concludes today's teleconference.

Speaker Change: Thanks for taking my questions.

Speaker Change: It was not a fairness opinion that we paid for, so that was a fairness opinion that the SPAC itself put together.

Speaker Change: I assume you can hear me okay?

Speaker Change: So that was – we obviously gave them a full data room access of the business, and the opportunities and the partnerships we have in place under the American Metals business line, and they conducted that fairness opinion without any involvement from us, which ultimately is what you're supposed to do.

Speaker Change: You may disconnect your lines at this time.

Speaker Change: Yeah, I can.

Speaker Change: So we don't have a lot of the details around it.

Speaker Change: I can hear from you.

Speaker Change: We've just seen the language that will be included in the ES score, which we hope to get filed here once we get the quarterly numbers for American Metals completed here shortly.

Speaker Change: Awesome.

Speaker Change: If we get access to it, obviously we'll put that out in an APA if we can.

Speaker Change: Thank you for your participation.

Speaker Change: Perfect.

Speaker Change: Yeah, I think you should because I think it will make you look pretty good, if the numbers you're talking about, you know, come in the way they are and if the input factors make sense.

Speaker Change: Yeah, I will work with our lawyers.

Speaker Change: Yeah, I wish I actually could.

Speaker Change: If we can, we will.

Speaker Change: It was not a fairness opinion that we paid for, so that was a fairness opinion that the SPAC itself put together.

Speaker Change: I assume in the ES score that there will be language around that, but that's a lawyer question, which I'm not.

Speaker Change: Yeah, I'm not one of those either.

Speaker Change: So we don't have a lot of the details around it.

Speaker Change: Fair enough.

Speaker Change: We've just seen the language that will be included in the ES score, which we hope to get filed here once we get the quarterly numbers for American Metals completed here shortly.

Speaker Change: So in all these spinoffs and in all the corporate M&A that's rather, you know, divestitures and everything that's going on with the company, can you walk us through item by item how much cash has actually been brought in the door and how much more you're trying or you're assuming you're going to be getting, call it between now and the end of the year?

Speaker Change: If we get access to it, obviously we'll put that out in an APA if we can.

Speaker Change: Yeah, I will do my best.

Speaker Change: But the what we produce for our customer was they sent us a sample.

Keith Goodman: But more importantly from there is if we build a different additional production lines, we'll either do it with joint venture partners, we'll do it through power by re-element, or our customers will cap exe additional production lines in Marion. And so our model is not constantly going out at re-element, our model is not in any of our business lines for that matter, not constantly go out and raise capital to incur the cap exe risk.

Speaker Change: So at ReElement, we have credit facilities which we've been operating on.

Speaker Change: Yeah, I will work with our lawyers.

Speaker Change: We've received some revenues from customers, such as our Japanese partner.

Speaker Change: If we can, we will.

Speaker Change: But the ReElement division, what we are talking to the patriotic capital funds about is between, a $10 to $20 million raise, of which I've soft circled most of that already, at a significant premium to the current market.

Speaker Change: I assume in the ES score that there will be language around that, but that's a lawyer question, which I'm not.

Speaker Change: The uniqueness of the ReElement model today, combined with tax-incentive bonds and or debt, financing, as well as customer pre-pays, that could be the last amount of capital we need to raise at the ReElement level, with the focus of the business turning to powered by, ReElement.

Speaker Change: Yeah, I'm not one of those either.

Speaker Change: And so that puts us in a really attractive spot.

Speaker Change: Fair enough.

Speaker Change: Along with the tax-incentive bonds, we have Fort Kentucky, which we hooked on Nokia shortly, through the development of that facility, as well as the opportunity to bring that production line online.

Speaker Change: As well as we are pursuing a tax-exempt bond for our Marion facility, which is probably, one of the most attractive opportunities I've ever seen, given we already have all the infrastructure and spent all the money doing that, to build that facility out and have it ready for prime time today.

Speaker Change: Yeah, I will do my best.

Speaker Change: The American Carbon division, we obviously are developing our complex, and it will be, a state-of-the-art complex within our Wyoming County division.

Speaker Change: So at ReElement, we have credit facilities which we've been operating on.

Speaker Change: We are negotiating with a customer to date that wants to come to the table with a very, big order and pre-pay for all of that revenue as well.

Speaker Change: We've received some revenues from customers, such as our Japanese partner.

Speaker Change: So hopefully here in the near term, we can provide some updates on that if it comes to, fruition or not.

Speaker Change: But then also credit facilities we've had on the equipment leasing side, and the ability, to draw additional capital based on that.

Speaker Change: We have a significant asset base that's relatively unlevered at the American infrastructure side, of the business, that we can continue to expand that business.

Speaker Change: And so that puts us in a really attractive spot.

Speaker Change: But the uniqueness of the business is, with where Wyoming is getting close to just finishing, the face-up and all the equipment being delivered there from an infrastructure perspective, there's not a lot of additional capital that needs to be spent on American infrastructure at all.

Speaker Change: The McCoy complex is already set up, so it's not a – it comes from one of the few mining, companies in the met carbon space that's really not a mining company other than our – focusing on our Wyoming division, which is the focus of the business, is a CapEx-like, model going forward, just generating cash flow streams by leasing out the core assets that we focused on developing over time.

Speaker Change: So wasn't we weren't out there procuring the orders they asked if we could process their orders and they wanted a sample sent back to them.

Speaker Change: American Metals has been traditionally a revenue driver on relatively small scale from the, reclamation side of the mining properties, where we've cleaned up and reclaimed over $30 million of liability that we acquired through the eight acquisitions we've made, over the last eight years.

Speaker Change: The American Carbon division, we obviously are developing our complex, and it will be, a state-of-the-art complex within our Wyoming County division.

Speaker Change: And then we are merging with the SPAC.

Speaker Change: We are negotiating with a customer to date that wants to come to the table with a very, big order and pre-pay for all of that revenue as well.

Speaker Change: We'll see how much capital stays in trust, but we also have credit facilities available, for American Metals should we want to grow faster than the SPAC capital in itself.

Speaker Change: So hopefully here in the near term, we can provide some updates on that if it comes to, fruition or not.

Speaker Change: And the SPAC capital doesn't stay in trust, or how much of it stays in trust.

Speaker Change: But then also credit facilities we've had on the equipment leasing side, and the ability, to draw additional capital based on that.

Speaker Change: We're figuring that out as we speak.

Speaker Change: We have a significant asset base that's relatively unlevered at the American infrastructure side, of the business, that we can continue to expand that business.

Speaker Change: But the business doesn't need a substantial amount of capital today, outside of what we, just discussed right there.

Speaker Change: We have a low overhead.

Speaker Change: We don't have a significant capital need, running.

Speaker Change: Does that answer your question Heiko?

Speaker Change: And then we are merging with the SPAC.

Speaker Change: That's pretty comprehensive.

Speaker Change: We'll see how much capital stays in trust, but we also have credit facilities available, for American Metals should we want to grow faster than the SPAC capital in itself.

Speaker Change: I appreciate it.

Speaker Change: So there was a lab scale process process that they asked us to perform and that's just a body of material to gave us and they were very pleased with the results that we gave them back.

Keith Goodman: Our model is to deploy the uniqueness of our technologies and let other people cap exe it because they need what we offer. And I will say that the interest level we're getting on that front from big multinational corporations to smaller players that are building out their flow sheets is substantial. So today historically we have never charged for testing, we are now charging for testing. We are now in a position of strength and more importantly a position of collaboration with our partners and customers that we will start testing.

Speaker Change: And the SPAC capital doesn't stay in trust, or how much of it stays in trust.

Speaker Change: Thank you very much.

Speaker Change: We're figuring that out as we speak.

Speaker Change: Awesome.

Speaker Change: But the business doesn't need a substantial amount of capital today, outside of what we, just discussed right there.

Speaker Change: Thank you.

Speaker Change: We have a low overhead.

Speaker Change: Thank you.

Speaker Change: We don't have a significant capital need, running.

Speaker Change: Our next question comes from the line of Bobby Genovese with BG Capital Group.

Speaker Change: Does that answer your question Heiko?

Speaker Change: Please proceed with your question.

Speaker Change: That's pretty comprehensive.

Speaker Change: Thank you, Mark.

Speaker Change: And that was a very accurate and 99.5% for both the light rarest as well as the heavy rarest, which is really part of the major problem we have within our country and there is no heavy rarest production and we can obviously solve that for them.

Speaker Change: I appreciate it.

Speaker Change: Thanks for, the time today.

Speaker Change: Thank you very much.

Speaker Change: Just to follow up on Michael's train of thought, if you added up, and I'm glad you've got your accountant on the line as well, if you added up the value of the equipment, the value of what you believe American Element Fairness of Opinion is, and the rest of the properties, minus the debt, could you give the shareholders on this call a rough idea of what that asset base is that would be in the next audited financials?

Speaker Change: Awesome.

Speaker Change: And then we would be able to take that number, put it in today's share price, and figure out with 80 million shares that the equipment alone should be valuing this company at $1.50+.

Speaker Change: Thank you.

Speaker Change: With the fairness of opinion from American Element, it should be a multiple of that going forward.

Speaker Change: Thank you.

Speaker Change: But I'd just like to hear your accountant, sort of, you must have those ballpark numbers.

Speaker Change: Our next question comes from the line of Bobby Genovese with BG Capital Group.

Speaker Change: And the research you've had done on the company, when do you anticipate that being updated as well?

Speaker Change: Please proceed with your question.

Speaker Change: And thank you.

Speaker Change: Thank you, Mark.

Speaker Change: I'll take a quick stab at it.

Speaker Change: Thanks for, the time today.

Speaker Change: If Kirk wants to interrupt me, he can.

Speaker Change: And I appreciate the, question, Bobby.

Speaker Change: But we've delivered back questions that was specifically for a customer that wanted us to process their orders, the attractiveness of our technology and the capex side of our businesses.

Speaker Change: So, if you look at our equipment, one, they don't show up in our gap financials.

Speaker Change: With the fairness of opinion from American Element, it should be a multiple of that going forward.

Speaker Change: And I'm happy to give anybody a tour of any of our operations down in Kentucky and West Virginia, to see the infrastructure and the equipment that we possess.

Speaker Change: But I'd just like to hear your accountant, sort of, you must have those ballpark numbers.

Speaker Change: But how we acquire these assets, they don't show up on our balance sheet. Because we bought them mostly through 363 bankruptcy sales. So, we bought the assets, and we bought them timely. We bought them in 2016 when nobody else wanted to.

Speaker Change: And the research you've had done on the company, when do you anticipate that being updated as well?

Speaker Change: But the replacement value of these assets would be roughly around $300 million, let alone the new equipment we've acquired and put in place for our Wyoming County division.

Speaker Change: And thank you.

Speaker Change: Now, we have a little less than $52 million, $53 million, counting the tax exempt bond, which we have substantial cash under still, which we're completing the Wyoming County complex, as well as about $8 million of equipment leases that is going down substantially over time.

Speaker Change: I'll take a quick stab at it.

Speaker Change: So, take that roughly $300 million of replacement value, $170 million is the fairness opinion under, American metals.

