ATH Resources sees full year trading below market estimates

COAL miner ATH Resources said today it expected full-year trading to be slightly lower than market expectations due to a delay in the start of its tip washing and reclamation plant at Langton, Nottinghamshire, sending its shares down more than 10 per cent.
By The Newsroom
Published 14th Apr 2010, 10:53 BST
Updated 14th Apr 2010, 10:53 BST

The delay is expected to reduce full-year production from its ATH regeneration unit by nearly 50,000 tonnes, the Doncaster-based company said in a statement.

"The margin in the first half of the year will be lower than in the previous period reflecting weather affected sales volumes and operating costs," the company said.

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The company's proven coal reserves increased by 0.5 million tonnes from the year-ago period to 4.4 million tonnes, while total reserves stood at 7.4 million tonnes.

ATH said it expected to increase its proven reserves by three to four million tonnes, if it secured planning consents for the Netherton and Laigh Glenmuir extension projects for its mining business.

For the six months ended April 4, sales volumes generated by the company's mining business fell 8 per cent to 775,000 tonnes, hurt by unfavourable weather conditions.

ATH Resources said the average selling price continued to improve and was over 43 per tonne reflecting higher contract prices and a recovery in international coal prices.

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The company said it expected full-year production from its mining business to be at similar levels to 2009 at around 1.8 million tonnes.

Shares of ATH, whose competitors include Anglo American Plc and UK Coal, were down 10.2 per cent at 75 pence this morning on the London Stock Exchange. They have risen 62 per cent in value over the last six months.

Related topics:NottinghamshireDoncaster