Annual report and financial statements 2004
 ATH Resources plc
Aardvark TMC Ltd
Wholly owned subsidiary operating the
Skares Road site
Aardvark TFC Ltd
Intermediate holding company
SRMMC
Société des Ressources Minières du Massif Central.
Wholly owned French prospecting company
ATH Garleffan Ltd
Wholly owned subsidiary operating the
Garleffan site
The UK opencast coal
industry produced
12. 1
million
tonnes
of coal in 2003; 6.9 million
tonnes of which was from
Scotland. This comprised 24%
of total UK coal production.
IFC GROUP STRUCTURE
1 CORPORATE STATEMENT AND HIGHLIGHTS
2 CHAIRMAN’S STATEMENT
3 CHIEF EXECUTIVE’S STATEMENT
4 FINANCIAL REVIEW
6 BOARD OF DIRECTORS
7 SITE LOCATIONS
COMPANY INFORMATION
8 DIRECTORS’ REPORT
10 CORPORATE GOVERNANCE REPORT
11 REMUNERATION COMMITTEE REPORT
13 INDEPENDENT AUDITORS’ REPORT
14 CONSOLIDATED PROFIT AND LOSS ACCOUNT
15 CONSOLIDATED BALANCE SHEET
16 COMPANY BALANCE SHEET
17 CONSOLIDATED CASH FLOW STATEMENT
18 ACCOUNTING POLICIES
20 NOTES TO THE FINANCIAL STATEMENTS
31 NOTICE OF ANNUAL GENERAL MEETING
Coal was used to generate 
34.7% 
of the UK’s electricity in 2003.
ATH Resources plc is one of
the largest producers of coal
in the UK and produced
1.3
million
tonnes
in the period to
26 September 2004. ATH Resources plc Annual report and financial statements 2004 1
ATH Resources plc (“ATH”) is an operator of
opencast coal mines and is currently the third
largest producer of coal in the UK. Through its
two operational sites situated in East Ayrshire
in Scotland, ATH provides coal principally to the
electricity supply industry and also the industrial
and house coal markets.
Throughout the development and mining process,
ATH focuses on the restoration and rehabilitation
of the sites and land is returned to various uses
including agriculture, forestry, nature conservation
and other forms of development.
ATH Resources plc became a public company
in June 2004 when the Company was listed on
AIM. The Company intends to grow organically,
particularly in Scotland where the Company’s UK
operations are presently concentrated. It will also
pursue suitable complementary acquisitions which
meet strict, pre determined criteria.
Highlights
• November 2003: Purchase of Garleffan opencast coal site.
• June 2004: Successful fund raising and listing on AIM.
•August 2004: Disposal of part (18 acres) of a former opencast
coal site in Scotland for house building.
•September 2004: Appointment of Michel Guy as Director of
SRMMC, the Company’s French opencast mining subsidiary.
• September 2004: New sales contract signed with Drax Power
for the supply of 250,000 tonnes of coal from a further
extension at Skares Road.
 Chairman’s statement
2 ATH Resources plc Annual report and financial statements 2004
This year has seen a massive step change 
in both the size of the Group and its public
profile. Commencing operations in 1998 as
a one site, venture capital backed, opencast
coal mine with ambitions then limited to the
successful development of the Skares Road
site, it is particularly pleasing to report on a
year that has seen the continuing profitable
operation of the Group’s original mine, the
doubling of the Group’s operations through
the acquisition from LAW Mining of a second
site at Garleffan and the successful listing on
the Alternative Investment Market (“AIM”).
Taken individually, any one of these events
could be judged as constituting a successful
year. To have achieved all three demonstrates
not only ATH’s ambition to become a major
player in the UK coal mining industry, but
also the ability of a young and committed
management team to deliver complex and
strategically demanding targets.
Business progress
Profitability, after allowing for all of the
exceptional costs associated with the
acquisition and the float, is in line with the
Board’s expectations and plans are in place
to further improve performance in the coming
year. Extensions are planned at both of the
Group’s existing sites and new planning
applications will shortly be made to extend
ATH’s operations to other parts of Scotland.
In France, progress continues to be made
towards developing new opencast sites which
will provide coal for French coal consumers.
Board changes
During the year the Board has been strengthened
by the addition of two Non-executive Directors.
Vaughan Williams, recently retired from BHP
Billiton, is widely experienced in the coal
industry and brings industry knowledge and
considerable management experience to the
Board. Ivana Slade, an Executive with Alchemy
Partners, is widely experienced in all aspects of
M&A and fund raising. These two appointments
ensure that the Board has all the skills necessary
to take it forward. 
In France the Group is particularly pleased to
have secured the services of Michel Guy as a
Director of its French subsidiary. Michel has
a coal importation business in France and is
well placed to ensure that the output from the
two French mines will have a smooth path
to market.
Strategy
There is no doubt that the coal industry,
which currently is responsible for producing
some 35% of this country’s electricity, faces
some significant political and fiscal challenges.
Whilst the country has failed to evolve a credible
and balanced long-term energy policy, the
demand for electricity continues to increase and
the older nuclear power stations are reaching the
end of their useful lives. Current policy places too
much reliance upon renewables, imported gas
from Russia and Liquified Natural Gas from the
Middle East and South America. This means that
coal will continue to have to play a significant part
in this country’s electricity generation.
ATH’s strategy will be to maintain a relatively
small but stable share of that market. Its low
cost of operation and its access to low sulphur
Scottish coal should ensure the success of
that strategy. There also remains a significant
market for domestic fuel in which ATH is already
established as a major supplier and in which
it will continue to operate. 
Worldwide demand for coal continues to rise
with the economic growth of China and this,
together with high freight costs, means that the
selling price for coal will remain high for the
foreseeable future. The vast majority of ATH’s
sales contracts are at selling prices significantly
below current market levels, therefore revenues
should increase as these contracts are renewed.
Against this, the high cost of oil has significantly
increased the Group’s operating costs as it is
a major consumer of gas oil. 
The listing of ATH on AIM has strategically
placed the Group to take advantage of the
many opportunities that will become available
in the near future, and the Board looks forward
to reporting on further developments in the
coming year.
David Port
Non-executive Chairman
“It is with great pleasure that I present the first
annual report of the Group following its listing
and am pleased to be able to report on a
momentous and yet profitable period of
enlargement and development.”
 ATH Resources plc Annual report and financial statements 2004 3
This financial period has been the most eventful
in the Group’s development. It has seen two
major structural changes to the Group. First,
the acquisition of the Garleffan opencast coal
site from LAW Mining Ltd on 28 November 2003,
assisted by new funding from Alchemy Partners
and Bank of Scotland, effectively doubling
the size of the Group. Second, the listing of
the Group on AIM on 11 June 2004 has
positioned the Group exceptionally well for
future development.
Operational review
The Skares Road mine has performed very well
through the period. Coal production has been
scaled back, during the second half, as the
mine switched operational areas into higher
stripping ratios. The mine produced and sold
800,000 tonnes of coal and its products
continued to perform strongly in the household
and industrial coal markets.
Following its acquisition, the Garleffan mine
was subject to a turnaround through the year.
The mine required deepening, in order that the
reserve was maximised and the excavation
cuts needed to be realigned for efficient
operation. This process has been completed
along with the reorganisation and relocation
of many of the coal preparation and support
services areas. In addition, this mine has
benefited from significant investment in new
overburden excavation and transportation
equipment and is now set to operate to its
maximum efficiency for the remainder of its life.
Despite these major changes to the operations, 
the mine produced 640,000 tonnes of coal
over the ten month period of ATH control.
In addition, in August, the Group successfully
concluded the disposal of a parcel of its
development land at Hannahston in Ayrshire,
for which planning permission for 36 houses
had been granted on a restored opencast site.
Development projects
The development of new business opportunities
has received constant attention since the listing.
In Fife, the Muir Dean project, is moving towards
a planning application with terms agreed on
the final major land parcel. Two other Ayrshire
sites are also being prepared for planning
application early in 2005. These developments
will see planning permission being sought
for more than three million tonnes this winter.
Additionally, prospecting is ongoing at other
new projects in Scotland in advance of further
applications for planning permission.
