American Resources Corp (AREC)

[RandyKCMO]

News Production beginning at new mine!

American Resources Corporation Commences Production of Carnegie 2 Metallurgical Carbon Mine
American Resources Corporation
Fri, July 22, 2022, 7:00 AM

Initial production is ahead of schedule with committed offtake, resulting in near-term revenue growth

New metallurgical carbon mine provides steel industry with much-needed supply of raw materials for worldwide infrastructure growth

FISHERS, IN / ACCESSWIRE / July 22, 2022 / 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 that it has commenced initial production at its greenfield Carnegie 2 metallurgical carbon operation ahead of schedule. Following the mine's initial development production, the Company will increase the output of its Carnegie 2 mine over the next several months to fully expand and maximize production, revenues and cashflow.

Mark Jensen, CEO of American Resources commented, "We are proud of our team, led by Tarlis Thompson, to get the Carnegie 2 mine into production ahead of schedule and within budget. Supply chain issues and inflationary pressures continue to present challenges for many industries, however our extensive asset base and the efforts of our team has enabled us to utilize internal resources to get this mine into a great position to produce for our customers and shareholders. Our McCoy Elkhorn complex will be an area of growth for our business given the quality of the carbon and the ability to bring on a meaningful amount of incremental new mine production, or expand our existing mines, to feed the global growth in the steel industry. Our focus is to bring a low-cost, low-risk and high-quality supply of metallurgical carbon to the market as we believe there are a substantial number of high-cost, end-of-life mines that will decline over the next five years. Our platform puts us in a great position to feed the global demand from these new opportunities yet maintain a low environmental impact on operations while still achieving our negative net acres impact commitment due to our continued land reclamation efforts to further reduce the overall cost for the business."

The Carnegie 2 mine is a new operation that has 20+ years of low-cost, safe mining due to no old works and favorable mining conditions. This operation produces high vol metallurgical carbon from the same carbon seam as the Company's Carnegie 1 mine that will feed the global market for new steel production. The mine plan utilizes room and pillar mining and a completely rebuilt Joy 14cm15 continuous miners with shuttle cars. The mine is set up to run one working section until such a time as it can expand to two working sections accessed from one mining portal to optimize the mine's efficiency and asset base.

High Vol metallurgical carbon is not burned for energy use. Instead, specific characteristics allow it to be blended with iron to make new steel. This specific quality of carbon is in high demand in the current market environment given many producers in the U.S. are producing from older mines that are expensive to operate and coming to end-of-life. American Resources is focused on mine plans and operations that are built to be low cost once ramped and ranging from 20 to 40+ years of mine life while also making them safer and more productive operations. Post initial development production and based on current index pricing, Carnegie 2 is anticipated to add approximately $25 to $35 million in additional annual revenue to the Company with attractive margins.

American Resources continues to focus on running efficient streamlined operations in being a new-aged supplier of raw materials to the infrastructure and electrification marketplace in the most sustainable of ways, while also helping the world achieve its goals of carbon neutrality. By operating with low or no legacy costs and having one of the largest and most innovative growth pipelines in the industry, American Resources Corporation works to maximize value for its investors by positioning its large asset base to best fit a new-aged economy, while being able to scale its operations to meet the growth of the markets it serves.

https://finance.yahoo.com/news/american-resources-corporation-commences-production-120000809.html