American Resources Corporation
Under the Symbol:
American Resources Corporation Provides Update on Carnegie Mine's Metallurgical Coal Production Expansion Plan
Tuesday, February 26, 2019 8:15 AM
FISHERS, IN / ACCESSWIRE / February 26, 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, is pleased to provide an update on the planned expansion of their Carnegie 1 metallurgical coal mine. The Carnegie 1 mine, an underground mine, located in Pike County, Kentucky and within the Lower Alma coal seam, produces High Vol A/B metallurgical coal.
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. The Company has since began phase one of a three-phase expansion plan whereby the Company will significantly expand its production from this reserve base. The three phases are as follows:
Phase 1 (March / April): Production will be expanded to operate a walking super section (utilizing two continuous miners) during two production shifts with an additional supportive maintenance shift. Initial production range is expected to be approximately 14,000 to 20,000 clean tons per month.
Phase 2 (May / June): 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 (June - Aug): 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.
To date, American Resources, as part of the mine rehabilitation to support all three phases of increased mine output, has completed the initial work of deconstructing and removing all of the low-capacity infrastructure and in the process of installing and constructing the high-capacity infrastructure capable of handling the increased production in conjunction with the revised and enhanced mine plan. The company expects to have the underground installation completed within 30 days and will look to commence production on the expanded model within 60 days.
''The demand for our coal is robust and we have already sold all of the tonnage that is expected to be produced from the Carnegie 1 mine to our existing customer base. The series of mines we have within this permit includes underground mines in both the Lower Alma and Upper Alma coal seams, which are the Carnegie 1, Carnegie 2, Carnegie 3 mines, with additional expansion planned in via surface mining both the Upper Alma and Lower Alma coal seams throughout this area, providing us substantial coal tonnage potential,'' stated Mark LaVerghetta, Vice President of Corporate Finance & Communication.
As in the past, all production at the Carnegie mine 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 mine 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.
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Anthony D. Altavilla, President
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American Capital Ventures
Howard Gostfrand, President
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Vice President of Corporate Finance and Communications
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 Corporation