TIDMATC

RNS Number : 4236F

Atlantic Coal PLC

23 May 2013

Atlantic Coal plc/Index: AIM/Epic: ATC/Sector: Mining

23 May 2013

Atlantic Coal plc ("Atlantic Coal" or the "Company")

Unaudited preliminary results for the year ended 31 December 2012

Atlantic Coal plc, the AIM listed opencast coal production and processing company with activities in Pennsylvania, USA, is pleased to announce its unaudited preliminary results for the year ended 31 December 2012.

2012 Highlights:

-- Increased production and sales experienced at Stockton during 2012 - 161,529 tons of clean coal produced and sales of 140,213 tons achieved (2011: 100,139 and 106,403 respectively)

-- Strengthened revenues of US$19,657,105 generated for the year (2011: US$13,991,971) and a net gross profit of US$4,011,955 (2011: US$226,946)

   --    Reduced Group loss of US$2,661,557 (2011: loss of US$3,149,606) 

-- Successful relocation of the Norfolk Southern Railroad diversion providing access to approximately 1.0 million tons ("Mt") of previously unworkable coal

Current Year Highlights:

-- Exercising of lease option agreement over the fully permitted 410 Pott & Bannon anthracite coal mining property in Schuykill County believed to contain 4.1 Mt of clean coal.

-- 67% increase in clean coal production at Stockton and 91% increase in coal sales in Q1 2013 to 53,131 tons and 53,324 tons respectively (Q1 2012: 31,729 tons and 27,913 tons)

   --    Completion of reclamation works at the Gowen Mine. 

Chairman's Statement

This has been successful year for Atlantic Coal, in operational terms, having completed the railroad diversion at our Stockton Colliery and significantly increased both production and revenues which, along with the acquisition of the Pott & Bannon site 25 miles away, have had a dramatic effect on the current and future production profile of the Company and we are focussed on building on this further in 2013.

In terms of total company Reserves, Stockton has 1.7Mt of saleable coal and having produced 161,529 tonnes of washed anthracite during 2012, we are currently ranked as Pennsylvania's fifth largest producer of anthracite. Post period end, we exercised our option to acquire a 20 year lease over the Pott & Bannon anthracite site from Reading Anthracite Company ("RAC") which we believe to contain 4.1Mt of saleable anthracite and importantly, benefits from proximate established infrastructure. The Resource/Reserve numbers will be confirmed shortly, but initial indications underpin our confidence that this site has the potential to more than triple our existing Reserves and production capabilities.

The Pott & Bannon acquisition was a transformational transaction for Atlantic Coal and having negotiated for the majority of the GBP6.0 million transaction to be paid by coal from our current sites, minimising the cash element payable, we believe that this represents value for shareholders. The full terms can be found in the announcement dated 21(st) January 2013 but in summary, the US$6.0 million consideration payable to RAC will be satisfied through:

-- US$500,000 cash that was being held in escrow was released to RAC which has been applied against the sums due in respect of the grant of the Lease

-- The delivery of 25,000 short tons of clean coal at a price of US$120 per short ton worth US$3.0 million

-- US$2.5 million due from at the earlier date of either 12 months after mining operations commence at the property and 31 January 2015 and this sum shall be satisfied in either: (1) tons of ROM or clean coal from any mine controlled by Atlantic Coal or; (2) by the issue and allotment of a corresponding number of new ordinary shares (to be determined by Atlantic Coal's Volume Weighted Average Price for the preceding three months) in Atlantic Coal to RAC (or, in certain circumstances, to RAC's shareholders) (the "Consideration Shares"); or (3) in any combination of (1) and (2). The exact method of satisfaction will be agreed between Atlantic Coal and RAC in advance. If the parties cannot agree, then each party will have the right to designate how half of the US$2,500,000 will be satisfied.

