News Archive

18 January 2011

AGM Statement and Contract Extension

ATH Resources plc (AIM:ATH), one of the UK's largest coal producers, will be holding its Annual General Meeting today at 11:00 hrs at Eversheds LLP, Bridgewater Place, Water Lane, Leeds, LS11 5DR.

At the Annual General Meeting David Port, Chairman of ATH Resources, will provide the following trading update:

"Trading performance in the first quarter has been in line with the Group's expectations. The bad weather experienced in December 2010 caused only minimal disruption to production, although it did result in a delay of some shipments to customers following the cancellation of a number of trains and snow related road closures. However, an improved mix of sales and lower production costs largely offset any impact. The Group continues to improve operating efficiency and reduce costs. However, the Glenmuckloch site, which reported geological issues at the end of the last financial year, continues to cause concern and the impact of this together with the recent dramatic rise in the price of gas oil will, if it continues to rise, put operating margins under pressure for the remainder of the year.

"On a positive note, the opening of the Netherton site is progressing well and is on schedule to commence production of coal in the current quarter. Netherton is now anticipated to exceed its production targets for the full year. Development of the Duncanziemere site is planned to commence later in the year.

"The Group received a royalty payment of £2 million in January 2011 from RecyCoal Limited which is being invested in the new mine developments. Net borrowings are in line with expectations.

"The Group is also pleased to announce that following the new market price related contract negotiated with EDF last month, it has successfully secured a 150,000 tonne extension to an existing market price related contract with Scottish Power. Deliveries to this contract will commence in October 2011. The Group is on schedule to fulfil the final tonnage of its three remaining legacy contracts, the first two of which will end in March and September of 2012. It is anticipated that they will be replaced by new contracts at significantly higher prices."

 

For further information:

ATH Resources plc
David Port, Executive Chairman	+44 (0) 7836 693798
Alistair Black, Chief Executive	+44 (0) 1302 760462
	www.ath.co.uk
Seymour Pierce Limited
Sarah Jacobs / John Cowie (Nominated Adviser)	+44 (0) 20 7107 8000
Richard Redmayne / Katie Ratner (Broker)
	www.seymourpierce.com

Media enquiries:

Abchurch
Sarah Hollins / Mark Dixon	+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 three surface coal mines in Scotland; Skares Road, in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife. The Group is currently one of the largest producers 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 holds coal supply contracts with four of the UK's main electricity generating companies.

Further information on ATH Resources can be found at www.ath.co.uk

 

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