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ATH says profits won't meet expectations
DONCASTER-based ATH Resources, one of the UK's biggest coal producers, today warned that its full year profit would be below directors' expectations due to lower sales.
In a trading update, ahead of the group's preliminary results for the year ended October 4, the company said: "Sales for the full year are 1.8m tonnes, around 100,000 tonnes lower than previous expectations.
"Full production was resumed in late August at the group's mine at Muir Dean, Fife, following the implementation of an ongoing comprehensive water reduction plan to deal with the groundwater inflow into part of the mine experienced earlier in the year.
"Production at other sites was maximised in the second half of the year but, due to exceptionally wet weather during August and early September, which hampered the opening up of two mine extensions at Skares and Glenmuckloch, the full amount of lost production was not entirely replaced. Average prices continued to increase during the year to over 42 per tonne.
"The reduction in sales volumes will, to a limited extent, result in the profit for the year being below the directors' expectations although, as planned, debt levels reduced by 5m in the second half, to around 40m."
Planning consent was received in August for a 600,000 tonnes extension to the Skares mine which, together with the previously approved 330,000 tonnes extension at Glenmuckloch is now operating satisfactorily.
In June, a planning application for an 800,000 tonnes site at Duncanziemuir, next to the group's Laigh Glenmuir mine, was submitted to East Ayrshire Council. Determination of this application is expected during the first half of 2010.
In September, the appeal started against the decision by Derbyshire County Council to refuse planning permission for the 500,000 tonne coal reclamation scheme at Langton.
The directors expect that the decision by the Planning Inspectorate will be available before the end of December 2009 which, if positive, will allow production to start in the second quarter of 2010.
Total reserves increased by more than 1m tonnes to 8.2m tonnes since the half-year, an increase of more than 15 per cent.
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Wednesday 23 May 2012
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