Blueprint
American Resources Corporation Provides Update on Carnegie 2
Metallurgical Carbon Mine Development
September 13, 2019 | Source: American Resources
Corporation
FISHERS, INDIANA / ACCESSWIRE / September 13, 2019 /
American Resources Corporation
(NASDAQ: AREC),
a supplier of raw materials to the rapidly growing global
infrastructure marketplace, announced today an update on the
Company’s Carnegie 2 mine development plan. The Carnegie 2
mine is a metallurgical carbon mine located in Pike County,
Kentucky, which is approximately five miles from the
Company’s McCoy Elkhorn complex. Carnegie 2 accesses the same
boundary of high vol A/B carbon, an essential ingredient in the
steelmaking process, as the Company’s Carnegie 1 mine, both
within the Lower Alma seam.
American
Resources has been developing Carnegie 2 over the past year with
the expectation of using a portion of the capital raised from the
Company’s August 23, 2019 equity financing to complete the
mine ‘s development and bring into production. The Company is
pleased to announce that significant progress has been made and
estimates development work to be completed in 6-7
weeks.
Once
complete, it is anticipated that American Resources will utilize a
contract relationship who is already working for the company to
operate the Carnegie 1 deep mine. American Resources estimates
production to begin at Carnegie 2 in mid-to-late November, and
once producing, the Company expects
Carnegie 2 to produce an estimated 8,000 to 10,000 salable tons per
month.
“We are proud of the progress our development team at
Carnegie 2 has made to date,” stated Mark Jensen, Chairman
and CEO of American Resources Corporation. “We are also very
excited about the addition of Carnegie 2 in supplementing our
overall metallurgical carbon production, which will allow us to
enhance our blending capabilities and provide a premium product to
our customers. The quality of our Carnegie carbon enables us
to expand the metallurgical carbon sales price and volumes, 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 facility to be processed and
loaded onto rail. Additionally, the enhanced production will give
American Resources the ability to blend the carbon from its
Carnegie mines with other metallurgical production at McCoy Elkhorn
to offer its customers a very attractive high vol metallurgical
carbon product. As a result of the increased tonnage, the fixed
operating costs at the McCoy Elkhorn processing 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. The
Company is committed to being one of the lowest cost operators in
the Central Appalachian basin (CAPP) and throughout all its
metallurgical carbon 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 carbon 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
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.
Institutional/Retail/Individual Contact:
PCG
Advisory
Adam
Holdsworth
646-862-4607
adamh@pcgadvisory.com
www.pcgadvisory.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
Source:
American Resources Corporation