Aardvark House
Sidings Court
Doncaster
DN4 5NU
Tel: +44 (0) 1302 760462
Fax: +44 (0) 1302 760463
Web: www.ath.co.uk
annual report and 
accounts 2010
Developing 
Producing 
Restoring
ATH ResouRces Plc annual report and accounts 2010 corporate statement
Developing 
Producing 
Restoring
ATH Resources operates surface coal 
mines and is one of the largest producers 
of coal in the uK, providing coal principally 
to the electricity supply industry and also 
the industrial and house coal markets.
ATH builds success through a strong 
reserves development focus, the use of 
modern surface mining equipment and 
effective control of production costs.
ATH Resources’ commitment to environmental issues is reflected in this annual 
report which has been printed on Satimatt Green and Revive 50 comprising 
50% recycled fibre and 50% virgin fibre certified by the FSC and produced at 
mills with ISO 14001 environmental management systems. This document was 
printed by Pureprint Group using, their environmental print technology which 
minimises the impact of printing on the environment. All energy used comes 
from renewable sources, vegetable based inks have been used and 94% of all 
dry waste associated with this production has been recycled. Pureprint Group 
is a CarbonNeutral
®
 printer. 01
ATH Resou Rces plc
annual report and accounts 2010
The year Governance Accounts
Highlights
Sales 
£78.3m
increased by £0.8m
A verage selling price
£43.70 per 
tonne
increased by 2.8%
 Proved coal reserves
6.1m tonnes
increased by 30% 
Net borrowings
£34.5m
reduced by £4.9m
The year
 IFc Corporate statement
 01 Highlights
 02 At a glance
 04 Chairman’s statement
 06 Chief executive’s statement
 10 Financial review
 12 Corporate social responsibility
Governance
 14 Board of directors and advisers
 16 Financial calendar
 17 Directors’ report
 20 Corporate governance report
 22 Remuneration committee report
Accounts 
 25  Independent auditors’ report for the 
Group accounts
 26 Consolidated income statement
 27 Consolidated balance sheet
 28  Consolidated statement of changes 
in equity
 29  Consolidated cash flow statement
 30 Group accounting policies
 36  Notes to the Group financial statements
 55  Independent auditors’ report for 
company accounts 
 56 Company balance sheet
 57 Company accounting policies
 58  Notes to the company 
financial statements
 60  Notice of annual general meeting
 63 Form of proxy
Sale of ATH Regeneration assets in 
July 2010 generating initial proceeds 
of £6.5 million
Final dividend of 2 pence per share making 
full year dividend of 3 pence per share 
(2009: 6.15 pence per share)
Profit before tax from continuing operations 
of £4.0 million / £2.4 million pre change 
in accounting policy (2009: £6.1 million / 
£8.1 million pre change in accounting policy) 02
ATH ResouRces plc
annual report and accounts 2010
Developing
The Group employs specialist staff to identify and evaluate 
potential new sites that contain sufficient reserves of high 
quality coal for economic extraction. Formal planning applications 
are prepared and submitted to replace the Group’s current coal 
production with new reserves, securing the long term sustainability 
of the business. 
1
2
From concept to site restoration, 
ATH Resources develops and operates 
surface coal mines.
our market 
The total market for coal in the UK in 2009 was around 49 million tonnes
Coal continues to be a major energy source in the UK, producing over 
30% of electricity generated in 2009
Around 80% of all coal used is deployed in the production of electricity 
with the remaining 20% being for industrial and domestic use
ATH supplies all three of these UK markets
At a glance
THe A TH pRocess 03
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Future strategy focus 
The replacement of below market legacy contracts 
with new sales contracts at current market prices
Increasing the Group’s Proved and Probable Reserves
Debt reduction
Delivery of a progressive dividend policy
DaviD Port ExEcutivE chairman
3
producing
The Group utilises modern plant and equipment to extract coal 
deposits from surface mines. The majority of coal is used in the 
power generation industry, whilst premium coals are supplied 
to the industrial and domestic markets, making the Group 
one of the largest producers of household coal in the UK.
Restoring
The Group, working closely with third parties including Local 
Authorities and Environmental Agencies, utilises innovative 
techniques to minimise its impact on the environment. 
Surface mines undergo progressive restoration during coal 
extraction periods and, following the completion of mining 
activities, land is returned to an agreed condition and profile.  04
ATH ResouRces plc
annual report and accounts 2010
chairman’s statement
DAvID poRT 
ExEcuTivE cHAiRmAn
introDuction
The financial year ended 3 October 2010 has been 
one of the most challenging in the Group’s history. 