The Société des Ressources Minières du
Massif Central (“SRMMC”) projects are also
developing steadily, with an application for
a mining permit for the Commentry project
progressing through the planning system and
the transfer of the Bertholene Concession
completed. During this coming winter, both
sites will have exploration works; Commentry
for quality analysis and Bertholene for scheme
design. Both projects will also be the subject
of environmental assessments as part of the
application process and it is planned to have
both mines available for commencement in 
2006, although only one at a time will be brought
into production.
Market
The market for coal in the UK remains buoyant.
International coal prices remain very high on the
back of worldwide growth in demand driven by
China and the Far East. Infrastructure limitations
will slow any pricing falls as production tries to
catch up with demand. Consequently, as we
renew coal sales contracts from 2006 we expect
to see some uplift in pricing to the benefit of
the business.
Finally, this has been an extraordinary year for
our business, which has only been made
possible by the commitment and dedication
of the employees over several years and in
particular the last twelve months. I would like
to thank each of them for their support and
effort that has collectively developed this
business to the strong position it now holds.
Thomas Allchurch
Chief Executive
Chief executive’s statement
“Coal mining still plays a vital part in the economy
of the UK through the generation of a third of our
electricity, without which the lights would go out
this winter. On a local scale the well paid jobs
and investment that the industry brings to the
former deep mining towns in Ayrshire, is welcomed
by all concerned.”
 4 ATH Resources plc Annual report and financial statements 2004
Turnover
Turnover for the period was £31.4m on sales of
1.3 million tonnes, with an average price of £24
per tonne. Sales by product comprised:
T’m £’m
Electricity Supply Industry (“ESI”) 1.1 25.2
Domestic 0.1 3.4
Industrial 0.1 2.8
Total 1.3 31.4
ESI customers supplied in the period were E.On,
Drax Power, EDF Energy and British Energy.
With the increase in world coal prices, which
have risen by over 40% during the last year, 
the Group will be able to capitalise on improved
domestic and industrial prices this winter and
as the Group’s portfolio of ESI contracts come
up for renewal over the coming years.
Profit before interest and tax
Profit before interest and tax was £1.4m.
Earnings before interest, tax, depreciation
and amortisation was £6.4m reflecting the
high upfront costs of acquiring mining assets
and the capital intensive nature of operating
the business.
Overall, this is considered a satisfactory result
as the Skares Road site has performed in line
with expectations and the Group’s Garleffan
site has been substantially improved. Following
the purchase of Garleffan the plant fleet has
been renewed and the site re-engineered.
This turnaround is now complete and the site
is now operating efficiently.
The cost of gas oil, which accounts for some
10% of direct costs, has risen recently in
response to the well publicised rise in crude
oil prices. As the majority of sales are at
formulated prices, there is limited opportunity
to pass through this increase to our customers.
The Group is investigating mechanisms,
both financially and operationally, to manage
this short-term cost increase as we currently
believe that over the coming financial year oil
prices will return to around $35 per barrel.
Interest
Interest charges of £1.1m were incurred in the
period. Of these charges £0.5m were in respect
of the repayment of loan stock interest and
will not be incurred again. Following the listing,
the Group has been cash positive and so
the main ongoing interest charge will be in
respect of finance leases and hire purchase
contracts and the unwinding of the discount
on the restoration provision, which is not a
cash flow item.
The Group manages its exposure to interest
rates by acquiring plant and machinery on
fixed rate hire purchase agreements.
Financial review
“Trading for the period was in line with the Directors’
expectations at the time of the listing on AIM, which
raised some £11.5m after costs, and has enabled
the balance sheet to be de-geared, leaving the
Group cash positive in order that it may pursue
its development programme.”
Summary of the Financial Review
• Turnover: £31.4m
• Earnings before interest, tax,
depreciation and amortisation: £6.4m
• Profit before interest and tax: £1.4m
• Final dividend: £1.0m (3.36p per share)
• Earnings per share: 0.44p
 The RH120 excavator is the workhorse of the
opencast coal industry. This 265 tonne machine is
capable of moving 15m
3
of overburden in each
bucket, loading 100 tonne dump trucks in four
passes. The Group operates seven of these
machines together with a fleet of 30 large dump
trucks all supported by the manufacturer under
repair and maintenance contract to ensure
maximum availability.
Coal for power station customers is blended on
site from the different coal seams to meet strict
contract specifications. Quality control is ensured
by a complex sampling regime from coal face,
through the process yard to final dispatch by train
in order to meet the quality standards required
by the six different power stations supplied in
the period.
Hannahston was an abandoned opencast coal
site in Ayrshire which the Group restored and
developed into mixed housing, community access
and nature conservation uses. The Group has
disposed of 18 acres of the site with planning
consent for 36 houses during the period.
ATH Resources plc Annual report and financial statements 2004 5
Tax
The effective rate of tax was 66% compared
with a standard rate of tax of 30%. The primary
cause for this variation in effective rate was the
effect of depreciation charges being in excess
of capital allowances.
Dividends and earnings per share
The Board is recommending a final dividend 
of £1.0m, equivalent to 3.36p per share,
subject to approval by the members at the
Annual General Meeting (“AGM”). As there
was not an obligation to pay the proposed
dividend at 26 September 2004 it has not
been accrued for in the financial statements.
Earnings per share for the period was 0.44p.
Cash flow
Net cash inflow from operating activities was
£8.7m and the Group was cash positive at
£2.5m as at 26 September 2004, whilst net debt
was £3.2m. £5.3m of this difference is in respect
of finance leases and hire purchase contracts
outstanding on the plant fleet and the balancing
£0.4m is in respect of commercial mortgages
on properties acquired at the Muir Dean site.
Capital expenditure
During the period the Group acquired capital
equipment with a value of £2.8m comprising an
RH120 excavator and four TR100 dumptrucks.
At 26 September 2004 the Group had placed
orders worth £2.5m for a further five TR100
dumptrucks and two Caterpillar D9 bulldozers
as part of its ongoing policy of renewing plant
to ensure that the Group operates a modern
and cost effective plant fleet.
International Financial 
Reporting Standards (“IFRS”)
The London Stock Exchange has now confirmed
that companies listed on AIM will not have
to apply IFRS until accounting periods
commencing on or after 1 January 2007.
Consequently, the first set of fully compliant
IFRS financial statements will not be required
until the year ending September 2008.
In the meantime, the Group will be 
appraising the impact of adopting IFRS 
and briefing accordingly.
Richard Croston
Finance Director
 6 ATH Resources plc Annual report and financial statements 2004
Board of directors 
David Port FCMA
Non-executive Chairman
David Port qualified as a chartered
management accountant whilst with
National Freight Company Limited
(now Exel plc) where he rose to
become Group Chief Accountant.
Following three years at Northern
Foods Plc as Finance Director of the
dairy division he joined British Fuels
Limited as Finance Director and rose
to Chief Executive and Chairman
leading the management buyout from
British Coal during the privatisation
process and disposing profitably of
the business in a trade sale in 1997.
From 1997 to 2001 David was Executive
Chairman of Sylvan International Limited,
a £200m turnover timber business with
operations in France. David is currently
Chairman of Petrol Express Limited,
Non-executive Director of Global
Natural Gas Limited and Non-executive
Director of Global Natural Energy Plc.
David has been Non-executive Chairman
of the Group since its establishment
in 1998. 
Richard Croston ACA
Finance Director
Richard Croston qualified as a
chartered accountant in 1992 with
Price Waterhouse and worked in their
audit department. Richard had periods
of secondment to clients including
British Gas Energy Centres Limited
and Debenhams plc as a Financial
Accountant and Beverley Building
Society as Financial Controller.
Richard joined the Group in 1998
as Financial Controller and has been
Finance Director of the Group
since 2000. 
Tom Allchurch
Chief Executive
Tom Allchurch is a graduate mining
engineer and has spent his entire career
in the development and operation of
opencast coal mines. Tom initially trained
as a Site Engineer with Shand Mining
Limited, a contractor to British Coal,
before joining Bayford Mining Limited,
a smaller private mining company,
in 1986. In 1991 Tom joined Rackwood
Colliery Company Limited as Projects
Manager and was responsible for
the development of a number of UK
and French projects including Skares
Road. Tom left Rackwood in 1998
leading the management team in
acquiring the rights to operate
(and subsequently acquire) the
Skares Road mine. Tom was Chairman
of the coal industry trade association,
the Confederation of UK Coal Producers,
in 2001 and 2002. Since 1998 Tom
was Managing Director of the Group
and became Chief Executive when the
Company listed on AIM. 
