American Resources Corporation (NASDAQ:AREC) announced Wednesday that it has secured base-load orders for the production of raw materials servicing the infrastructure marketplace at its Perry County Resources (PCR) mining complex.
The Fishers, Indiana-based company has previously announced that its contractor has commenced production at the restructured PCR complex under its streamlined, low-cost operating model.
American Resources said the secured commitments and contracts are for product that will be delivered to one of the largest steel companies in the world, as well as specialty alloy metal producers and industrial companies domestically and abroad.
READ: American Resources kicks off operations at its Perry County mining site to launch significant revenue growth
"As a company we were very careful to balance committed production with maximizing value for our shareholders given the volatility in the market during 2020,” said CEO Mark Jensen in a statement.
“Our strategy appears to be paying off whereby we locked in baseload production in 2020 but also have additional production capacity available to sell in the upcoming strength that we are seeing in the market. We look forward to expanding production in 2021 and meeting the needs of our customers and future customers."
The company said it has taken a risk-based approach to its committed sales. It looks to contract its sales in the range of 60% to 70% of its potential production from a complex, with the balance being sold to partners on the international marketplace and on the shorter-term market.
“This strategy was held consistent for 2021 sales, ensuring the Company has commitments for production needed to be profitable, yet having additional availability of production that can be used to maximize value as well as fulfill additional needs of our customers as they come up throughout the year,” American Resources said.
The company added that it 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.
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