American Resources Corporation Provides Update on American Carbon Corporation
American Resources (NASDAQ:AREC) has announced updates on its subsidiary, American Carbon , which has been renamed American Infrastructure . The company will distribute 25% of its ownership in American Infrastructure as a special dividend on August 9, 2024. American Infrastructure's strategy focuses on growth and consolidation while reducing operational risk by leasing complexes to qualified operators.
Key developments include:
- Signing a lease for the McCoy Elkhorn mining complex in Kentucky
- Continuing development of the Wyoming County Coal mining complex in West Virginia
- Preparing for separation and public listing of American Infrastructure
- Exploring potential mergers, joint ventures, and sales of divisions
The company aims to unlock value for shareholders and simplify its business structure by separating divisions into standalone entities.
American Resources (NASDAQ:AREC) ha annunciato aggiornamenti sulla sua controllata, American Carbon, che è stata rinominata American Infrastructure. L'azienda distribuira il 25% della sua partecipazione in American Infrastructure come dividendo straordinario il 9 agosto 2024. La strategia di American Infrastructure si concentra su crescita e consolidamento, riducendo al contempo il rischio operativo attraverso l'affitto di complessi a operatori qualificati.
Sviluppi chiave includono:
- Stipula di un contratto di locazione per il complesso minerario McCoy Elkhorn nel Kentucky
- Continuazione dello sviluppo del complesso minerario Wyoming County Coal in West Virginia
- Preparazione per la separazione e la quotazione pubblica di American Infrastructure
- Esplorazione di potenziali fusioni, joint venture e vendite di divisioni
L'azienda punta a liberare valore per gli azionisti e semplificare la propria struttura aziendale separando le divisioni in entità autonome.
American Resources (NASDAQ:AREC) ha anunciado actualizaciones sobre su filial, American Carbon, que ha sido renombrada American Infrastructure. La compañía distribuirá el 25% de su propiedad en American Infrastructure como un dividendo especial el 9 de agosto de 2024. La estrategia de American Infrastructure se centra en crecimiento y consolidación mientras se reduce el riesgo operativo alquilando complejos a operadores calificados.
Los desarrollos clave incluyen:
- Firma de un contrato de arrendamiento para el complejo minero McCoy Elkhorn en Kentucky
- Continuación del desarrollo del complejo minero Wyoming County Coal en West Virginia
- Preparación para la separación y la cotización pública de American Infrastructure
- Exploración de posibles fusiones, joint ventures y ventas de divisiones
La empresa tiene como objetivo desbloquear valor para los accionistas y simplificar su estructura empresarial separando las divisiones en entidades independientes.
아메리칸 리소스(American Resources, NASDAQ:AREC)는 자회사인 아메리칸 카본(American Carbon)의 업데이트를 발표했으며, 이는 아메리칸 인프라스트럭처(American Infrastructure)로 이름이 변경되었습니다. 이 회사는 2024년 8월 9일 아메리칸 인프라스트럭처에 대한 소유권의 25%를 특별 배당금으로 분배할 예정입니다. 아메리칸 인프라스트럭처의 전략은 운영 위험을 줄이는 동시에 성장과 통합에 중점을 두고 자격이 있는 운영자에게 복합 시설을 임대하는 것입니다.
주요 개발 사항은 다음과 같습니다:
- 켄터키주 맥코이 엘크혼(McCoy Elkhorn) 광산 복합체에 대한 임대 체결
- 웨스트버지니아주 와이오밍 카운티 코울(Wyoming County Coal) 광산 복합체의 개발 지속
- 아메리칸 인프라스트럭처의 분리 및 공개 상장 준비
- 잠재적인 합병, 조인트 벤처 및 사업 부문의 판매 탐색
회사는 주주를 위한 가치를 창출하고 사업 구조를 단순화하기 위해 부서를 독립적인 실체로 분리하는 것을 목표로 하고 있습니다.
