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Fishers, IN – May 2, 2019 – American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and selling of metallurgical coal to the steel industry, announced today that they are restarting production at its Carnegie 1 mine under its previously stated, expanded production plan. The Carnegie 1 mine, an underground mine, located in Pike County, Kent
American Resources commenced initial development production at Carnegie 1 in the spring of 2017 to confirm the appropriate mining style and equipment that would be most productive and efficient. The initial results verified the potential of significantly expanding the mine for long-term, stable production. American Resources has invested the necessary capital to acquire additional equipment and infrastructure, and to further develop and restructure the Carnegie 1 mine to significantly expand its output, revenue, margin, and cash flow, and to complete Phase 1 of its three-phase plan. The three phases are as follows:
Phase 1 (Complete): Production infrastructure has been redeveloped and expanded to operate a walking super section (which utilizes two continuous miners versus the typical one continuous miner) during two production shifts with an additional supportive maintenance shift. The first continuous miner has been delivered and is producing coal this week. The second continuous miner is currently having proximity detection safety technology installed and will be delivered to the mine shortly post-completion. Initial production range is anticipated to be approximately 14,000 to 20,000 clean tons per month with both continuous miners producing.
Phase 2 (June – July): Production will be expanded from a walking super section to a full super section. Production range is expected to be approximately 18,000 to 22,000 clean tons per month.
Phase 3 (Oct – Nov): Production will again be expanded to operate two separate sections: one being a full super section and the other a walking super section, with two production shifts and one maintenance shift. Initial production range is expected to be approximately 32,000 to 42,000 clean tons per month.
Once fully implemented, American Resources expects the Carnegie 1 mine to contribute an estimated $3.45 million in monthly revenue and an annual revenue run rate of approximately $41 million. Additionally, the Company will continue to develop a series of metallurgical coal mines within the same permit as the Carnegie 1 mine which include underground mines in both the Lower Alma and Upper Alma coal seams, which are the Carnegie 2 and Carnegie 3 mines. The Company also has additional expansion planned at the Carnegie mine site to include surface mining both the Upper Alma and Lower Alma coal seams.
“First and foremost, we applaud our team for all of their efforts to complete Phase 1 of our growth plan at our Carnegie 1 mine on time and on budget”, stated Mark Jensen, Chief Executive Officer of American Resources Corporation. “This is an important milestone in our overall growth as it enables us to further deliver on our commitment to our customers, employees, and shareholders to being the fastest growing company in our industry. The quality of our Carnegie coal enables us to expand the metallurgical coal sales price and volumes at our McCoy Elkhorn complex, further increasing the company’s revenues and margins.”
As in the past, all production at the Carnegie mines will be trucked to the company’s McCoy Elkhorn Coal facility to be processed and loaded onto rail. Additionally, the enhanced production will give American Resources the ability to blend the coal from its Carnegie mines with other metallurgical production at McCoy Elkhorn to offer its customers a very attractive high-vol metallurgical coal product. As a result of the increased tonnage, the fixed operating costs at the McCoy process and load out complex will further be reduced on a per ton basis, providing further margin expansion.
American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core mining permits and through identifying strategic, supplemental acquisitions and continuing to consolidate quality coal assets for future growth and production. The company is committed to being one of the lowest cost operators in CAPP and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical products are located.
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.
Website:
http://www.americanresourcescorp.com
Institutional/Retail/Individual Contact:
American Capital Ventures
Howard Gostfrand, President
305-918-7000 – Office
www.amcapventures.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
Special Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company’s actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation’s control. The words “believes”, “may”, “will”, “should”, “would”, “could”, “continue”, “seeks”, “anticipates”, “plans”, “expects”, “intends”, “estimates”, or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
Source: American Resources Corporation
Fishers, IN – April 16, 2019 – American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and selling of metallurgical coal to the steel industry, announced today that it has completed the transfer and disposition of two non-core permits to a third party, resulting in the reduction of reclamation bonding liability held by the company by approximately $2.86 million. Along with additional recent reclamation efforts, the company has also reduced its reclamation bonds by approximately $176,300 for a total reduction of $3.04 million. The reduction in reclamation bonding reduces the bonding of the company’s subsidiary, Knott County Coal, by approximately 34.5% from approximately $8.8 million in bonds to $5.8 million in bonds, and reduces the bonding overall at the company by approximately 11.4%, thereby reducing liabilities on the balance sheet and saving the company money in bonding fees, holding costs, and future reclamation costs.
An idled facility that is considered non-core to the company’s operations, the Raven preparation plant and associated impoundment were considered geographically redundant to the company’s existing Supreme Energy preparation plant and impoundment owned by the company’s subsidiary, Knott County Coal LLC, and accessed only higher sulfur thermal coal. Prior to its disposition, the Raven plant was the only leased preparation facility of the company, as opposed to its other five wholly-owned preparation plants. The permits to the Raven facility, which is owned by a third-party and was leased by the company, were acquired as part of the company’s acquisition of Knott County Coal (formerly known as ICG Knott County).
”The Raven facility was never present in any of our forecasted growth plans. Any future coal production in this area will be brought back to our owned facilities at either Deane Mining or Knott County Coal, making the disposition of the facility strategic and a good cost-savings measure for the company”, stated Kirk Taylor, Chief Financial Officer of American Resources Corporation. ”Our strategy remains focused on targeting premium quality coals predominantly used in the steel making sector, such as coking coal and pulverized injection coal. With this divestment, we can continue to reduce non-core holding costs and liabilities.”
American Resources Corporation continues to focus on its growth objective by efficiently leveraging its large number of core mining permits and through identifying strategic, supplemental acquisitions and continuing to consolidate quality coal assets for future growth and production. The company is committed to being one of the lowest cost operators in CAPP and throughout all its coal mining, processing, and transportation operations.
About American Resources Corporation
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical products are located.
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet its customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for its investors while being able to scale its operations to meet the growth of the global infrastructure market.
Website:
http://www.americanresourcescorp.com
Institutional/Retail/Individual Contact:
RedStone Communications
Anthony D. Altavilla, President
317-569-1617 – Office
317-590-3780 – cell
tony@redstonecommunications.com
www.redstonecommunications.com
American Capital Ventures
Howard Gostfrand, President
305-918-7000 – Office
hg@amcapventures.com
www.amcapventures.com
Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company’s actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. The words ”believes”, ”may”, ”will”, ”should”, ”would”, ”could”, ”continue”, ”seeks”, ”anticipates”, ”plans”, ”expects”, ”intends”, ”estimates”, or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
SOURCE: American Resources Corp.
About American Resources
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical coal and pulverized coal injection (PCI) to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and West Virginia where premium quality metallurgical products are located.
The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet our customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for our investors while being able to scale its operations to meet the growth of the global infrastructure market.
“American Resources Corporation is not just another commodity-based company; we are building the next generation of mining companies utilizing strict discipline of performance, productivity and safety. The key to our success is the operating culture our team embraces that thrives on efficiency and accountability, enabling the company to capitalize on all market cycles.”
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