Speaker Change: If Kirk wants to interrupt me, he can.

Speaker Change: And then, as I stated, on the re-element side, a minimum of $150 million valuation is what we're working with patriotic capital funds as the initial value, which we believe is substantially higher than that based on comps. That would put it at roughly $600 million minus the $50 million.

Speaker Change: And I appreciate the, question, Bobby.

Speaker Change: Based on $80 million shares outstanding, I'm not saying that should be the stock price.

Speaker Change: So, if you look at our equipment, one, they don't show up in our gap financials.

Speaker Change: I'm saying those are the numbers that we believe the assets are worth.

Speaker Change: And I'm happy to give anybody a tour of any of our operations down in Kentucky and West Virginia, to see the infrastructure and the equipment that we possess.

Speaker Change: And that's the focus of unlocking that value in the public domain and separating these businesses so they're more clearly easy to understand business plan for everybody to invest.

Speaker Change: But we do believe, based on those values, that we're substantially undervalued and we're, not just sitting here saying that, we're putting action into work, putting forth the effort to create the action to unlock that value and realize that value, which we believe would still undervalue our re-element division based on the growth profile that we have within the marketplace.

Speaker Change: But the replacement value of these assets would be roughly around $300 million, let alone the new equipment we've acquired and put in place for our Wyoming County division.

Speaker Change: Thank you.

Keith Goodman: If they want us to test and develop flow sheets for them, we will charge for that. And we're excited about the revenue potential of that of monetizing our lab and monetizing our noble facility in a very, very attractive way to be cash flow positive and not incur that op-ex costs ourselves going forward. Unless it's a very unique circumstance. But also the ability to utilize powered by re-element as a way of supplementing and reducing people's cap exe on facilities they've already announced.

Speaker Change: Does that help you?

Speaker Change: So, take that roughly $300 million of replacement value, $170 million is the fairness opinion under, American metals.

Speaker Change: Was that clear enough or do you need more clarification?

Speaker Change: No, I think that's it.

Speaker Change: Based on $80 million shares outstanding, I'm not saying that should be the stock price.

Speaker Change: I'm just, like I'm sure the rest of the shareholders, a little shocked with the asset base alone, of the company where the stock is trading.

Speaker Change: I'm saying those are the numbers that we believe the assets are worth.

Speaker Change: And I think when the next research report comes out or the clarity and the next sets, of financials come out to show, this thing is actually substantially undervalued.

Speaker Change: And that's the focus of unlocking that value in the public domain and separating these businesses so they're more clearly easy to understand business plan for everybody to invest.

Speaker Change: But we'll wait until that point.

Speaker Change: But thank you.

Speaker Change: Thank you.

Speaker Change: Yeah, absolutely.

Speaker Change: Does that help you?

Speaker Change: And I think also, I mean, if you look at the re-element side, we didn't expect to generate, revenues from Power Bay re-element this year.

Speaker Change: Was that clear enough or do you need more clarification?

Speaker Change: Yet we're bidding on two projects already and have a third in the works that could generate, a couple million dollars in revenue just on the upfront component of it based on the demand that the market needs.

Speaker Change: No, I think that's it.

Speaker Change: And really, honestly, the downturn in lithium pricing is a huge opportunity for us because, everybody's realizing that our technology is what unlocks that.

Speaker Change: I'm just, like I'm sure the rest of the shareholders, a little shocked with the asset base alone, of the company where the stock is trading.

Speaker Change: So, bringing, signing the lease with our mining customer to get them into production, working, on this project, which could be substantial revenue on Wyoming, as well as the revenue generation that's kicking in on the re-element side through Power Bay re-element, as well as building out the facilities to generate our own internal revenues beyond Power Bay re-element is substantial.

Speaker Change: And I think when the next research report comes out or the clarity and the next sets, of financials come out to show, this thing is actually substantially undervalued.

Speaker Change: And I think that's where we're focused in keeping our head down to drive this value, for our investors and keep costs extremely low so that falls to the bottom line.

Speaker Change: But we'll wait until that point.

Speaker Change: Thank you.

Speaker Change: But thank you.

Speaker Change: Our next question comes from the line of Kyle Gallagher with Merrill Lynch.

Speaker Change: Yeah, absolutely.

Speaker Change: Please proceed with your question.

Speaker Change: And I think also, I mean, if you look at the re-element side, we didn't expect to generate, revenues from Power Bay re-element this year.

Speaker Change: Hey, Mark.

Speaker Change: Good to talk to you again.

Speaker Change: And really, honestly, the downturn in lithium pricing is a huge opportunity for us because, everybody's realizing that our technology is what unlocks that.

Speaker Change: Just wanted to kind of continue down that path of revenues on the rare earth side.

Speaker Change: You had mentioned, I think, in the call, you had said you were through the qualification, process with some of your customers and entering into contracts for purchases, it sounds like.

Speaker Change: The rarest orders is actually lower capex than our even the rarest magnet side, which is still a low capex model.

Speaker Change: And I think that's where we're focused in keeping our head down to drive this value, for our investors and keep costs extremely low so that falls to the bottom line.

Speaker Change: Is part of you expanding the Noblesville location to be able to, like, fill orders, and start realizing revenue?

Speaker Change: Thank you.

Speaker Change: Or is Noblesville simply a qualification that really won't be revenue generating and it's, going to be kind of all run through Marion?

Speaker Change: Our next question comes from the line of Kyle Gallagher with Merrill Lynch.

Speaker Change: Yeah, good question, Kyle, and I appreciate it.

Speaker Change: Please proceed with your question.

Speaker Change: So, correct.

Speaker Change: Hey, Mark.

Speaker Change: The reason why we're expanding Noblesville is the sheer amount of volume of material that, we're getting asked to test and also because we're getting POs from our customers that they want us to deliver product on. So, we're expanding that to be able to deliver that product faster to expand our revenue, base.

Speaker Change: Good to talk to you again.

Speaker Change: Now, I wouldn't look at Noblesville as the focus for revenue generation for ourselves.

Speaker Change: Just wanted to kind of continue down that path of revenues on the rare earth side.

Speaker Change: The big return on capital we get is in our Marion facility.

Speaker Change: If you look at a CapEx of a lithium refinery or a rare earth refinery, most of it's in, the separation purification step, but ultimately for us, a majority of that's in the building and infrastructure because our separation purification step is very low CapEx.

Speaker Change: Is part of you expanding the Noblesville location to be able to, like, fill orders, and start realizing revenue?

Speaker Change: And so, our goal, which the attractiveness of Marion today is we have all of our natural, gas finally installed, we have our water, we have our utilities installed, which could be a really long lead time item for most.

Speaker Change: Or is Noblesville simply a qualification that really won't be revenue generating and it's, going to be kind of all run through Marion?

Speaker Change: But we've got renovated this building.

Speaker Change: Yeah, good question, Kyle, and I appreciate it.

Speaker Change: We're finishing the roof here in the next few weeks, but that doesn't hold us back from, ordering equipment from the section that we're moving into.

Keith Goodman: And most people today, most hydromet facilities for lithium spodge mean as well as recycled materials, hydromet doesn't make any sense right now. You can't recover all the materials in two, it's a really expensive to develop and it's not flexible or versatile. Our technology is, and it's low cap exe, low op exe. So we can step in and deploy our technology and their facilities, replace components their flow sheet and make it more viable for them to be successful.

Speaker Change: So, correct.

Speaker Change: That's where the revenue is really kicking.

Speaker Change: If you look at the rare earth oxide line, we're looking at building this out at a 2,000, metric ton a year rare earth oxide line with a payback period post-startup commencement of operation in about two years.

Speaker Change: Now, I wouldn't look at Noblesville as the focus for revenue generation for ourselves.

Speaker Change: Today, based on average price, I would put it at about $160 million in revenue.

Speaker Change: The big return on capital we get is in our Marion facility.

Speaker Change: And the only producer in the country that produces dysprosium, as well as terbium, from these products, which is in strong demand, let alone the neodymium and presidium that we produce from both ores, as well as magnet material.

Speaker Change: That's where the revenue is really going to come from.

Speaker Change: But more importantly, I would also say it's powered by re-element.

Speaker Change: But we've got renovated this building.

Speaker Change: Most people are realizing that hydromet doesn't work, and the changing chemistries of batteries, as well as magnets and everything else, is creating a huge problem within the industry.

Speaker Change: We're finishing the roof here in the next few weeks, but that doesn't hold us back from, ordering equipment from the section that we're moving into.

Speaker Change: And so a lot of people were scoping out building a hydromet plant.

Speaker Change: That's where the revenue is really kicking.

Speaker Change: Now they realize they can't do that because chemistries are changing.

Speaker Change: And now they're coming to us to help them design that process in a partnership way and to truly optimize everybody's flow sheets and make it simpler and better.

Speaker Change: Today, based on average price, I would put it at about $160 million in revenue.

Speaker Change: And with that, we get near-term revenue generation for re-element in a very low-risk way for us, low-cap-x model for us.

Speaker Change: And we look forward to talking a lot more about powered by re-element over the next few months.

Speaker Change: That's where the revenue is really going to come from.

Speaker Change: Are you able to give any sort of color or information on general size of some of the purchase orders?

Speaker Change: But more importantly, I would also say it's powered by re-element.

Speaker Change: Is it a scenario where they just say, hey, we'll pay x per ton up to 1,000 tons or whatever the number is?

Speaker Change: How are generally those structured, and is there anything you can kind of give us more detail on what those look like, generally speaking?

Speaker Change: And so a lot of people were scoping out building a hydromet plant.

Speaker Change: Yeah, I mean, if you look at it, they're traditionally index-based.

Speaker Change: Now they realize they can't do that because chemistries are changing.

Speaker Change: So we would like to live on the indexes today.

Speaker Change: And now they're coming to us to help them design that process in a partnership way and to truly optimize everybody's flow sheets and make it simpler and better.

Speaker Change: We ultimately think the indexes are at a low point.

Speaker Change: And with that, we get near-term revenue generation for re-element in a very low-risk way for us, low-cap-x model for us.

Speaker Change: I think lithium will drop below 10 here shortly, but I think it'll pop back up to that $25 number going into the end of next year.

Speaker Change: And we look forward to talking a lot more about powered by re-element over the next few months.

Speaker Change: On the rare earth oxide level today, you're sitting at, for neodymium, presidium, you're about $50 a kilogram.

Speaker Change: Are you able to give any sort of color or information on general size of some of the purchase orders?

Speaker Change: For dysprosium, you're about $250 a kilogram.

Speaker Change: Is it a scenario where they just say, hey, we'll pay x per ton up to 1,000 tons or whatever the number is?

Speaker Change: Blended average price based on the weight of the elements that we produce would put us at about $65 to $70 a kilogram.

Speaker Change: How are generally those structured, and is there anything you can kind of give us more detail on what those look like, generally speaking?

Speaker Change: So that's where our – maybe slightly upwards of that.

Speaker Change: Yeah, I mean, if you look at it, they're traditionally index-based.

Speaker Change: That's where the – from the Marion initial production, combined with Noblesville, will put us at that $160 million number, roughly.

Speaker Change: So we would like to live on the indexes today.

