9 unchanged sentences
American Carbon currently has seven coal mining and processing operating subsidiaries:
−Removed: McCoy Elkhorn Coal LLC (doing business as McCoy Elkhorn Coal Company) (McCoy Elkhorn), Knott County Coal LLC (Knott County Coal), Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Quest Processing LLC (Quest Processing), Perry County Resources (Perry County) located in eastern Kentucky and western West Virginia within the Central Appalachian coal basin, and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.
+Added: McCoy Elkhorn Coal LLC (doing business as McCoy Elkhorn Coal Company) (McCoy Elkhorn), Knott County Coal LLC (Knott County Coal), Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Perry County Resources (Perry County) located in eastern Kentucky and western West Virginia within the Central Appalachian coal basin, and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.
The coal deposits under control by the Company are generally comprise of metallurgical coal (used for steel making), pulverized coal injections (used in the steel making process) and high-BTU, low sulfur, low moisture bituminous coal used for a variety of uses within several industries, including industrial customers and specialty products.
Efforts to diversify revenue streams have led to the establishment of additional subsidiaries;
−Removed: American Metals LLC (AM) which is focused on the recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the aggregation and monetization of critical and rare earth element deposits and end of life magnets and batteries.
−Removed: During 2022, American Rare Earth LLC changed its name to ReElement Technologies, LLC.
+Added: American Metals LLC (AM) which is focused on the aggregation, recovery and sale of recovered metal and steel and American Rare Earth LLC (ARE) which is focused on the purification and monetization of critical and rare earth element deposits and end of life magnets and batteries.
+Added: During 2022, American Rare Earth LLC changed its name to ReElement Technologies LLC (ReElement).
+Added: During 2023, ReElement filed and changed from a limited liability company to a corporation.
We have not classified, and as a result, do not have any “proven” or “probable” reserves as defined in United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, our company and its business activities are deemed to be in the exploration stage until mineral reserves are defined on our properties.
13 unchanged sentences
The coal controlled at McCoy Elkhorn (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.
−Removed: Approximate coal deposits owned is 0 tons and leased by McCoy Elkhorn totals 11,287,904 tons.
+Added: Approximate coal deposits owned is 0 tons and leased by McCoy Elkhorn totals 11,108,724 tons as of September 30, 2023.
The current leases contain minimum annual payments of $20,000 and production royalty payments of 7% of gross sales price.
22 unchanged sentences
In 2022, the Carnegie 1 Mine produced approximately 59,911.58 tons and sold at an average of $166.09 per ton..
−Removed: During 2021 100% of the coal extracted from the Carnegie 1 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.
+Added: During 2023 and 2022 100% of the coal extracted from the Carnegie 1 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.
The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.
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In 2023, the Carnegie 2 Mine produced approximately 13,460.99 tons and sold at an average of $237.31 per ton.
−Removed: In 2021, the Carnegie 2 Mine produced approximately 0 tons.
−Removed: During 2022 100% of the coal extracted from the Carnegie 2 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.
+Added: In 2022, the Carnegie 2 Mine produced approximately 6,200 tons and sold at an average of $233.11 per ton.
+Added: During 2023 and 2022 100% of the coal extracted from the Carnegie 2 Mine was high-vol “B” metallurgical coal quality, of which 100% was sold into the metallurgical market.
The mineral being mined through Carnegie 1 is leased from a 3 rd party professional mineral company.
1 unchanged sentence
American Carbon acquired the PointRock Mine in April 2018.
−Removed: On May 8, 2020, the PointRock Mine permits were released from the Company’s control upon the settlement agreement with Empire.
+Added: On May 8, 2020, the PointRock Mine permits were released from the Company’s control upon the settlement agreement with prior permit holder.
Beginning in January 2020 through the report date, Mine #15 and Carnegie 1 mines were idled due to the adverse market effects Covid-19 global pandemic.
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During 2022, the Wayland Surface Mine was idled due to the company’s focus on the metallurgical and industrial markets.
+Added: No tons were produced during 2023.
Other potential customers of Knott County Coal include industrial customers, specialty customers and utilities for electricity generation, although no definitive sales have been identified yet.
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Approximate coal deposits owned by Wyoming County is 5,668,115 tons and leased by Knott County totals 0 tons.
−Removed: The mining permits held by Wyoming County Coal are in various stages of planning with no mines currently in production.
+Added: The mining permits held by Wyoming County Coal are in various stages of planning and development with no mines currently in production.
Potential customers of Wyoming County Coal would include steel mills in the United States or international marketplace although no definitive sales have been identified yet.
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The preparation plant utilizes a belt press technology which eliminates the need for pumping slurry into a slurry pond for storage within an impoundment.
−Removed: The Company is in the initial planning phase of getting estimates on the cost to upgrade the preparation facility to a modern 350 ton per hour preparation facility, although no cost estimates have yet been received.