On 15 February 2012 we announced that we had entered into an option agreement to acquire additional anthracite mining assets in Pennsylvania. This option, which was exercisable entirely at the Company's discretion at an exercise price of US$35 million, expired on 31(st) March 2013. Subsequent to the expiry of the option the Company held a number of discussions with the vendor in connection with the further extension of the option exercise period. However, following these discussions, it was determined by the Atlantic Coal board of directors that an agreement on principal terms could not be achieved that would be acceptable to the Company and in the best interests of the Company's shareholders. The Company terminated discussions with the vendor and announced this to the market on 13 May 2013.

Included in the Group loss is $1,867,046 of new venture costs, the majority of which relate to the above option agreement. Due to the size of the purchase price this acquisition would have constituted a Reverse Takeover under AIM rules which resulted in in the Company incurring large due diligence costs including an independent Competent Person's Report on both the acquisition target and the existing business as well as both legal and financial due diligence.

Operations Review

Stockton Colliery

During our last 5 years of operation, Stockton has provided us with a highly strategic position in the Pennsylvanian Coal Field. This anthracite-rich region is mined by family operations in the majority and as the only public company operating in the area, we have built a solid network and production footprint in the region.

With its current reserves, the Stockton Colliery has an eight year mine life and includes an anthracite preparation plant capable of washing 300,000 tons of coal per annum of various sizes on the premises for use in different industries.

Production hit record highs during the second half of 2012 following the successful diversion of the railroad which previously passed through our tenure, which completed in April 2012. . This provided us with access to over approximately 1.0Mt of previously unworkable coal reserves at Stockton. Clean coal production hit 161,529 tons for the year (2011: 100,139 tons), representing an increase of 61% year on year and we removed 3,728,597 Bank Cubic Yards ("BCY") of overburden (2011: 3,257,776) representing year on year growth of 14%. The average sales price, excluding low value number 5 coal, achieved for the year was $150.91 (2011: US$142.33).

The vast majority of Stockton's product is sold into the US and Canadian market to regional industry but importantly, we expanded our sales channels during the period as we completed our first shipment outside North America. The cargo comprised 11,000 tons of anthracite and was shipped from Fairless Hills Port, Philadelphia to Germany, thereby demonstrating our mine to port capabilities.

Pott & Bannon

The 410 acre Pott & Bannon site is located 25 miles from Stockton and is ideally located close to major east-coast transportation hubs.

Like Stockton, the Pott & Bannon site will mine the high quality Mammoth Seam. The Directors believe that the site could contain up to 13.6 million tons run-of-mine coal, equating to approximately 4.1Mt of washed, saleable anthracite. The average strip ratio was estimated to be 3.9 ROM. These estimates are based on information provided to the Company in January 2012 and is outlined in a report commissioned by RAC in January 1999 and prepared by John T. Boyd & Company. The Company is in the process of confirming these resource details with a qualified competent person.

In terms of strategy for this site, following the receipt of this updated reserve report, we will be actively pursuing an early route to production. We have agreed with RAC to use our best endeavours to deploy mining equipment at the property to achieve a minimum production of 400,000 tons of ROM coal in the second year of the Lease, provided that market conditions warrant such a level of production. The delivery of coal to RAC as part of the purchase consideration is being accelerated, together with permit transfer arrangements and mine planning such that I am extremely hopeful that site operations will commence in H1 2014.

Coal purchase agreement

As part of this transaction we also entered into a coal purchase agreement, the full details of which can be found in the announcement dated 21(st) January 2013. Under the terms of the lease, RAC will have the option to purchase (at certain pre-agreed prices) up to 50 per cent. of all sizes of standard coal each year.

However, in the event that any portion of the US$2,500,000 consideration is paid by Atlantic Coal to RAC in the form of ROM or clean coal from the property, then the RAC's right to purchase 50 per cent. of all sizes of standard coal from the property shall be reduced on a ton-for-ton basis at the price of US$120 per ton until such time as the entire consideration has been satisfied in full at which point RAC's purchase option rights under the coal purchase agreement will be restored in full.

