ATH Ath Resources

 

TIDMATH 
 
RNS Number : 1411K 
ATH Resources plc 
14 April 2010 
 

 
+-------------------------------+-------------------------------+ 
| Press Release                 |                14 April  2010 | 
+-------------------------------+-------------------------------+ 
 
                                ATH Resources plc 
                        ("ATH Resources" or "the Group") 
                            Pre-Close Trading Update 
ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, today 
issues the following trading statement ahead of its interim results for the six 
months to 4 April 2010 which will be announced on Tuesday, 15 June 2010. 
It is anticipated that trading for the full year will be slightly lower than 
market expectations due to a temporary delay in the commencement of the Group's 
tip washing and reclamation project at Langton, Nottinghamshire.  This project 
has been delayed by approximately three months to allow for the finalisation of 
the detailed planning process with the Derbyshire and Nottinghamshire County 
Council planning authorities.  The delay is expected to reduce production for 
the year from the ATH Regeneration business by around 50,000 tonnes.  However, 
the relevant issues are now resolved and, with construction of the plant already 
commenced there will be no loss in the value of the project to the Group. 
Sales volumes for the six month period of around 775,000 tonnes were generated 
entirely by the mining business.  This was 8% lower than the same period last 
year and reflects the effect of the extremely wet weather in the autumn of 2009 
and unusually high levels of snow and ice over the winter period..  The Group 
expects to make good this delayed production in the second half of the year. 
Production for the full year in the mining business will be at similar levels to 
2009 at around 1.8 million tonnes. 
As previously notified, the Group is pleased both with the successful outcome of 
the planning appeal for the regeneration scheme at Langton and the subsequent 
negotiations with a major generator for a long term contract for the sale of 
production from the site which are well advanced.  Discussions continue with 
mining companies to develop the ATH Regeneration business in Australia. 
The average selling price continues to improve to over GBP43 per tonne 
reflecting higher contract prices and the recovery in international coal prices. 
 A further increase is forecast in the second half of the year in line with 
expectations at the start of the year.  The margin in the first half of the year 
will be lower than in the previous period reflecting weather affected sales 
volumes and operating costs. 
During the period, Proven coal reserves were increased by 0.5 million tonnes 
with the receipt of full planning consent for the ATH Regeneration site at 
Langton.  Progress to secure planning consents for the Netherton and Laigh 
Glenmuir extension projects for the mining business is ahead of schedule.  The 
decisions on the two sites by the local planning authority are anticipated to be 
received in the next few months which, if positive, are expected to increase 
Proven reserves by between three and four million tonnes. 
The Group's Proven coal reserves currently stand at 4.4 million tonnes with 
Total reserves of 7.4 million tonnes. 
                                    - Ends - 
 
For further information: 
+------------------------------------+--------------------------+ 
| ATH Resources plc                  |                          | 
+------------------------------------+--------------------------+ 
| Tom Allchurch, Chief Executive     |    Tel: +44 (0) 1302 760 | 
|                                    |                      462 | 
+------------------------------------+--------------------------+ 
| tom.allchurch@ath.co.uk            |           www.ath.co.uk  | 
+------------------------------------+--------------------------+ 
 
+------------------------------------+--------------------------+ 
| Seymour Pierce Ltd                 |                          | 
+------------------------------------+--------------------------+ 
| John Cowie                         |     Tel: +44 (0) 207 107 | 
|                                    |                     8000 | 
+------------------------------------+--------------------------+ 
|                                    |    www.seymourpierce.com | 
+------------------------------------+--------------------------+ 
 
Media enquiries: 
+------------------------------------+--------------------------+ 
| Abchurch                           |                          | 
+------------------------------------+--------------------------+ 
| Henry Harrison-Topham / Mark Dixon |     Tel: +44 (0) 20 7398 | 
|                                    |                     7729 | 
+------------------------------------+--------------------------+ 
| mark.dixon@abchurch-group.com      |   www.abchurch-group.com | 
+------------------------------------+--------------------------+ 
 
Notes to Editors 
ATH Resources was listed on the AIM market of the London Stock Exchange in June 
2004 and operates five surface coal mines in Scotland; Skares Road, Grievehill 
and Laigh Glenmuir in East Ayrshire, Glenmuckloch in Dumfries and Galloway and 
Muir Dean in Fife.  The Group is currently the third largest producer of coal in 
the UK producing approximately 2 million tonnes per annum.  Coal is used to 
generate around a third of the UK's electricity and the Group now holds coal 
supply contracts with four of the UK's main electricity generating companies. 
In June 2005, having raised GBP18 million by way of an Open Offer, the Group 
acquired two new opencast sites, Grievehill and Glenmuckloch in Scotland.  The 
acquisition increased the Group's reserve base by 160%. 
In May 2006, the Group acquired ATH Regeneration a successful coal recovery, 
land remediation and regeneration business with a particular focus on colliery 
spoil heap reclamation projects.  The acquisition, which was earnings enhancing, 
allowed ATH Resources to build on its skills as a regenerator of land, whilst 
developing strong relationships with key English planning authorities.  The 
company has been successfully integrated into the Group.  The operational 
diversification that the acquisition brings to the Group will be a significant 
driver of ATH's organic growth going forward both in the UK and overseas and the 
business is actively pursuing a number of projects in Australia. 
For the 53 week period ended 4 October 2009, the Group achieved turnover of 
GBP77.5 million and generated an operating profit of GBP8.6 million. 
Further information on ATH Resources can be found at www.ath.co.uk 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 TSTDMGMDVFGGGZM 
 

ATH Resources (LSE:ATH)
Historical Stock Chart
From Jun 2024 to Jul 2024

ATH Resources (LSE:ATH)
Historical Stock Chart
From Jul 2023 to Jul 2024