ATH Resources Share Discussion Threads

[spaceparallax] 05/11/2010 16:03

The problem on the finance front is likely to be that any placing would warrant a meagre share price given the langour of recent months.

[chrisdgb] 05/11/2010 15:56

Would be a good opportunity to raise finance and bulk up the scale..maybe get some new shareholders on board..

[spaceparallax] 05/11/2010 15:41

Chris, would that be wise at this point due to the debt burden that would result?
Obviously if SRG were to come calling and offer at a crazy price it might be worthwhile; otherwise, I can't help feeling that debt control is essential in current times.

[chrisdgb] 05/11/2010 15:33

With SRG not floating, as highlighted by Palmaris today, I would still love ATH management to try to buy the opencast coal operations...would really add to the scale of the company and enhance valuation..

[dunluce] 05/11/2010 15:18

Thanks spaceparallax.

[loafofbread] 05/11/2010 11:53

Nice to have a 6 in front of the share price again!

Some serious buying has been going on for a few weeks now so lets hope the seller is cleared and we can move upward.

Hargreves should have got their act together

[spaceparallax] 05/11/2010 11:41

great share price momentum today - I suspect we could well breakout. Surely few would be daft enough to sell under these circumstances?

[spaceparallax] 05/11/2010 10:55

Dun,

Look back a few posts, I posted a very healthy review from Growth Company Investor - this suggests a distinct imminent turnaround in fortunes from the most recent results that led to the investor discontent.

[semper vigilans] 05/11/2010 10:31

Looks like no stock available - price up on small trades.

[dunluce] 05/11/2010 09:54

Not looked in for a while. Any reason for the upsurge ( except of course undervalued )- Long may it continue.

[spaceparallax] 05/11/2010 09:15

Yippee, broken out - can we move above the 65p zone?

[divinausa1] 05/11/2010 04:06

Mechel: Coking coal prices will rise by 20-25 pct in 2011




sont know why this is trading low?

[spaceparallax] 04/11/2010 10:26

we're seeing a trickle of buys - slow but steady

[chrisdgb] 04/11/2010 10:01

very defensive spread from the mm's, suggest could get squeezy with little stock around..

[spaceparallax] 04/11/2010 09:09

It is, especially after the dreary situation of previous weeks.

[chrisdgb] 04/11/2010 08:32

nice to see more buying going through..

[spaceparallax] 03/11/2010 13:16

Indeed, we so often see a singificant rise of say 10-15% simply on the back of such analyst recs.

[chrisdgb] 03/11/2010 12:39

Nice article, thanks and looks like a top up is needed before we carry on higher..

[gingerplant] 03/11/2010 12:09

Many thanks

[spaceparallax] 03/11/2010 12:02

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
Ticker: ATH
Sector: Mining
Listing: AIM
Mid-price: 54.5p
Market cap: £22m "

[loafofbread] 03/11/2010 11:57

SP

Love to have a read if possible.

[gingerplant] 03/11/2010 11:50

I'd like to see it please spaceparallax

[spaceparallax] 03/11/2010 11:48

looking healthier already

[chrisdgb] 03/11/2010 11:17

Good to see some positive comments/coverage on these...I think it is fully justified and look forward to the continued recovery....stock seems to be drying up..

[spaceparallax] 03/11/2010 11:12

Just received a very positive Long-term Buy rec from Growth Company Investor. If anyone wants to see it let me know.

have just grabbed another 4K@56.85p on the back of it - quite likely we'll rise to above the 60p level once more.

Hope they don't have any further icing problems on the big conveyor during what's predicted to be another cold winter.