• Reports Adjusted EBITDA of $1.8 million

• Revenues grew over 33 percent to $9.34 million

• Company records best quarterly production and sales volume of over 126 thousand short tons; a 30% year-over-year increase

FISHERS, IN / ACCESSWIRE / August 12, 2019 / American Resources Corporation (NASDAQ: AREC), a supplier of raw materials to the rapidly growing global infrastructure marketplace, with a primary focus on the extraction, processing, transportation and distribution of metallurgical coal to the steel industry, today reported a net loss from operations of $3.35 million, or a loss of $0.14 per share, in the second quarter of 2019, compared with a net loss from operations of $1.99 million, or a loss of $2.23 per share, in the prior-year period. The Company earned adjusted earnings before interest, taxes, depreciation, amortization, accretion on asset retirement obligations, non-operating expenses, and development costs ('adjusted EBITDA") of $1.8 million in the second quarter of 2019, as compared with adjusted EBITDA loss of $.68 million for the second quarter of 2018. Revenues totaled $9.34 million for the three months ended June 30, 2019 versus $7.02 million in the prior-year quarter.

"The market for our coal qualities remained strong in the second quarter and we continue to work hard and focus on increasing our production level to fulfill the contracted demand from our customers. We're pleased with the thirty percent year-over-year production growth we achieved in the second quarter which resulted in an approximate thirty-two percent revenue growth over the same period," stated Mark Jensen, Chairman and CEO of American Resources Corporation. "These solid results reflect the beginnings of our growth objectives and what our platform has been set up to deliver for our employees, customers and shareholders."

Operational Results

The Company produced and sold 126,977 short tons of coal in the second quarter of 2019, 30.3% more than the second quarter of 2018.

The exhibit below summarizes some of the key sales, production and financial metrics:

Notes:

(a) In short tons
(b) Excludes transportation
(c) Cash cost per ton is based on reported cost of sales and includes items such as production taxes, royalties, labor, fuel, and other similar production and sales cost items, and may be adjusted for other items that, pursuant to GAAP, are classified in the Statement of Operations as costs other than cost of sales, but relate directly to the cost incurred to produce coal. Our cash cost of sales per short ton is calculated as cash cost of sales divided by short tons sold, and our cash margin per ton is calculated by subtracting cash cost per ton from revenue per ton. Cash cost of sales per short ton and average cash margin per ton are non-GAAP financial measure which are calculated in conformity with U.S. GAAP and should be considered supplemental to, and not as a substitute or superior to financial measures calculated in conformity with GAAP. We believe cash cost of sales per ton and average cash margin per ton are useful measures of performance as it aides some investors and analysts in comparing us against other companies. Cash cost of sales per ton and margin per ton may not be comparable to similarly titled measures used by other companies.

Mark Jensen added, "Throughout the second quarter of 2019, we made some solid advancements in our organic growth plans. Most notably, we were able to bring our Carnegie 1 mine back into production after a period of development production which confirmed the appropriate mining style and equipment. We are in the process of ramping our production at Carnegie 1 under our enhanced mine plan to support long-term, expanded production. We expect to have Carnegie 1 running at our expected capacity of 32,000 - 42,000 clean tons per month later this fall. Additionally, we continue to progress on enhancing our already producing mines, such as Mine #15 and Access Energy, to increase production and efficiencies. Once completed, we will be focusing on advancing our organic production growth by bringing our next round of mines online to feed our McCoy Elkhorn Coal and Deane Mining complexes. These mines consist of our Carnegie 2, PointRock, Elk 2 and Classic mines that we have already begun development work on and should begin to see production from this phase of growth later this year and early 2020."

Additional Financial Results

Total revenues were $9,342,126for the second quarter of 2019, which increased 33 percent from $7,023,040 in the second quarter of 2018.

Cost of sales (includes mining, transportation, , and processing costs,) for the second quarter of 2019 were $5,654,568, or 60.5 percent of total revenues, compared to $4,619,675, or 65.8% of total revenue in the same period of 2018.

General and administrative expenses for the second quarter of 2019 were $990,918 for the second quarter of 2019, or 10.6 percent of total revenue. Depreciation for the second quarter of 2019 were $804,889, or 8.6 percent of total revenue. American Resources incurred interest expense of $447,989 during the second quarter of 2019 compared to $311,295 during the second quarter of 2018. Development costs during the quarter were $2,887,448, compared to $1,600,117 in the first quarter of 2019.

The Company did not incur any income tax expense as it was able to utilize its available net operating losses ("NOL") carried forward from prior periods of approximately $2,027,765 as of December 31, 2018.

Company Outlook

As previously stated, based on American Resources' organic growth from its already owned infrastructure, controlled mining permits and its capital investment schedule, the company is maintaining its 2020 production forecast range of 2.2 to 2.8 million tons.

AMERICAN RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED

	For the three months ended June 30, 2019				For the three months ended June 30, 2018				For the six months ended June 30, 2019				For the six months ended June 30, 2018
					As Restated								As Restated
Coal Sales	$	9,321,250			$	7,023,040			$	16,315,526			$	14,328,900
Processing Services Income		20,876				-				20,876				19,516
Total Revenue		9,342,126				7,023,040				16,336,402				14,348,416
Cost of Coal Sales and Processing		(5,654,568	)			(4,619,675	)			(12,298,655	)			(10,093,103	)
Accretion Expense		(320,098	)			(341,580	)			(641,799	)			(683,161	)
Depreciation		(804,889	)			(615,390	)			(1,621,805	)			(1,230,779	)
Amortization of Mining Rights		(802,590	)			-				(1,339,381	)			-
General and Administrative		(990,918	)			(464,110	)			(2,363,506	)			(940,699	)
Professional Fees		(631,934	)			(163,412	)			(4,965,830	)			(438,015	)
Production Taxes and Royalties		(603,957	)			(778,124	)			(1,863,543	)			(1,727,917	)
Development Costs		(2,887,448	)			(2,032,201	)			(4,487,565	)			(3,719,374	)
Total Operating Expenses		(12,696,402	)			(9,014,492	)			(29,582,084	)			(18,833,048	)
Net Loss from Operations		(3,354,276	)			(1,991,452	)			(13,245,682	)			(4,484,632	)
Other Income and (expense)
Other Income		214,529				290,609				480,954				419,123
Gain on cancelation of debt		-				315,000				-				315,000
Loss on settlement of payable		-				-				(22,660	)	Share article: Shares Share Tweet Share Flip Email Watch latest videos Subscribe and Follow Get a daily dose of Nashville Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well. Subscribe Now News RELEASES Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nashville Herald. More Information null in null International Section Tragedy in Spain: Diogo Jota and his brother die in car accident MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish... Early heatwave grips Europe, leaving 8 dead and nations on alert LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly... U.S. military, China, Russia in Space race President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,... Trump wins $16 million settlement from Paramount over CBS Harris edit NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over... British PM faces major party revolt over welfare reforms LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare... White House meeting between Trump, Netanyahu on July 7 WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President... Business Section Engine defect prompts Nissan to recall over 443,000 vehicles FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential... Microsoft trims jobs to manage soaring AI infrastructure costs REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation... Stocks worldwide struggle to make ground Friday with Wall Street closed LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback... Nvidia briefly tops Apple’s record in AI-fueled stock rally SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market... ICE raids leave crops rotting in California, farmers fear collapse SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden... Trump signals progress on India Trade, criticizes Japan stance WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would... Movie Review The Final Countdown (4K UHD) [Blu-Ray]