- Company's Wyoming County Coal (WCC) represents one of the last fully permitted, virgin "mid vol" metallurgical carbon complexes in the world
- Complex includes onsite carbon processing, rail load out and controlled, premium mineral reserve for two permitted underground mines and one surface mine
FISHERS, IN / ACCESSWIRE / October 19, 2021 / American Resources Corporation (NASDAQ:AREC) ("American Resources" or the "Company"), a next generation and socially responsible supplier of raw materials to the new infrastructure and electrification marketplace, today announced that it commenced engineering and planning for the restart of its wholly owned Wyoming County Coal mining complex, near the town on of Oceana, West Virginia. The complex is unique in that it is one of the last fully permitted complexes accessing premium, "mid vol" metallurgical carbon for steel production.
Thomas Sauve, President of American Resources Corporation commented, "We acquired Wyoming County Coal in late 2018 for approximately $20 million due to its access of the world's most premium steelmaking carbon and potential for attractive growth and substantial margin. Now that we have re-activated two of our Kentucky complexes, McCoy Elkhorn and Perry County Resources, it makes complete sense to now focus on planning and development of our Wyoming County complex, given the substantial price appreciation of this product in the market since our acquisition. We have recently been approached by numerous parties that desire to work with us on carbon production from this complex given the growing demand of the market, the expectations of prolonged, constrained supply and the fundamental long-term horizon for this quality of metallurgical carbon. Additionally, we feel this complex offers significant value for us based on our owned assets and controlled premium reserves, but it also offers substantial potential value given the vast number of nearby, stranded reserves that could be acquired or strategically folded into the complex given its processing and logistics capabilities."
The WCC complex is strategically located within one of the last substantial mid vol carbon deposits and, with direct access to the Norfolk Southern Railway, provides favorable transportation logistics to the United States' east coast ports. Additionally, WCC is surrounded by a number of high-value metallurgical carbon reserves that would otherwise be considered "stranded" without access to its processing and logistics complex. The Company's focus will initially be to bring the two underground mines into production via a "walking super section" mine plan which will produce an estimated 55,000 tons of carbon per month, with further expansion potential as the mines are developed. American Resources will also look to upgrade and expand WCC's carbon processing plant's capacity, from its current 350 tons per hour rate, to approximately 700 ton per hour, while also repurposing certain infrastructure from its Kentucky-based assets to keep the capital expenditures to a minimum and to expedite this restart.
American Resources Corporation intends to finance the planning, development and expansion of the complex from the operating cash flows of its current operations. Based on current market prices and demand, it is anticipated that after commencing production in the estimated second half of 2022, the Company could achieve payback of its investment into the complex in less than 12 months. Post WCC's restart, American Resources will then evaluate and focus on restarting production at its Kentucky-based Knott County Coal complex, given its substantial access to high-quality (PCI) carbon resources.
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.
About American Resources Corporation
American Resources Corporation 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 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
RedChip Companies Inc.
Todd McKnight
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
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