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Real-Time news about Ath Resources (London Stock Exchange): 0 recent articles
|totally banjo: yep,explains a lot :-)
ATH Resources plc
26 July 2011
ATH Resources plc
("ATH" or the "Company")
Statement regarding possible offer
The board of ATH notes the recent rise in the Company's share price and announces that it is in preliminary discussions with a third party which may or may not lead to an offer being made for the entire issued share capital of the Company.
Shareholders of the Company should be aware that there is no certainty that an offer will be forthcoming.
A further announcement will be made in due course.|
|loafofbread: At last.
At least it explains yesterdays rise. Good timing. Share price on it's back and long term holders like me underwater and desperate to get out.
Always thought a £1 would do it. Lucky to get 60-70p if the MMs can be believed.
10M T of coal worth £500/£600M plus the stuff in France and the kick back from
ATH regeneration to come.
£50M +debt would be fair but I can't see it. That said if it is Hargreaves they could use their paper at £10. Otherwise a USA/Indian/PE outfit.
Or the whole thing will fold at the first.|
|spaceparallax: Report courtesy of GCI:_
"ATH Resources: light at the end of the tunnel
David Port, executive chairman and co-founder of ATH Resources, one of Britain's few remaining coal producers, is in determinedly upbeat mood as he surveys prospects from the company's Doncaster headquarters after a succession of setbacks that have slashed profits and calls on cash that have forced the AIM-quoted company to halve its dividend.
ATH, which operates open-cast mines in Scotland and the Midlands, has built up reserves to a record 8.5 million tonnes and has planning permission to start production at Netherton in the West Midlands, with reserves of four million tonnes, and Duncanziemere in Ayrshire, at costs that Port insists will be lower than those at UK Coal and aborted float candidate Scottish Resources.
Floated on AIM in 2004 at nearly three times its present 54.5p share price, ATH will also see the progressive ending over the coming year to 18 months of past long-term sale contracts with power stations, industrial users and others at well below currently buoyant market prices. 'We anticipate restoring the dividend,' comments Port, a move that will have particular significance in these low interest rate days and offers the prospect of increasing the yield on ATH shares from around 5 per cent, many times the bank base rate even after the payout cut, to more than 9 per cent.
These developments will mark a notable turnaround in the fortunes of ATH. Pre-tax profits fell 35 per cent to £5.8 million in the year to October 2009, as a 10 per cent fall in output to two million tonnes was cushioned by 13 per cent price increases on that portion of production not subject to restrictive contracts for a 1 per cent turnover gain to £77.5 million. Thereafter, conditions deteriorated markedly. Floods in Cumbria caused exceptionally wet mining conditions north of the border.
Freezing conditions and snow in January prevented transporting of the coal to market, in one instance immobilising a 12-mile overhead conveyor between one of the mines and the railhead. The company's Glenmuckloch mine ran into severe geological problems.
Unsurprisingly in the circumstances, ATH went into the red to the tune of £2.9 million in the six months to April on sales volume down 8 per cent to 776,000 tonnes and turnover reduced by 4 per cent to £34.4 million. Now, however, the picture has brightened, insists Port, and a 'rebased' ATH faces a more cheerful future, with a profit recovery on the cards in the second half.
The company looks forward to production from Netherton and Duncanziemere and the winding up of the remaining below-market 'legacy contracts'. It was the £14 million investment needed on these two projects that made ATH cut its dividend, but they should now help swell the company's reviving output and sales.
Another development that has improved the company's cash position was July's sale of its ATH Regeneration arm, which cleans up and restores disused mine sites commercially. ATH decided it could not meet the £40 million funding needed for the regeneration side's projects and sold it to RecyCoal for £6.5 million cash down, royalties over seven years capped at £8 million and a possible £2.5 million from the eventual sale of land and buildings. Port moved from non-executive to executive chairman after the sale. Alistair Black moved from head of mining to group chief executive.
Analysts reckon ATH in its new form could hoist pre-tax profits from a likely £2.5 million in 2009-10 to £4.1 million next year and £6.6 million in 2011-12 on rising turnover. Given Port's optimism about restoring the dividend, a prospective yield of 9.1 per cent has undoubted attractions.
Recommendation: Long-term buy
Market cap: £22m "|
|chrisdgb: Fairfax summary:
Conclusion: Clearly the results are going to be disappointing and the cut in the dividend will no doubt impact the share price as this has long been a yield story. The company doesn't appear to be in any longer term difficulty as its reserves are now at a higher level than ever before. We hope to see the working off of low priced long term contracts to give close exposure to the current high priced coal environment, and that the year ahead will have an easier winter allowing the company to get back on track, fingers crossed.|
|gco1133a: Yeah I'm not very keen on internal approaches either. They smell of management licking their chops as they get their hands on a cheap asset rather than concentrating their efforts on improving the share price.|
|gnnmartin: SRG (Scottish Resources Group) is hoping to list. They are the country's second largest coal producer, and the largest open cast coal miner. This should make ATH easier to value, and hopefully support the ATH share price.
|undervaluedassets: I think has been tarred with same brush as UKC
But is everything that they are not.