Gowen Mine

Reclamation of the final 238 acres of the Gowen Mine was, apart from grass seeding which was undertaken last month, completed during 2012. Over 500 acres has now been reclaimed at Gowen removing old underground and early strip mining dereliction, rehabilitating the topography, reinstating water courses and establishing vegetation producing substantial environmental improvements and eradicating over 150 years of coal mining dereliction in this area. Reclamation costs at Gowen in 2012 amounted to $1,474,202, completing a major programme of reclamation expenditure by the Company.

Financial Review

Key financial highlights for the year to 31 December 2012 are:

 
                                   2012          2011 
 Cash at bank                $1,902,348    $6,027,771 
 Sales                      $19,657,105   $13,991,971 
 Gross profit                $4,011,995      $226,946 
 Gross margin                    20.41%         1.62% 
 Debt                        $6,795,468    $5,599,114 
 Restoration obligations     $4,850,340    $5,895,601 
 

-- The Group's cash position during 2012 decreased as we used existing cash balances to repay debt and finance leases, complete the Norfolk Southern Railroad diversion, complete Gowen Mine reclamation and pursue opportunities to acquire additional anthracite mining assets. As a result we have improved the production capacity at our Stockton colliery and secured significant additional coal reserves.

-- The improved trading performance of the Stockton colliery is reflected in the increase in sales and gross profit as well as gross margin.

-- Total debt increased in 2012 through the acquisition of additional mining equipment through finance lease[s].

-- Restoration obligations decreased as the reclamation of the Gowen site completed in 2012, with the exception of seeding which was completed in April 2013.

Outlook

Having significantly bolstered our production capabilities through acquisition and maximised production at Stockton, we look forward to an exciting year marked by growth and value accretion.

While our production capability has dramatically improved, anthracite prices did soften in Q1 2013 to an average of $139.84 and we continue to see further weakness in Q2. Although some softening after the end of the "winter home heating market season" is normal we are experiencing an abnormal level of reduction due to aggressive pricing by one particular producer, however, we consider this to be short term in nature and anticipate a price recovery by Q3 of this year.

In tandem with maintaining our production levels at Stockton, the rapid development of the Pott & Bannon site will be a high priority for us. We also seek to identify and evaluate opportunities, including joint ventures, for the acquisition of additional anthracite mining assets. These future and potential milestones will facilitate our strategy of becoming one of the major producers of high quality anthracite in the Pennsylvanian area and I look forward to updating shareholders regularly as to our progress along the way.

Finally, I would like to take this opportunity to thank our experienced team and supportive shareholder base and look forward to a succesful year for the Company.

**ENDS**

For further information on the Company, visit: www.atlanticcoal.com or contact:

 
 Steve Best         Atlantic Coal plc           Tel: 020 3328 5670 
 Nick Naylor        Allenby Capital Limited     Tel: 020 3328 5656 
 Mark Connelly      Allenby Capital Limited     Tel: 020 3328 5656 
 Alex Price         Allenby Capital Limited     Tel: 020 3328 5656 
 Elisabeth Cowell   St Brides Media & Finance   Tel: 020 7236 1177 
                     Ltd 
 

STATEMENT OF FINANCIAL POSITION

As at 31 December 2012

 
 Company number: 05315929                             Group                             Company 
                                          -----------------------------      ---------------------------- 
                                               As at 31        As at 31           As at 31          As at 
                                               December        December           December    31 December 
                                                   2012            2011               2012           2011 
                                                      $               $                  $              $ 
 Non-Current Assets 
 Property, plant and equipment               10,039,151      10,037,008            267,494        316,614 
 Land, coal rights and restoration 
  costs                                       8,283,967       7,980,327                  -              - 
 Investment in subsidiaries                           -               -                  -              - 
 Trade and other receivables                          -           9,441         26,159,465     22,786,441 
 
