Northern Dynasty Minerals Ltd.

Northern Dynasty Minerals Ltd. (NYSE: NAK) is a Canadian mineral exploration company. It has a single operating segment that focuses on mineral property acquisition, exploration, and development. The Pebble Project in Alaska, USA, is the company's main asset.

Key Highlights:

• The company has yet to report revenue from its operations.
• Net loss for Q3FY21 declined to CAD 8.67 million from CAD 25.76 million reported in Q3FY20, attributable to high operating expenditure.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) DMA support levels, indicating a bearish trend.
• Stock is leaning towards the lower end of the 52-week range of USD 0.32 – to USD 1.15.
• NAK stock price has declined 42.86% in the past 12 months.

Technical Price Chart (as of January 13, 2022). Analysis by Kalkine Group

Conclusion: Considering significant losses, lack of visibility in topline performance, and technical indicators, we recommend an 'Avoid' rating on the stock at the current price of USD 0.34, down 2.44% as of January 13, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

American Resources Corporation

American Resources Corporation (NASDAQ: AREC) is engaged in eastern Kentucky's coal mining and processing operations. The company is a raw material provider to the infrastructure business. The company's primary focus is on metallurgical Carbon and PCI extraction, processing, transportation, and sale to the steel industry.

Key Highlights:

• In Q3FY21 (ended September 30, 2021), the company reported total revenue of USD 2.81 million, compared to USD 0.29 million in Q3FY20.
• The net loss for Q3FY21 is USD 8.91 million vs. a net income of USD 0.12 million in Q3FY20.
• AREC reported a gross margin of -16.70% compared to the industry median of 57.5%, indicating the cost of production exceeds the total sales.
• At the daily price chart, the stock of AREC closed near the upper range of its 20-days Bollinger band, indicting a possible correction from the current level.
• On the daily chart, the RSI is at 59.50, approaching the overbought zone.

Technical Price Chart (as of January 13, 2022). Analysis by Kalkine Group

Conclusion: Considering the negative gross margin, operating with weak fundamentals, and technical indicators, we recommend an 'Avoid' rating on the stock at the current price of USD 2.17, down 3.56% as of January 13, 2022.

*The reference data in this report has been partly sourced from REFINITIV.