And has improving rather than deteriorating balance sheet.
From all that I can see is insanely cheap.
new coal assets being cherry on the top.
don't grumble about the share price. it is massive buying opportunity.|
|cnx: thanks, paul yes good numbers
i was looking at the recent period oct'06 verses oct'09
fixed assets 65.14 v.78.66 plus 20.7%
stocks 6.76 v.19.63 plus 190.38%
receivables 8.8 v. 9.62 plus 9.31%
turnover 54.13 v. 77.85 plus 43.8%
profit 5.01 v. 4.03 minus 19.6%
eps 12.45 v. 10.10 minus 18.82%
dps 11.25 v.6.15 minus 45.4%
share price 202p v.51.75 minus 74.4% v. today minus 66%
my concern is i feel things happen and directors react
what are they actually doing to improve the numbers
certainly their announcements give no indication|
|loafofbread: Todays Independent
Our view: Buy
Share price: 77p (-6.5p)
The recent strikes at British Airways and Royal Mail, as well as potential stoppages on the railways, are a reminder of the 1980s when the Government and the miners were at each other's throats.
The popular analysis is that Margaret Thatcher "crushed the miners", which, of course, is only partly true. A thriving coalmining industry still exists in Britain, but ATH Resources, one of a several UK mining companies, issued what looked like a downbeat trading statement yesterday. Sadly, full-year production targets will be missed by 50,000 tonnes, with the group blaming delays in the start of its tip washing and reclamation plant in Nottinghamshire, while sales in the six months to the start of April fell by 8 per cent. Unsurprisingly, the shares reacted badly as a result.
But investors should not cut and run yet. The 2010 dividend yield is still a very healthy 7.7 per cent, with no hint yesterday of a cut. Despite the share price fall, the stock has put on more than 60 per cent in the last half-year, helped by stronger coal prices. Trading on a full-year multiple of 10.6 times the shares still lag the sector average of 14.3 times. Yesterday's share price dip is a real opportunity to buy.|
|sharpshare: Looks like our seller is Artemis. Accross all funds they are down from 3,954,675 ATH shares last reported on 19 Feb 2008 to 3,035,675 on 20 May 2008.
In the GBP800m High Income Fund ATH holdings reduced from 2,546,094 to 1,965,080
They seem to have had a policy of substantially reducing equity exposure in the main High Income fund from 27.9% of total assets at end of Oct 2007 to 19% of total assets at end Dec 2007 to 10.9% at end April 2008 (a reduction of 61% of the equity shareholdings). Looks like a change in strategy after dismal 9.5% fall in value of fund for year to 31 March 2008 to stem losses and stop redemptions. Also appear to have net client redemptions in month of March 2008. This used to be a very popular fund and they had huge subscriptions in the prior year. The unit price bid offer spread is a whopping 7%. (At end April 2008 bid 74.56, offer 79.81)Great fees for Artemis and associated brokers. Artemis must be making a fortune out of these fund investors. Need lots of cash to pay for the constant newspaper adds about the hunting, fishing, shooting chap in tweed jacket with shotgun bagging the profit birdie. To be fair this fund had a good record until about a year ago so maybe they "earned" their money?
It appears that the ATH sales could be mainly due to change in asset allocation policy, redemptions and not much to do with ATH itself, (basically an indiscriminate seller) although it is still possible they know something about ATH which others don't.
Great news for those trying to pick up cheap stock, bad luck for those trying to sell out at good price. It is not a bad strategy buying cheap stock from distressed forced sellers.
In last 15 trading days according to ADVFN trade stats there have been about 1,475,000 buys and about 95,000 sells. There appears to have been a constant big seller at 200p. In the absence of this big seller the ATH share price would probably have been higher. At least the price has not been trashed in the rush to get out.
Fund mgt fees are what a fund mgt company cares about. If investment policy needs to change to attract or retain fees then that is what happens.
Anyone else care to do a little digging...
With the latest all time high spot oil price of USD 134 per barrel and the big rise in long term forward oil prices expect coal prices to go even higher and the shares to pop upwards sooner rather than later as the seller's stock is sold out or the fund manager realizes the facts have changed fundamentally since his original sell order assuming he still has any discretion. Better still a rival fund manager could bid for the rest of this line of stock if it is still on sale. Maybe a UK based coal fired power station would like to buy out ATH to lock in cheap secure supplies. A certain rival UK coal miner may also be drooling over this forgotten coaler.
Now if the company were to announce a new contract with sales prices double the historic contract rate...|
ATH Resources share price data is direct from the London Stock Exchange