Company adds middling circuit to increase recovery yield by over 5% of sellable product and further improve environmental impact of operations
Investment enables higher carbon recovery with minimal additional operating expenses at the processing facility while reducing total landfilled material
FISHERS, IN / ACCESSWIRE / November 3, 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 has completed the retrofit and rehab of its 1,300 ton per hour processing plant at its Perry County Resources (PCR) complex to begin to recover middling product during the carbon cleaning process. It is estimated that the upgrade will increase the overall yield by over 5% while also reducing operating costs, resulting in a very attractive internal rate of return for the Company, and further improves the environmental footprint from its operations.
Tarlis Thompson, COO of American Resources Corporation commented, "When we acquired the Perry County complex two years ago, it was long neglected and needed significant rehabilitation to bring it back to its former operating capabilities. To date, we are proud to say our team has accomplished a majority of the daily run time items to more efficiently and effectively operate the complex, including reducing magnetite waste, down time, utility costs and improved workforce efficiency and safety for our team. Now that we have achieved daily operational stability at the processing facility, we are in a position to further enhance our focus on high-return projects that improve both our output and environmental impact such as restarting the plant's middling circuit, which we believe has been idle for approximately 10 years. The pay back for this investment of time and capital will be achieved in less than three months based on the plant's historical analysis and capabilities, and as we continue our production ramp in the currently strong metallurgical carbon market. As a fellow shareholder, it's great when we can maximize the value of our invested capital to generate long term value while also reducing our operating costs and further enhancing the environmental profile of our Company."
The Perry County Resources middling circuit targets carbon that possesses a higher ash specimen than traditional PCI or mini stoker carbon produced at the PCR complex. This product has historically been transported to the refuse storage disposal to be landfilled, which costs the Company approximately $1.75 per ton. Each ton of middling's recovered saves the Company money and creates a specialized product that will now be sold into the specialty carbon marketplace. Furthermore, the middling recovery will help further improve the environmental efforts of the PCR complex by keeping that captured carbon out of the refuse fill for the long term while capping its refuse impoundments with higher rock-based refuse ensuring better environmental compliance from the facility for decades to come.
"Based on our analysis, we estimate the addition of the middling circuit will produce approximately 7,500 additional sellable tons per month during 2022", continued Mr. Thompson. "Given the market for specialty carbon has recently seen significant strength both domestically and internationally, we estimate additional potential sales from our middling circuit generating approximately $300,000 per month, beyond our PCI and stocker carbon sales in 2022, while at the same time saving the Company over $13,000 in monthly operating and refuse costs. Additionally, we expect to begin marketing the product offering in the coming weeks and anticipate strong demand."
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.
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SOURCE: American Resources Corporation
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