Bridge section, upon completion, will add approximately $2.25 to $3.5 million per month of additional revenue.
FISHERS, IN / ACCESSWIRE / July 29, 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 is in development of its second section that will operate as a continuous haulage bridge section, which upon completion, is expected to add $2.25 to $3.5 million per month of revenue at current market prices.
Mark Jensen, CEO of American Resources commented, "Our series of Carnegie mines and the McCoy Elkhorn complex are major contributors to our revenue, cash flow and future growth. Carnegie 1 is a very young mine to where we have advanced to the point in the resource seam where we can expand our mine plan by adding additional sections and further reduce the overall cost structure and increase performance. Given our extensive equipment and asset base that we already own, we are able to bring this bridge section online with very little CAPEX and highlights the flexibility and growth attributes of our mining platform. Expanding an existing mine using owned equipment is the highest margin method to grow in today's market environment as it doesn't require the same labor, energy or equipment costs to expand an existing mine versus starting a new mine making it a very accretive opportunity for the Company."
The Company's Carnegie 1 team is currently setting up the ventilation required to start the added bridge section which is anticipated to start production in the next 60 to 90 days. The Carnegie 1 mine produces high vol metallurgical carbon that is not burned for energy use. Instead, specific characteristics allow it to be blended with iron to make new steel. This quality of product is in high demand in the current market environment given worldwide infrastructure growth coupled with persistent supply constraints as many producers in the U.S. are producing from old 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 with a mine life ranging from 20 to 40+ years while also making them safer and more productive operations.
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.
About American Rare Earth LLC
American Rare Earth is redefining how critical and rare earth elements are both sourced and processed while focusing on the recycling of end-of-life products such as rare earth permanent magnets and lithium-ion batteries, as well as coal-based waste streams and byproducts to create a low-cost and environmentally-safe, circular supply chain. American Rare Earth has developed its innovative and scalable "Capture-Process-Purify" process chain in conjunction with its licensed intellectual property including 16 patents and technologies and sponsored research partnerships with three leading universities to support the domestic supply chain's growing demand for magnet and battery metals. For more information visit arareearthcorp.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.
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SOURCE: American Resources Corporation
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