Alistair Black MBA
Operations Director 
Alistair commenced his training as a
Site Engineer with Coal Contractors
Limited in 1986, progressing to Site
Manager of the Roughcastle North
site in 1994. In 1996 Alistair joined
Rackwood as Regional Production
Manager responsible for two opencast
and one underground mine in Scotland.
Alistair joined the Group in 1998 as
Operations Manager for the Skares
Road mine and became Operations
Director in 2000. Alistair gained his MBA
from Heriot Watt University in 1999.
He is also the Health and Safety
Director for the Group. 
Mike Tod MRICS
Development Director
Mike Tod is a chartered minerals
surveyor and commenced his career
gold mining with Gencor in South
Africa and subsequently moved to
uranium mining in Namibia with RTZ.
In 1990, Mike returned to the UK to
work as a consultant for Wardell
Armstrong, a leading UK mining and
minerals consultancy firm. Mike joined
Tom Allchurch’s project team in 1995
and was instrumental in the development
of and subsequent acquisition by the
management team of Skares Road
and its management buyout in 1998.
Mike has been the Development Director
of the Group since 1998.
Vaughan Williams
Non-executive Director
Vaughan Williams has a degree
in politics from Exeter University.
Vaughan spent four years at British Steel
from 1968 to 1972 before joining a
predecessor company of BHP Minerals
Europe Limited as Coal Sales Manager,
later promoted to Director responsible
for coal sales in Europe, CIS, the Middle
East and Africa. Vaughan then moved
to BHP Coal Australia Pty Limited in
1986 as manager of their marketing
operations. After returning from Australia,
Vaughan became Deputy Managing
Director at BHP Minerals Europe Limited
in 1988 and subsequently Managing
Director in 1990. Vaughan then became
Vice President Marketing at BHP Billiton
Diamonds Inc in 2000 where he
remained until 2003. He joined the
Group in 2004.
John Hodgson
Marketing Director
John Hodgson commenced his career
with the National Coal Board in 1964 as
a chemist in the scientific department
from where he progressed to assistant
regional marketing and preparation
officer in 1975. In 1981 John joined
Burnett & Hallamshire Fuels plc as
Production Director responsible for the
production and marketing of coal from
twelve coal washing operations. In 1984
John transferred to Rushcliffe Fuels
Limited and was Managing Director
from 1989 to 1993. John joined British
Fuels in 1993 as General Manager of
the International and Sourcing Division,
responsible for sourcing the entire
company’s solid fuel requirements.
John joined the Group in 1998 as its
Marketing Director. 
Ivana Slade
Non-executive Director
Ivana Slade is the representative
of The Alchemy Plan on the Board.
Ivana has been an Investment
Executive at Alchemy Partners since
2001. Previously Bear Stearns in
London and New York, Ivana worked
in the mergers and acquisitions team.
She holds a masters degree in Business
Administration and Economics from
the University of St Gallen, Switzerland.
The Alchemy Plan is entitled to appoint
a director to the Board for as long
as it retains an interest in 10% or more
of the Company’s issued share capital. 
David Port FCMA
Non-executive Chairman
Tom Allchurch
Chief Executive 
Mike Tod MRICS
Development Director 
John Hodgson
Marketing Director 
Richard Croston ACA
Finance Director and
Company Secretary
Alistair Black MBA
Operations Director 
Vaughan Williams
Non-executive Director
Ivana Slade
Non-executive Director
 ATH Resources plc Annual report and financial statements 2004 7
Site locations
Company information
Directors
D C Port
Non-executive Chairman
T J Allchurch
Chief Executive
M T W Tod
Development Director
J K Hodgson
Marketing Director
R A Croston
Finance Director
A Black
Operations Director
V M F Williams
Non-executive Director
I Slade
Non-executive Director
Secretary
R A Croston
Registered office
Richmonds House
White Rose Way
Doncaster DN4 5JH
Company number
4928463
Bankers
Bank of Scotland
110 Queen Street
Glasgow G1 3BY
Solicitors
Eversheds
Cloth Hall Court
Infirmary Street
Leeds LS1 2JB
Auditors
Baker Tilly
2 Whitehall Quay
Leeds LS1 4HG
Nominated adviser and broker
Seymour Pierce Limited
Bucklersbury House
3 Queen Victoria Street
London EC4N 8EL
Financial PR advisors
Abchurch Communications Limited
100 Cannon Street
London EC4N 6EU
Registrar
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Muir Dean
Skares Road
& Garleffan
Doncaster
Bertholene
Commentry
United Kingdom France
 8 ATH Resources plc Annual report and financial statements 2004
The Directors submit their report and the audited financial statements of ATH Resources plc for the period ended 26 September 2004.
Principal activities
The principal activity of the Company is that of a holding company. The principal activity of the Group is the operation of opencast coal sites and
subsequent sale to UK electricity generators, industrial and domestic customers. The Group operates under the title of ATH Resources.
Review of developments and future prospects
The Company was incorporated on 10 October 2003 as Ever 2206 Limited and changed its name to ATH Resources Limited on 13 November 2003.
On 14 November 2003 the authorised share capital was increased to £100,000 consisting of 100,000 ordinary shares of £1 each. These were
reclassified as 75,720 ‘A’ ordinary shares and 24,280 ‘B’ ordinary shares.
On 28 November 2003 19,470 ‘A’ ordinary shares and 24,280 ‘B’ ordinary shares were issued at par for cash.
On 28 November 2003 the Company acquired the whole of the issued share capital of Aardvark TMC Limited for a total consideration of £5,907,000.
The consideration was satisfied by means of a loan note being granted to the members of Aardvark TMC Limited, which attracted interest at the rate
of 12% per annum, and the issue of 56,250 ‘A’ ordinary shares. The loan notes were redeemed on the listing of the Company.
On the same day the Company acquired the whole of the issued share capital of ATH Garleffan Limited at par. On 28 November 2003
ATH Garleffan Limited acquired the Garleffan opencast coal mine from LAW Mining Limited.
On 1 April 2004 the share capital was further increased to £102,895 by the creation of 2,895 ‘B’ ordinary shares of £1 each which were issued at
par for cash.
On 26 May 2004 the Company was re-registered as a public limited company and its name changed to ATH Resources plc.
On 7 June 2004 the authorised and issued ordinary shares were reclassified as ordinary shares of £1 each, the authorised share capital was
increased from £102,895 to £1,000,000, the authorised and issued ordinary shares were subdivided by 200 into ordinary shares of 0.5p each.
On 11 June 2004 the Company issued a further 9,191,176 ordinary shares to the general public via an initial public offering when the Company listed
on the Alternative Investment Market (“AIM”) of the London Stock Exchange at an issue price of £1.36 per ordinary share.
The Group’s trading performance for the period was in line with Directors’ expectations which was influenced by the planned re-engineering of the
recently acquired Garleffan site in order to improve operational efficiencies supported by a strong performance at the Skares Road site.
Statement of Directors’ responsibilities
Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the
Group and of the profit or loss of the Group for that period. In preparing those financial statements, the Directors are required to:
•
select suitable accounting policies and then apply them consistently;
•
make judgements and estimates that are reasonable and prudent;
•
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial
statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the
Group and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 1985. They are also responsible
for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors’ report
 ATH Resources plc Annual report and financial statements 2004 9
Directors
The Directors in office during the period under review and their interests in the equity of the Company were:
26 September 2004
Ordinary shares
D C Port appointed 28 November 2003 334,400
T J Allchurch appointed 14 November 2003 2,089,600
M T W Tod appointed 28 November 2003 1,393,000
J K Hodgson appointed 28 November 2003 614,600
R A Croston appointed 28 November 2003 418,000
A Black appointed 28 November 2003 501,800
J P Moulton appointed 28 November 2003 – resigned 12 May 2004 —
V M F Williams appointed 12 May 2004 1,400
I Slade appointed 12 May 2004 —
Everdirector Limited appointed 10 October 2003 – resigned 14 November 2003 —
The Directors, other than V M F Williams, held their interests in the equity of the Company at the date of appointment.
