Published: December 17, 2020 |

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American Resources Corporation said on Wednesday that it has kicked off operations at its Perry County Resources (PCR) complex.

The Fishers, Indiana-based company said the restart of operations at the PCR complex comes after a year of implementing a methodical restructuring and in response to “increased demand for raw materials for steel and infrastructure projects.”

“This is a monumental event for the company and the Perry County Resources complex given the amount of effort, investment, and dedication we have put into this particular asset for the benefit of its future value, our shareholders and its surrounding community,” said American Resources CEO Mark Jensen, in a statement.

“We feel we are at a significant inflection point with Perry County Resources being the launchpad to propel the company into our next and exciting phase of growth,” added Jensen.

The American Resources boss emphasized that with operations in full swing the company now has the ability to “generate stable cash flows” for its investors, a reliable supply of high-quality carbon for its customers, and “over 170 steady and reliable jobs for the community.”

During 2021, American Resources plans to steadily increase production at PCR to meet the demand. It anticipates 2021 full-year revenue in the range of $55 to $75 million on a consolidated basis.

While the revenues generated during this term is primarily that of its Perry County Resources subsidiary, the group anticipates continued contribution from its growing American Metals subsidiary as well as initial revenue contribution from its American Rare Earth subsidiary. Additionally, the company expects to restart its other four operating complexes, beginning with McCoy Elkhorn during the second half of 2021.

The PCR complex has undergone a significant overhaul to focus on an efficient mine plan, processing capabilities and logistics by eliminating over $40 million of annual costs, said the company. The PCR complex produces PCI and specialty stoker carbon used in the steel, alloy metals and infrastructure industries. It is also a hub to focus on the processing of critical and rare earth minerals, in an environmentally positive process from coal-based sources.

“Worldwide demand for steel-related products is seeing significant strength due, in part, to the demand for rebuilding and new infrastructure. The US government has stressed the need to rebuild and reinvent our infrastructure domestically for modern technologies, which would result in significant raw material and steel demand in the US,” said Jensen.

Hot rolled steel has climbed to two-year highs over the last two weeks with projected increases expected to continue based on forecasted demand and low inventories.

The company is focused on the processing of metallurgical carbon, an essential ingredient used in steelmaking. American Resources has a portfolio of operations in the Central Appalachian basin of eastern Kentucky and southern West Virginia where premium metallurgical carbon deposits are concentrated.

Source: Proactive Investors

About American Resources
American Resources Corporation is a supplier of raw materials to the rapidly growing global infrastructure marketplace. The company’s primary focus is on the extraction, processing, transportation and selling of metallurgical Carbon and PCI to the steel industry. The company operations are based in the Central Appalachian basin of eastern Kentucky and West Virginia where premium quality metallurgical products are located.

The company’s business model is based on running a streamlined and efficient operation to economically extract and deliver resources to meet our customers’ demands. By running operations with low or no legacy costs, American Resources Corporation works to maximize margins for our investors while being able to scale its operations to meet the growth of the global infrastructure market.

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