American Resources Corporation
Under the Symbol:
American Resources Corporation to Finalize Carnegie 2 Mine Development
Tuesday, March 26, 2019 8:30 AM
FISHERS, IN / ACCESSWIRE / March 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, announced that the company has resumed development on its second underground coal mine in the Alma coal seam, called the Carnegie 2 mine.
The Carnegie 2 mine, located in Pike County, Kentucky, accesses the same block of Alma coal seam as Carnegie 1 mine, which is a premium High-Vol A/B metallurgical coal that is used to create coke and is instrumental in the global demand for steel production for the fast growth global infrastructure marketplace. Accessing this coal through the new Carnegie 2 mine allows the company to further increase the production and extraction of this premium coal and compliment the company's previously announced expansion plan of their Carnegie 1 mine. It is anticipated that this will be a low cost operation with a production rate of approximately 6,000 to 8,000 tons per month utilizing a contracted conventional mining section.
In addition to continued face-up work on Carnegie 2, American Resources Corporation is in advanced negotiations with a contract mining company who will operate the mine for the company for a fixed-ton fee. The contractor agreement is anticipated to be completed by the time that the Carnegie 2 face-up work is finished. Initial production is anticipated to begin by this June, and the mine is expected to generate approximately $9 to $10 million in revenue a year at an estimated 40% EBITDA margin at current market prices. All the current production from Carnegie 1 and Carnegie 2 is committed to buyers. Similar to Carnegie 1, all production at the Carnegie 2 mine will be trucked to the company's McCoy Elkhorn Coal facility to be processed and loaded onto rail for customers.
"Growing our metallurgical coal platform to meet our customers' demand is the key focal point of our initial organic expansion", stated Mark Jensen, CEO at American Resources Corporation. "The Alma coal seam is a well-established high quality High Vol metallurgical coal with consistent quality characteristics important to the global steel industry. Once this mine is producing we will turn our attention to the Upper Alma seams on this property to further exploit our production efficiencies at the McCoy Elkhorn complex".
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.
Anthony D. Altavilla, President
317-569-1617 - Office
317-590-3780 - cell
American Capital Ventures
Howard Gostfrand, President
305-918-7000 - Office
317-855-9926 ext. 0
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