American Resources Corp. (AREC) Update - Jan 27

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

American Resources Corp. (AREC) Update - Jan 27

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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 market s 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
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: American Resources Corp. (AREC) Update - Jan 27

Post by dan_s »

January 27 , 202 1 | Source : American Resources Corporation
FISHERS, INDIANA / ACCESSWIRE / January 27 , 202 1 / American Resources
Corporation (NASDAQ: AREC ) (“American Resources” or the “Company”), a next generation and
socially responsible supplier of raw materials to the new infrastructure marketplace , today
announced that it has secured two new credit facilities that can be used to draw against
inventor ies and accounts receivables . The credit facilities can be utilized at the Company ’s
discretion to drive revenues at its Perry County Resources , McCoy Elkhorn and Wyoming County
complexes and provide additional flexibility as it executes upon its growth objectives . With an
initial ability to draw up to $10 million in expansion financing , both facilities have provision s that
enable s them to be increased as the C ompany expands its production and revenue base .
The credit facilities will enable American Resources to further expand its production from
American Carbon, American Rare Earth and American Metals while still en suring a strong
liquidity position . The total cost of the facilities are forecasted to r epresent one of the lowest
cost s of capital achieved to date for the C ompany since formation over five years ago. For the
inventory facility, the C ompany is able to draw 80% of the inventory value at a cost of 2% for
up to each 120 days outstanding and is subject to standard terms and conditions of the
agreements . For the account s receivable facility, the C ompany is a ble to draw 90 % of the
accounts receivable value at an equivalent 8 % APR per year and is subject to standard terms
and conditions of the agreements .
Kirk Tayl o r , C hief Financial Officer of American Resources Corporation , commented, “ Being in a
position to enter into two traditional credit agreements in today ’ s market environment is a
testament to the strength of our C ompany’s financial position and balance sheet. The
attractiveness of these credit facilities is that they will result i n no equity dilution to our
shareholders, they are a low - cost form of capital, provide the Company with additional flexibility
as it ramps its production growth, and only incurs interest when , and if , we draw against them
at our option. Being able to secure these credit financing facilities opens up additional
opportunities to expand our production base at a time when we are seeing the increased
demand for our infrastructure related products and with s teel prices on the rise. Adding this
type of flexibility into our unique, innovative and low - cost operating model will allow us to
maximize the return to our shareholders while also enabling us to further our mission of
creating additional , sustainable and quality jobs i n the communities in which we operate .”
American Resources is constantly evaluating opportunities to minimize cost of capital as well as
minimize shareholder dilution. These credit facilities supplement the Company’s already strong ​
capital position and will be utilized to expand revenue and cash flow throughout 2021. With
these flexible credit facilities in - place , and given the Company’s current balance sheet strength,
the Company does not anticipate the need to access the equity market s to raise additional
capital to execute on its current growth plan .
American Resources continues to focus on running efficient streamlined operations in being a
new - aged supplier of raw materials to the infrastructure and electrificatio n marketplace in the
most sustainable of ways. By operati ng 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 invest ors 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 market s it
serves
Dan Steffens
Energy Prospectus Group
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