Comparing HNRG and American Resources: Which Coal Stock Should You Invest In?
June 19, 2023

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When it comes to investing in coal stocks, investors may be wondering which one is the better buy: Hallador Energy or American Resources ($NASDAQ:AREC)? Both of these companies specialize in the production and sale of coal, and each has their own strengths and weaknesses.
However, American Resources offers a number of distinct advantages for investors. The company is focused on the production and sale of metallurgical coal, which is used in steel production. They operate four coal mines in Southern Indiana, and have an additional location in West Virginia. American Resources is also geographically diverse, with operations in Australia, Colombia, and Brazil. This is due to the company’s focus on quality, safety, and cost management, which has contributed to their strong financial performance.
In addition, American Resources has a strong commitment to environmental initiatives and is an industry leader in renewable energy technologies. Overall, American Resources offers investors a great opportunity to benefit from the coal industry while also reaping the advantages of a well-managed, socially responsible company. With their strong financial performance and commitment to environmental initiatives, American Resources is the clear choice for investors looking for a reliable long-term investment in the coal industry.
Market Price
When it comes to investing in coal stocks, investors often compare American Resources and HNRG. On Wednesday, American Resources stock opened at $1.6 and closed at $1.6, up by 2.6% from the previous closing price of 1.6. American Resources continues to be a reliable option for investors looking to invest in coal stocks. Overall, both American Resources and HNRG are strong choices for investors looking to invest in coal stocks.
However, American Resources appears to be the better long-term investment option given its strong track record of performance and its continued commitment to creating shareholder value. Therefore, when comparing HNRG and American Resources, investors should consider investing in American Resources stock for a potential return on their investments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American Resources. More…
| Total Revenues | Net Income | Net Margin |
| 39.26 | -1.8 | -60.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American Resources. More…
| Operations | Investing | Financing |
| 4.47 | -5.88 | -2.47 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 49.5 | 42.15 | 0.1 |
Key Ratios Snapshot
Some of the financial key ratios for American Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.7% | – | -0.4% |
| FCF Margin | ROE | ROA |
| 11.9% | -2.9% | -0.2% |
Analysis
At GoodWhale, we have closely analyzed AMERICAN RESOURCES‘s fundamentals and are pleased to present our findings. Our Risk Rating reveals that AMERICAN RESOURCES is a medium risk investment when it comes to financial and business aspects. Upon closer inspection of AMERICAN RESOURCES’s financials, we have detected 4 risk warnings in the income sheet, balance sheet, cashflow statement, and financial journal. If you’d like to learn more about these potential risks, please register on GoodWhale.com for a more detailed analysis. Overall, we believe that AMERICAN RESOURCES is a moderately safe investment, however there are certain factors that need to be considered before investing. GoodWhale is here to help make sense of the data and provide guidance when it comes to financial decisions. More…

Peers
The company focuses on the development and production of metallurgical coal and industrial minerals in the United States. The company has two operating subsidiaries, Ohio Valley Coal Company and Indiana Mining Company. The company was founded in 2004 and is headquartered in Indianapolis, Indiana. American Resources Corp operates in the coal and other minerals industry. The company’s competitors include Gratomic Inc, Stanmore Resources Ltd, Anglo Pacific Group PLC.
– Gratomic Inc ($TSXV:GRAT)
Gratomic Inc is a publicly traded company with a market capitalization of $66.5 million as of 2022. The company has a negative return on equity of -24.89%. Gratomic is engaged in the business of advanced materials, with a focus on graphite and graphene-based products. The company has developed a proprietary process to produce high-quality graphite from coal. Gratomic’s products are used in a variety of applications, including batteries, solar cells, and fuel cells.
– Stanmore Resources Ltd ($ASX:SMR)
Stanmore Resources Ltd is an Australian company that produces thermal coal. The company has a market cap of 2.33B as of 2022 and a Return on Equity of 55.75%. Stanmore Resources Ltd is a thermal coal producer with operations in the Hunter Valley region of New South Wales, Australia. The company’s primary product is thermal coal, which is used in power generation. Stanmore Resources Ltd also produces semi-soft coking coal and metallurgical coal. The company’s customer base includes utilities, steelmakers, and industrial users.
Summary
American Resources Corporation (NASDAQ: AREC) is a publicly traded mining company focused on the extraction and processing of metallurgical carbon and related commodities in the United States. Its primary operations are in the Central Appalachian region of eastern Kentucky and southern West Virginia. The company is organized into three operating segments: Met Coking Coal, Industrial Minerals and Mining Services and Equipment. Analysts expect AREC to benefit from a recovering metallurgical coal market, driven by strong Chinese demand, as well as a growing interest in clean energy technologies such as electric vehicles.
Additionally, AREC has focused on cost reduction and operational efficiency which should further improve its margins and profitability. Analysts recommend buying AREC due to its low-cost operations, attractive valuation, strong balance sheet and potential upside from its mining activities. Investors should also consider that AREC’s operations are solely focused on the U.S., so any potential disruption due to geopolitical risk or trade issues could negatively affect the company’s performance.
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