 Other assets                                    50,050          43,752                  -              - 
----------------------------------------  -------------  --------------      -------------  ------------- 
                                             18,373,168      18,070,528         26,426,959     23,103,055 
 ---------------------------------------  -------------  --------------      -------------  ------------- 
 Current Assets 
 Inventories                                  3,733,963       1,471,210                  -              - 
 Trade and other receivables                  3,108,737       1,833,404            673,666        652,456 
 Other assets                                   320,979         197,971                  -              - 
 Cash and cash equivalents                    1,902,348       6,027,771          1,014,699      5,941,398 
----------------------------------------  -------------  --------------      -------------  ------------- 
                                              9,066,027       9,530,356          1,688,365      6,593,854 
 ---------------------------------------  -------------  --------------      -------------  ------------- 
 Total Assets                                27,439,195      27,600,884         28,115,324     29,696,909 
----------------------------------------  -------------  --------------      -------------  ------------- 
 Current Liabilities 
 Trade and other payables                     4,338,233       3,119,637            636,977        229,036 
 Borrowings                                   5,806,892       3,828,776                  -              - 
 Provision for restoration 
  costs                                         391,049       1,841,251                  -              - 
----------------------------------------  -------------  --------------      -------------  ------------- 
                                             10,536,174       8,789,664            636,977        229,036 
 ---------------------------------------  -------------  --------------      -------------  ------------- 
 Non-Current Liabilities 
 Borrowings                                     988,576       1,770,338                  -              - 
 Provision for restoration 
  costs                                       4,459,291       4,054,350                  -              - 
----------------------------------------  -------------  --------------      -------------  ------------- 
                                              5,447,867       5,824,688                  -              - 
 ---------------------------------------  -------------  --------------      -------------  ------------- 
 Total Liabilities                           15,984,041      14,614,352            636,977        229,036 
----------------------------------------  -------------  --------------      -------------  ------------- 
 Net Assets                                  11,455,154      12,986,532         27,478,347     29,467,873 
----------------------------------------  -------------  --------------      -------------  ------------- 
 Equity Attributable to 
  Equity Holders of the Company 
 Share capital                                4,595,188       4,595,188          4,595,188      4,595,188 
 Share premium                               38,670,457      38,661,407         38,670,457     38,661,407 
 Merger reserve                              15,326,850      15,326,850          1,428,144      1,111,305 
 Reverse acquisition reserve               (12,999,288)    (12,999,288)                  -              - 
 Other reserves                                  88,510         131,837             88,510        131,837 
 Translation reserve                        (2,391,623)     (3,521,802)        (6,509,238)    (7,779,350) 
 Retained losses                           (31,834,940)    (29,207,660)       (10,794,714)    (7,252,514) 
----------------------------------------  -------------  --------------      -------------  ------------- 
 Total Equity                                11,455,154      12,986,532         27,478,347     29,467,873 
----------------------------------------  -------------  --------------      -------------  ------------- 
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2012

 
                                                                    Group 
                                                        ---------------------------- 
                                                         For the year   For the year 
                                                             ended 31       ended 31 
                                                             December       December 
                                                                 2012           2011 
                                                                    $              $ 
---------------------------------------  ---  ---  ---  -------------  ------------- 
 Revenue                                                   19,657,105     13,991,971 
 Cost of sales                                           (15,645,110)   (13,765,025) 
 Gross profit                                               4,011,995        226,946 
 Administration expenses                                  (3,044,098)    (3,158,662) 
 Exceptional expenses                                     (1,867,046)              - 
 Other (losses)/gains                                     (1,060,232)        202,344 
 Other income                                                 143,660              - 
---------------------------------------  ---  ---  ---  -------------  ------------- 
 Operating Loss                                           (1,815,721)    (2,729,372) 
 Finance income                                                 1,392         50,153 
 Finance costs                                              (847,228)      (470,387) 
 Loss Before Taxation                                     (2,661,557)    (3,149,606) 
 Income tax expense                                                 -              - 
---------------------------------------  ---  ---  ---  -------------  ------------- 
 Loss for the Year                                        (2,661,557)    (3,149,606) 
------------------------------------------------------  -------------  ------------- 
 Loss attributable to the owners 
  of the Parent                                           (2,661,557)    (3,149,606) 
------------------------------------------------------  -------------  ------------- 
 