American Resources (NASDAQ:AREC) a annoncé des mises à jour sur sa filiale, American Carbon, qui a été renommée American Infrastructure. La société distribuera 25 % de sa participation dans American Infrastructure sous forme de dividende spécial le 9 août 2024. La stratégie d'American Infrastructure se concentre sur la croissance et la consolidation tout en réduisant le risque opérationnel en louant des complexes à des opérateurs qualifiés.
Les développements clés incluent :
- Signature d'un bail pour le complexe minier McCoy Elkhorn dans le Kentucky
- Poursuite du développement du complexe minier Wyoming County Coal en Virginie-Occidentale
- Préparation à la séparation et à la cotation publique d'American Infrastructure
- Exploration de potentielles fusions, coentreprises et ventes de divisions
L'entreprise vise à créer de la valeur pour les actionnaires et à simplifier sa structure d'entreprise en séparant les divisions en entités autonomes.
American Resources (NASDAQ:AREC) hat Aktualisierungen zu seiner Tochtergesellschaft American Carbon bekannt gegeben, die in American Infrastructure umbenannt wurde. Das Unternehmen wird am 9. August 2024 25% seines Anteils an American Infrastructure als Sonderdividende ausschütten. Die Strategie von American Infrastructure konzentriert sich auf Wachstum und Konsolidierung bei gleichzeitiger Reduzierung des operationellen Risikos, indem Komplexe an qualifizierte Betreiber vermietet werden.
Wesentliche Entwicklungen umfassen:
- Unterzeichnung eines Mietvertrags für den McCoy Elkhorn Mining-Komplex in Kentucky
- Fortsetzung der Entwicklung des Wyoming County Coal Mining-Komplexes in West Virginia
- Vorbereitung auf die Trennung und die öffentliche Notierung von American Infrastructure
- Prüfung potenzieller Fusionen, Joint Ventures und Verkaufs von Divisionen
Das Unternehmen hat zum Ziel, den Wert für die Aktionäre zu steigern und seine Unternehmensstruktur zu vereinfachen, indem es Divisionen in eigenständige Einheiten ausgliedert.
- Rebranding to American Infrastructure reflects a broader focus on producing high-quality raw materials for steel and infrastructure markets
- Special dividend distribution of 25% ownership in American Infrastructure to shareholders
- Signing of lease for McCoy Elkhorn mining complex, potentially restarting operations this year
- Strategy to reduce capital and operating risk by monetizing assets through royalties and leasing
- Ongoing development of Wyoming County Coal mining complex, supported by a $45 million tax-exempt bond
- Preparation for separation and public listing of American Infrastructure
- Delays in financial processes due to the need to upgrade and change auditors
- Potential shareholder dilution due to the distribution of American Infrastructure shares
Insights
The name change to American Infrastructure and the strategic shift towards leasing operations mark a significant pivot in the company's business model. This move aims to reduce operational risk and capital requirements while potentially increasing steady revenue streams through royalties and leases. The 25% special dividend of American Infrastructure shares could provide immediate value to current shareholders, but it's important to consider the dilutive effect on American Resources' ownership.
The company's focus on metallurgical carbon and iron ore assets positions it well in the infrastructure and steel markets, which could see increased demand with global infrastructure initiatives. However, investors should note that the reaudit of financials and potential public listing or sale of divisions in late 2024 introduce uncertainty. The
The company's strategic repositioning aligns with broader market trends in the infrastructure and electrification sectors. The focus on high-quality raw materials for steel production and critical minerals for electrification could capitalize on growing demand driven by global infrastructure projects and the shift towards renewable energy. However, the metallurgical coal market faces long-term challenges due to the steel industry's gradual transition to greener production methods.
The potential merger, public listing, or sale of divisions could unlock value, but market conditions for such transactions are currently challenging. The company's ability to attract quality operators for its leased assets will be important for the success of its new business model. Investors should monitor the progress of the McCoy Elkhorn complex restart and the Wyoming County Coal development as key indicators of the strategy's effectiveness.
