American Resources Corporation
(NASDAQ:AREC)

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American Resources Corporation Restarts Production at Carnegie 1 Metallurgical Coal Mine

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

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” 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

 

American Resources Corporation Reduces Reclamation Bonding Liability Through Disposition of Non-Core Permits and Reclamation Efforts

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.”


MARK C. JENSEN
CHIEF EXECUTIVE OFFICER & CHAIRMAN OF THE BOARD

 

As a key component to its operating strategy, American Resources Corporation places a high importance on being a diversified, low-cost metallurgical coal producer. As a result, the Company is able to successfully operate in all market cycles.

 

The Company is a growth-oriented business targeting both organic growth and acquisition opportunities of both stable operations and turn around projects with a high return on capital. The company currently has approximately 300 company & contractor employees.

 

OUR OPERATIONS

 

 

American Resources operates four coal mining complexes located primarily within Pike, Knott, and Letcher Counties, Kentucky and Wyoming County, West Virginia, with an additional mining operation located in Sullivan and Greene Counties, Indiana. American Resources focus is on mining metallurgical and pulverized coal injection (PCI), along with ancillary premium thermal coal, from the Central Appalachian Basin (CAPP).

 

 

McCoy Elkhorn Coal

 

 

McCoy Elkhorn Coal is located in Pike County, Kentucky and currently has two operating underground mines within the Glamorgan and Alma coal seams, with additional mines in development in the Alma, Cedar Grove and Pond Creek coal seams. McCoy Elkhorn mines and sells metallurgical coal, and utilizes its two state-of-the-art processing facilities with a combined capacity of 1,300 tons-per-hour, and batch-weight loadouts on the CSX railroad.

 

 

Deane Mining

 

 

Deane Mining is located in Letcher County, Kentucky and utilizes both surface and underground mining methods primarily in the Elkhorn 3, Hazard 4, and Hazard 4 Rider coal seams, with additional mines in development in the Elkhorn 2, Elkhorn 3, and Hazard 4 coal seams. Deane Mining produces and sells PCI, industrial, and high-grade thermal coals, and utilizes its 800 ton-per-hour preparation plant and batch-weight loadout on the CSX railroad.

 

 

Knott County Coal

 

 

Knott County Coal is located primarily in Knott County, Kentucky and will utilize both surface and underground mining methods in the Lower Elkhorn, Elkhorn 2, Elkhorn 3, Elkhorn 3 Rider, Hazard 4, Hazard 4 Rider, and Amburgey coal seams.  Knott County Coal will mine and sell PCI, industrial, and high-grade thermal coals, and utilize its 400 ton-per-hour preparation plant and batch-weightloadout on the CSX railroad.

 

 

Gold Star Mine

 

 

ERC Mining Indiana Corporation operates the Gold Star Mine and is located in Greene and Sullivan Counties, Indiana and consists of a box-cut underground mine accessing approximately 54.9 million tons of high-grade, low sulfur coal within the Indiana IV and Indiana III coal seams.  The Gold Star Mine utilizes its 170 ton-per-hour preparation plant and batch-weight loadout on the Indiana Rail Road.

 

 

Wyoming County Coal

 

 

Wyoming County Coal is located in Wyoming County, West Virginia and will utilize surface and underground mining methods with an initial focus on the Gilbert and Eagle coal seams.  Wyoming County Coal is a mid vol and high vol metallurgical coal complex with an onsite preparation plant and rail loadout on the Norfolk Southern railroad. The preparation plant is currently undergoing an upgrade to become a premier modern facility and increase the processing capacity to between 500 to 600 ton per hour.

 

Source:  http://www.americanresourcescorp.com/

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