 Loss per share attributable to the owners 
  of the Parent during the year: 
 Basic and diluted                                       (0.07) cents   (0.09) cents 
 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2012

 
                                                                                      Group 
                                                                           --------------------------- 
                                                                                For the 
                                                                                   year   For the year 
                                                                               ended 31       ended 31 
                                                                               December       December 
                                                                                   2012           2011 
                                                                                      $              $ 
---------------------------------------------------------------  ---  ---  ------------  ------------- 
 Cash flows from operating activities 
 Loss before taxation                                                       (2,661,557)    (3,149,606) 
 Adjustments for: 
 
        *    Finance income                                                     (1,392)       (50,153) 
 
        *    Finance costs                                                      847,228        470,387 
 
        *    Depreciation                                                     1,452,172        946,592 
 
        *    Depreciation - Stockton Mine                                       791,664        418,303 
                                                                                 57,989              - 
        *    Loss on disposal of property, plant and equipment 
 
        *    Gain on Mayford debt settlement                                          -       (78,388) 
 
        *    Accretion and accrued restoration costs                            279,888        481,851 
 
        *    Reclamation work performed                                     (1,450,202)    (1,766,825) 
 
        *    Provision for doubtful debts                                             -       (16,522) 
 
        *    Foreign exchange gains/(losses)                                  1,028,457      (179,930) 
 Increase in trade and other receivables                                      (903,581)       (16,483) 
 Increase in inventories                                                    (2,262,752)      (229,978) 
 Increase/(decrease) in trade and other 
  payables                                                                    1,197,908    (1,228,487) 
-------------------------------------------------------------------------  ------------  ------------- 
 Net cash used in operating activities                                      (1,624,178)    (4,399,239) 
-------------------------------------------------------------------------  ------------  ------------- 
 Cash flows from investing activities 
 Purchase of property, plant and equipment                                    (654,842)    (3,487,321) 
 Purchase of land, coal rights and restoration 
  costs                                                                       (970,253)      (777,136) 
 Increase in deposits                                                         (454,306)      (508,055) 
 Interest paid                                                                        -      (290,791) 
 Interest received                                                                1,392         50,153 
-------------------------------------------------------------------------  ------------  ------------- 
 Net cash used in investing activities                                      (2,078,009)    (5,013,150) 
-------------------------------------------------------------------------  ------------  ------------- 
 Cash flows from financing activities 
 Proceeds from issue of share capital                                                 -     19,997,820 
 Transaction costs of share issue                                                     -    (1,028,575) 
 Proceeds from exercise of options & 
  warrants                                                                            -      1,550,495 
 Refinancing of equipment through finance                                     1,286,167              - 
  lease 
 Proceeds from borrowings                                                       850,000              - 
 Repayments of borrowings                                                     (406,161)    (3,944,281) 
 Interest paid                                                                (611,980)      (284,628) 
 Finance lease payments                                                     (1,642,537)      (664,934) 
-------------------------------------------------------------------------  ------------  ------------- 
 Net cash (used in)/ from financing 
  activities                                                                  (524,511)     15,625,897 
 Net (decrease)/increase in cash and 
  cash equivalents                                                          (4,226,698)      6,213,508 
 Exchange gains/(losses) on cash and 
  cash equivalents                                                              101,275      (478,170) 
-------------------------------------------------------------------------  ------------  ------------- 
 Cash and cash equivalents at beginning 
  of year                                                                     6,027,771        292,433 
-------------------------------------------------------------------------  ------------  ------------- 
 Cash and cash equivalents at end of 
  year                                                                        1,902,348      6,027,771 
-------------------------------------------------------------------------  ------------  ------------- 
 

