American Resources reported its fourth quarter and full year ended December 31, 2019, financial results.
Chairman and CEO Mark Jensen said, “2019 continued to be a transformational year for American Resources. Notwithstanding some industry headwinds in the latter half of the year, we achieved several important milestones.”
The company’s mission continues to be a “long-term and stable supplier of raw material to the global infrastructure market while bringing a more efficient and modernized business model to the industry.”
Jensen continued, “Looking forward to the remainder of 2020 and into the coming years, we remain quite optimistic on global infra-
structure demand and believe governments around the world will look to increase infrastructure projects as a way to stimulate economic activity as we come out of the COVID-19 pandemic.”
With the current situation, the company said it is not providing any guidance at this time.
The company has expired the one and only thermal coal contract during the third quarter of 2019 to become a pure metallurgical coal producer.
The company reported a net loss from operations of $59.9 million, or a loss of $2.94 per share for the year ended December 31, 2019, compared with a net loss from operations of $11.5 million, or a loss of $3.69 per share, for 2018.
For the fourth quarter of 2019, American Resources reported a net loss from operations of $39.6 million, or a loss of $1.66 per share, as compared with a net loss from operations of $3.43 million, or a loss of $0.98 per share, in the prior-year period. The company earned adjusted EBITDA loss of $3.1 million in the fourth quarter of 2019, as compared with adjusted EBITDA loss of $0.774 million for the fourth quarter of 2018.
Full-year 2019 revenues were $24.5 million compared to full-year 2018 revenues of $31.5 million. The year-over-year decrease was mainly due to the company’s decision to expire its only thermal coal contract during the third quarter and shift away from the thermal coal market and purely focus on the global metallurgical coal market. In conjunction with its focus on being a pure metallurgical coal producer, the company commenced its restructuring efforts of its recently acquired Perry County Resources complex in the fourth quarter of 2019. Additionally, the company incurred a non-cash impairment charge of $27.7 million in the fourth quarter of 2019 due to the write-down of fixed assets and divestiture of certain surface and mineral acres located near Phelps, Kentucky, that closed in May 2020.
The company produced and sold 73,633 tons of coal in the fourth quarter of 2019, compared to 25,969 tons in the third of 2019 and 113,618 tons in the fourth quarter of 2018. For the full year of 2019, American Resources produced and sold 325,918 tons compared to 435,574 tons during 2018.