Speaker Change: The offtakes we have – we have the USA Rare Earth offtake.

Speaker Change: We ultimately think the indexes are at a low point.

Speaker Change: We have partnerships with three or four other smaller ones.

Speaker Change: I think lithium will drop below 10 here shortly, but I think it'll pop back up to that $25 number going into the end of next year.

Speaker Change: And then we have – that could be very big ones.

Speaker Change: On the rare earth oxide level today, you're sitting at, for neodymium, presidium, you're about $50 a kilogram.

Speaker Change: And then we have a very large multinational company that was the one that sent us the ore-based sample that they wanted to process for one of their OEM customers.

Keith Goodman: So truly building a collaborative environment to utilize our technology to unlock the national supply chain but also the global supply chain. There's no reason our technology shouldn't be the refining technology within everybody's facilities and through powered by re-element we can make that happen. And you have indications from partners and customers that they're sort of on board with that? Yes. Yeah, and that's an outcome partners. I think that's the exciting thing about it is it's not we're helping people want to do business with us because we can save them money and people will do business with us because we can either save them or make them more money and get permits for what we're trying to accomplish where other technologies are pretty hard to do so.

Speaker Change: For dysprosium, you're about $250 a kilogram.

Speaker Change: And then we have a few more on the ore side that we're working with.

Speaker Change: Blended average price based on the weight of the elements that we produce would put us at about $65 to $70 a kilogram.

Speaker Change: But those are all coming into fruition right now and developing as we build out the facility.

Speaker Change: So that's where our – maybe slightly upwards of that.

Speaker Change: But we typically would like to stay on the indexes.

Speaker Change: That's where the – from the Marion initial production, combined with Noblesville, will put us at that $160 million number, roughly.

Speaker Change: We don't want to go into fixed price contracts.

Speaker Change: The offtakes we have – we have the USA Rare Earth offtake.

Speaker Change: We think it's – with the cost of – low cost of our production, we think we're best suited to maximize margin for our customers by living on the index pricing.

Speaker Change: We have partnerships with three or four other smaller ones.

Speaker Change: Great.

Speaker Change: And then we have – that could be very big ones.

Speaker Change: And then just lastly, I just want to make sure I heard you correctly.

Speaker Change: And then we have a very large multinational company that was the one that sent us the ore-based sample that they wanted to process for one of their OEM customers.

Speaker Change: Were you saying that you expect to start having Marion up and running and product going out the door? in 2024?

Speaker Change: And good luck.

Speaker Change: And then we have a few more on the ore side that we're working with.

Speaker Change: Not Marion in 2024.

Speaker Change: But those are all coming into fruition right now and developing as we build out the facility.

Speaker Change: We're starting to buy equipment for Marion now.

Speaker Change: But we typically would like to stay on the indexes.

Speaker Change: We just got the facility rebuilt and renovated.

Speaker Change: We don't want to go into fixed price contracts.

Speaker Change: Noblesville will, but then Powered by ReElement, we also believe will be starting to generate revenue in 2024, which is really the core focus of the business going forward.

Speaker Change: We think it's – with the cost of – low cost of our production, we think we're best suited to maximize margin for our customers by living on the index pricing.

Speaker Change: It's just coming together a little bit faster than we thought on the Powered by ReElement side.

Speaker Change: Great.

Speaker Change: Marion will take a little bit of time to build out, but we'll start doing, pre-processing in Marion and then build into full processing.

Speaker Change: And then just lastly, I just want to make sure I heard you correctly.

Speaker Change: The pre-processing could feed Noblesville in the meantime, but we're building it out pretty quickly and we'll get with the, operational team and provide guidance on that once we get a little bit more clarity on it on the timeframe for Marion.

Speaker Change: Were you saying that you expect to start having Marion up and running and product going out the door? in 2024?

Speaker Change: Great.

Speaker Change: Not Marion in 2024.

Speaker Change: Thanks a lot, Mark.

Speaker Change: We're starting to buy equipment for Marion now.

Speaker Change: I'll jump back in queue.

Speaker Change: We just got the facility rebuilt and renovated.

Speaker Change: Excellent.

Speaker Change: Noblesville will, but then Powered by ReElement, we also believe will be starting to generate revenue in 2024, which is really the core focus of the business going forward.

Speaker Change: Thank you.

Speaker Change: So we're excited about the results and excited about the position of that.

Speaker Change: It's just coming together a little bit faster than we thought on the Powered by ReElement side.

Speaker Change: Thank you.

Speaker Change: Marion will take a little bit of time to build out, but we'll start doing, pre-processing in Marion and then build into full processing.

Speaker Change: Our next question comes from the line of, Mark Sloan as a private investor.

Speaker Change: Please proceed with your question.

Speaker Change: Great.

Speaker Change: Thank you.

Speaker Change: Thanks a lot, Mark.

Speaker Change: How does the American Metals SPAC deal flow through to American Resources shareholders?

Speaker Change: I'll jump back in queue.

Speaker Change: Yes.

Speaker Change: Excellent.

Speaker Change: American Metals is 100 percent owned by American, Resources today.

Speaker Change: Thank you.

Speaker Change: Once we get a little bit further down with the Once we get a little bit further down the path on the S4, getting through effectiveness, we will distribute a portion of those shares to our underlying investors, which they will own, which will be a separate standalone public company.

Speaker Change: Thank you.

Speaker Change: But the majority of that is currently – or all of it is currently held by American Resources today.

Speaker Change: Our next question comes from the line of, Mark Sloan as a private investor.

Speaker Change: What percentage are you expecting to be distributed to the shareholders?

Speaker Change: Please proceed with your question.

Speaker Change: I'm not exactly sure yet.

Speaker Change: On the battery side 99.5 is what most people produce in 99.9% is a very easy product for our team to produce from a lithium carbonate perspective.

Speaker Change: Thank you.

Speaker Change: I'd have to meet with the boards on that.

Speaker Change: How does the American Metals SPAC deal flow through to American Resources shareholders?

Speaker Change: I don't think the, board has dictated the amount of the percentage that's going to be distributed to date yet.

Speaker Change: Yes.

Speaker Change: But obviously, it'll be – you'll either have – we'll either hold the value in American, Resources or it'll be distributed.

Speaker Change: American Metals is 100 percent owned by American, Resources today.

Speaker Change: But once we get – once the board makes that determination of how much we're going to distribute, that'll be communicated through public press release as well as an AK.

Speaker Change: How much of the total value of the SPAC is actually going to American Resources?

Speaker Change: But the majority of that is currently – or all of it is currently held by American Resources today.

Speaker Change: So, forget about the distribution.

Speaker Change: What percentage are you expecting to be distributed to the shareholders?

Speaker Change: So, how much is going to American Resources versus, how much is going to the other side of the SPAC deal?

Speaker Change: I'm not exactly sure yet.

Speaker Change: Well, so they valued American Metals at $170 million.

Speaker Change: I'd have to meet with the boards on that.

Speaker Change: It ultimately depends on how much, capital stays in the stock.

Speaker Change: I don't think the, board has dictated the amount of the percentage that's going to be distributed to date yet.

Speaker Change: The sponsor will get a piece of the equity, and then if the full $62 million stays in trust, then it'd be $170 million plus $62 million plus the sponsor shares.

Speaker Change: But obviously, it'll be – you'll either have – we'll either hold the value in American, Resources or it'll be distributed.

Speaker Change: So, roughly a $240, $250 million all-in value, roughly estimating.

Speaker Change: But once we get – once the board makes that determination of how much we're going to distribute, that'll be communicated through public press release as well as an AK.

Speaker Change: But American Resources alone, that $170 million, value.

Speaker Change: How much of the total value of the SPAC is actually going to American Resources?

Speaker Change: And $170 million versus American Metals, how much is going to the other side of the SPAC deal?

Speaker Change: So, forget about the distribution.

Speaker Change: $170 million to American Resources, assuming that value.

Speaker Change: So, how much is going to American Resources versus, how much is going to the other side of the SPAC deal?

Speaker Change: That is the value that they have proposed to us and was in the definitive agreements.

Speaker Change: Well, so they valued American Metals at $170 million.

Speaker Change: Okay.

Speaker Change: Now we will produce what the customer wants if they want a 99.5% will produce them a 99.5%.

Keith Goodman: We're chemical light but the interest level we've had since we've announced powered by re-element is amazing. And I will say the team, Chris Mormon on our team, Shane Tragethon, Jeff Peters for an eating, and done an absolutely phenomenal job of getting back to these partners that need a solution and working with them on developing the flow sheets to deploy our technology and their facilities. Does it matter which political party gets into office or whatever?

Speaker Change: It ultimately depends on how much, capital stays in the stock.

Speaker Change: So, one other separate question.

Speaker Change: The sponsor will get a piece of the equity, and then if the full $62 million stays in trust, then it'd be $170 million plus $62 million plus the sponsor shares.

Speaker Change: What is the timeline on completing your 10-Q?

Speaker Change: So, roughly a $240, $250 million all-in value, roughly estimating.

Speaker Change: 10-Q for American Resources?

Speaker Change: But American Resources alone, that $170 million, value.

Speaker Change: For American Resources, yes, since there was a notice filed last week about a delay.

Speaker Change: And $170 million versus American Metals, how much is going to the other side of the SPAC deal?

Speaker Change: Yeah, it was filed today.

Speaker Change: $170 million to American Resources, assuming that value.

Speaker Change: Our audit chair was traveling, unfortunately, out of the country, and we needed him to sign that.

Speaker Change: That is the value that they have proposed to us and was in the definitive agreements.

Speaker Change: Our internal management team does not sign off on the quarterly reports.

Speaker Change: Did I address all your questions there? It essentially sounds like the production was based on their sample and just in terms of scaling.

Speaker Change: Okay.

Speaker Change: You need your audit chair to do that.

Speaker Change: So, one other separate question.

Speaker Change: He was, unfortunately, traveling overseas, so he was unable to do that, so we had to file the NT.

Speaker Change: What is the timeline on completing your 10-Q?

Speaker Change: All right, thank you.

Speaker Change: 10-Q for American Resources?

Speaker Change: All right, thank you for answering my questions.

Speaker Change: For American Resources, yes, since there was a notice filed last week about a delay.

Speaker Change: Excellent, thank you.

Speaker Change: Yeah, it was filed today.

Speaker Change: Thank you.

Speaker Change: There isn't really a timeline there.

Speaker Change: Our audit chair was traveling, unfortunately, out of the country, and we needed him to sign that.

Speaker Change: Our next question comes from the line of Keith Goodman with Maxim Group.

Speaker Change: Our internal management team does not sign off on the quarterly reports.

Speaker Change: Please proceed with your question.

Speaker Change: You need your audit chair to do that.

Speaker Change: Hi, guys.

Speaker Change: He was, unfortunately, traveling overseas, so he was unable to do that, so we had to file the NT.

Speaker Change: Most of my questions are answered.

Speaker Change: All right, thank you.

Speaker Change: I just had a question about the patriotic capital, as you called it, or I guess the potential of raising some money from patriotic capital funds, I think is the way you described it.

Speaker Change: All right, thank you for answering my questions.

Speaker Change: What is that capital going to be used for?