At 26 September 2004, I Slade had a beneficial interest in 7,791,059 ordinary shares of the Company through the Alchemy Investment Plan 
Co-investment Scheme.
Substantial shareholdings
The Company has been informed that on 1 December 2004 the following shareholders held substantial holdings in the issued ordinary shares 
of the Company:
Number of Holding
ordinary shares %
Alchemy Partners Nominees Limited 7,791,059 26
Framlington High Income Fund 2,550,000 9
T J Allchurch 2,089,600 7
Shires Smaller Companies plc 1,445,329 5
M T W Tod 1,393,000 5
ABN Amro High Income Fund 1,273,705 4
Shires Income plc 1,115,854 4
Universities Superannuation Share 1,048,195 4
Gartmore UK Equity Income Fund 918,761 3
Payment policy
It is the Group’s policy to pay suppliers in accordance with agreed terms, provided the supplier has also complied with agreed terms and conditions.
At 26 September 2004, the trade creditors of the Group represented 52 days of purchases.
Auditors
A resolution to appoint Baker Tilly as auditors will be proposed at the Annual General Meeting (“AGM”).
By order of the Board
R A Croston
Secretary
7 December 2004
 10 ATH Resources plc Annual report and financial statements 2004
Introduction
ATH Resources plc was listed on AIM on 11 June 2004. Although the rules of AIM do not require the Company to comply with the Combined Code on
Corporate Governance (“the Code”), the Company fully supports the principles set out in the Code and will attempt to comply wherever possible, given
both the size and resources available to the Company. Details are provided below of how the Company applies the Code.
The Board
The Board of Directors comprises five Executive Directors, two independent Non-executive Directors, one of whom is the Chairman and an
Alchemy Plan nominated Non-executive Director.
The Board generally meets each month and receives a Board pack comprising individual reports from each of the Executive Directors together with
any other material deemed necessary for the Board to discharge its duties. It is the Board’s responsibility for formulating, reviewing and approving the
Group’s strategy, budgets, major items of expenditure and acquisitions.
Board Committees
The Board has established three committees; Audit, Remuneration and Nominations, all having written terms of delegated responsibilities.
Audit Committee
The Audit Committee comprises the three Non-executive Directors and is scheduled to meet twice a year. It is the Audit Committee’s role to provide
formal and transparent arrangements for considering how to apply the financial reporting and internal control requirements of the Code, whilst
maintaining an appropriate relationship with the independent auditors of the Group. In order to comply with the requirement of the Code that at least
one member has relevant financial experience, the Chairman of the Board sits on the Audit Committee. 
Remuneration Committee
The Remuneration Committee comprises the three Non-executive Directors and the Chief Executive, and meets at least once a year, normally in June.
It is the Remuneration Committee’s role to establish a formal and transparent policy on Executive remuneration and to set remuneration packages for
individual Directors.
Nominations Committee
The Nominations Committee comprises the three Non-executive Directors and the Chief Executive, and meets as required to consider and make
recommendations on the appointment of Directors to the Board.
Shareholder relations
The Company meets with its institutional shareholders and analysts as appropriate and will use the AGM to encourage communication with private
shareholders. In addition, the Company intends to use the annual report and accounts, interim statement and web site (www.ath.co.uk) to provide
further information to shareholders.
The Board considers Vaughan Williams to be the Senior Independent Director.
Internal control and risk management
The Board is responsible for the system of internal control and for reviewing its effectiveness. Such systems are designed to manage rather than
eliminate risks and can provide only reasonable and not absolute assurance against material misstatement or loss. Each year, on behalf of the Board,
the Audit Committee reviews the effectiveness of these systems. This is achieved primarily by considering the risks potentially affecting the Group and
from discussions with the external auditors. 
The Group does not currently have an internal audit function due to the small size of the administrative function, which amounts to six people, and the
high level of Director review and authorisation of transactions.
A comprehensive budgeting process is completed once a year and is reviewed and approved by the Board. The Group’s results, as compared
against budget, are reported to the Board on a monthly basis and discussed in detail at each meeting of the Board.
The Group maintains appropriate insurance cover in respect of legal actions against the Directors as well as against material loss or claims against
the Group and reviews the adequacy of the cover regularly.
Corporate governance report
 ATH Resources plc Annual report and financial statements 2004 11
Introduction
Companies trading on AIM are not required to provide a formal remuneration report. However, in line with current best practice this report provides
information to enable a greater level of understanding as to how Directors’ remuneration is determined.
The Remuneration Committee of the Board is responsible for considering Directors’ remuneration packages and makes its recommendations to the
Board. The Committee comprises the three Non-executive Directors and meets at least once a year, normally in June.
Remuneration policy
Remuneration packages are designed to be competitive and to reward above average performance. Executive Directors receive salary, fully financed
company car, death in service benefit, critical illness and medical cover, pension contribution, annual bonuses and share options.
Service contracts
The Executive Directors have service agreements with the Company dated 28 November 2003 for an initial twelve months, thereafter subject to
termination upon twelve months’ notice being given by either party.
Pensions
The Group does not have a pension scheme, instead makes contributions to Executive Directors’ personal pension schemes of 12.5% of annual salary.
Performance incentives
The Group operates an annual cash bonus scheme and grants share options.
The annual bonus scheme provides for a maximum bonus of 30% of salary to be paid by reference to: achievement of a Group earnings target (10%);
surpassing the earnings target (10%) and individual personal targets (10%).
The Company has the following share incentive arrangements:
•
an Inland Revenue Approved Executive Share Option Scheme (“Approved Scheme”);
•
an Unapproved Executive Share Option Scheme (“Unapproved Scheme”); and
•
a Long Term Incentive Plan (“LTIP”) (together “the Schemes”).
Under the Approved Scheme an option may only be exercised during the period commencing 2 November 2007 and ending on 31 October 2014
provided that the Group’s earnings pre-tax in the three year period from 1 October 2003 to 30 September 2006 is at least 38.68p. The exercise price
per share is £1.49.
Under the Unapproved Scheme an option may only be exercised during the period commencing 12 June 2007 and ending on 10 June 2014 provided
that the Group’s earnings pre-tax in the three year period from 1 October 2003 to 30 September 2006 is at least 38.68p. The exercise price per share
is £1.36.
Under the LTIP an award will only vest (allowing the Award Holder to call for the shares subject to the Award) if earnings per share of the Company in
the three year period from 1 October 2003 to 30 September 2006 is at least 64.42p. No consideration is to be paid by award holders on vesting.
None of the option shares or LTIP require payment to be made by participants to receive the benefit of an option.
The options and awards have been granted pursuant to the Schemes to the following Directors:
Approved Unapproved LTIP
T J Allchurch 20,134 335,000 335,000
M T W Tod 20,134 220,000 240,000
J K Hodgson 20,134 150,000 170,000
R A Croston 20,134 150,000 170,000
A Black 20,134 150,000 170,000
The LTIP awards and the Unapproved Scheme share options were granted on 11 June 2004 and the Approved Scheme share options were granted
on 1 November 2004 following the approval for the scheme by the Inland Revenue.
Remuneration committee report
 Remuneration committee report
12 ATH Resources plc Annual report and financial statements 2004
Non-executive Directors
The Non-executive Directors entered into Letters of Appointment dated 12 May 2004. Both D C Port and V M F Williams were appointed for an initial
three year term, which can be terminated upon six months’ notice being given by either party. They receive a fee of £50,000 and £20,000 respectively.
I Slade is The Alchemy Plan nominated Non-executive Director and replaced J P Moulton in that role. The Group pays an annual fee of £20,000 to Alchemy
Partners in respect of this appointment. Fees of £55,180 were paid to Alchemy Partners in the period. If the Alchemy Plan’s shareholding in the Company
falls below 10% of the issued share capital the right to appoint ceases.
