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American Resources Corp. (AREC) became a top trending ticker on Stocktwits after its shares rose over 20% in early trading on Tuesday to hit over four-and-a-half-year highs, building on gains following a $33 million common stock-only private investment in public equity (PIPE) transaction.
Retail user message count on American Resources also increased nearly 642% over 24 hours, as of Tuesday morning, on Stocktwits, after the company said that the financing is priced at $3.55 per share of common stock. The financing provides growth capital to advance its initiatives in developing regional coal waste processing hubs for the extraction of critical minerals and rare earth elements.
Retail sentiment on American Resources remained unchanged in the ‘extremely bullish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
Rare earth mineral stocks such as MP Materials, Trilogy Metals, and Critical Metals extended the gains from Monday, building on the trade tensions between the U.S. and China. According to media reports, U.S. President Donald Trump announced plans to impose 100% tariffs on China in retaliation for the country’s restrictions on rare earth exports. A stance which he later softened.
On Monday, Roth Capital raised its price target on American Resources to $5 from $4 and maintained a ‘Buy’ rating, according to TheFly. The firm noted that China added five more rare earth elements to the seven it previously restricted for export. However, before this announcement, ReElement Technologies had already demonstrated the capability of commercially purifying five of the initial seven restricted rare earth elements to ultra-pure rare earth oxides at its facility in Noblesville, Indiana, Roth Capital said.
Roth Capital stated that American Resources' 19.9%-owned spin-out, ReElement Technologies, may be the nation's "ace in the hole" in a looming trade war and in breaking China's monopoly on refining rare earth elements.
A bullish user on Stocktwits said that AREC could follow CRML’s path and hit $15.
Shares of American Resources have jumped 493% this year.
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