AREC's ReElement Partners SAGINT on Tokenized Mineral Traceability

American Resources Corporation AREC, through its portfolio company, ReElement Technologies, has announced a collaboration with SAGINT Inc. to introduce a blockchain-enabled tokenization system designed to enhance global traceability of critical and rare-earth minerals. SAGINT will deploy its institutional-grade tokenization platform to convert ReElement’s refined minerals, such as rare-earth elements, into digital assets backed by authenticated, blockchain-secured warehouse receipts. 

The companies stated that this digital framework will allow every unit of material to be traced from its extraction source through ReElement’s refining and separation processes and ultimately to commercial and defense customers, creating an immutable, transparent record of provenance. American Resources also announced that it is taking a strategic equity position in SAGINT to support long-term innovation and growth. 

The tokenization initiative is intended to strengthen compliance for customers in sectors with stringent sourcing requirements, reduce geopolitical and counterparty risk, open new avenues for cross-border financing based on verified inventory and help establish what the partners describe as one of the most secure and accountable critical-mineral supply chains in the marketplace. 

Shares of AREC are up 116.7% over the last year compared with its industry’s modest 13.7% rise. 

AREC Zacks Rank & Other Key Picks

AREC currently carries a Zacks Rank of #2 (Buy). 

Other top-ranked stocks in the Basic Materials space include Fortuna Mining Corporation FSM, Hecla Mining Company HL and CSW Industrials CSW. FSM, HL and CSW carry a Zacks Rank #2, each. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank here.

The Zacks Consensus Estimate for FSM’s current-year earnings is pegged at 81 cents per share, indicating a 76.1% year-over-year increase. Shares of FSM are up 95.7% in the past year. 

The Zacks Consensus Estimate for HL’s current fiscal-year earnings is 38 cents per share, implying a 246% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 26%. 

The Zacks Consensus Estimate for CSW’s current fiscal-year earnings is pegged at $10.4 per share, indicating a 24% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7%. 

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This article originally published on Zacks Investment Research (zacks.com).

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