American Resources Corporation (NASDAQ:AREC) reported another profitable quarter that saw the infrastructure company deliver $128,000 in net income, according to third-quarter results released Friday.
The results are a sharp contrast to the period a year prior when the Fishers, Indiana-based firm posted a net loss of $7.3 million.
CEO Mark Jensen told shareholders that the firm is at the beginning of a “new era” after embarking on a strategic path to transform itself from a pure-play coal miner into an integrated infrastructure company that produces pure metallurgical carbon, rare earth elements and metal aggregation.
READ: American Resources Corporation reiterates future commitment to ESG initiatives as it expands its operations and business
"Over the course of the third quarter, our team continued to execute on the strategic transformation of the company to solidify our position as a next-generation and socially responsible supplier of raw materials,” Jensen said in a statement accompanying the results.
“Our first-class portfolio of assets, which have been strategically acquired at a substantial discount to replacement value, has never been in a better position to deliver long term value for our stakeholders. Bolstered by our restructuring efforts that eliminate the industry's legacy mentality and issues and focuses on efficiency and forward-thinking, our dynamic platform now sits at an inflection point and the beginning of a new era.”
During the three-month period ended September 30, 2020, the group acquired two additional continuous miners to prepare for the restart of its Perry County Resources (PCR) operation, its fifth carbon processing and logistics complex which was acquired in September 2019. The two additional continuous miners give the company a total of six to utilize under its restructured, efficient, low-cost operating structure, American Resources said.
In addition, the firm started a railcar and metal recycling program through its American Metals business line, which will recycle old coal railcars for their metal content and repurposed. The division saw quarter-over-quarter growth of nearly 30%.
PCR restart in 4Q
Looking ahead, the company said it expects to restart PCR in the coming quarter with production capabilities topping one million tons of metallurgical carbon annually.
“Once we are operating at PCR this quarter, our sights will be set towards bringing our McCoy Elkhorn complex online sometime in mid-2021,” Jensen said.
"Additionally, we are pleased with our American Metals business line, having grown nearly 30 percent quarter-over-quarter. We are committed to the growth of American Metals to further diversify our business in a meaningful way, and to advance and support our environmental efforts," he added.
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