Arabian American Reports Update on Al Masane Al Kobra Mining Company

SUGAR LAND, Texas, Nov. 18, 2013 /PRNewswire/ -- Arabian American Development Co. (NYSE: ARSD), a leading provider of high purity specialty chemicals and 35% owner of Al Masane Al Kobra Mining Company ("AMAK"), reported that AMAK achieved a milestone of 1.0 million dry metric tons ("DMT") of throughput at the mill on November 9, 2013.

"We are pleased with AMAK's progress and production consistency as detailed in the table below and congratulate them on this important milestone," said Nick Carter, President and Chief Executive Officer of ARSD.  "The mine continues routine operations with sales bookings through year end putting them on track to meet the projected ore tonnage to ship in 2013.  Barring unforeseen events, we anticipate AMAK will have sold 36,000 tons of zinc concentrate and 36,000 tons of copper concentrate by year end.  ARSD and the Saudi investment partners are pleased with the mine's progress and feel the initial phases of the operation have proceeded smoothly comparable to typical start-up experiences in the mining industry.  AMAK is modifying the flotation circuit to improve the quality and recovery of the zinc concentrate, and the engineering is underway to modify the gold circuit to achieve the required product specifications and recovery.  Both of these projects should near completion in the first half of 2014. Also, noteworthy is AMAK's cash costs for production are about $60 per ton of ore so far this year."

The mine is producing in-line with the original feasibility study, and development is proceeding as planned.  Fluctuations in the mix of ore recovered may be seen going forward as AMAK is still processing a mixture of development ore which varies in grade significantly as different tunnels and rooms are built near the main ore bodies.  Development ore will continue to be processed until sometime next year, as work on the second of the three ore bodies is underway, and the third will not be fully developed until later next year.  Exploration is ongoing in the original lease area, both to better delineate the ore bodies currently being produced, and also to identify additional mining sites.  As a result of the change in the mix of product as development of the ore bodies continues the production outlook for 2014 is approximately 30,000 tons of copper concentrate and 41,000 tons of zinc concentrate, as previously disclosed.

Despite the fluctuations in metal prices this year, the first three quarters of 2013 met expectation in terms of revenues and returns.  Currently, Zinc prices are forecast to increase as much as 20% in 2014 with possible further price increases in 2015 as several producing mines are scheduled to cease production. The price for Zinc is anticipated to fluctuate next year between a low of $1900 per ton with the high potentially reaching $2400 per ton. The consensus forecast for Copper is fairly stable, range bound pricing between $6500 per ton and $7500 per ton. 

About Arabian American Development Company (ARSD)
ARSD owns and operates a petrochemical facility located in southeast Texas, just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and a 35% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.

Forward-Looking Statements
Statements in this press release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon our belief, as well as, assumptions made by and information currently available to us. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American's filings with the Securities and Exchange Commission, including Arabian American's Annual Report on Form 10-K/A for the year ended December 31, 2012, and the Company's subsequent Quarterly Reports on Form 10-Q.  All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release. 

Company Contact:
Nick Carter, President and Chief Executive Officer
(409) 385-8300
[email protected]

Investor Relations Contact:
Kim Rogers, Principal
Genesis Select
(303) 415-0200
[email protected]

Or

Matthew Selinger, Principal
Genesis Select
(303) 415-0200
[email protected]

SOURCE Arabian American Development Co.