The winter of 2009/10 began with significant levels 
of rainfall which flooded parts of Cumbria and 
severely restricted production from the Ayrshire 
mines. This was followed by some of the heaviest 
snowfall and coldest winter temperatures of the 
past century which slowed production and halted 
the Group’s 12 kilometre conveyor, preventing the 
delivery of coal to customers. These factors combined 
to produce a first half loss which the Group did 
well to recover from during the summer months. 
Sales for the year as a whole at 1.79 million tonnes 
were close to expectations, however the costs 
associated with recovering the production lost in 
the first half of the year were higher than expected.
results summary
On sales of £78.3 million (2009: £77.5 million) 
operating profit of the continuing activities totalled 
£7.0 million (2009: restated £9.0 million) reflecting 
the difficult conditions outlined above. Following 
the publication of a draft IFRIC Interpretation 
‘’Stripping Costs in the Production Phase of a 
Surface Mine”, the Board has reviewed its own 
accounting policies and has decided that it would 
be appropriate to change the way it accounts for 
work in progress, particularly when opening up a 
new mine. The adoption of the new policy has 
been dealt with as a prior year adjustment and 
resulted in a cumulative write-off of work in 
progress of £5.3 million. Operating profits have 
been reduced in 2009 by £2.0 million and increased 
in 2010 by £1.6 million. Further details of this 
change in accounting policy can be found in the 
Financial Review.
Profit before tax for the continuing operations for 
the year was £4.0 million (£2.4 million pre-change 
in accounting policy) compared with £6.1 million 
for the prior year (£8.1 million pre-change in 
accounting policy). After accounting for a loss on 
the disposal of the Group’s Regeneration business, 
the Group recorded a post tax loss for the year of 
£1.8 million, which compared with a profit of 
£2.6 million for the previous year.
Net borrowings fell by £4.9 million to £34.5 million.
DisPosal of atH regeneration
During the year, the Board reviewed the strategy 
of continuing to own and operate the Group’s 
Regeneration business. This business had not 
generated any income since the completion of its 
Grimethorpe contract in 2008 and although 
ATH Regeneration had recently been successful 
in securing planning for a new contract at Langton, 
there was no certainty that there would be any 
further contracts once this work had been completed. 
The Board decided that an offer 
from a European based private 
equity fund to acquire the assets 
of the Regeneration business 
would be in the best interests of 
the Group and its shareholders. 
As part of the Board changes 
following the sale of ATH 
Regeneration assets, I have taken 
on an Executive and Alistair Black 
has been promoted to the role of 
Chief Executive. In addition, on 
4 October 2010 Andrew 
Weatherstone was appointed as 
Group Finance Director.
The Board is recommending 
a final dividend of 2.0 pence per 
share (2009: 6.15 pence per share 
– this figure incorporated the 
deferred 2009 interim dividend).  05
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Significant effort had also been made to secure 
business in Australia, Europe and North America 
and whilst encouraging signals had been made by 
prospective customers, no firm commitment or 
timetable had been forthcoming. It also became 
apparent that the significant capital commitment 
necessary to develop this business and the resultant 
cash flows would be unattractive to the Group and 
its shareholders with no prospect of being able to 
maintain any meaningful dividend policy during the 
development years. It was against this backdrop 
that the Board decided that an offer from a European 
based private equity fund fronted by Tom Allchurch, 
the Group’s then Chief Executive and Steven Beaumont, 
the Group’s then Finance Director, to acquire the 
assets of the Regeneration business would be in 
the best interests of the Group and 
its shareholders. 
Initial sale proceeds of some £6.5 million, together 
with an option to take a further £2 million in 
respect of royalty payments in January 2011, plus 
the prospect of realising £2.5 million from the 
disposal of land and buildings in 2014 and further 
royalties between 2014 and 2017 of a further 
maximum of £3 million made the greater certainty 
of this cash flow against the uncertainty of continued 
ownership attractive. The Board has subsequently 
decided to exercise this option.
DiviDenD
Two new sites at Netherton and Duncanziemere are 
scheduled to open in the current financial year in 
order to replace production at the Samsiston site, 
which ceased production in September 2010 and 
the Skares Road mine which is anticipated to end 
in spring 2011. The cost of opening up these 
mines is expected to be approximately £14 million 
and whilst the Group can manage this cash 
requirement within its existing facilities, it was felt 
necessary to maintain a margin of headroom to 
allow for any additional cash expenditure that 
might follow any unexpected delays to its planned 
production. In the current banking environment 
the Group felt it prudent to reduce the cash call 
from paying its normal level of dividend in order to 
give the Group the maximum amount of flexibility 
whilst these new mines are brought to full production.