COMPANY CASH FLOW STATEMENT

For the year ended 31 December 2012

 
                                                                                       Company 
                                                                          -------------------------------- 
                                                                           For the year            For the 
                                                                               ended 31         year ended 
                                                                               December        31 December 
                                                                                   2012               2011 
                                                                                      $                  $ 
-------------------------------------------------------------------  ---  -------------  ----------------- 
 Cash flows from operating activities 
 Loss before tax                                                            (3,259,638)       (12,920,669) 
 Adjustments for: 
 
        *    Finance income                                                       (541)           (50,153) 
 
        *    Finance expense                                                          -            247,937 
 
        *    Depreciation                                                        68,990              5,862 
 
        *    (Reversal of impairment)/impairment of investment and 
             loans                                                            (316,839)         10,713,692 
 Decrease/(increase) in trade and other 
  receivables                                                                   350,538          (127,670) 
 Increase/(decrease) in trade and other 
  payables                                                                      387,252          (222,426) 
------------------------------------------------------------------------  -------------  ----------------- 
 Net cash used in operating activities                                      (2,770,238)        (2,353,427) 
------------------------------------------------------------------------  -------------  ----------------- 
 
 Cash flows from investing activities 
 Loans to subsidiary                                                        (3,826,473)        (9,508,822) 
 Repayments received from subsidiary                                          1,900,037            166,472 
 Interest received                                                                  541             50,153 
 Purchase of property, plant & equipment                                        (6,841)          (324,935) 
 Increase in deposits                                                         (325,000)          (502,799) 
 Net cash used in investing activities                                      (2,257,736)       (10,119,931) 
------------------------------------------------------------------------  -------------  ----------------- 
 
 Cash flows from financing activities 
 Proceeds from issue of share capital                                                 -         19,997,820 
 Transaction costs of share issue                                                     -        (1,028,575) 
 Proceeds from exercise of options & warrants                                         -          1,550,495 
 Interest paid                                                                        -          (284,628) 
 Repayment of borrowings                                                              -        (1,425,303) 
 Net cash from financing activities                                                   -         18,809,809 
------------------------------------------------------------------------  -------------  ----------------- 
 Net (decrease)/increase in cash and cash 
  equivalents                                                               (5,027,974)          6,336,451 
 Exchange gains/(losses) on cash and cash 
  equivalents                                                                   101,275          (478,170) 
------------------------------------------------------------------------  -------------  ----------------- 
 Cash and cash equivalents at beginning 
  of year                                                                     5,941,398             83,117 
 Cash and cash equivalents at end of year                                     1,014,699          5,941,398 
------------------------------------------------------------------------  -------------  ----------------- 
 

NOTES TO THE FINANCIAL STATEMENTS

Basis of Preparation of Financial Statements

The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and International Financial Reporting Interpretations Committee (IFRIC) interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have also been prepared under the historical cost convention.

The Financial Statements are presented in US Dollars rounded to the nearest dollar.

Atlantic Coal Plc, the legal parent, is domiciled and incorporated in the United Kingdom.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's Accounting Policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Financial Statements are disclosed in Note 2.

The financial information set out above does not constitute the Company's statutory accounts within the meaning of Section 435 of the Companies Act 2006. The figures for the year ended 31 December 2012 are based on unaudited accounts for the year ended 31 December 2012. The directors anticipate that the auditor's report, to be issued with the Group's statutory accounts for the year ended 31 December 2012 will be unqualified.

The unaudited preliminary announcement has been prepared on the basis of accounting policies set out in the Group's statutory accounts for the year ended 31 December 2011.

The comparatives for the year ended 31 December 2011 are derived from the statutory accounts for the year ended 31 December 2011. These statutory accounts, which contain an unqualified audit report under Section 495 of the Companies Act 2006 and which did not make any statement under Section 498 of the Companies Act 2006, have been delivered to the registrar of companies in accordance with Section 441 of the Companies Act 2006.

The Company will announce its full audited financial statements and accompanying notes in June 2013.

Segmental Information

Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to make strategic decisions. During the year the Group had interests in two geographical segments, the United Kingdom and the United States of America ("USA"). Activities in the UK are mainly administrative in nature whilst the activities in the USA relate to coal production and sale of coal.