Speaker Change: Excellent, thank you.

Speaker Change: That's directly for re-element?

Speaker Change: Thank you.

Speaker Change: Yeah, that would be – that's a private – so we're not raising – as we stated publicly, we're not diluting our investors at the American Resources level.

Speaker Change: Our next question comes from the line of Keith Goodman with Maxim Group.

Speaker Change: We would be doing subsidiary-based financings for the division if we pursue capital.

Speaker Change: Please proceed with your question.

Speaker Change: We have had a number of patriotic capital funds express interest in a structure that would value the business substantially higher than where it's at today, and we are working through that with them as we speak.

Speaker Change: Hi, guys.

Speaker Change: But a patriotic capital fund is a – and there's three or four of them that have approached us that we've known in the industry, that are trying to develop the national security supply chain and investing along that path.

Speaker Change: Most of my questions are answered.

Speaker Change: And so that capital will go directly into re-element.

Speaker Change: It sounds like you guys are ready to go once maybe the partnerships are in place in order to build the facilities needed to that person.

Speaker Change: The attractiveness of it is some of that will go into the Marion facility to buy equipment in the near term, but most of it will be just working capital that sits on the balance sheet, adds a cushion of capital on the balance sheet of re-element as we pursue the spinoff and get the company in its own separate public company.

Speaker Change: What is that capital going to be used for?

Speaker Change: But the good thing about the business today, other than ordering equipment, there's not a huge need for capital at the re-element level other than expanding the existing facilities.

Speaker Change: That's directly for re-element?

Speaker Change: So right now you're doing testing – thanks for that.

Speaker Change: Yeah, that would be – that's a private – so we're not raising – as we stated publicly, we're not diluting our investors at the American Resources level.

Speaker Change: So right now you're doing testing in Noblesville, and you're shipping at some point – you're obviously not charging for the testing that you're doing there, but if I'm not mistaken, I think you said you have a purchase order.

Speaker Change: We would be doing subsidiary-based financings for the division if we pursue capital.

Speaker Change: That's changing.

Speaker Change: So we're starting now.

Keith Goodman: No, not really. This is commercial. We don't rely upon, we qualify for 45X. In this round of applications, we did apply for 48C. If Trump wins, he's probably going to kill the IRA. It doesn't really matter. We don't put that in our models. I think it's a kiss and death to build a business based on some of these subsidies, so we don't do that. We don't need it from a cost structure perspective.

Speaker Change: Okay, so you have a purchase order or a purchase order, as I think you indicated.

Speaker Change: I'm not sure.

Speaker Change: It's actually just our facility today giving a lithium spodge mean customer a tour of our facility.

Speaker Change: And so that capital will go directly into re-element.

Speaker Change: But that you're producing in Noblesville, obviously it's a small facility.

Speaker Change: But we are we are currently identifying the equipment with the goal of in the next 30, 60 days to pull the trigger on the first equipment that will be going into the Marion facility specifically for rare side production.

Speaker Change: The goal is to get Marion up and running so you can produce larger volumes and charge for delivery of that, or you're going to pivot and everything's going to become powered by re-element.

Speaker Change: Yeah, we're still building out.

Speaker Change: So right now you're doing testing – thanks for that.

Speaker Change: You're going to produce some, and you're going to do re-element.

Speaker Change: That's correct, so it's a hybrid.

Speaker Change: That's changing.

Speaker Change: So we will, so when we initially developed the, model and we moved towards the Powered by ReElement business offering, which we believe has huge merit, and I could walk through that briefly here again, we initially said we're going to build our commercial facilities in Marion and Kentucky, and that will be the ability to showcase the low-cost, low capex, scalability of our technology in a commercial environment to generate substantial revenues and cash flow to our investors.

Speaker Change: Okay, so you have a purchase order or a purchase order, as I think you indicated.

Speaker Change: But more importantly from there is if we build additional production lines, we'll either do it with joint venture partners, we'll do it through Powered by ReElement, or our customers will capex the additional production lines in Marion.

Speaker Change: I'm not sure.

Speaker Change: And so our model is not to constantly go out, at ReElement our model is not, and any of our business lines for that matter, is not to constantly go out and raise capital to incur the capex risk.

Speaker Change: But that you're producing in Noblesville, obviously it's a small facility.

Speaker Change: Our model is to deploy the uniquenesses of our technologies and let other people capex it because they need what we offer.

Speaker Change: And I will say that the interest level we're getting on that front from big multinational corporations to smaller players that are building out their flowsheets is substantial.

Speaker Change: Yeah, we're still building out.

Speaker Change: So today, historically, we have never charged for testing, we are now charging for testing.

Speaker Change: You're going to produce some, and you're going to do re-element.

Speaker Change: We are now in a position of strength and more importantly a position of collaboration with our partners and customers that we will start testing.

Speaker Change: That's correct, so it's a hybrid.

Speaker Change: If they want us to test and develop flowsheets for them, we will charge for that.

Speaker Change: And we're excited about the revenue potential of that, of monetizing our lab and monetizing our Noblesville facility in a very, very attractive way to be cash flow positive and not incur that capex cost ourselves going forward, unless it's a very unique circumstance.

Speaker Change: But also the ability to utilize Powered by ReElement as a way of supplementing and reducing people's capex on facilities they've already announced.

Speaker Change: And most people today, most HydroMet facilities for lithium spodumene as well as recycled materials, HydroMet doesn't make any sense right now.

Speaker Change: Our model is to deploy the uniquenesses of our technologies and let other people capex it because they need what we offer.

Speaker Change: One, you can't recover all the materials and two, it's really expensive to build and it's not flexible or versatile.

Speaker Change: And I will say that the interest level we're getting on that front from big multinational corporations to smaller players that are building out their flowsheets is substantial.

Speaker Change: Our technology is.

Speaker Change: So today, historically, we have never charged for testing, we are now charging for testing.

Speaker Change: And it's low capex, low opex. So we can step in and deploy our technology and their facilities, replace components of their flowsheet, make it more viable for them to be successful.

Speaker Change: We are now in a position of strength and more importantly a position of collaboration with our partners and customers that we will start testing.

Speaker Change: So truly developing a collaborative environment to utilize our technology to unlock the national supply chain, but also the global supply chain.

Speaker Change: If they want us to test and develop flowsheets for them, we will charge for that.

Speaker Change: There's no reason our technology shouldn't be the refining technology within everybody's facilities and through Powered by ReElement, we can make that happen.

Speaker Change: And you have indications from partners and customers that they're sort of on, board with that?

Speaker Change: But also the ability to utilize Powered by ReElement as a way of supplementing and reducing people's capex on facilities they've already announced.

Speaker Change: Yes.

Speaker Change: And most people today, most HydroMet facilities for lithium spodumene as well as recycled materials, HydroMet doesn't make any sense right now.

Speaker Change: Yeah, and I would call them partners.

Keith Goodman: We try to stay out of politics the best we can and build a commercial enterprise that survives any administration. And I will say that no matter who wins, we need a strong national security supply chain. We don't have one at all today. From zirconium to neovium to rare elements to battery materials, we need to unlock this supply chain and make sure we have the materials here to defend our nation. And I think both parties recognize the importance of that.

Speaker Change: One, you can't recover all the materials and two, it's really expensive to build and it's not flexible or versatile.

Speaker Change: I think that's the exciting thing about it is it's not, we're helping, people want to do business with us because we can save them money and people will do business with us because we can either save them or make them more money and get permits on what we're trying to accomplish where other technologies are pretty hard to do so we're chemical light.

Speaker Change: Our technology is.

Speaker Change: But the interest level we've had since we've announced Powered by ReElement is amazing.

Speaker Change: And I will say the team, Chris, Mormon on our team, Shane Shragatham, Jeff Peterson, Yi Ding, have done an absolutely phenomenal job of getting back to these partners that need a solution and working with them on developing the flow sheets to deploy our technology in their facilities.

Speaker Change: So truly developing a collaborative environment to utilize our technology to unlock the national supply chain, but also the global supply chain.

Speaker Change: Does it matter which political party gets into office in November?

Speaker Change: There's no reason our technology shouldn't be the refining technology within everybody's facilities and through Powered by ReElement, we can make that happen.

Speaker Change: No, not really.

Speaker Change: And you have indications from partners and customers that they're sort of on, board with that?

Speaker Change: This is commercial.

Speaker Change: We have end of life magnet feed stock arrangements with large Detroit automotive with a number of wind, wind turbine companies such as GDP renewables as well as power tool companies that we recycle those rare oxide rare.

Speaker Change: Yes.

Speaker Change: We don't rely upon, we qualify for 45X.

Speaker Change: Yeah, and I would call them partners.

Speaker Change: In this round of applications, we did apply for 48C.

Speaker Change: If Trump wins, he's probably going to kill the IRA.

Speaker Change: But the interest level we've had since we've announced Powered by ReElement is amazing.

Speaker Change: It doesn't really matter.

Speaker Change: We don't put that in our models.

Speaker Change: Oxides from the end of that magnet.

Speaker Change: Does it matter which political party gets into office in November?

Speaker Change: I think it's a kiss of death to build a business based on subsidies, so we don't do that.

Speaker Change: No, not really.

Speaker Change: We don't need it from a cost structure perspective.

Speaker Change: And so we're not we're not necessarily waiting on them.

Speaker Change: This is commercial.

Speaker Change: We try to stay out of politics the best we can and build a commercial enterprise that, survives any administration.

Speaker Change: We don't rely upon, we qualify for 45X.

Speaker Change: I will say that no matter who wins, we need a strong national security supply chain.

Speaker Change: In this round of applications, we did apply for 48C.

Speaker Change: We don't have one at all today.

Speaker Change: If Trump wins, he's probably going to kill the IRA.

Speaker Change: From zirconium to neobium to rare earth elements to battery materials, we need to unlock this, supply chain and make sure we have the materials here to defend our nation.

Speaker Change: It doesn't really matter.

Speaker Change: I think both parties recognize the importance of that.

Speaker Change: We don't put that in our models.

Speaker Change: This isn't just about electric vehicles and demand being less.

Speaker Change: I think it's a kiss of death to build a business based on subsidies, so we don't do that.

Speaker Change: This is for Department of Defense equipment as well?

Speaker Change: We don't need it from a cost structure perspective.

Speaker Change: Yes, and energy storage.

Speaker Change: We try to stay out of politics the best we can and build a commercial enterprise that, survives any administration.

Speaker Change: I would say energy storage, given we're probably the only player in the space that can recycle, LLP batteries profitably, which is what predominantly energy storages are provided by.

Speaker Change: I will say that no matter who wins, we need a strong national security supply chain.

Speaker Change: We destroyed our energy grid in this country. We created huge variability, huge swings, which create high pricing pressure for utility, customers, which is the individuals, the taxpayers.

Speaker Change: We don't have one at all today.

Speaker Change: We need to build out. One way we can balance the disruption we created within the grid is energy storage.

Speaker Change: From zirconium to neobium to rare earth elements to battery materials, we need to unlock this, supply chain and make sure we have the materials here to defend our nation.

Speaker Change: You could actually use it as peaking and non-peaking, cut the tops off the spikes in, the energy prices.

