American Resources Corporation Signs Third-Party Carbon Processing Agreement

Rhea-AI Summary

American Resources Corporation (NASDAQ:AREC) has entered a carbon processing agreement to improve efficiencies and reduce costs at its Perry County Resources complex. The agreement allows for carbon processing, storage, and loading services at its Davidson Branch Preparation Plant in Hazard, Kentucky. The facility can process 1,300 tons of carbon per hour and is designed for specialized carbon types used in industrial applications. This initiative aims to enhance profitability and support the company’s growth in the global infrastructure market.

Positive

• Entered into a carbon processing agreement which can enhance efficiencies and reduce costs.
• Davidson Branch Preparation Plant has a capacity of 1,300 tons of carbon processing per hour.
• Positioning the Perry County Resources complex as one of the lowest cost and most innovative PCI operations in the U.S.

Negative

• None.

Company leveraging its carbon processing capacity to bolster efficiencies and further lower its cost structure

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 24, 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 it has entered into a carbon processing, transloading agreement with a third-party operator. Under the agreement, American Resources will provide, among other things, carbon processing, storage and rail and/or truck loading services at its Davidson Branch Preparation Plant located at the Company's Perry County Resources complex in Hazard, Kentucky. The agreement commences immediately under an initial trial period and will then carry a one-year term should the trial be favorable for both parties. The agreement will have the option to renew on an annual basis.

"We are constantly evaluating opportunities to secure strong, joint venture partnerships to reinforce our growth and at the same time enhance our efficiencies and profitability", stated Mark Jensen, Chairman and CEO of American Resources Corporation. "Having the ability to leverage our large infrastructure base to process third-party carbon further demonstrates our ability to maximize the value of our assets and allows us to increase our efficiencies to further reduce our operating costs at the Perry County complex, thereby reducing the overall processing cost for all carbon processed at the facility. We are very proud of the work we have done at Perry County to position it as the most innovative and lowest cost PCI, stoker and specialty carbon facilities in the United States."

Consistent with American Resources' philosophy of focusing on raw materials that go into infrastructure and specialty products, the carbon being processed under this agreement is considered one of the most specialized grades of carbon known as Blue Gem. This specific type of carbon is used in a variety of industrial and technology applications that utilize silicon and ferrous metal alloys. Under the agreement, American Resources will have the ability to purchase certain carbon qualities and products from the third party for its own orders of high-quality metallurgical carbon.

The Davidson Branch Preparation Plant has a total capacity to process 1,300 tons of carbon per hour, equipped with multiple stoker circuits to process a variety of finished products. This American Resources complex was chosen due to its highly specialized facilities and its ability to process carbon to variety of specific specifications for its customers.

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/602931/American-Resources-Corporation-Signs-Third-Party-Carbon-Processing-Agreement

FAQ

What is the significance of the agreement American Resources Corporation signed on August 24, 2020?

The agreement enhances efficiencies and reduces operational costs at American Resources' Perry County Resources complex by allowing carbon processing, storage, and loading.

What is the processing capacity of the Davidson Branch Preparation Plant?

The Davidson Branch Preparation Plant has a processing capacity of 1,300 tons of carbon per hour.

How does the agreement affect American Resources Corporation's cost structure?

The agreement is expected to lower the overall processing costs for carbon at the facility, improving profitability.

What is Blue Gem carbon and its application as mentioned in the press release?

Blue Gem carbon is a specialized grade of carbon used in various industrial and technology applications, especially those that involve silicon and ferrous metal alloys.

What are the future prospects of the carbon processing agreement signed by AREC?

The agreement starts with a trial period and can continue for one year if favorable, with an option for annual renewal.