−Removed: The Company is also in the initial planning phase of getting estimates on the cost and timing of upgrading the rail load out facility to a modern batch weight load out system, although no cost estimates have yet been received.
+Added: The Company is in the process of upgrading and redeveloping the preparation facility to a modern 350 ton per hour preparation facility.
+Added: The Company is also in the planning phase of upgrading the rail load out facility to a modern batch weight load out system.
The Company acquired the Pioneer Preparation Plants as an idled facility, and since acquisition, no work has been performed at the facility.
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The lease terms are the greater of $1.50 per ton or 6% of gross sales price.
−Removed: In 2022, the E4-2 mine produced approximately 105,577.11 tons and sold the coal at an average price of $153.43.
−Removed: During the period of ownership by the Company, 100% of the coal sold was sold as industrial stoker and PCI.
+Added: In 2023, the EF-2 mine produced approximately 0 tons.
In 2022, the E4-2 mine produced approximately 105,577.11 tons and sold the coal at an average price of $153.43.
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Below is a map showing the location of the Davidson Prep Plant, Bluegrass 4 rail Loadout, and E4-2 Mine at Perry County Resources:
−Removed: Quest Processing LLC
−Removed: Quest Energy’s wholly-owned subsidiary, Quest Processing, manages the assets, operations, and personnel of the certain coal processing and transportation facilities of Quest Energy’s various other subsidiaries, namely the Supreme Energy Preparation Facility (of Knott County Coal LLC), and Mill Creek Preparation Facility (of Deane Mining LLC).
−Removed: Quest Processing LLC was the recipient of a New Markets Tax Credit loan that allowed for the payment of certain expenses of these preparation facilities.
−Removed: As part of that financing transaction, Quest Energy loaned ERC Mining LLC, an entity owned by members of Quest Energy, Inc.’s management, $4,120,000 to facilitate the New Markets Tax Credit loan.
−Removed: ERC Mining LLC is considered a variable interest entity and is consolidated into Quest Energy’s financial statements.
−Removed: The credit facility obligation was fulfilled and forgiven in November 2021.
ERC Mining Indiana Corporation (the Gold Star Mine)
1 unchanged sentence
ERC sold its coal in the past as thermal coal to utilities.
−Removed: The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which was in process during 2021.
+Added: The Company does not plan to mine the property and purchased it for monetization of infrastructure assets and to reclaim the property which was in process during 2021 and continued during 2022 and 2023.
The coal controlled at ERC (along with our other subsidiaries) has not been classified as either “proven” or “probable” as defined in the United States Securities and Exchange Commission Items 1300 through 1305 of Regulation S-K, and as a result, do not have any “proven” or “probable” reserves under such definition and are classified as an “Exploration Stage” pursuant to Items 1300 through 1305 of Regulation S-K.
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ARC sells its coal to domestic and international customers, some which blend ARC’s coal at east coast ports with other qualities of coal for export.
+Added: During the year ended December 31, 2023, coal sales came from the Company’s Carnegie 1 and 2 mines.
During the year ended December 31, 2022, coal sales came from the Company’s Perry’ E4-2 mine and McCoy’s Carnegie 1 and 2 mines.
2 unchanged sentences
The third-party intermediaries have no ability to bind the Company to any contracts, and all coal sales are approved by management of the Company.
+Added: Met coal accounted for approximately 100% and 91% of our coal revenues for the years ended December 31, 2023 and 2022, respectively.
+Added: Two customers made up approximately 74% and 26% of our coal revenues for the year ended December 31, 2023.
+Added: Three customers made up approximately 62%, 28% and 19% of our coal revenues for the year ended December 31, 2022.
Due to the Covid-19 global pandemic, traditional sales channels have been disrupted.
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The current per ton fee is $0.224 per ton for surface mined coal and $0.096 per ton for underground mined coal.
−Removed: These fees are currently scheduled to be in effect until December 31, 2022.
+Added: In 2023, we recorded $X.X million of expense related to these reclassification fees.
Mining Permits and Approvals
232 unchanged sentences
The sublease is for the period of 5 years with a rate of $3,500 a month.
−Removed: On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the purpose of building a commercial grade critical element purification facility.
−Removed: This for the period of 2 years with a rate of $4,745.83 a month.
+Added: On October 8, 2021, ReElement entered into a Commercial Lease for 6,700 square feet of warehouse space for the operation of a commercial grade critical element purification facility.
+Added: This for the period of 2 years with a rate of $5,059.28 a month which has ability for annual extensions
The Company also utilizes various office spaces on-site at its coal mining operations and coal preparation plant locations in eastern Kentucky, with such rental payments covered under any surface lease contracts with any of the surface land owners.
+Added: The following map shows the location of our mining properties:
ARC, through its operating subsidiaries, employs a combination of company employees and contract labor to mine coal, process coal, and related functions.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.