Ken Griffin's Citadel Pours $65M in Mining Stock Days After Its 141% Expansion of Mineral Refining Capacity

Billionaire investor Ken Griffin is the founder and CEO of Citadel Advisors, one of the most successful hedge funds in the world. Griffin is known for his open-mindedness to diverse asset classes and a quantitative investing approach. His personal net worth is estimated at $50.1 billion (£37.6 billion), according to Forbes.

Under Griffin's leadership, Citadel has generated over $74 billion (£55.4 billion) in net gains since its inception in 1990.

Mining stocks have surged recently, driven by the Trump administration's agreements with several mining companies as part of its national security strategy. This upward trend has prompted investors and hedge fund managers to invest aggressively in the sector.

Citadel Buys Significant Stake in American Resources (AREC)

Citadel's recent activity includes purchasing 9.66 million shares of American Resources (Nasdaq: AREC) stock, worth $65.7 million (£49.2 million). The average purchase price was $6.81 (£5.10) per share. The stock is up 268% year-to-date.

According to a recent filing with the US Securities and Exchange Commission, Citadel Advisors opened a new position in American Resources shortly after its parent company, ReElement Technologies, announced a 141% expansion of its critical mineral refining capacity at Noblesville. This development increased the site's footprint to over 16,500 square feet and raised the near-term refining capacity to more than 200 metric tonnes annually for defence minerals such as yttrium, germanium, gadolinium, gallium, terbium, samarium, dysprosium, antimony, neodymium, and praseodymium.

ReElement also received additional separation columns for expanded production at Noblesville, along with other equipment designed to produce ultra-pure products. Notably, the company managed to oversee this expansion without impacting daily operations.

Jeff Peterson, COO of ReElement, stated, 'This step enables us to expedite deliveries to our defence industrial base customers while maintaining our focus on rapid deployment of our Marion facility. Even with this added capacity in Noblesville, the growth ahead will require significant utilisation of Marion, particularly for battery, magnet and defence elements that we have scheduled for next year. We are excited to leverage this additional operating space as we continue to showcase how ReElement's refining platform materially de-risks and strengthens critical mineral supply chains.'

ReElement is also continuing its build-out at the Marion Supersite for large-scale production. Over 60% of the equipment for Marion's initial growth phase has been installed, aiming to enhance refining capacity for magnet-grade rare earths, battery materials, and antimony.

Capital Raising and Analyst Outlook

In addition, American Resources has been raising substantial capital, recently pricing private placements of over $73 million (£54.6 million) to support the development of coal waste processing hubs for critical minerals and rare earth element extraction. ReElement's patented chromatography-based separation process consistently achieves high purity, supporting its expansion plans.

Analysts polled by TipRanks give the stock a 'strong buy' rating, with an average 12-month price target of $5.17 (£3.87) per share, implying a potential upside of nearly 39% from current levels. The highest price target among analysts is $6 (£4.49).

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