Directors’ remuneration
Details of Directors’ remuneration are set out below:
Salary Benefits Bonus Emoluments Pension Total
££££££
Executive Directors
T J Allchurch 95,209 10,224 40,000 145,433 11,901 157,334
M T W Tod 68,708 8,154 20,000 96,862 8,589 105,451
J K Hodgson 52,917 12,642 11,478 77,037 6,614 83,651
R A Croston 46,958 10,113 93,042 150,113 5,686 155,799
A Black 49,125 9,058 73,572 131,755 5,942 137,697
Non-executive Directors
D C Port 30,208 — 104,000 134,208 — 134,208
V M F Williams 7,500 — — 7,500 — 7,500
I Slade ——————
Total 350,625 50,191 342,092 742,908 38,732 781,640
Bonus payments to T J Allchurch and D C Port of £40,000, and M T W Tod and R A Croston of £20,000 respectively were paid following the successful
listing of the Company on AIM. D C Port, R A Croston and A Black each received a bonus of £64,000 on the purchase of Aardvark TMC Limited
representing their accrued rights under a Shadow Share Scheme. The balance of bonus payments was due from the winding up of the Aardvark TMC Limited
Employee Share Option Scheme.
 ATH Resources plc Annual report and financial statements 2004 13
We have audited the financial statements on pages 14 to 30.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditors’ report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom
Accounting Standards are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the Company
has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information
specified by law regarding Directors’ remuneration and transactions with the Company is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other
information comprises only the Chairman’s Statement, the Chief Executive’s Statement, the Financial Review and the Directors’ Report. We consider
the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements.
Our responsibilities do not extend to any other information.
Basis of opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates
and judgements made by the Directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the
Company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of the Company and Group’s affairs at 26 September 2004 and of the
Group profit for the period then ended and have been properly prepared in accordance with the Companies Act 1985.
Baker Tilly
Registered Auditor
Chartered Accountants
2 Whitehall Quay
Leeds
LS1 4HG
7 December 2004
Independent auditors’ report
To the members of ATH Resources plc
 14 ATH Resources plc Annual report and financial statements 2004
Consolidated profit and loss account
For the period ended 26 September 2004
Notes £ £ 
Turnover 1 31,390,930 
Cost of sales (27,267,466)
Gross profit 4,123,464
Administrative expenses (2,976,607)
Exceptional legal and professional costs (358,464)
Other operating income 578,625
(2,756,446)
Operating profit 2 1,367,018 
Interest receivable 3 13,535 
Interest payable and similar charges 4 (1,115,920)
(1,102,385)
Profit on ordinary activities before taxation 264,633
Tax on profit on ordinary activities 6 (174,432)
Profit on ordinary activities after taxation 90,201
Retained profit for the period 20 90,201
Basic and diluted earnings per share 7 0.44p
The profit on ordinary activities before taxation arises from the Group’s operations, all of which were acquired on 28 November 2003 and which 
are continuing.
There are no recognised gains or losses other than as stated in the profit and loss account.
 ATH Resources plc Annual report and financial statements 2004 15
Consolidated balance sheet
As at 26 September 2004
Notes £ £ 
Fixed assets
Goodwill 8 6,148,116 
Site development costs 9 606,741 
Tangible fixed assets 10 10,590,022 
Investments 11 2 
17,344,881
Current assets
Stocks 12 5,007,841 
Debtors 13 8,115,563 
Cash at bank 2,525,196
15,648,600
Creditors: amounts falling due within one year 14 (11,080,880)
Net current assets 4,567,720
Total assets less current liabilities 21,912,601
Creditors: amounts falling due after more than one year 15 (4,010,044)
Provisions for liabilities and charges 17 (6,262,090)
Net assets 11,640,467
Capital and reserves
Called up share capital 18 148,851 
Share premium account 19 11,401,415 
Profit and loss account 20 90,201 
Equity shareholders’ funds 21 11,640,467
Approved by the Board on 7 December 2004
T J Allchurch
Director
 16 ATH Resources plc Annual report and financial statements 2004
Notes £ £ 
Fixed assets
Investments 11 5,907,001 
Current assets
Debtors 13 5,170,492 
Cash at bank 92,734
Net current assets 5,263,226
Total assets less current liabilities 11,170,227
Net assets 11,170,227
Capital and reserves
Called up share capital 18 148,851 
Share premium account 19 11,401,415 
Profit and loss account 20 (380,039)
Equity shareholders’ funds 21 11,170,227
Approved by the Board on 7 December 2004
T J Allchurch
Director
Company balance sheet
As at 26 September 2004
 ATH Resources plc Annual report and financial statements 2004 17
Notes £ £ 
Net cash flow from operating activities 25a 8,677,466 
Returns on investment and servicing of finance
Interest received 13,535
Interest paid (655,513)
Interest element of finance leases (274,182)
(916,160)
Taxation paid (668,796)
Capital expenditure
Payments to acquire tangible fixed assets (514,712)
Receipts from sales of tangible fixed assets 575,813
Acquisitions
Net overdrafts acquired with subsidiary 25e (1,626,037)
Purchase of business (5,835,000)
(7,399,936)
Cash flow before financing (307,426)
Financing
Issue of ordinary shares 11,494,016
New secured loan 3,000,000
Repayment of secured loan (3,050,000)
Issue of loan notes 1,480,530
Repayment of loan notes (7,331,280)
Capital element of finance lease payments (2,760,644)
2,832,622
Increase in cash 25c 2,525,196
Consolidated cash flow statement
For the period ended 26 September 2004
 18 ATH Resources plc Annual report and financial statements 2004
Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
Accounting period
The Company has drawn up its accounts for the period from incorporation to 26 September 2004.
Consolidation
The accounts consolidate the accounts of the Company and all of its subsidiary undertakings other than as stated below. The results of subsidiaries
acquired during the period are included from the effective date of acquisition.
The accounts do not consolidate the results of the French subsidiary, Société des Ressources Minières du Massif Central (“SRMMC”), as it is not
material for the purposes of giving a true and fair view (note 11).
The accounts do not consolidate the results of Aardvark (ESOP) Limited as it is considered dormant for the period and is not material for the purposes
of giving a true and fair view. The Trustees intend to wind up the ESOP as it has no further interest in the shares of Aardvark TMC Limited, a subsidiary
of the Group.
Aardvark TMC Limited (“Aardvark”) has 20,000 ‘B’ ordinary shares, subscribed at nominal value of 1p each, in addition to the ordinary shares wholly
owned by ATH Resources plc.
The ‘B’ ordinary shares only carry the rights to receive a one off dividend in the event that Aardvark TFC Limited or SRMMC (Aardvark’s subsidiary and
sub-subsidiary) are awarded damages in respect of existing and future litigation against the French State. The ‘B’ ordinary shares carry no voting rights
or rights to receive any other dividend. As a result the ‘B’ ordinary shares are not accounted for as a minority interest.
The Company has not presented its own profit and loss account, as permitted by Section 230(4) of the Companies Act 1985.
Site development expenditure costs
The costs of prospecting and identifying new sites are expensed until such time that a prospective site is considered by the Board to be economically
viable and that there is a high degree of probability and commitment that the site will be worked. Costs then incurred in preparing and developing
sites are capitalised up to the start of production. Upon commencement of production, depreciation is charged on a tonnage basis.
Goodwill
Consolidated goodwill, being the excess consideration over the fair values of the assets acquired on the purchase of subsidiary undertakings,
is capitalised and charged to profit over ten years. Goodwill in respect of the asset purchase of the Garleffan site is charged to profit on a tonnage
basis over the estimated total recoverable reserves.
Tangible fixed assets
Depreciation is provided on cost in annual instalments over the estimated useful life of assets which are reviewed annually. The rates of depreciation
are as follows:
Freehold land – production sites Tonnage basis over the estimated total recoverable reserve
– non-production Not depreciated
Plant and machinery 20 – 50%
Fixtures, fittings and equipment 20 – 25%
Motor vehicles 20 – 33.3%
Accounting policies
 ATH Resources plc Annual report and financial statements 2004 19
Stocks and work in progress
Stocks and work in progress are valued at the lower of cost and net realisable value. 
Finance leases and hire purchase contracts
Tangible assets acquired under finance leases and hire purchase contracts are capitalised at the estimated fair value at the date of inception of each
lease or contract. The total finance charges are allocated over the period of the lease in such a way as to give a reasonably constant charge on the
outstanding liability.
