ATH expects to post a loss

0
Have your say

Mining company ATH Resources said it expects to post a pre-tax loss of £5.8m despite increasing sales by seven per cent.

The Doncaster-based firm said group sales in the year to October 2 rose to £84.2m on sales volumes of 1.67 million tonnes.

However, in a trading update, it admitted it would slip to a loss after reporting a pre-tax profit of £4m in 2010.

ATH Resources has been hampered by a series of old fixed-price contracts, which account for 32 per cent of sales, although the company said this morning it was on track to fulfill the first of those by the end of March and a second in 2013.

The company spent £8m opening its new Netherton operation which contributed almost one third of ATH’s total production in the year which will rise to around 40% in 2012.

It has also started preparations to open a site at Ducanziemere which is due to become fully operational in the next 12 months.

ATH has secured permission to extend its Glenmuckloch and Muir Dean operations by a collective 855,000 tonnes.