Speaker Change: I think both parties recognize the importance of that.

Speaker Change: So, the growth of energy storage, I think, is going to be robust, and that's LLP, which, is really the heart of our battery recycling technology, given we're one of the few, if not the only, players in the space that can recycle an LLP battery very, very profitably, even in today's environment.

Speaker Change: This isn't just about electric vehicles and demand being less.

Speaker Change: Okay.

Speaker Change: This is for Department of Defense equipment as well?

Speaker Change: Thank you.

Speaker Change: Yes, and energy storage.

Speaker Change: That's all for me.

Keith Goodman: So this isn't just about electric vehicles and demand being left. This is for for Department of Defense equipment as well. Yep, an energy storage. I would say energy storage given we're probably the only player in the space that can recycle all the batteries profitably, which is what predominantly energy storage is provided by. We destroyed our energy grid in this country. We created huge variability, huge swings, which create high pricing pressure for utility customers, which is the individuals and taxpayers.

Speaker Change: I appreciate it.

Speaker Change: Excellent.

Speaker Change: We need to build out. One way we can balance the disruption we created within the grid is energy storage.

Speaker Change: Thank you.

Speaker Change: You could actually use it as peaking and non-peaking, cut the tops off the spikes in, the energy prices.

Speaker Change: Our next question comes from the line of Stephen Siegel with KBB Asset Management.

Speaker Change: Please proceed with your question.

Speaker Change: Okay.

Speaker Change: Hi, Mark.

Speaker Change: Thank you.

Speaker Change: Thanks for taking the call.

Speaker Change: That's all for me.

Speaker Change: You've explained the re-element a lot, but I have one other question about it.

Speaker Change: I appreciate it.

Speaker Change: Should we think of re-element as like an asset light?

Speaker Change: Excellent.

Speaker Change: It would be your employees and you're just going out to different sites all around the, world and licensing re-element chemical processes and getting some type of return on that.

Speaker Change: Thank you.

Speaker Change: Would there be upfront fees and royalties for what's produced, do you think?

Speaker Change: Our next question comes from the line of Stephen Siegel with KBB Asset Management.

Speaker Change: Yeah.

Speaker Change: Please proceed with your question.

Speaker Change: Thanks.

Speaker Change: Hi, Mark.

Speaker Change: That's it.

Speaker Change: Thanks for taking the call.

Speaker Change: I will say, if you asked me two years ago when we first developed, and not first developed, but when we started commercializing re-element technology, we initially.., front-end processing from lithium spodumene or from rare earth ores or rare earth oxides, we can help supplement their flow sheet, deploy our technology, and charge a service fee. Not necessarily a license fee, but a service fee to operate our technology within their flow sheets.

Speaker Change: You've explained the re-element a lot, but I have one other question about it.

Speaker Change: That's really the focus of the business.

Speaker Change: Should we think of re-element as like an asset light?

Speaker Change: Now, in the near term, the focus is getting our Kentucky, lithium site up and running, which is very economic in today's market still, where most lithium processing are getting hurt by current pricing.

Speaker Change: It would be your employees and you're just going out to different sites all around the, world and licensing re-element chemical processes and getting some type of return on that.

Speaker Change: We still have a very good cost structure and a lot of room given our processing costs, as well as on the rare earth oxide side in our, Marion facility, very, very high margins still at today's pricing.

Speaker Change: Would there be upfront fees and royalties for what's produced, do you think?

Speaker Change: So, it is a hybrid model.

Speaker Change: Yeah.

Speaker Change: Our focus is on building these facilities out, making money, letting people come in and see, them operate, and then deploy our technology in their facilities thereafter.

Speaker Change: Thanks.

Speaker Change: But it's becoming more of an asset-light business over time.

Speaker Change: That's it.

Speaker Change: All right.

Speaker Change: Then, just a curious question.

Speaker Change: That's really the focus of the business.

Speaker Change: The Kentucky facility that you have the bond on, and Marion, will they be kind of competing for the same material eventually, or will they be different?

Speaker Change: It won't be.

Speaker Change: Nope.

Speaker Change: So, it is a hybrid model.

Speaker Change: So, Kentucky is focused on lithium spodumene, which we have a number of supply, partnerships on that from all throughout the world.

Speaker Change: Our focus is on building these facilities out, making money, letting people come in and see, them operate, and then deploy our technology in their facilities thereafter.

Speaker Change: And then, our Marion facility is focused on rare earth ores, rare earth magnets as feedstock, as well as recycled battery materials.

Speaker Change: But it's becoming more of an asset-light business over time.

Speaker Change: So, they both will produce lithium carbonate, but they're from different feedstocks.

Speaker Change: All right.

Speaker Change: And the uniqueness is the contribution of assets, which we're doing an appraisal on our Kentucky, infrastructure as we speak, that is being contributed to this project.

Speaker Change: Then, just a curious question.

Speaker Change: It's substantial and enables this project to move a lot quicker from an empowerment, from piping, from infrastructure, from rail loadout, and all that stuff that we're able to utilize from our Kentucky site to get that project up and running in a low-cost way without re-spending that money again.

Keith Goodman: We need to build out the one way we can balance the disruption we created within the grid is energy storage. You can actually use it as peaking non peaking, cut the tops off the spikes in the energy prices. So the growth of energy storage, I think it's going to be robust. And that's not let be, which is really the heart of our battery recycling technology, given we're one of the few, if not the only players in the space that can recycle an LLP battery very, very profitably even in today's environment. Okay. Thank you. That's all from I appreciate it. Excellent. Thank you.

Speaker Change: The Kentucky facility that you have the bond on, and Marion, will they be kind of competing for the same material eventually, or will they be different?

Speaker Change: Got you.

Speaker Change: It won't be.

Speaker Change: And then, the magnets will be in Marion then, right?

Speaker Change: Nope.

Speaker Change: Yep.

Speaker Change: So, Kentucky is focused on lithium spodumene, which we have a number of supply, partnerships on that from all throughout the world.

Speaker Change: Rare earth oxides from endovirus magnets as well as from rare earth ores is in Marion.

Speaker Change: And then, our Marion facility is focused on rare earth ores, rare earth magnets as feedstock, as well as recycled battery materials.

Speaker Change: Okay.

Speaker Change: So, they both will produce lithium carbonate, but they're from different feedstocks.

Speaker Change: Great.

Speaker Change: And the uniqueness is the contribution of assets, which we're doing an appraisal on our Kentucky, infrastructure as we speak, that is being contributed to this project.

Speaker Change: Thank you very much.

Speaker Change: Excellent.

Speaker Change: Got you.

Speaker Change: Thank you, Steve.

Speaker Change: And then, the magnets will be in Marion then, right?

Speaker Change: Thank you.

Speaker Change: Yep.

Speaker Change: There are no further questions at this time.

Speaker Change: Rare earth oxides from endovirus magnets as well as from rare earth ores is in Marion.

Speaker Change: I'd like to turn the floor back over to Mark for closing comments.

Speaker Change: Okay.

Speaker Change: Excellent.

Speaker Change: Great.

Speaker Change: Well, one, I want to thank you all for joining today.

Speaker Change: Thank you very much.

Speaker Change: Understand we have a lot of moving parts within the business.

Speaker Change: Excellent.

Speaker Change: We hope to continue to streamline, and clarify the objectives of the business of unlocking value through the separation of the divisions.

Speaker Change: Thank you, Steve.

Speaker Change: Ultimately, we are Very thankful for the efforts of our team, and for our external partners as well that have helped us position the assets to where they're at today to unlock this value, start to drive near-term revenue generation, as well as build the future of the businesses by creating business models that make a ton of sense in any economic environment, regardless if we hit a recession or don't hit a recession.

Speaker Change: Thank you.

Speaker Change: We are very well-suited to continue to grow the business, and generate value for our shareholders.

Speaker Change: There are no further questions at this time.

Speaker Change: Please follow us over the next few months.

Speaker Change: I'd like to turn the floor back over to Mark for closing comments.

Speaker Change: We have a lot going on.

Speaker Change: Excellent.

Speaker Change: We look to continue to provide, transparency and communication to the investor base to help showcase what we're doing in positioning and growth of where the business is going.

Speaker Change: Well, one, I want to thank you all for joining today.

Speaker Change: But I thank you all for joining today.

Speaker Change: Understand we have a lot of moving parts within the business.

Speaker Change: We hope to continue to streamline, and clarify the objectives of the business of unlocking value through the separation of the divisions.

Speaker Change: We are very well-suited to continue to grow the business, and generate value for our shareholders.

Speaker Change: Please follow us over the next few months.

Speaker Change: We have a lot going on.

Speaker Change: We look to continue to provide, transparency and communication to the investor base to help showcase what we're doing in positioning and growth of where the business is going.

Speaker Change: But I thank you all for joining today.

Mark Jensen: Our next question comes from a line of Steven Siegel with KBB asset management. Please proceed with your question. Hi Mark. Thanks for taking the call. I you've explained the real man a lot. I said one other question about it. Should we think of real man as like an asset light. It's just it's it's it would be your your employees and your just going out to different sites all around the world and licensing. Yeah. Real man. The chemical processes and getting some type of return on that will be a upfront fees and royalties for what's produced you think. Yeah. Thanks.

Mark Jensen: That's it.

Speaker Change: We're moving forward as we speak to procure that equipment and get producing the margins on rare earth oxides for us extremely attractive right now in the market.

Speaker Change: And so we're we're moving as aggressively as we possibly can.

Mark Jensen: I mean, I will say if you asked me two years ago when when we first developed and not first developed, but when we started commercializing real man's technology. We initially, and said broad ambitions of being the largest refinery in the world of rare elements and critical minerals. Not to say we don't end up there, but it's more through the power by re-element component of it. There's no reason for us to go replicate other people's flow sheets when we can supplement them.

Speaker Change: Ian.

Speaker Change: Great.

Speaker Change: Yeah, just one quick follow up just on the technology itself and this is more of a bigger picture thing.

Speaker Change: You know, we talk a lot about recycling and refining there, but you know, there is a big push to potentially start working with, you know, Brian Lithium.

Speaker Change: Is your technology as applicable there as it is to, you know, the recycling side of the business we see today?

Mark Jensen: And in that process, we reduce our CAPX requirement and we reduce the need to hire thousands and thousands of people. If people are already building the front end processing from lithium spodge mean or from career authorities or rare side, we can help supplement their flow sheet, deploy our technology and charge a service fee, not necessarily a license fee, but a service fee to operate our technology within their flow sheets. That's really the focus to the business.

Speaker Change: Absolutely.

Speaker Change: So we've actually worked with two DLE companies today that direct collecting extraction companies for the brine. And we significantly simplified their flow sheet. We reduced, we took six steps out of their flow sheet to get to battery-grade materials by doing so.

Speaker Change: And that's really where Powered by Realmen comes in, right?

Mark Jensen: Now in the near term, the focus is getting our Kentucky lithium site up and running, which is very economic in today's market still. We're most lithium processing or getting hurt by current pricing. We still have a very good cost structure in a lot of room and given our processing cost, as well as the on the rear to oxide side in our marriage facility, very, very high margin still in today's pricing. So it is a hybrid model.