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits
on a straight line basis over the period of the lease.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the Group’s taxable profits and its results as stated in the financial statements that arise from the inclusion of
gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, based
on tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
Pension contributions
The Group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their personal pension policies.
The contributions due for the period are charged to the profit and loss account.
Capital instruments
Capital instruments are accounted for and classified as equity or non-equity share capital according to their form.
Final void provisions
Following the conclusion of coal extraction the final working void of an opencast coal site must be back filled. The total cost of this operation is
recognised as a provision on site commissioning when the obligation arises. The amount provided represents the present value of the expected costs.
Costs are charged to the provision as incurred and the unwinding of the discount, being the difference between the present value and the total cost of
the provision, is included in the interest charge for the period. An asset is created for an amount equivalent to the initial provision. This is charged to
the profit and loss account on a tonnage basis over the estimated life of the recoverable reserves.
Turnover
Turnover represents the invoiced value, net of Value Added Tax, of goods sold to customers. 
Employee share schemes
The Company operates a number of share based incentives as outlined in the Remuneration Committee’s Report. The cost of awards to employees,
being the difference between the market price at the date of award and the amount of consideration due, is recognised over the period of the
employee’s related performance where there is a reasonable expectation that the performance criteria will be met.
Financial instruments
Income and expenditure arising on financial instruments are recognised on an accruals basis and credited or charged to the profit and loss account 
in the financial period to which they relate.
 20 ATH Resources plc Annual report and financial statements 2004
1 Turnover and segmental reporting
The Group’s turnover was derived from its principal activity undertaken wholly within the UK. 
2 Operating profit
£
Operating profit is stated after charging:
Depreciation of tangible assets
Owned assets 1,126,253
Leased assets 1,584,631
Amortisation of site development costs 493,001
Amortisation of goodwill 1,872,806
Rentals under operating leases
Plant and machinery 2,996,036
Land and buildings 16,084
Auditors’ remuneration – audit 20,000
– tax 8,425
– corporate finance 62,375
– AIM listing (£91,743 debited to share premium) —
3 Interest receivable
£
Other interest receivable 13,535
4 Interest payable and similar charges
£
Loan stock interest 488,526
Bank overdraft and loan interest 166,987
Finance lease interest 274,182
Restoration provision discount 186,225
1,115,920
Notes to the financial statements
For the period ended 26 September 2004
 ATH Resources plc Annual report and financial statements 2004 21
5 Employees
Staff costs during the period (including Directors) £
Wages and salaries 4,914,979
Redundancy costs 74,885
Social security costs 515,034
Pension costs 37,248
5,542,146
Average number of employees No.
Office and management 22
Production 152
174
Directors’ emoluments £
Directors’ emoluments 742,908
Pension contributions 38,732
781,640
Highest paid Director
Emoluments 145,433
Pension contributions 11,901
157,334
During the period, fees of £55,180 were paid to Alchemy Partners LLP for the services of I Slade and J P Moulton.
6 Taxation 
Group £
Corporation tax:
Current year 407,894
Deferred taxation (233,462)
174,432
 22 ATH Resources plc Annual report and financial statements 2004
Notes to the financial statements
For the period ended 26 September 2004
6 Taxation (continued)
The tax assessed for the period is higher than the standard rate of corporation tax as explained below:
Group £
Profit on ordinary activities before taxation 264,633
Profit on ordinary activities multiplied by standard rate of tax for the period of 30% 79,390
Effect of expenses not allowable for tax purposes 76,883
Effect of depreciation in excess of capital allowances 218,195
Effect of short-term timing differences 33,426
Total current tax 407,894
7 Earnings per share
Basic and diluted earnings per share is calculated on profit after tax of £90,201 and a weighted average number of shares of 20,302,635. The diluted
earnings per share takes account of share options outstanding. However, as the performance criteria for the share options had not been met, there is
no adjustment to the weighted average number of shares.
8 Goodwill
Group £
Arising on acquisition of subsidiary (note 25e) 1,972,128
Arising on purchase of business 6,048,794
26 September 2004 8,020,922
Amortisation
Charge in the period 1,872,806
26 September 2004 1,872,806
Net book value
26 September 2004 6,148,116
During the period ATH Garleffan Limited, a subsidiary of the Group, purchased the Garleffan opencast coal mine from LAW Mining Limited along with
certain related assets and liabilities. The following values are considered by the Directors to materially equate to fair value:
£
Tangible fixed assets 3,199,427
Stocks and work in progress 2,500,000
Finance leases and hire purchase contracts (1,438,221)
4,261,206
Goodwill 6,048,794
10,310,000
Cash consideration – on completion 1,725,000
– deferred (note 15) 8,585,000
10,310,000
 ATH Resources plc Annual report and financial statements 2004 23
9 Site development costs
Group £
Cost
Subsidiary acquired 1,099,742
26 September 2004 1,099,742
Amortisation
Charge in the period 493,001
26 September 2004 493,001
Net book value
26 September 2004 606,741
10 Tangible fixed assets
Freehold Plant and Motor 
land machinery vehicles Total 
Group £ £ £ £ 
Cost
Subsidiary acquired 2,090,847 5,149,084 — 7,239,931 
Additions 688,000 5,810,883 49,335 6,548,218 
Disposals — (572,239) — (572,239)
26 September 2004 2,778,847 10,387,728 49,335 13,215,910 
Depreciation
Charge in the period 642,262 2,058,344 10,278 2,710,884 
Disposals — (84,996) — (84,996)
26 September 2004 642,262 1,973,348 10,278 2,625,888 
Net book value
26 September 2004 2,136,585 8,414,380 39,057 10,590,022 
Finance lease agreements
Depreciation charge — 1,574,353 10,278 1,584,631 
Net book value — 7,122,046 39,057 7,161,103 
 24 ATH Resources plc Annual report and financial statements 2004
Notes to the financial statements
For the period ended 26 September 2004
11 Investments
Group Company 
Investments in subsidiary undertakings £ £ 
Cost
Additions 2 5,907,001 
26 September 2004 2 5,907,001 
Country of Type Proportion of Proportion of Nature of 
registration of shares voting rights held shareholding business
Name of company directly owned
Aardvark TMC Limited England Ordinary 100% 100% Opencast coal mining
ATH Garleffan Limited England Ordinary 100% 100% Opencast coal mining
Held by subsidiary
Aardvark TFC Limited England Ordinary 100% 100% Intermediate holding company
Aardvark (ESOP) Limited England Ordinary 100% 100% Corporate trustee to Aardvark 
Qualifying Employee Share 
Ownership Trust
Société des Ressources France Ordinary 100% 100% Coal prospecting
Minières du Massif Central (“SRMMC”)
Aardvark TMC Limited has 20,000 ‘B’ ordinary shares, subscribed at nominal value of 1p each, in addition to the ordinary shares wholly owned
by ATH Resources Limited.
The ‘B’ ordinary shares carry the rights only to receive a one off dividend in the event that its subsidiary, Aardvark TFC Limited or its subsidiary,
is awarded damages in respect of the existing and future litigation against the French State. The ‘B’ ordinary shares carry no voting rights or rights
to receive any other dividend. As a result the ‘B’ ordinary shares are not accounted for as a minority interest.
Aardvark (ESOP) Limited acts as corporate trustee to the Aardvark Qualifying Employee Share Ownership Trust, an employee share ownership plan
(“ESOP”) registered with the Inland Revenue, and holds shares in and for the benefit of the employees of Aardvark TMC Limited. All entries in the
financial records of the Company were in the capacity as Corporate Trustee to the ESOP and as such the Company is considered dormant.
SRMMC share capital and reserves at 31 December 2003 were €65,335 and the Company incurred a loss of €46,940 during that year. The Group
provided funding to the Company of £24,000 during the period to 26 September 2004, which has been charged to profit. There were no balances
owing at the balance sheet date.
Aardvark TFC Limited, Aardvark (ESOP) Limited and SRMMC are not consolidated in the accounts as they are not considered material for the
purposes of giving a true and fair view.
