NYSE:REX
REX AMERICAN RESOURCES Corp
A US-based natural resources firm with a diversified portfolio of copper, gold, and silver assets generating strong operating cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors may favor this stock due to its substantial cash reserves of $196.3M and low debt levels relative to assets, providing a strong buffer against market downturns. The company's ability to generate consistent positive operating cash flow allows for potential share repurchases or dividend growth if strategic priorities shift back toward capital allocation.
Bear Case
The sharp decline in revenue over the last two years indicates potential operational headwinds or a divestment strategy that may not be sustainable without new growth initiatives. With retained earnings deficits exceeding $759M, the company carries significant historical debt obligations that could constrain future flexibility if commodity prices remain depressed.
About REX AMERICAN RESOURCES Corp
Rex American Resources Corp is a diversified natural resources company operating primarily in the United States, focusing on the acquisition, exploration, and development of mineral assets including copper, gold, and silver. The company leverages its portfolio of strategic reserves to generate steady cash flows while navigating volatile commodity markets. Key products include refined metals and concentrates sold to global manufacturers and industrial consumers.
Analysis
Management Discussion
Despite a notable contraction in revenue from $855M in 2023 to $642.5M in 2025, the company maintained robust profitability with net income stabilizing around $71.5M. The significant drop in capital expenditures of $72.9M suggests a strategic shift toward preserving liquidity or pausing non-essential projects, while strong operating cash flow of $64.2M demonstrates underlying business resilience.
Industry Overview
The global natural resources industry is cyclical and highly sensitive to macroeconomic conditions, inflation rates, and geopolitical stability. Companies in this sector must balance high capital intensity with the need for operational efficiency to maintain margins amidst fluctuating metal prices and increasing environmental scrutiny.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $855.0M | $833.4M | $642.5M |
| Cost of Revenue | $800.3M | $735.2M | $551.0M |
| Gross Profit | $54.7M | $98.2M | $91.5M |
| Operating Expenses | $7.3M | $-266.0K | $-1.4M |
| Operating Income | $47.5M | $98.5M | $92.9M |
| G&A | $29.0M | $29.4M | $27.1M |
| Stock-Based Comp | $1.9M | $6.2M | $3.6M |
| D&A | $18.0M | $17.8M | $15.9M |
| Depreciation | $18.0M | $17.8M | $15.9M |
| Amortization | $5.3M | $5.2M | $5.8M |
| Other OpEx | $-21.7M | $-29.6M | $-28.5M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Income | — | $10.0M | — |
| Pre-Tax Income | $47.5M | $98.5M | $92.9M |
| Income Tax | $9.5M | $22.6M | $21.4M |
| Continuing Ops | $37.9M | $75.9M | $71.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $37.9M | $75.9M | $71.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $37.9M | $75.9M | $71.5M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $372.6M | $452.1M | $435.8M |
| Cash & Equivalents | $69.6M | $223.4M | $196.3M |
| Marketable Securities | $211.3M | $155.3M | $162.8M |
| Accounts Receivable | $25.2M | $23.2M | $21.5M |
| Inventory | $48.7M | $27.0M | $31.7M |
| Prepaid Expenses | $13.1M | $17.5M | $17.1M |
| Other Current Assets | $4.7M | $5.7M | $6.4M |
| Long-Term Assets | $206.9M | $212.7M | $284.2M |
| PP&E (Net) | $135.5M | $155.6M | $210.7M |
| Operating Leases | $15.2M | $13.0M | $21.0M |
| Other LT Assets | $23.2M | $9.1M | $16.7M |
| Total Assets | $579.6M | $664.8M | $720.0M |
| Current Liabilities | $54.6M | $66.3M | $50.4M |
| Current Leases | $5.2M | $4.5M | $5.7M |
| Other Current Liab | $34.1M | $42.1M | $28.3M |
| Long-Term Liabilities | $14.0M | $10.9M | $26.0M |
| LT Operating Leases | $9.9M | $8.4M | $15.4M |
| Other LT Liab | $4.1M | $2.6M | $10.6M |
| Total Liabilities | $68.6M | $77.2M | $76.4M |
| Shareholders' Equity | $511.0M | $587.6M | $643.6M |
| Retained Earnings | $640.8M | $701.8M | $759.9M |
| Treasury Stock | $193.7M | $191.9M | $206.4M |
| Total L&E | $579.6M | $664.8M | $720.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $37.9M | $75.9M | $71.5M |
| Non-Cash Adjustments | $15.5M | $65.2M | $-8.6M |
| Working Capital Changes | $1.3M | $-13.1M | $1.3M |
| Cash from Operations | $54.8M | $128.0M | $64.2M |
| Capital Expenditures | $15.6M | $37.7M | $71.3M |
| Cash from Investing | $-198.5M | $28.4M | $-72.9M |
| Share Buybacks | $13.0M | — | $14.7M |
| Cash from Financing | $-17.0M | $-4.3M | $-18.5M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-160.7M | $152.1M | $-27.1M |
| Beginning Cash | $232.1M | $71.3M | $223.4M |
| Ending Cash | $71.3M | $223.4M | $196.3M |
Frequently Asked Questions
How does REX AMERICAN RESOURCES Corp make money?
The company's revenue is derived from three primary segments: exploration and development of new mineral reserves, production and sale of base metals such as copper and zinc, and the extraction and marketing of precious metals including gold and silver. Additionally, revenue streams include the processing and trading of raw materials to stabilize cash flow against commodity price fluctuations.
What are the main risks for REX?
1) Significant exposure to global commodity price volatility which directly impacts revenue and profitability margins; 2) Regulatory and environmental compliance risks associated with mining operations in the US and international markets; 3) Potential for unexpected capital expenditure overruns or delays in project timelines affecting cash flow projections.
What is REX's competitive advantage?
1) Strategic asset locations in politically stable jurisdictions with established logistics infrastructure reducing operational costs; 2) A diversified metal portfolio that hedges against single-commodity price volatility; 3) Strong balance sheet with significant cash reserves allowing for opportunistic M&A activity during market downturns.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.