Speaker Change: That's going to be the DLE side will be pretty much specifically a Powered by Realmen piece of business for us where they use our separation purification equipment in their facilities. We charge them a service for that and we lower their cost of production dramatically.

Speaker Change: It takes out all that precipitation and all the water extraction side of what they're trying to do.

Speaker Change: Right.

Speaker Change: Cool.

Mark Jensen: Our focus is on building these facilities out, making money, letting people come in and see them operate and then deploy our technology in their facilities thereafter. But it's becoming more of an asset like business over time. All right.

Speaker Change: Great.

Speaker Change: Well, thanks for the details here.

Speaker Change: I will let you guys take some of the questions that I appreciate you taking the time today.

Mark Jensen: And then just a curious question. The Kentucky facility that you have to bond on and marry in, will they be kind of competing for the same material eventually or there will be different won't be? So Kentucky's focus on lithium spodge mean, which we have a number of partners, a supply partnership on that from an author of the world. And then our marrying facility is focused on rare hoars, rare, rare magnets as feedstock, as well as recycled battery materials.

Speaker Change: Thanks again.

Speaker Change: Excellent.

Speaker Change: Great questions.

Speaker Change: I appreciate it.

Mark Jensen: So they both will produce lithium carbonate, but they're from different feedstocks. And the uniqueness is that the contribution of assets which we're doing in our appraisal on our Kentucky infrastructure, as we speak, that is being contributed to this project is substantial and enable this project to move a lot quicker from an empowerment, from piping, from infrastructure, from rail load out and all that stuff that we're able to utilize in our, from our Kentucky site to get that project up and running in a low cost way. But I was re-spending that money again. Got you. And then the magnets will be in marrying in that, right? Yep, rare, rare, rare with oxides, from end of life magnets, as well as meritorious in marrying.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Heiko Uli with H.C.

Speaker Change: Rain White.

Speaker Change: Please proceed with your question.

Speaker Change: Hey, Dair, thanks for taking my questions.

Speaker Change #100: I assume you can hear me.

Speaker Change #100: Okay.

Operator: Okay, great. Thank you, thank you very much. Excellent. Thank you, Steve. Thank you. There are no further questions at this time.

Mark Jensen: I'd like to turn the floor back over to Mark for closing comments. Excellent.

Speaker Change #100: Yeah, Ken, good to hear from you.

Mark Jensen: Well, one, I want to thank you all for joining today. Understand we have a lot of moving parts within the business. We hope to continue to streamline and clarify the objectives of the business, of unlocking value through the separation of the division. Ultimately, we are Very thankful for the efforts of our team and for our extramal partners as well that have helped us position the assets to where they're at today to unlock its value, start to drive near term revenue generation, as well as build the future of the businesses by creating business models that make a ton of sense in any economic environment regardless if we hit a recession or don't hit a recession.

Speaker Change #100: Awesome.

Speaker Change #100: Perfect.

Speaker Change #101: Hey, enough fairness opinion you talked about earlier that, you know, six X, the value.

Speaker Change #102: Can you give us some of the input factors used to derive that value and then also to leave you just a little bit more color on the fairness opinion, please?

Mark Jensen: We are very well suited to continue to grow the business and generate value for our shareholders. Please follow us over the next few months. We have a lot going on. We look to continue to provide transparency and communication to the investor base to help showcase what we're doing and positioning and growth of where the business is going.

Speaker Change #103: Yeah, I wish I actually could.

Speaker Change #104: It was it was not a fairness opinion that we paid for.

Speaker Change #105: So that was a fairness opinion that the SPAC itself put together.

Speaker Change #106: So we're that was we obviously gave them a full data and access of the business and the opportunities and the partnerships we have in place under the American middle business line.

Operator: But I thank you all for joining today.

Speaker Change #107: And they conducted that fairness opinion without any involvement from us, which ultimately is what we're supposed to do.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. [inaudible]

Speaker Change #107: So I don't we don't have a lot of the details around it.

Speaker Change #107: We've just seen the language that will be included in the S4, which we hope to get filed here once we get the.

Speaker Change #107: Then the quarterly numbers for American metals completed here shortly.

Speaker Change #107: If we get that if we get access to it, obviously we'll put that out today.

Speaker Change #107: If we can if they.

Speaker Change #107: Yeah, I think it will make you look pretty good.

Speaker Change #107: If if the numbers you're talking about, you know, come in the way they are and then if the input factors make sense.

Speaker Change #107: Yeah, I will work with our lawyers.

Speaker Change #107: If we can, we will.

Speaker Change #107: I assume in the S4 that there will be language around that, but that's a lawyer question.

Speaker Change #107: Which I'm not.

Speaker Change #107: Yeah, I'm not one of those either.

Speaker Change #107: Fair enough.

Speaker Change #107: See, in all these spinoffs and in all the corporate M&A that's right or you know, the best to share is everything that's going on with the company.

Speaker Change #107: Can you walk us through item by item?

Speaker Change #107: How much cash has actually been brought in the door and how much more you're trying or you're assuming you're going to be getting call it between now and the end of the year.

Speaker Change #107: Yeah, I will do my best.

Speaker Change #107: So at re-element, we have credit facilities in which we've been operating on.

Speaker Change #108: We've received some revenues from customers, such as our Japanese partner.

Speaker Change #109: But the re-element division, what we are talking to, the Patriotic Capital Funds about is between the 10 to 20 million RAs of which saw a circle, most of that already, at a significant premium to the current market.

Speaker Change #109: The uniqueness of the re-element model today, combined with taxes and bonds, and toward that financing, as well as customer pre-phase, that could be the last amount of capital we need to raise at the re-element level, with the focus of the business turning to powered by re-element.

Speaker Change #110: And so that puts us in a really attractive spot, along with the taxes and bonds we have for Kentucky, which we hooked on back here shortly, through the development of that facility, as well as the opportunity to bring that production line online, as well as we are pursuing the tax and bonds for our Marion facility, which is probably one of the most attractive opportunities I've ever seen, given we already have all the infrastructure and spend all the money doing that, to build that facility out and have it ready for prime time today.

Speaker Change #111: The American carbon division, we obviously are developing our complex, and there will be a state-of-the-art complex within our Wyoming County division.

Speaker Change #112: We are negotiating with the customer to date that wants to come to the table with a very big order and prepay for all of that revenue as well.

Speaker Change #112: So hopefully here in the near term we can provide some updates on that if it comes to fruition or not.

Speaker Change #112: But then also credit facilities we've had on the equipment leasing side and the ability to draw additional capital based on that.

Speaker Change #112: We have a significant asset basis that's relatively unlovered at the American infrastructure side of the business, that we can continue to expand that business.

Speaker Change #112: But the uniqueness for the business is where Wyoming is getting close to just finishing the face-up and all the equipment being delivered there from an infrastructure perspective.

Speaker Change #113: There's not a lot of additional capital that needs to be spent on American infrastructure role.

Speaker Change #114: The McCoy complex is already set up so it's not a, it becomes from one of the few mining companies in the met carbon space, that's really not a mining company other than our focusing on our Wyoming division, which is the focus of the business, is a CapEx-like model going forward just generating cashless streams by leasing out the core assets that we focused on developing over time.

Speaker Change #115: American metals has been traditionally a revenue driver on relatively small scale from the reclamation side of the mining properties where we've cleaned up and reclaimed over $30 million of liability that we acquired through the eight acquisitions we made over the last eight years.

Speaker Change #116: And then we are merging with the SPAC.

Speaker Change #116: We'll see how much capital stays in trust, but we also have credit facilities available for American metals.

Speaker Change #117: Should we want to grow faster than the SPAC capital in itself?

Speaker Change #117: And the fact capital doesn't stand trust.

Speaker Change #118: We're how much of a state in trust.

Speaker Change #119: We're figuring that out as we speak.

Speaker Change #120: But the business doesn't need a substantial amount of capital today outside of what we just discussed right there. We have a low overhead.

Speaker Change #120: We don't have a significant capital need.

Speaker Change #120: The main focus is just getting equipment into our marine facility as we speak and getting the Wyoming County division.

Speaker Change #120: Ryan.

Speaker Change #121: That answer your question, I go.

Speaker Change #121: That's pretty comprehensive.

Speaker Change #122: I appreciate that.

Speaker Change #123: Thank you very much.

Speaker Change #123: Awesome.

Speaker Change #124: Thank you.

Speaker Change #125: Our next question comes from the line of Bobby Zenovis with BG Capital Group.

Speaker Change #126: Please proceed with your question.

Speaker Change #127: Thank you, Mark.

Speaker Change #128: Thanks for the time today.

Speaker Change #129: Just to follow up on Michael's train of thought.

Speaker Change #130: If you added up, and I'm glad you've got your accountant on the line as well, if you added up the value of the equipment, the value of what you believe American element, fairness of opinion is, and the rest of the properties, might as the get.

Speaker Change #131: Did you give the shareholders on this call a rough idea of what that asset base is that would be in the next audited financials, and then we would be able to take that number, put it in today's share price, and figure out with 80 million shares of the equipment alone should be valuing this company at $1.50 plus.

Speaker Change #132: With the fairness of opinion from American element, it should be a multiple of that going forward, but I just like to hear your accountant sort of, you must have those ballpark numbers and the research you've had done on the on the company when you anticipate that being updated as well, and thank you.

Speaker Change #133: I'll take quick stab at Kirk once interrupt me.

Speaker Change #133: You can, and I appreciate the question, Bobby.

Speaker Change #134: So if you look at our equipment, one, they don't show up on our gap financials, and happy to give anybody a tour of any of our operations down in Kentucky and West Virginia to see the infrastructure and the equipment that we possess, but how we acquire these assets, they don't show up on our balance. Because we bought them mostly through 363 bankruptcy sales, so we bought the assets, and we bought them timely.

Speaker Change #135: We bought them in 2016 when nobody else wanted to.

Speaker Change #136: But the replacement value of these assets would be roughly around $300 million, what on the new equipment we've required, and put in place for our Wyoming County division.

Speaker Change #137: Now we have about 50, 55 million kind of, or about a little less than 52 million, 53 million.

Speaker Change #138: Counting the taxes and bond, which we have substantial cash under still, as well as, which we're completing the Wyoming County complex, as well as about $8 million of equipment leases that is going down substantially over time.

Speaker Change #138: So take that roughly 300 million of replacement value, 170 million is the fairness opinion under American metals.

Speaker Change #139: And then, as I stated, on the real and the side, a minimum of $150 million valuation is what we're working with Patriotic Capital Fund as the initial value, which we believe is substantially higher than that, based on comps.

Speaker Change #139: That would put it at roughly 600 million minus 50 million.

Speaker Change #140: Based on 80 million shares outstanding, I'm not saying that should be the stock price, I'm saying those are the numbers that we believe the assets are worth, and that's the focus of unlocking that value in the public domain.

Speaker Change #140: That's why we're operating this business, so there's some more clearly under easy to understand business flying for everybody doing this.

Speaker Change #140: Investing.

Speaker Change #141: But we do believe based on those values that were substantially undervalued and we're not just sitting or saying that, we're putting action into work, action, putting forth the effort to create the action to unlock that value and realize that value, which we believe would still undervalue our re-element division based on the growth profile that we have within the marketplace.

