American Resources Corporation (NASDAQ:AREC) said it has expanded its sales commitments for a portion of its specialty carbon stoker products for the second quarter of 2022 by approximately 15,000 tons at a record average price realization in the mid-$200 per ton.
The resource company explained that specialty stoker is a specific-sized carbon product that is processed to a very low ash content for a variety of commercial uses. Its specialty carbon stoker, given its specific properties, is expected to meet the demand of the global silicon, ferrosilicon and micro-silica marketplace for various industrial and technological applications.
It noted that this specialized stoker product can be produced from either its Perry County Resources or McCoy Elkhorn operations in eastern Kentucky due to the quality of carbon produced and the capabilities of their processing facilities.
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"Our ability to secure this business for the specialty carbon markets is a testament to the quality of our operations and efforts of our team to identify top-quality assets and position the company to be the strongest producer in our region,” the company’s president Tom Sauve said in a statement. “We are continuing to ramp up production at an attractive time to capitalize on the strength in the steelmaking and specialty carbon markets.”
The company said it continues to focus on running efficient streamlined operations and 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, it said it 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.
“During recent customer visits, we were able to showcase the restructuring of our mining complex's which have positioned us to provide strong and growing production, highly specific processing capabilities and inventory, giving them comfort of our ability to deliver for them and at the same time, deliver for our shareholders,” Sauve concluded. "To our knowledge, this is the highest price of carbon that has ever been sold from our facilities.”
American Resources Corporation (NASDAQ:AREC) 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.
Contact the author at stephen.gunnion@proactiveinvestors.com