The Board is therefore recommending a final dividend 
of 2.0 pence per share (2009: 6.15 pence per share 
– this figure incorporated the deferred 2009 interim 
dividend), payable on 28 January 2011, subject to 
approval by the members at the Annual General 
Meeting to be held on 18 January 2011, to members 
on the share register at 14 January 2011.
tHe BoarD
Following the sale of the Regeneration business, 
Tom Allchurch stepped down as Chief Executive of 
the Group but remains a Non-executive Director. 
After ensuring a smooth transition, Tom Allchurch 
will stand down as a Director at the forthcoming 
Annual General Meeting in January. Steven Beaumont 
left his role as Group Finance Director at the end 
of the financial year. The Board would like to thank 
them both for their considerable contribution to 
the development of the Group and wish them 
every success with RecyCoal Limited in the future.
As part of the Board changes following the 
sale of the Regeneration assets, I have taken 
on an Executive role for a transitional period and 
Alistair Black, previously Group Operations Director, 
and who has been with the Group since 1998, 
has been promoted to the role of Chief Executive. 
In addition, on 4 October 2010, Andrew Weatherstone 
was appointed as Group Finance Director. Andrew 
joins the Group from Chapelthorpe plc and brings 
with him a wealth of experience in strategic, 
operational and corporate finance projects which 
will be of great value to the Group going forward.
ongoing strategy The business is now well positioned to concentrate 
its energies on maintaining and developing its 
surface mining business as one of the leading 
producers of coal in the UK.
Ongoing strategy will focus on:
  the replacement of below market legacy 
contracts with new sales contracts at current 
market prices;
 increasing the Group’s Proved and Probable Reserves;
 debt reduction; and
 delivery of a progressive dividend policy.
By selling the Group’s Regeneration business, the 
Board has reduced the volatility of the Group’s 
earnings, removed the potential for a substantial 
cash call that would have been necessary had the 
business expanded overseas, and remains focused 
on ensuring it retains its position as one of the 
lowest cost coal producers in the UK.
The investment in new mines, and record levels of 
reserves, give the Group the ability to fulfil existing 
fixed price contracts in a controlled and effective 
manner. There is now a sound platform on which 
to build growth, increase margins and deliver 
shareholder value. 
DaviD Port 
executive cHairman 06
ATH ResouRces plc
annual report and accounts 2010
Business review 
Chief executive’s statement
AlIsTAIR BlA ck 
cHiEF ExEcuTivE
review of tHe PerioD
The mining business continued to perform 
profitably for the period under review in the face 
of very challenging conditions. However, the Group 
reported a loss after tax of £1.8 million after 
allowing for a loss of £3.4 million on disposal of 
the Regeneration business. Cash generation was 
good with debt reduced by a further £4.9 million 
in the period. Proved Reserves at the end of the 
year were at a record level of 6.1 million tonnes, 
a 30% increase over the previous year.
oPerational review (continuing 
oPerations)
Revenue for the period was £78.3 million 
(2009: £77.5 million). This was in spite of sales 
of 1.79 million tonnes from 1.82 million tonnes 
the previous year. Average selling prices per tonne 
were up 2.8% at £43.70 per tonne (2009: £42.50). 
Operating profits of £7.0 million were £2.0 million 
(restated) lower than the previous year.
The year’s performance was affected by a number 
of factors which led to lower production levels and 
increased costs: in particular a very wet autumn 
followed by heavy winter snows in East Ayrshire 
and disruption caused by delays in obtaining 
the necessary permissions to divert a burn and 
electricity supply at Muir Dean in Fife. In addition, 
unexpected geological conditions at Glenmuckloch 
in Dumfries and Galloway, which is approaching 
the end of its productive life, resulted in a lowering 
of the estimate of remaining reserves by approximately 
50,000 tonnes and an accelerated write down 
of work in progress of £0.7 million.
The second half of the year was marked by the 
deployment of additional manpower and equipment 
necessary to recover production lost over the winter 
period. The resultant increase in cost enabled contract 
commitments to be met and the delivery of the year’s 
sales of 1.79 million tonnes, given the half year 
position, was a significant achievement. The Group’s 
workforce endured some very difficult and, at times, 
Proved Reserves at the end of 
the year were at a record level of 
6.1 million tonnes, a 30% increase 
over the previous year. 
cash generation was good 
with debt reduced by a further 
£4.9 million in the period. 
