American Resources Corporation Acquires Two Additional Continuous Miners for Perry County Resources

Rhea-AI Summary

American Resources Corporation (NASDAQ:AREC) has contracted to acquire two additional continuous miners for its Perry County Resources (PCR) mining complex in Kentucky, aiming to restart operations within 30 days. Following a significant restructuring post-acquisition in September 2019, the company has reduced costs by over $45 million. The goal is to ramp up carbon production to over 1 million tons per year. Restarting PCR is expected to create approximately 140 jobs for the local community.

Positive

• Acquisition of two continuous miners increases fleet to six, enhancing production capacity.
• Cost reductions exceeding $45 million improve operational efficiency.
• Anticipated production ramp-up to over 1 million tons of carbon per year.
• Expected creation of 140 sustainable jobs at the PCR complex.

Negative

• None.

Company preparing to restart metallurgical carbon mining and processing operations at restructured complex

Perry County Resources restructured to be one of the lowest cost and most innovative PCI (pulverized coal injection) and stoker operations in the United States

FISHERS, IN / ACCESSWIRE / August 11, 2020 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a supplier of raw materials to the rapidly growing global infrastructure marketplace, announced today that the Company has signed a contract to acquire two additional continuous miners for their Perry County Resources ("PCR") mining complex in Hazard, Kentucky.

The PCR complex was acquired in September 2019 and has undergone a major restructuring. In anticipation of restarting the PCR complex within the next thirty days, American Resources is expanding its fleet of continuous miners to fit its restructured and low-cost operating model. With the addition of the two continuous miners the Company will now have six continuous miners as it restarts and ramps production.

Mark Jensen, Chairman and CEO of American Resources Corporation commented, "We are truly excited to restart the Perry County complex and unveil it as one of the lowest cost, if not the lowest, PCI and stoker operations in the United States. We applaud our team for the tremendous achievements made over the last several months to reduce over $45 million of costs and implement our strategic plan moving forward. Since acquiring it out of bankruptcy, we have invested a significant amount of time and resources into the complex to return it back into an efficient and productive operation. Now with six continuous miners, up from the one continuous miner that was operational when we acquired PCR, we feel we are in a really good position to ramp up the complex very efficiently and look forward to doing so in the near future."

Over the next twelve months, American Resources anticipates ramping up carbon production at PCR to have five continuous miners in operation with two "super" sections and one bridge section, allowing the mine to scale with maximum efficiency. The Company also anticipates adding additional continuous miners to the fleet at PCR to have a high degree of redundancy to minimize any unexpected equipment down-time. Additionally, the Company is anticipating through its forecasted production schedule to ramp the PCR complex to over 1.0 million tons of carbon per year to be shipped on the PCI, semi-soft metallurgical carbon and specialty stoker markets.

American Resources has been a consolidator and operator of quality metallurgical carbon assets in the Central Appalachian basin ("CAPP") to serve customers in the steelmaking, specialty alloy metals, and industrial marketplaces. Its next-generation model and philosophy is to restructure existing, legacy operations to better fit the modern-day marketplace by eliminating legacy costs and liabilities to significantly increase the overall efficiency and profitability of its complexes. Perry County Resources is one of the Company's five operating complexes within the CAPP.

Production at PCR has been idle during the COVID-19 outbreak to ensure a safe working environment, to protect the health of its employees and others, to mitigate the spread of the virus, and to better navigate the global economic disruption. With its restart, American Resources expects the complex to support approximately 140 long-term, sustainable jobs for the community.

About American Resources Corporation
American Resources Corporation is a supplier of high-quality raw materials to the rapidly growing global infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking. American Resources has a growing portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium quality metallurgical carbon deposits are concentrated.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure market while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

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.

PR Contact:
Precision Public Relations
Matt Sheldon
917-280-7329
matt@precisionpr.co

Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
AREC@jtcir.com

Company Contact:
Mark LaVerghetta
317-855-9926 ext. 0
Vice President of Corporate Finance and Communications
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View source version on accesswire.com:
https://www.accesswire.com/601084/American-Resources-Corporation-Acquires-Two-Additional-Continuous-Miners-for-Perry-County-Resources

FAQ

What is the significance of American Resources Corporation acquiring two continuous miners?

The acquisition supports increased production capacity at the Perry County Resources mining complex, enabling a restart of operations.

What are the anticipated production levels for the Perry County Resources complex?

American Resources expects to ramp up production to over 1 million tons of carbon per year.

How has American Resources reduced costs at the Perry County Resources complex?

The company has implemented strategic changes that have reduced costs by over $45 million.

When does American Resources plan to restart operations at Perry County Resources?

Operations are expected to restart within the next 30 days.

How many jobs will the restart of the Perry County Resources complex create?

The restart is expected to support approximately 140 long-term, sustainable jobs.