The reportable operating segments derive their revenue from the sale of prepared coal to industrial and retail customers.

 
                               For the year ended 31 December                               For the year ended 31 December 
                                             2012                                                        2011 
---------------  ----------------------------------------------------------  ----------------------------------------------------------- 
                                               Intra-segment                                                Intra-segment          Total 
                                                    balances                                                     balances 
                           USA            UK                          Total            USA             UK 
                             $             $               $              $              $              $               $              $ 
---------------  -------------  ------------  --------------  -------------  -------------  -------------  --------------  ------------- 
 Revenue from 
  external 
  customers         19,657,105             -               -     19,657,105     13,991,971              -               -     13,991,971 
 Gross profit        4,011,955             -               -      4,011,955        226,946              -               -        226,946 
 Operating 
  profit/(loss)      1,761,297   (3,260,179)       (316,839)    (1,815,721)      (720,182)   (12,722,882)      10,713,692    (2,729,372) 
 Impairment                  -       316,839       (316,839)              -              -   (10,713,692)      10,713,692              - 
 Depreciation        1,383,182        68,990               -      1,452,172        940,730          5,862               -        946,592 
 Depreciation 
  - Stockton 
  Mine                 791,664             -               -        791,664        418,303              -               -        418,303 
 EBITDA              3,936,143   (3,191,189)       (316,839)        428,115        742,034   (12,717,020)      10,713,692    (1,261,294) 
---------------  -------------  ------------  --------------  -------------  -------------  -------------  --------------  ------------- 
 Capital 
  expenditure        2,462,807         6,841               -      2,469,648      4,525,156        320,235               -      4,845,391 
---------------  -------------  ------------  --------------  -------------  -------------  -------------  --------------  ------------- 
 Total assets       25,483,336    28,115,324    (26,159,465)     27,439,195     20,680,975     29,696,909    (22,777,000)     27,600,884 
---------------  -------------  ------------  --------------  -------------  -------------  -------------  --------------  ------------- 
 Total 
  liabilities       41,795,166       636,977    (26,448,102)     15,984,041     37,907,730        229,036    (23,522,414)     14,614,352 
---------------  -------------  ------------  --------------  -------------  -------------  -------------  --------------  ------------- 
 

A reconciliation of operating loss to loss before taxation is provided as follows:

 
                                           For the year ended   For the year ended 
                                             31 December 2012     31 December 2011 
                                                            $                    $ 
----------------------------------------  -------------------  ------------------- 
 
 Operating loss for reportable segments           (1,815,721)          (2,729,372) 
 Finance income                                         1,392               50,153 
 Finance costs                                      (847,228)            (470,387) 
 
 Loss before tax                                  (2,661,557)          (3,149,606) 
----------------------------------------  -------------------  ------------------- 
 

Information about major customers

Revenues of approximately $3.056 million (2011: $2.633 million) were derived from a single external customer. These revenues were all generated in the USA.

Cash and Cash Equivalents

 
                                      Group                           Company 
                            -------------------------      ---------------------------- 
                              As at 31          As at              As at          As at 
                              December    31 December        31 December    31 December 
                                  2012           2011               2012           2011 
                                     $              $                  $              $ 
--------------------------  ----------  -------------      -------------  ------------- 
 Cash at bank and in hand    1,902,348      6,027,771          1,014,699      5,941,398 
--------------------------  ----------  -------------      -------------  ------------- 
 

Loss per Share

The calculation of the basic loss per share of 0.07 cents (31 December 2011 loss per share: 0.09 cents) is based on the loss attributable to ordinary shareholders of $2,661,557 (31 December 2011 loss: $3,149,606) and on the weighted average number of ordinary shares of 3,868,772,016 (31 December 2011: 3,583,708,122) in issue during the year.

The basic and diluted loss per share is the same, as the effect of the exercise of share options and warrants would be to decrease the loss per share.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR AJMPTMBTTMLJ

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