12 Stocks
Group Company 
££ 
Coal stocks 838,246 —
Work in progress 4,123,347 — 
Other stocks 46,248 — 
5,007,841 — 
 ATH Resources plc Annual report and financial statements 2004 25
13 Debtors
Group Company 
££ 
Amounts due from subsidiary undertakings — 5,170,492 
Trade debtors 4,483,175 —
Restoration asset 2,777,626 —
Prepayments and accrued income 174,254 — 
Other debtors 9,200 — 
Deferred taxation asset 671,308 — 
8,115,563 5,170,492 
The restoration asset falls due after more than one year.
Deferred taxation asset (Group) £
Subsidiary acquired 437,846
Profit and loss account credit 233,462
26 September 2004 671,308
The deferred tax asset comprises the following amounts:
£
Depreciation in excess of capital allowances 637,882
Other timing differences 33,426
26 September 2004 671,308
14 Creditors: amounts falling due within one year
Group Company 
££ 
Bank loan (note 15) 50,000 — 
Finance leases and hire purchase contracts (note 15) 2,963,960 — 
Trade creditors 3,032,136 — 
Corporation tax 335,144 — 
Other taxation and social security 860,558 — 
Other creditors 143,277 — 
Deferred consideration (note 15) 3,150,000 — 
Accruals and deferred income 545,805 — 
11,080,880 — 
 26 ATH Resources plc Annual report and financial statements 2004
15 Creditors: amounts falling due after more than one year 
Group Company 
££ 
Bank loan 344,500 — 
Finance leases and hire purchase contracts 2,340,544 — 
Deferred consideration 1,325,000 — 
4,010,044 — 
Amounts included above are repayable over varying periods by monthly instalments as follows:
Finance leases
and hire purchase Deferred
Bank loan contracts consideration
£££ 
Within one year 50,000 2,963,960 3,150,000
More than one year but not more than two years 50,000 1,460,132 1,325,000
More than two years but not more than five years 150,000 880,412 — 
Five years or more 144,500 — —
394,500 5,304,504 4,475,000
The bank loan is secured by a fixed charge over certain assets of the Group. The Company is party to a cross guarantee with its subsidiary
undertakings in respect of bank loans and overdrafts held by Group companies which are secured by debentures over the assets of the Group.
Obligations under finance leases and hire purchase contracts are secured on the related assets.
16 Financial instruments
The Group’s financial instruments comprise bank loans, cash and finance leases and hire purchase contracts. The purpose of these financial
instruments is to finance the Group’s operations. All are considered to be stated at fair value. Short-term debtors and creditors have been omitted
from all disclosures.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments shall be undertaken. The main risk
arising from the Group’s financial instruments is interest rate risk. 
The bank loan is secured by a fixed charge over certain assets of the Group. The bank loan is repayable over eight years and bears interest based on
the bank’s base rate plus 2%. 
Finance leases and hire purchase contracts are secured on the specific asset to which the agreement relates and are on fixed rate terms.
The weighted average interest rate is 7%.
17 Provisions for liabilities and charges
Group Company 
££ 
Final void provision
Subsidiary acquired 2,964,463 —
Created in the period 4,095,000 — 
Unwinding of discount 186,225 — 
Released to profit and loss (983,598) — 
26 September 2004 6,262,090 — 
The £983,598 released to profit in the period was offset by an adjustment in respect of the restoration asset of £369,189.
Notes to the financial statements
For the period ended 26 September 2004
 ATH Resources plc Annual report and financial statements 2004 27
18 Called up share capital
Allotted, called up
Authorised and fully paid 
no. of shares no. of shares £ 
Ordinary shares of 0.5p each 200,000,000 29,770,176 148,851
The Company was incorporated on 10 October 2003 with an authorised share capital of £1,000 divided into 1,000 ordinary shares of £1 each of which
one was issued.
On 14 November 2003 the authorised share capital was increased to £100,000 consisting of 100,000 ordinary shares of £1 each. These were
reclassified as 75,720 ‘A’ ordinary shares and 24,280 ‘B’ ordinary shares.
On 28 November 2003 19,470 ‘A’ ordinary shares and 24,280 ‘B’ ordinary shares were issued at par for cash.
On 28 November 2003 the Company issued 56,250 ‘A’ ordinary shares as part of the consideration for the acquisition of Aardvark TMC Limited.
On 1 April 2004 the share capital was further increased to £102,895 by the creation of 2,895 ‘B’ ordinary shares of £1 each which were issued at par
for cash.
On 7 June 2004 the authorised and issued ordinary shares were reclassified as ordinary shares of £1 each, the authorised share capital was
increased from £102,895 to £1,000,000, the authorised and issued ordinary shares were subdivided by 200 into ordinary shares of 0.5p each.
On 11 June 2004 the Company issued a further 9,191,176 ordinary shares to the general public via an initial public offering when the Company listed
on AIM.
19 Share premium account
Group Company 
££ 
Issue of ordinary shares 12,454,043 12,454,043 
Expenses of issue (1,052,628) (1,052,628)
11,401,415 11,401,415 
20 Profit and loss account
Group Company 
££ 
Retained profit/(loss) for the period 90,201 (380,039)
26 September 2004 90,201 (380,039)
21 Reconciliation of movement in shareholders’ funds
Group Company 
££ 
Issue of ordinary shares 11,550,266 11,550,266 
Profit/(loss) attributable to members of the Company 90,201 (380,039)
Net increase in shareholders’ funds 11,640,467 11,170,227 
Closing shareholders’ funds 11,640,467 11,170,227 
22 Pension commitments
The Group makes contributions to its employees’ own personal pension schemes. The contributions for the period of £37,248 are charged to the profit
and loss account.
 28 ATH Resources plc Annual report and financial statements 2004
23 Operating lease commitments
At 26 September 2004 the Group was committed to making the following payments during the next year in respect of operating leases:
£
Plant and machinery:
Leases which expire within one year 26,858
Leases which expire between two and five years 339,960
Land and buildings:
Leases which expire between two and five years 20,500
24 Capital commitments
At 26 September 2004 the Group was committed to acquiring plant and machinery: 
£
Contracted but not provided 2,529,000
25 Cash flows
a Reconciliation of operating profit to net cash inflow from operating activities £
Operating profit 1,367,018
Depreciation and amortisation 5,076,691
Profit on disposal of assets (88,570)
Decrease in stocks 1,708,593
Increase in debtors (3,925,856)
Increase in creditors and provisions 4,539,590
Net cash flow from operating activities 8,677,466
Acquisition
(excluding Other 
Cash flow net overdrafts) movements 26 September 2004 
b Analysis of net debt £ £ £ £ 
Cash at bank 2,525,196 — — 2,525,196 
Debt due within one year 5,850,750 (50,000) (5,850,750) (50,000)
Debt due beyond one year 50,000 (394,500) — (344,500)
Finance leases and hire purchase contracts 2,760,644 (3,792,848) (4,272,300) (5,304,504)
8,661,394
11,186,590 (4,237,348) (10,123,050) (3,173,808)
Notes to the financial statements
For the period ended 26 September 2004
 ATH Resources plc Annual report and financial statements 2004 29
25 Cash flows (continued)
c  Reconciliation of net cash inflow to movement in net debt £
Increase in cash 2,525,196
Cash flow from changes in debt 8,661,394
Change in net debt resulting from cash flows 11,186,590
Net debt acquired with subsidiary (4,237,348)
New debt issued (5,850,750)
New finance leases and hire purchase contracts (4,272,300)
Movement in net debt in period (3,173,808)
Net debt at 26 September 2004 (3,173,808)
d Other movements in net debt
During the period the Group entered into finance leases and hire purchase contracts arrangements in respect of assets with a total capital value at the
inception of the agreements of £4,272,300. 
Part of the consideration for the purchase of subsidiary undertakings, that occurred during the period, comprised shares and loan notes. Further
details of the acquisitions are set out below.
e Acquisitions of subsidiaries
On 28 November 2003 the Company acquired the whole of the issued share capital of Aardvark TMC Limited for a total consideration of £5,907,000.
The consideration was satisfied by means of a loan note being granted to the members of Aardvark TMC Limited, which attracted interest at the rate
of 12% per annum, and the issue of 56,250 ‘A’ ordinary shares.
