News Archive

30 June 2010

Interim Results

ATH Resources plc, one of the UK's largest coal producers, reports its Interim Results for the six months ended 4 April 2010.

Highlights

• Turnover reduced by 4% to £34.4 million reflecting weather affected sales volumes down by 8% to 776,000 tonnes
• Production volumes for the full year are expected to be 60,000 tonnes lower than previously expected at around 1.75 million tonnes
• Average selling prices increased by 5% to £44 per tonne
• Operating profit from core Surface Mining business of £0.1 million reflects weather affected sales volumes (2009: £3.5 million)
• No contribution from ATH Regeneration business due to delays in obtaining planning permission for Langton
• Loss before tax of £2.9 million (2009: Profit before tax £0.1 million)
• New long term sales contracts agreed which, together with an improving coal market, increases expected average prices by 6% to £36 per tonne from long term contracts
• Record level of Proved Reserves of 6.7 million tonnes at 30 June 2010, an increase of over a third on the 2009 year end, following recent planning successes at the Netherton site (1.9 million tonnes) and Duncanziemere, an extension to the Laigh Glenmuir mine (0.8 million tonnes)
• Reinstatement of the interim dividend with proposed dividend of 1 pence per share (2009: nil)

The Board also announces that it has received an approach to purchase ATH Regeneration, the part of the Group which focuses on coal recovery, land remediation and regeneration.  The Board is reviewing the approach and considering its merits and will make a further announcement in due course.

Commenting on the Interim Results, Tom Allchurch, Chief Executive of ATH, said: “The business has taken longer than expected to recover following the unprecedented adverse weather over the autumn and winter period. However, the Group is now operating at expected levels of production and efficiency.  Despite the difficulties over this last winter, the Group has significantly advanced its reserve base to its highest ever levels with planning successes at Netherton, Duncanziemere and Langton.

"As the Group works through its newly improved contract base it will be able to access a rapidly improving coal market leading to significant improvements in future profitability."

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