Earnings remain suppressed by 
the continuing impact of supplying 
in excess of 40% of total sales to 
the Electricity Supply Industry 
at contract prices significantly 
below those available in the 
current market.
£14 million investment in 2011 
to develop two new mines 
at Netherton and Duncanziemere 
which will form the cornerstone 
of the Group’s production for the 
next few years.
sAles v Alue (£m)
2006 2007 2008 2009 2010
£78.3m
78.3
77.5 76.9
70.5
54.1 07
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
unpleasant conditions but displayed high levels 
of skill and motivation to overcome the various 
challenges that arose during an exceptional year.
legacy contracts
The Group’s earnings remain suppressed by the 
continuing impact of supplying in excess of 40% 
of total sales to the Electricity Supply Industry at 
contract prices significantly below those available 
in the current market. The Group is working hard 
to complete these contracts as quickly as possible 
but the first of these legacy contracts will not be 
fulfilled until March 2012 with the second finishing 
around September of the same year. Supply to 
legacy contracts thereafter is anticipated to amount 
to no more than 15% of sales volumes in 2013.
However, the Group is in the process of finalising 
a new market price related contract with a major 
Generator that will be supplied alongside an 
existing fixed price contract. This will further 
increase the average sales price for the Group.
coal reserves anD mine DeveloPment
2010 proved to be a very successful year for the 
Group’s Development team marked by a significant 
increase in the Group’s Proved Reserves base. 
Planning consents at Netherton, a site adjacent to 
our existing Skares Road site and Duncanziemere, 
close to our previously mined site at Laigh Glenmuir, 
added a total of 3.1 million tonnes to Proved 
Reserves, taking the total to in excess of 6 million 
tonnes. Both of these sites are planned to be 
developed during the current financial year and 
will become the cornerstone of the Group’s 
production over the next four years. Investment 
in these two mines will be around £14 million 
with both sites commencing operations in 2011. 
This exceptional level of capital expenditure will 
not be repeated in 2012.
The mining business continued 
to perform profitably for the period 
under review in the face of very 
challenging conditions. 
mine DeveloPment
The Group will invest significant resources to open mines 
and create new infastructure at Netherton and Duncanziemere 
to secure future production
Planning consents at Netherton 
and Duncanziemere
£14m investment
£3.1m tonnes
added to Proved Reserves 08
ATH ResouRces plc
annual report and accounts 2010
Business review
Chief executive’s statement continued
coal reserves anD mine DeveloPment 
continueD
The table below, relating to exploration results, 
mineral resources or mineral reserves is based upon 
information compiled by Mr Peter Morgan, a full 
time employee of the Group, who is a Fellow of 
the Institute of Materials, Minerals and Mining. 
Mr Morgan has sufficient experience which is 
relevant to the style of mineralisation and type of 
deposit under consideration. He has reviewed and 
consents to the inclusion in this report of the 
matters based on his information in the form and 
context in which they appear. A Glossary of terms 
is available on our website – www.ath.co.uk.
coal Prices 
International coal prices rose steadily during the 
year and at the end of November 2010 stood 
at around $110 per tonne (£70 per tonne). The 
Group’s selling price in 2010 averaged £43.70 per 
tonne, largely reflecting the impact of the Group’s 
legacy contracts. Forward market price indices 
indicate pricing will continue to rise year on year.
DiscontinueD oPerations
ath rEgEnEration The Group disposed of the assets and business of 
ATH Regeneration on 29 July 2010 for £6.5 million 
plus the opportunity to receive further additional 
royalty payments until 2017. It also retained 
ownership of certain properties at Pinxton in 
Derbyshire which the Group will be able to sell in 
2014 for a value expected to be around £2.5 million. 
During the financial year the business had incurred 
losses of £1.6 million. The loss on sale of the business 
including a write down in the value of goodwill 
amounted to £3.4 million.
pRoveD ReseR ves (million tonnes)
2006 2007 2008 2009 2010
6.1m
+1.4m
The Group is well positioned to 
deliver increasing returns to 
shareholders as the impact of 
its legacy contracts reduces 
significantly during 2012.
Coal reserves 
6.1m tonnes
in Proved Reserves
8.6m tonnes
in Total Reserves
6.1
4.7
4.5
3.5
5.7
site   Proved Probable Total 
    Tonnes ‘000’ Tonnes ‘000’ Tonnes ‘000’
Skares Road   200 — 200
Netherton   2,300 900 3,200
Duncanziemere   800 — 800
Glenmuckloch   430 500 930
Muir Dean   1,270 1,100 2,370
Rigg   1,100 — 1,100
    6,100 2,500 8,600
Coal reserves at the end of the 2010 financial year: 09
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
The Group has decided to exercise its right to 
receive £2 million in royalties in January 2011 in 
exchange for a reduction of £3 million in the total 
value of royalties it may have otherwise received 
over the next seven years.
