ATH Ath Resources

 

TIDMATH 
 
RNS Number : 9706P 
ATH Resources plc 
02 April 2009 
 

 
 
+-------------------------------------+-------------------------------------+ 
| Press Release                       |                       2 April  2009 | 
+-------------------------------------+-------------------------------------+ 
 
 
ATH Resources plc 
("ATH Resources" or "the Group") 
Pre-Close Trading Update 
ATH Resources plc, one of the UK's largest coal producers, today issues the 
following trading statement ahead of its interim results for the six months to 
29 March 2009 which will be announced on Tuesday, 9 June 2009. 
It is expected that trading for the full year will be in line with market 
expectations. Sales volumes for the six months, which increased by 6% to around 
840,000 tonnes, were generated entirely by the mining business. This business 
showed strong volume growth compared with the prior period with an increase in 
sales in excess of 150,000 tonnes. There was, as expected, no production from 
the ATH Regeneration business as the Grimethorpe site completed operations in 
July 2008 and no further sites have yet been commenced. 
As previously notified, the Group was disappointed that Derbyshire County 
Council refused its application for planning consent to develop the proposed 
regeneration scheme at Langton, Nottinghamshire. This was despite 
Nottinghamshire County Council, the other planning authority required to approve 
the scheme, having previously given its planning approval.  ATH Resources has 
appealed against the Derbyshire County Council decision and the result is 
expected later in the year. 
The average selling price continues to improve to over GBP40 per tonne, despite 
a reduction in the international market price of coal, reflecting the Group's 
contract position and strategy.  A further increase is expected in the second 
half of the year as coal deliveries commence later this month under a previously 
notified 800,000 tonnes supply agreement. 
 
 
As expected, the margin in the first half of the year will reflect the lack of 
lower cost ATH Regeneration production and an increase in the average cost of 
production in the mining business due to a change in the mix of output from the 
various sites. 
Discussions continue with two large mining companies to develop the ATH 
Regeneration business in Australia. Commercial negotiations continue to progress 
and the Directors will provide a further update in due course. 
During the period, proven coal reserves were increased with the receipt of full 
planning consent for two extensions at the Glenmuckloch mine, representing 0.7 
million tonnes and a new mine at Rigg for 1.1 million tonnes in Dumfries and 
Galloway. Planning consent for an extension to the Skares Road mine for 0.6 
million tonnes is expected to be received in the next three months and the Group 
is on track to submit further planning applications in the next six months for 
an additional 3 million tonnes of coal reserves. 
The Group's total reserve base currently stands at 7.4 million tonnes. 
-Ends- 
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                                  |                                 | 
+-------------------------------------------+---------------------------------+ 
| Charlie Jack / George Parker              |       Tel: +44 (0) 20 7398 7719 | 
+-------------------------------------------+---------------------------------+ 
| george.parker@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 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 Company now holds coal 
supply contracts with four of the UK's main electricity generating companies. 
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 Resources 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, whilst 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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