ATH Resources, one of the UK’s largest coal producers, reported an annual loss of £5.8m due to a number of exceptional charges.
The Doncaster-based miner said it is expecting an improved performance in the current year although the trading environment remains challenging with the high cost of gas oil expected to continue.
In addition short term coal prices are expected to ease back from their earlier peak.
Alistair Black, chief executive of ATH, said: “This has been a challenging period for ATH, with the group’s legacy contracts, difficult mining conditions and higher input costs (particularly gas oil), continuing to impact performance.
“However, the group’s renegotiation of one of its remaining legacy contracts together with the development of the project pipeline, will provide a firmer platform for ATH’s business going forward.”
The group said the year to October 2 has been a difficult one.
The continued impact of the below market price legacy contracts combined with much higher input costs, principally gas oil, and unexpected geological conditions at a number of the group’s sites, have all created significant pressure on performance.