New contract win
January 15 2009 - 2:00AM
UK Regulatory
TIDMATH
RNS Number : 6613L
ATH Resources plc
15 January 2009
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| Press Release | 15 January 2009 |
+-------------------------------------+-------------------------------------+
ATH Resources plc
("ATH Resources" or "the Company")
ATH Resources signs new 800,000 tonne long-term sales contract
ATH Resources plc, one of the UK's largest coal producers, announces the
agreement of a new long-term sales contract for the supply of 800,000 tonnes of
coal from the Muir Dean mine in Fife to ScottishPower.
The coal will be supplied primarily to ScottishPower's nearby Longannet power
station. ScottishPower is currently finalising the commissioning of Flue Gas
Desulphurisation at Longannet, a project that will significantly extend the
operational life of the power station and increase the capability to burn more
locally produced coal.
The contract, which is the first for the Company with ScottishPower, is for a
period of three years, starting in the second quarter of 2009, at selling prices
to be set annually on the basis of prevailing international coal prices. Taking
into account current pricing levels in the coal futures market, the Directors
estimate that turnover under this contract over the three year period should
exceed GBP40m.
The new agreement takes the level of coal to be supplied by the Company under
long-term sales contracts to a total of over 4 million tonnes.
Tom Allchurch, Chief Executive Officer of ATH Resources plc, said "I am
delighted that ATH Resources has signed another long-term sales contract
demonstrating the continued strength of the coal market and the potential for a
significant increase in our average selling prices over the next four to five
years."
-Ends-
For further information:
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| 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 | |
+-------------------------------------------+---------------------------------+
| Charlie Jack / George Parker | Tel: +44 (0) 20 7398 7719 |
+-------------------------------------------+---------------------------------+
| george.parker@abchurch-group.com | www.abchurch-group.com |
+-------------------------------------------+---------------------------------+
Notes to Editors
ATH Resources is an AIM-listed operator of surface coal mines in the UK with
five operational mines in Scotland; Skares Road, Grievehill and Laigh Glenmuir
in East Ayrshire, Glenmuckloch in Dumfries and Galloway and Muir Dean in Fife.
The Company 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 Company now holds coal supply contracts
with four of the UK's main electricity generating companies.
The management team has been in place since 1998. It acquired the rights to
operate (and subsequently acquire) the Skares Road mine with support from The
Alchemy Plan. Following ATH Resources' incorporation in October 2003, and backed
by a follow on investment from The Alchemy Plan, the Company acquired the
Garleffan mine in November 2003. Garleffan is currently being restored having
finished coaling in June 2006. ATH Resources listed on the AIM market of the
London Stock Exchange in June 2004.
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 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 year ending 28 September 2008, the Group achieved turnover of GBP76.9
million, an increase of 9% on its 2007 year end, while Operating Profit
increased by 8% to GBP11.9m for the same period.
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
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