American Resources Corporation (NASDAQ:AREC) reported that it has acquired additional production equipment to expand its base of carbon production and efficiencies at Perry County Resources, as well as providing it the opportunity to potentially bring other complexes online in the future.
American Resources noted that it was able to acquire the fleet of equipment at what it believes to be “a fraction of its marketable value,” as the company was able to act quickly due to the strength of its balance sheet.
“We have some of the highest quality, lowest cost and longest life assets in the country for producing metallurgical carbon. Our efforts to acquire, restructure and reposition our assets enable us to move swiftly to bring operations online when the market dictates,” American Resources president Thomas Sauve said in a statement.
READ: American Resources strikes acquisitions to bolster its metallurgical coal footprint
He added: “Given our cost structure and financial flexibility, we are excited to closely monitor the markets and utilize our advantages to expand our production base in the near future. This spread of equipment we have acquired, and the price we paid, showcases our extremely low capex model of accretive expansion of production.”
“We look forward to the years ahead of us and putting this equipment to work.”
The company said it believes the worldwide market for metallurgical carbon is showing strength in terms of long-term fundamental demand, as a result of increased infrastructure spending, giving the company comfort in considering expanding accretive production.
American Resources Corporation 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.
The company has three divisions: American Carbon, American Rare Earth and American Metals, which it said was built to leverage the growth of infrastructure and electrification markets that are predicted to see significant expansion over the next decade.
American Resources added that the current administration in United States has stated its intention to advance a green economy, which will require substantial infrastructure redevelopment and a significant spend on US produced steel as well as growth in the electric vehicle fleet.
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