American Carbon Corporation changes name to American Infrastructure Corporation
Company signs lease on McCoy Elkhorn complex reducing operating risk with a near-term goal of restarting complex
Company to distribute
FISHERS, IN / ACCESSWIRE / August 7, 2024 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of rare earth and critical elements, carbon and advanced carbon materials to the new infrastructure and electrification marketplace, today announced updates on its wholly owned subsidiary, American Carbon Corporation.
Name Change to American Infrastructure Corporation
American Carbon Corporation has changed its name to American Infrastructure Corporation to reflect the Company's broader focus on producing high-quality raw material inputs to the global steel and infrastructure markets including metallurgical carbon and iron ore. As previously announced, the Company recently completed a strategic acquisition of a
American Infrastructure Corporation Special Dividend and Public / Sale Process
The Company will be distributing
Business Model / Operational Update
American Infrastructure's go-forward strategy remains focused on growth and consolidation while reducing operational risk by leasing out complexes to highly qualified operators. The Company's operational strategy is to reduce capital and operating risk by monetizing its current and future asset base by creating royalty and streamlining income from its controlled or owned asset base by partnering with operators that have decades of experience in the mining business to receive revenue-based royalty, streamlining or leasing revenue from such assets. American Infrastructure has recently signed a lease for its McCoy Elkhorn mining complex, located in Pike County, Kentucky, with the goal of restarting operations this year and receiving a top line royalty stream from the complex. The Company's McCoy Elkhorn complex is a state-of-the-art carbon processing and logistics hub focused on the production, processing and distribution of metallurgical carbon to the global steelmaking market. The Company's focus, with its contract operator, is to bring its Carnegie 1 and Carnegie 2 mines back online for the production of high-quality, high vol A and B carbon as well as its onsite Mine 15.
Additionally, the Company continues to develop its Wyoming County Coal mining complex in West Virginia supported by the closing of its
Tarlis Thompson, Chief Executive Officer of American Infrastructure Corporation, "I am excited that the board has given me the confidence to drive the business in the direction that I have proposed in terms of derisking operations and focusing on cash flow generation of the asset base. Furthermore, we continue to evaluate acquisition proposals of certain controlled assets while also preparing the business for its separation and public listing. We believe we control some of the lowest cost met carbon and iron ore assets in the regional market and have restructured these assets to make them attractive for operators to step and hit the ground running. We are excited to progress the business forward as a standalone business in the near future."
Mark Jensen, CEO of American Resources Corporation commented, "We remain focused on unlocking value and simplifying the message of our individual platform divisions that we have built over the last 9 years by separating the companies into standalone entities. Our board and team is moving as aggressively as possible despite the delays created by the need to upgrade and change auditors this year. We look forward to the balance of the year and the continued success of each of our divisions in the near term."
About American Resources Corporation
American Resources Corporation (NASDAQ:AREC) is a next-generation, environmentally and socially responsible supplier of high-quality raw materials to the new infrastructure market. The Company is focused on the extraction and processing of metallurgical carbon, an essential ingredient used in steelmaking, critical and rare earth minerals for the electrification market, and reprocessed metal to be recycled. 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 and rare earth mineral 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 and electrification markets 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 exprsed 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.
Investor Contact:
JTC Team, LLC
Jenene Thomas
833-475-8247
arec@jtcir.com
RedChip Companies Inc.
Robert Foley
1-800-RED-CHIP (733-2447)
Info@redchip.com
Company Contact:
Mark LaVerghetta
Vice President of Corporate Finance and Communications
317-855-9926 ext. 0
investor@americanresourcescorp.com
SOURCE: American Resources Corporation
View the original press release on accesswire.com
FAQ
What is the new name of American Carbon , a subsidiary of American Resources (AREC)?
When will American Resources (AREC) distribute the special dividend of American Infrastructure shares?
What is the distribution rate for the American Infrastructure special dividend from American Resources (AREC)?
What recent operational update has American Infrastructure announced regarding its mining complexes?
