News Archive

28 June 2012

Interim Results

ATH Resources Plc (AIM: ATH), one of the UK’s largest coal producers, reports its unaudited Interim Results for the six months ended 1st April 2012.

Highlights

• Revenue of £44.6 million (2011: £33.9 million), on sales of 796,000 tonnes (2011: 706,000 tonnes)
• Operating loss before exceptional items of £3.9 million, after including a provision of £1.1million in respect of the Government’s Carbon Reduction Scheme (2011: profit £1.7 million)
• Exceptional write off of work in progress of £2.0 million in respect of increased workings at Muir Dean
• Average selling price increased to £56 per tonne (2011: £48 per tonne)
• Proved and probable reserves of 7 million tonnes (2011: 7.9 million tonnes)
• Applications for two new sites totalling 1.7 million tonnes submitted into planning
• Net borrowings, (including hire purchase of £11.6 million) at £30.6 million down from £31.5 million as at 2 October 2011
• International coal prices down 28% since the beginning of the financial year
• Production costs increased due to increased mining ratios and higher gas oil costs

Commenting on the interim results, Alistair Black, Chief Executive of ATH said:
“Against the background of a difficult market with a fall in the international price of coal of 28% since the beginning of the financial year, the Group’s average selling price increased by 16% over the same period last year. This was achieved through the successful renegotiation of its legacy contracts and alterations to the mining plan to focus on the extraction of higher quality coal.

“However, increased gas oil costs, delays to certain extensions and higher mining ratios increased the overall cost of mining and reduced profit margins. Following the rapid fall in international coal prices, and with commodity markets forecasting that future prices will not stage any meaningful recovery in the medium term, the Group has reviewed all of its existing and future operations with a view to concentrating investment on those sites which will continue to generate cash even in this depressed market. Consequently annual levels of production will be reduced for as long as low coal prices persist. The Group’s revised plan affords for the continued investment in the development pipeline in order to be able to take advantage of any future market recovery as and when it occurs.”

For further information:

ATH Resources plc

David Port, Non-Executive Chairman	Tel: +44 (0) 7836 693798
Alistair Black, Chief Executive	Tel: +44 (0) 1302 760 462

www.ath.co.uk

Seymour Pierce Ltd

Stewart Dickson (Nominated Adviser)

Richard Redmayne / Katie Ratner (Broker)

Tel: +44 (0) 207 107 8000

www.seymourpierce.com

Media enquiries:

Hudson Sandler

Andrew Leach / Charlie Jack / Katie Matthews

Tel: +44 (0) 207 796 4133

www.hudsonsandler.com

 

 

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