American Resources Corporation
Under the Symbol:
American Resources Corporation Delivers Third Continuous Miner to its Mine #15 to Expand Metallurgical Coal Production
Friday, April 5, 2019 8:10 AM
FISHERS, IN / ACCESSWIRE / April 5, 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 delivered an additional continuous miner to its Mine #15, located in Pike County, Kentucky, to further expand the production of metallurgical coal. The currently operating Mine #15 is an underground mine located at the company's McCoy Elkhorn Coal complex and produces High Vol B metallurgical coal from the Glamorgan coal seam.
American Resources currently utilizes two continuous miners at two separate operating sections within Mine #15. Due to the high demand for the metallurgical coal produced by this mine, and as part of its expansion plan, the company recently acquired one additional continuous miner and has another in the rebuild process to enhance the mine's production. This additional Joy 14CM15 model continuous miner that was acquired will be the third operating miner at Mine #15 and is expected to have proximity detection safety technology installed and producing within six weeks. This third continuous miner will be used to convert one of Mine #15's single-sections to a modified super section and then shortly thereafter to a full super section whereby, increasing the mine's total output by 6,000 (modified super section) and ultimately 12,000 tons per month (full super section).
The company is rebuilding its fourth continuous miner that will bring both operating sections to full super sections at Mine #15 later this spring once it has been rebuilt and fully rehabilitated. By mid-summer, with four operating miners on two super sections, Mine #15 is expected to produce 36,000 to 44,000 clean tons per month with an annual run rate revenue at such time of $40 million to $50 million.
The Company is also evaluating the potential to add a third operating section to Mine #15 by the end of this year, which could represent a substantial increase in production beyond the current forecasts.
''This is yet another stepping-stone in our growth plans'', stated Thomas Sauve, President of American Resources Corporation. ''Having the ability to not only bring new mines online cost effectively, but to also increase the efficiency and output of our currently producing mines is core to our growth strategy under our low-cost operating model. We're excited to see our continued progress throughout the rest of the year and beyond.''
As in the past, all production from Mine #15 is belted directly into one of the company's two on-site coal processing facilities at McCoy Elkhorn Coal and loaded onto rail. Additionally, the enhanced production will give American Resources the ability to blend the coal 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 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 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