Speaker Change #141: Thank you.

Speaker Change #141: Is that clear enough or need more clarification?

Speaker Change #141: No, I think that's it.

Speaker Change #142: I'm just like I'm sure the rest of the shareholders are a little shocked with the asset based alone at the company where the stock is trading.

Speaker Change #143: And I think when the next research report comes out of the clarity and the next sets of financials come out to show this thing is actually substantially undervalued, but we'll wait till that point.

Speaker Change #143: But thank you.

Speaker Change #143: Yeah, absolutely.

Speaker Change #144: And I think also the, I mean, if you look at the re-element side, we didn't expect to generate revenues from Power Bay re-element this year, yet we're bidding on two projects already and have a third in the works that can generate a couple million dollars of revenue just on the upfront component of it based on the demand that the market needs.

Speaker Change #145: And really, honestly, the downturn and lithium pricing is a huge opportunity for us because everybody's realizing that our technology is what unlocks that.

Speaker Change #145: So bringing signing the lease with our mining customer to get them into production, working on this project, which could be substantial revenue on Wyoming, as well as the revenue generation that's kicking in on the re-element side through Power Bay re-element as well as building out the facilities to generate our own internal revenues beyond Power Bay re-element is substantial.

Speaker Change #145: And I think that's where we're focused on keeping our head down to drive this value for our investors and keep costs extremely low so that falls to the bottom line.

Speaker Change #145: Thank you.

Speaker Change #146: Our next question comes from a line of Kyle Gallagher with Merrill Lins.

Speaker Change #147: Please proceed with your question.

Speaker Change #148: Hi, Mark.

Speaker Change #149: Good to talk to you again.

Kyle Gallagher: Just wanted to kind of continue down that path of revenues on the rare earth side. You had mentioned, I think, in the call, you had said you were through the qualification process with some of your customers and entering into contracts for purchases that sound like.

Speaker Change #151: It's part of you expanding the Noblesville location to be able to fill orders and start realizing revenue or is Noblesville simply a qualification that really won't be revenue generating and it's going to be kind of all run through Marion.

Speaker Change #151: Good question, Kyle, and I appreciate it.

Speaker Change #152: So correct.

Speaker Change #153: The reason why we're expanding Noblesville is the sheer amount of volume of material that we're getting asked to test and also because we're getting POs from our customers that they want us to deliver product on. So we're expanding that to be able to deliver that product faster to expand our revenue base.

Speaker Change #154: Now, the way I wouldn't look at Noblesville as the focus for revenue generation for ourselves.

Speaker Change #155: The big return on capital we get is in our Marion facility. If you look at a capex of a lithium refinery or a rare earth refinery. Most of it's in the separation purification step, but also, but ultimately for us, a majority of that's in the building and infrastructure because our separation purification step is very low capex.

Speaker Change #155: And so our goal, which the attractiveness of Marion today is we have all of our natural gas finally installed.

Speaker Change #155: We have our water.

Speaker Change #156: We have our utilities installed, which could be a really long lead time item for most, but we've got renovated this building.

Speaker Change #157: We're finishing the roof here in the next few weeks, but that doesn't hold us back from ordering equipment from the section that we're moving into.

Speaker Change #157: That's where the revenue is really kicking.

Speaker Change #157: If you look at the rare earth oxide line, we have we're looking at building this out at a 2000 metric ton of year rare earth oxide line with a payback period post start of commencement of operation in about two years.

Speaker Change #158: Today based on average price, I would put it about a hundred and sixty million in revenue, and the only producer in the country that produces dispersion as well as terbium from these products which is in strong that man let alone the new dynium and unprecedented dynium that we produce from both ores as well as nagging material.

Speaker Change #158: That's where the revenue is really going to come from but more importantly I would also say powered by re-element.

Speaker Change #159: Most people are realizing the hydramet doesn't work and the change in chemistry of batteries as well as magnets and everything else is creating a huge problem within the industry.

Speaker Change #160: And so a lot of people were scoping out building a hydramet plant and now they realize they can't do that because chemistries are changing and now they're coming to us to help them design that process in a partnership way and to truly optimize everybody's flow sheets and make it simpler and better.

Speaker Change #160: And with that we get near-term revenue generation for re-element in a very low risk way for us, low-cap X model for us and we look forward to talking a lot more about powered by re-element over the next few months.

Speaker Change #160: Yeah are you able to give any sort of color or information kind of on you know kind of general size of some of the purchase orders like I mean is it is it a scenario where they just say hey we'll we'll pay you know X per per ton you know up to you know a thousand tons or whatever the number is.

Speaker Change #160: How are generally those structured and is there anything you can kind of give us more detail on what those look like generally speaking?

Speaker Change #161: Yeah I mean if you look at it they're traditionally index based.

Speaker Change #162: So we would like to live on the indexes today.

Speaker Change #162: We ultimately think the indexes are at a low point.

Speaker Change #162: I think lithium will drop the low 10 here shortly but I think it'll pop back up at that $25 number going into the end of next year.

Speaker Change #163: On the rarest I rarest oxide level today you're you're sitting at for neodymium preceding near about $50 a kilogram for dispersion near about $250 a kilogram.

Speaker Change #163: Blended average price based on the weight of the elements that we produce would put it is about $65 to $70 a kilogram.

Speaker Change #163: So that's where our maybe slightly upwards of that.

Speaker Change #164: That's where the from the Marion initial production combined with nobles will put us at that $160 million dollar number roughly.

Speaker Change #165: The off takes we have we have we have the USA rarest off take we have partnerships with three or four of the smaller ones and then we have that could be very big ones and then we have a very large mosa national company that was the one that sent us the ore based sample that they wanted a process for one of their OEM customers and then we have a few more on the on the ore side that we're working with but those are all coming into fruition right now and developing as we build out the facility but we typically would like to stay on the indexes.

Speaker Change #165: We don't want to go into fixed price contracts.

Speaker Change #166: We think it's with the cost of low cost of our production.

Speaker Change #167: We think we're best suited to maximize margin for our customers by living on the index pricing.

Speaker Change #167: Great and then just lastly I just want to make sure I heard you correctly.

Speaker Change #168: Were you saying that you expect to start having Marion up and running and and and product going out the door? in 2024.

Speaker Change #169: Not Marion in 2024.

Speaker Change #170: We're starting to buy equipment from Marion now.

Speaker Change #171: We've just got the facility rebuilt and renovated.

Speaker Change #172: Nobleville will, but then powered by Reelman, we also believe we'll be starting to generate revenue in 2024, which is really the core focus in the business going forward. It's just coming together a little bit faster than we thought on the powered by Reelman's side.

Speaker Change #173: Marion will take a little bit of time to build out, but we'll start doing pre-processing and then build into full processing that could feed, the pre-processing could feed Nobleville in the meantime, but we're building it out pretty quickly, and we'll get with the operational team to provide guidance on that once we get a little bit more clarity on it on the timeframe for Marion.

Speaker Change #173: Great.

Speaker Change #174: Thanks, Mark.

Speaker Change #175: I'll jump back and kill.

Speaker Change #175: Excellent.

Speaker Change #175: Thank you.

Speaker Change #175: Our next question comes from the line of Mark Sloan as a private investor.

Mark Sloan: Please proceed with your question.

Speaker Change #177: Thank you.

Speaker Change #178: How does the American metals back deal flow through to American resources shareholders?

Speaker Change #178: Yes.

Speaker Change #179: American metals is 100% owned by American resources today.

Speaker Change #179: Once we get a little bit further down with the once we get a little bit further down the path on the S4, getting through effectiveness, we will distribute a portion of those shares to our underlying investors, which they will own, which will be a separate standalone public company.

Speaker Change #180: But the majority of that is currently, or all of it is currently held by American resources today.

Speaker Change #180: What percentage are you expecting to be distributed to the shareholders?

Speaker Change #180: I'm not exactly sure yet.

Speaker Change #181: I don't have the meat with the boards on that.

Speaker Change #182: I don't think the board has dictated the amount of the percentage that's going to be distributed today yet, but obviously it'll be either way their home of value in American resources or it'll be distributed.

Speaker Change #182: Once the board makes that determination of how much we're going to distribute, that'll be communicated through public press release as well as an A.K.

Speaker Change #182: How much of the total value of the SPAC is actually going to American resources?

Speaker Change #183: Forget about the distribution.

Speaker Change #183: How much is going to American resources versus how much is going to the other side of the SPAC deal?

Speaker Change #183: They value the American metals at 170 million.

Speaker Change #183: It ultimately depends on how much capital stays in the chat.

Speaker Change #183: The sponsor will get a piece of the equity.

Speaker Change #183: If the full 62 million stays in trust, then it'd be 170 million plus 62 million plus the sponsor shares.

Speaker Change #183: Roughly at 240, 250 million are all in value, roughly estimating, but American resources will own that 170 million dollar value.

Speaker Change #184: 170 to American resources because humanized value.

Speaker Change #184: That is the value that they have proposed to us and it wasn't a definitive agreement.

Speaker Change #184: One other separate question.

Speaker Change #184: What is the timeline on completing your 10Q?

Speaker Change #185: 10Q for American Resources?

Speaker Change #186: For American Resources, yes, since there was a notice filed last week about a delay.

Speaker Change #187: Yeah, it was filed today.

Speaker Change #188: Our audit chair was traveling, unfortunately, out of the country.

Speaker Change #189: And we needed him to sign that our internal management team does not sign off on the quarterly reports.

Speaker Change #190: You need your audit chair to do that, and he was unfortunately traveling overseas. So he was unable to do that, so we had to file the NT.

Speaker Change #190: All right, thank you for answering my question.

Speaker Change #190: Excellent, thank you.

Speaker Change #190: Thank you.

Speaker Change #191: Our next question comes from the line of Keith Goodman with the Maxim Group.

Speaker Change #192: Please proceed with your question.

Speaker Change #193: Thank you guys, most of my questions are answered.

Speaker Change #194: I just had a question about the patriotic capital, as you called it, or I guess the potential of raising some money from patriotic capital funds, I think is the way you described it.

Speaker Change #195: What is that capital going to be used for?

Speaker Change #195: That's directly for real women.

Speaker Change #196: Yeah, that would be, that's a private, so we're not raising, as we stated publicly, we're not deluding our investors at the American resources level.

Speaker Change #197: We would be doing subsidiary based finance things for the division include pursuit capital.

Speaker Change #198: We have had a number of patriotic capital funds express interest in a structure that would value the business potentially higher than we're at that today.

Speaker Change #199: The, and we are working through that with them as we speak, but a patriotic capital fund is a, and there's three or four of them that have approached us, that we've known in the industry that are trying to develop the national security supply chain and investing along that path.

Speaker Change #199: And so that, that capital will go directly into re-element.

Speaker Change #200: The attractiveness of it is, some of that will go into the Marion Facility to buy equipment in the near term, but most of it will be just working capital that could from the balance sheet, add the cushion of capital on the balance sheet of re-element, as we pursue the spin-offs and get the company in its own separate public company.

Speaker Change #200: But there's, the good thing about the business today, it hasn't been ordering equipment.

