News Archive

02 October 2008

Pre-Close Trading Update

ATH Resources plc ("ATH" or "the Group"), one of the UK's largest coal producers, today issues the following trading update ahead of the Group's preliminary results for the year ended 28 September 2008, which will be announced on Wednesday 3 December 2008.

Trading during the second half of the year has been in line with market expectations. Following the opening of a new mine at Muir Dean in Fife and the reopening of the Grievehill mine in East Ayrshire, coal sales for the year were in excess of 2 million tonnes.  Average prices continued to increase significantly, reflecting the strength of the international coal price and buoyant global coal demand.

The Group continues its discussions with a number of major mining organisations in Australia with a view to agreeing contracts to wash coal tips in Queensland. These include one previously notified tailings washing project where the Group is preferred bidder and another with a separate potential client, where ATH has taken samples from a tip and is currently analysing the results. The Directors are confident that the deployment of the Group's unique tip washing technology will lead to the creation of a tip washing business in Australia.

ATH recently received local authority planning approval, subject to final review by the Scottish Executive Planning Department, to mine up to 1.7 million tonnes of coal reserves at Rigg and its existing Glenmuckloch site. The Group has also recently applied for planning permission to mine a further 0.6 million tonnes of coal at its Skares Road site in East Ayrshire.

ATH's proposed reclamation scheme at Langton in Nottinghamshire has recently received planning approval from one of the two local authorities required to approve the 0.5 million tonne scheme. For the scheme to proceed, planning permission from the second local authority is required and this should be determined in the next few weeks. 

At 28 September 2008, the Group had estimated Proven and Probable coal reserves of 4.5 million tonnes and 3.7 million tonnes respectively*.

 

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

 

Evolution Securities Limited
Joanne Lake/Peter Steel	Tel: +44 (0)113 243 1619
joanne.lake@evosecurities.com	www.evosecurities.com

 

Media enquiries:

Abchurch
Sarah Hollins / George Parker	Tel: +44 (0) 113 203 1341
george.parker@abchurch-group.com	www.abchurch-group.com

* The information in this announcement relating to exploration results, mineral resources or mineral reserves is based on information compiled by Mr Peter Morgan, a full time employee of the Group, who is a fellow of the Institute of Materials, Minerals and Mining. Mr Morgan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration. He has reviewed and consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.  For a full explanation of the definition of Proven and Probable reserves please see the ATH website - www.ath.co.uk

Notes to Editors

ATH, the UK-based coal and land regeneration company, was listed on the AIM market 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 holds coal supply contracts with three of the UK's main electricity generating companies.

In addition to its operating mines, the Group also has a number of other coal mining projects in Scotland and two through its French subsidiary, SRMMC including a series of six existing coal concessions in south-central France, covering an area of 36km2, with an estimated resource of approximately 4.5 million tonnes of recoverable coal.

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, enabled ATH to build on its skills as a regenerator of land, whilst developing strong relationships with key English planning authorities. ATH Regeneration 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.

For the year ending 30 September 2007, the Group achieved turnover of £70.5 million, an increase of 30% on its 2006 year end, while EBITDA was up 31% to £25.1 million for the same period.

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

 

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