£
Net assets acquired (fair value)
Site development costs 1,099,742
Tangible fixed assets 7,239,931
Investments 2
Stocks 4,216,434
Debtors 3,839,817
Bank overdrafts (1,626,037)
Bank loans (444,500)
Creditors (3,633,206)
Finance leases (3,792,848)
Provisions (2,964,463)
3,934,872
Goodwill (note 8) 1,972,128
5,907,000
Satisfied by:
Shares allotted 56,250
Loan notes 5,850,750
5,907,000
On the same day the Company acquired the whole of the issued share capital of ATH Garleffan Limited at par. On 28 November 2003 ATH Garleffan
Limited acquired the Garleffan opencast coal mine from LAW Mining Limited (note 8).
 30 ATH Resources plc Annual report and financial statements 2004
26 Related party transactions
During the period, the Group paid Alchemy Partners LLP £55,180 for the services of I Slade and J P Moulton, Non-executive Directors of the
Company. No balances were owed to Alchemy Partners LLP at 26 September 2004.
In addition, loan notes of £5,757,280 and interest of £382,960 thereon were repaid to the Alchemy Investment Plan Co-investment Scheme during
the period.
Also during the period, the Group repaid loan notes, deferred dividend and interest thereon to the following Directors and their spouses:
Capital Interest Total
£££
T J Allchurch 904,050 60,633 964,683
M T W Tod 602,700 40,422 643,122
J K Hodgson 265,897 17,833 283,730
D C Port 72,353 4,853 77,206
1,845,000 123,741 1,968,741
Notes to the financial statements
For the period ended 26 September 2004
 ATH Resources plc Annual report and financial statements 2004 31
Notice of annual general meeting
Notice is hereby given that the Annual General Meeting (“AGM”) of ATH Resources plc (the “Company”) will be held on Monday 10 January 2005,
at 11.00am at the offices of Eversheds LLP Solicitors, Cloth Hall Court, Infirmary Street, Leeds LS1 2JB for the following purposes:
Ordinary business
To consider and, if thought fit, pass the following ordinary resolutions.
1. To receive and adopt the Directors’ Report and financial statements for the period ended 26 September 2004.
2. To declare a final dividend for the period ended 26 September 2004 of 3.36p per ordinary share of 0.5p each in the capital of the Company
to be paid on 14 January 2005 to members whose names appear on the register of members at the close of business on 24 December 2004.
3. To re-elect T J Allchurch as a Director who retires by rotation in accordance with Article 111 of the Company’s Articles of Association and,
being eligible, offers himself for re-election.
4. To re-elect J K Hodgson as a Director who retires by rotation in accordance with Article 111 of the Company’s Articles of Association and,
being eligible, offers himself for re-election.
5. To re-elect A Black as a Director who retires by rotation in accordance with Article 111 of the Company’s Articles of Association and,
being eligible, offers himself for re-election.
6. To re-appoint Baker Tilly as auditors of the Company to hold office until the conclusion of the next AGM at which accounts are laid before the
Company and to authorise the Directors to fix their remuneration.
7. To receive and approve the Remuneration Committee Report.
Special business
To consider and, if thought fit, pass the following resolutions which will be proposed as to Resolution 8 as an Ordinary Resolution and as to
Resolutions 9 and 10 as Special Resolutions:
8. THAT, subject to and in accordance with Article 16 of the Articles of Association of the Company, the Directors be and they hereby are generally
and unconditionally authorised for the purposes of section 80 of the Companies Act 1985 (the “Act”) (in substitution for any existing authority to
allot relevant securities (within the meaning of section 80 of the Act)) to exercise all powers of the Company to allot, grant options over offer or
otherwise deal with or dispose of relevant securities up to an aggregate nominal value of £49,617, being approximately one third of the current
issued share capital of the Company, provided that this authority shall expire 15 months from the date of this resolution or at the conclusion
of the next AGM of the Company in 2006 whichever is earlier unless previously renewed, varied or revoked by the Company in General Meeting,
except that the Company may before such expiry make an offer or agreement which would or might require relevant securities of the Company
to be allotted after such expiry and the Directors may allot relevant securities in pursuance of that offer or agreement as if the authority conferred
by this Resolution had not expired.
9. THAT, subject to the passing of Resolution 8 as set out in this Notice of AGM and in accordance with Article 17 of the Articles of Association of
the Company the Directors be and hereby are generally empowered pursuant to section 95 of the Act to allot equity securities (in substitution for any
existing authority to allot equity securities (within the meaning of section 94 of the Act)) for cash, pursuant to the authority conferred by Resolution 8
as set out in this Notice of AGM, as if section 89(1) of the Act did not apply to such allotment, provided that this power shall be limited to the allotment
of equity securities.
(a) in connection with or pursuant to an offer by way of a rights issue, open offer or other pre-emptive offer in favour of ordinary shareholders
in proportion as nearly as practicable (but subject to such exclusions or other arrangements as the Directors may deem necessary or
desirable to deal with fractional entitlements or legal or practical problems under the laws of, or the requirements of, any regulatory body
or any stock exchange in, any territory) to the respective number of ordinary shares held by them; and
(b) to the allotment (otherwise than pursuant to subparagraph (a) above) of equity securities up to an aggregate nominal value of £7,443
and such power shall expire 15 months from the date of this Resolution or at the conclusion of the AGM of the Company to be held in 2006,
whichever is earlier, save that the Company may before such expiry make an offer or agreement which would or might require equity securities
to be allotted after such expiry and the Directors may allot equity securities in pursuance of such an offer or agreement as if the power conferred
hereby had not expired.
 32 ATH Resources plc Annual report and financial statements 2004
Special business (continued)
10. THAT, the Company be generally and unconditionally authorised pursuant to Article 9 of the Articles of Association of the Company and pursuant
to section 166 of the Act to make market purchases (as defined in Section 163 of the Act) of ordinary shares of 0.5p each in the capital of the
Company provided that:
10.1 the maximum number of shares hereby authorised to be purchased is 1,488,509 (being approximately 5% of the current issued ordinary
share capital of the Company);
10.2 the minimum price which may be paid for such shares is 0.5p per ordinary share being the nominal value thereof;
10.3 the maximum price (exclusive of expenses) which may be paid for such shares shall not be more than 105% of the average of the middle
market quotation for ordinary shares of 0.5p each in the capital of the Company for these shares taken from the listing of the Alternative
Investment Market of the London Stock Exchange plc over the five business days immediately preceding the day on which the contract for
purchase is made; and
10.4 the authority shall expire 15 months from the date of this resolution or at the conclusion of the next AGM of the Company in 2006 whichever
is earlier provided that the Company may before such expiry make a contract to purchase its own shares which would or might be executed
wholly or partly after such expiry and the Company may make a purchase of its own shares in pursuance of such contract as if the authority
conferred hereby had not expired.
By order of the Board
R A Croston
Company Secretary
7 December 2004
Notes
1. Any member entitled to attend and vote at the AGM is entitled to appoint one or more proxies (who need not be a member of the Company) to
attend and, on a poll, vote instead of the member. Completion and return of a form of proxy will not preclude a member from attending and voting
at the meeting in person, should he subsequently decide to do so.
2. In order to be valid, any form of proxy, power of attorney or other authority under which it is signed, or a notarially certified or office copy of such
power or authority, must reach the Company’s Registrars, Capita Registrars, Proxy Department, The Registry, 34 Beckenham Road, Beckenham,
Kent BR3 4TU, not less than 48 hours before the time of the meeting or of any adjournment of the meeting.
3. As permitted by Regulation 41 of the Uncertificated Securities Regulations 2001, shareholders who hold shares in uncertificated form must be
entered on the Company’s share register at 11.00 am on 6 January 2005 in order to be entitled to attend and vote at the AGM. Such shareholders
may only cast votes in respect of shares held at such time. Changes to entries on the relevant register after that time shall be disregarded in
determining the rights of any person to attend or vote at the meeting.
4. Copies of the service contracts of each of the Directors, and the register of Directors’ interests in shares of the Company kept pursuant to section
325 of the Act will be available for inspection at the registered office of the Company during usual business hours on any weekday (Saturdays and
public holidays excluded) from the date of this notice until the date of the AGM and at the place of the AGM from at least 15 minutes prior to and
until the conclusion of the AGM.
Notice of annual general meeting
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