Speaker Change #201: There's not a huge need for capital at the real level, other than expanding the existing facilities.

Speaker Change #201: So right now you're doing tests, they're kind of for that.

Speaker Change #202: So right now you're doing testing on in no bills bill.

Speaker Change #203: And you're shipping at some point, you're going to ship, you're obviously not charging for the testing that you're doing there.

Speaker Change #204: But if you, I'm not mistaken, you, as I said, you have the purchase order.

Speaker Change #205: That's changing.

Speaker Change #206: Okay, so, so you have a, so you have purchase order or purchase orders, I think you indicated, I'm not sure.

Speaker Change #206: But that you're producing in no bills bill, obviously it's a small facility.

Speaker Change #207: The goal is to get Marion up and running, so you can produce larger volumes and charge for delivery of that.

Speaker Change #207: Or you're going to pivot, and everything's going to become powered by reality.

Speaker Change #207: Yeah, we're still building out.

Speaker Change #208: You're going to produce some, and you're going to do repair power.

Speaker Change #208: That's correct.

Speaker Change #208: So it's the hybrid.

Speaker Change #208: So when we initially developed a model, and we moved towards a part by re-element, business offering, which we believe is a huge merit, and I could walk you out briefly here again.

Speaker Change #209: We initially said we were going to build our commercial facilities in Marion and Kentucky, and that will be the ability to showcase the low-cost, low-capac scalability of our technology and the commercial environment to generate substantial revenues and cash flow to our investors.

Speaker Change #209: But more importantly from there is if we build a different additional production lines, we'll either do it with joint venture partners, we'll do it through power by re-element, or our customers will cap exe additional production lines in Marion.

Speaker Change #210: And so our model is not constantly going out at re-element, our model is not in any of our business lines for that matter, not constantly go out and raise capital to incur the cap exe risk.

Speaker Change #211: Our model is to deploy the uniqueness of our technologies and let other people cap exe it because they need what we offer.

Speaker Change #211: And I will say that the interest level we're getting on that front from big multinational corporations to smaller players that are building out their flow sheets is substantial.

Speaker Change #212: So today historically we have never charged for testing, we are now charging for testing.

Speaker Change #212: We are now in a position of strength and more importantly a position of collaboration with our partners and customers that we will start testing.

Speaker Change #212: If they want us to test and develop flow sheets for them, we will charge for that.

Speaker Change #213: And we're excited about the revenue potential of that of monetizing our lab and monetizing our noble facility in a very, very attractive way to be cash flow positive and not incur that op-ex costs ourselves going forward.

Speaker Change #213: Unless it's a very unique circumstance.

Speaker Change #213: But also the ability to utilize powered by re-element as a way of supplementing and reducing people's cap exe on facilities they've already announced.

Speaker Change #214: And most people today, most hydromet facilities for lithium spodge mean as well as recycled materials, hydromet doesn't make any sense right now.

Speaker Change #215: You can't recover all the materials in two, it's a really expensive to develop and it's not flexible or versatile.

Speaker Change #215: Our technology is, and it's low cap exe, low op exe.

Speaker Change #216: So we can step in and deploy our technology and their facilities, replace components their flow sheet and make it more viable for them to be successful.

Speaker Change #217: So truly building a collaborative environment to utilize our technology to unlock the national supply chain but also the global supply chain.

Speaker Change #217: There's no reason our technology shouldn't be the refining technology within everybody's facilities and through powered by re-element we can make that happen.

Speaker Change #217: And you have indications from partners and customers that they're sort of on board with that?

Speaker Change #217: Yes.

Speaker Change #218: Yeah, and that's an outcome partners.

Speaker Change #218: I think that's the exciting thing about it is it's not we're helping people want to do business with us because we can save them money and people will do business with us because we can either save them or make them more money and get permits for what we're trying to accomplish where other technologies are pretty hard to do so.

Speaker Change #218: We're chemical light but the interest level we've had since we've announced powered by re-element is amazing.

Speaker Change #219: And I will say the team, Chris Mormon on our team, Shane Tragethon, Jeff Peters for an eating, and done an absolutely phenomenal job of getting back to these partners that need a solution and working with them on developing the flow sheets to deploy our technology and their facilities.

Speaker Change #219: Does it matter which political party gets into office or whatever?

Speaker Change #220: No, not really.

Speaker Change #220: This is commercial.

Speaker Change #220: We don't rely upon, we qualify for 45X.

Speaker Change #220: In this round of applications, we did apply for 48C.

Speaker Change #220: If Trump wins, he's probably going to kill the IRA.

Speaker Change #220: It doesn't really matter.

Speaker Change #220: We don't put that in our models.

Speaker Change #221: I think it's a kiss and death to build a business based on some of these subsidies, so we don't do that.

Speaker Change #221: We don't need it from a cost structure perspective.

Speaker Change #222: We try to stay out of politics the best we can and build a commercial enterprise that survives any administration.

Speaker Change #223: And I will say that no matter who wins, we need a strong national security supply chain.

Speaker Change #223: We don't have one at all today.

Speaker Change #224: From zirconium to neovium to rare elements to battery materials, we need to unlock this supply chain and make sure we have the materials here to defend our nation.

Speaker Change #224: And I think both parties recognize the importance of that.

Speaker Change #224: So this isn't just about electric vehicles and demand being left.

Speaker Change #225: This is for for Department of Defense equipment as well.

Speaker Change #226: Yep, an energy storage.

Speaker Change #227: I would say energy storage given we're probably the only player in the space that can recycle all the batteries profitably, which is what predominantly energy storage is provided by.

Speaker Change #228: We destroyed our energy grid in this country. We created huge variability, huge swings, which create high pricing pressure for utility customers, which is the individuals and taxpayers. We need to build out the one way we can balance the disruption we created within the grid is energy storage.

Speaker Change #228: You can actually use it as peaking non peaking, cut the tops off the spikes in the energy prices.

Speaker Change #228: So the growth of energy storage, I think it's going to be robust.

Speaker Change #229: And that's not let be, which is really the heart of our battery recycling technology, given we're one of the few, if not the only players in the space that can recycle an LLP battery very, very profitably even in today's environment.

Speaker Change #229: Okay.

Speaker Change #229: Thank you.

Speaker Change #229: That's all from I appreciate it.

Speaker Change #229: Excellent.

Speaker Change #229: Thank you.

Speaker Change #230: Our next question comes from a line of Steven Siegel with KBB asset management.

Speaker Change #231: Please proceed with your question.

Speaker Change #232: Hi Mark.

Speaker Change #233: Thanks for taking the call.

Speaker Change #234: I you've explained the real man a lot.

Speaker Change #235: I said one other question about it.

Speaker Change #236: Should we think of real man as like an asset light.

Speaker Change #237: It's just it's it's it would be your your employees and your just going out to different sites all around the world and licensing.

Speaker Change #237: Yeah.

Speaker Change #237: Real man.

Speaker Change #238: The chemical processes and getting some type of return on that will be a upfront fees and royalties for what's produced you think.

Speaker Change #238: Yeah.

Speaker Change #238: Thanks.

Speaker Change #238: That's it.

Speaker Change #239: I mean, I will say if you asked me two years ago when when we first developed and not first developed, but when we started commercializing real man's technology.

Speaker Change #240: We initially, and said broad ambitions of being the largest refinery in the world of rare elements and critical minerals.

Speaker Change #240: Not to say we don't end up there, but it's more through the power by re-element component of it.

Speaker Change #241: There's no reason for us to go replicate other people's flow sheets when we can supplement them.

Speaker Change #241: And in that process, we reduce our CAPX requirement and we reduce the need to hire thousands and thousands of people.

Speaker Change #242: If people are already building the front end processing from lithium spodge mean or from career authorities or rare side, we can help supplement their flow sheet, deploy our technology and charge a service fee, not necessarily a license fee, but a service fee to operate our technology within their flow sheets.

Speaker Change #242: That's really the focus to the business.

Speaker Change #242: Now in the near term, the focus is getting our Kentucky lithium site up and running, which is very economic in today's market still.

Speaker Change #242: We're most lithium processing or getting hurt by current pricing.

Speaker Change #243: We still have a very good cost structure in a lot of room and given our processing cost, as well as the on the rear to oxide side in our marriage facility, very, very high margin still in today's pricing.

Speaker Change #244: So it is a hybrid model. Our focus is on building these facilities out, making money, letting people come in and see them operate and then deploy our technology in their facilities thereafter.

Speaker Change #244: But it's becoming more of an asset like business over time.

Speaker Change #244: All right.

Speaker Change #244: And then just a curious question.

Speaker Change #244: The Kentucky facility that you have to bond on and marry in, will they be kind of competing for the same material eventually or there will be different won't be?

Speaker Change #245: So Kentucky's focus on lithium spodge mean, which we have a number of partners, a supply partnership on that from an author of the world.

Speaker Change #246: And then our marrying facility is focused on rare hoars, rare, rare magnets as feedstock, as well as recycled battery materials.

Speaker Change #247: So they both will produce lithium carbonate, but they're from different feedstocks.

Speaker Change #248: And the uniqueness is that the contribution of assets which we're doing in our appraisal on our Kentucky infrastructure, as we speak, that is being contributed to this project is substantial and enable this project to move a lot quicker from an empowerment, from piping, from infrastructure, from rail load out and all that stuff that we're able to utilize in our, from our Kentucky site to get that project up and running in a low cost way.

Speaker Change #248: But I was re-spending that money again.

Speaker Change #248: Got you.

Speaker Change #248: And then the magnets will be in marrying in that, right?

Speaker Change #249: Yep, rare, rare, rare with oxides, from end of life magnets, as well as meritorious in marrying.

Speaker Change #249: Okay, great.

Speaker Change #249: Thank you, thank you very much.

Speaker Change #249: Excellent.

Speaker Change #250: Thank you, Steve.

Speaker Change #251: Thank you.

Speaker Change #252: There are no further questions at this time.

Speaker Change #253: I'd like to turn the floor back over to Mark for closing comments.

Speaker Change #253: Excellent.

Mark: Well, one, I want to thank you all for joining today.

Speaker Change #255: Understand we have a lot of moving parts within the business.

Speaker Change #256: We hope to continue to streamline and clarify the objectives of the business, of unlocking value through the separation of the division.

Speaker Change #257: Ultimately, we are Very thankful for the efforts of our team and for our extramal partners as well that have helped us position the assets to where they're at today to unlock its value, start to drive near term revenue generation, as well as build the future of the businesses by creating business models that make a ton of sense in any economic environment regardless if we hit a recession or don't hit a recession.

Speaker Change #258: We are very well suited to continue to grow the business and generate value for our shareholders.

Speaker Change #258: Please follow us over the next few months.

Speaker Change #258: We have a lot going on.

Speaker Change #258: We look to continue to provide transparency and communication to the investor base to help showcase what we're doing and positioning and growth of where the business is going.

Speaker Change #258: But I thank you all for joining today.

Speaker Change #258: This concludes today's teleconference.

Speaker Change #258: You may disconnect your lines at this time.

Speaker Change #258: Thank you for your participation.

Speaker Change #258: [inaudible]

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