HealtH anD safety
The Board understands the potentially hazardous 
nature of the work undertaken in the Group’s 
operations and takes very seriously its responsibilities 
for health and safety.
The Group has a dedicated Health and Safety 
Manager and all operational sites have a mine 
manager who has the necessary qualifications 
and competence to manage operations safely. 
Employees are regularly trained in the Group’s 
processes with 85% of our workforce attaining 
grade NVQ Level 2, delivered by our own accredited 
training centre. This commitment to competence 
throughout the Group was a key factor in gaining 
both a RoSPA Gold Award and OHSAS accreditation 
from BSI for health and safety standards in 2010 
– a truly excellent achievement.
staff The Group also recognises the critical importance 
of its employees in the continual growth and 
success of the business. The Group employs over 
330 skilled, innovative and highly motivated people 
and continuous development is delivered through 
structured and targeted training programmes.
The Board would like to join me in thanking our 
people for all of the efforts they have made during 
a very challenging year and for the commitment 
that they continue to demonstrate.
summary During a difficult year, the Group disposed of the 
Regeneration business, significantly reducing debt 
and enabling the management team to focus on its 
core activities. The Group also increased its proved 
reserve base by 30% to record levels. 2011 will 
see production commencing at two new mines at 
Netherton and Duncanziemere which will form the 
cornerstone of the Group’s production for the next 
few years. Debt is expected to continue to reduce 
and, over the medium to long term, reserves 
should increase further. 
The Group is well positioned to deliver increasing 
returns to shareholders as the impact of its legacy 
contracts reduces significantly during 2012.
alistair Black
cHief executive
ToTAl ReseR ves (million tonnes)
8.6m
+0.4m
8.6
8.2
7.9
8.2
8.6
2006 2007 2008 2009 2010 10
ATH ResouRces plc
annual report and accounts 2010
Business review 
Financial review
AnDRew weA THeRsTone 
GRouP Fin AncE DiREcToR
results
The consolidated financial statements for the 
Group which are prepared in accordance with 
International Financial Reporting Standards (“IFRS”) 
are presented for the 52 week period ended 
3 October 2010 compared to the 53 week period 
to 4 October 2009.
The Group was required to adopt IFRS 8 ‘Operating 
Segments’ for this accounting period. IFRS 8 requires 
operating segments to be identified on the basis of 
internal reports concerning the components of the 
Group that are regularly reviewed by the Board of 
Directors of the Group. There is no substantial 
change for the Group and the Group’s reportable 
segment will continue to be that of Surface Mining.
The Group disposed of the assets of its Regeneration 
business on 29 July 2010. Consequently, the 
Financial Statements identify the results of this 
business as a discontinued operation in the current 
and comparative year.
During the period, the Group has also reviewed its 
accounting policy in respect of work in progress 
and the recognition of costs of production and has 
adopted a more appropriate policy. This change 
in policy has been dealt with as a prior year 
adjustment and accordingly the results for the 
period ended 4 October 2009 have been restated.
Performance (continuing oPerations)
The Group’s sales for the year increased by 
£0.8 million to £78.3 million (2009: £77.5 million) 
on volumes of 1.79 million tonnes (2009: 1.82 
million tonnes).
The average coal price per tonne rose by 2.8% to 
£43.70 per tonne (2009: £42.50 per tonne) despite 
the market price of coal rising by 30% to £59 per 
tonne at the end of September 2010. This highlights 
the continuing impact of the Group’s below market 
price legacy contracts.
Operating profits for the period fell by £2.0 million 
to £7.0 million (2009 restated: £9.0 million), 
principally as a result of the unprecedented 
weather conditions over the autumn and winter 
months. In addition, the cost of gas oil, a major 
part of the operational cost base was on average 
two pence per litre higher in 2010.
Prior year aDjustment
Following the publication of a draft IFRIC 
Interpretation “Stripping Costs in the Production 
Phases of a Surface Mine”, the Board undertook a 
review of its own accounting policies and decided 
to implement a change in the way it accounts for 
work in progress (deferred stripping costs).
These costs are charged to the income statement 
at a constant rate where the ratio of overburden 
to coal is expected to be constant throughout the 
estimated life of the mine. However, when the ratio 
of overburden to coal is not expected to be 
constant, stripping costs are deferred.
The Group’s sales for the year 
increased by £0.8 million to 
£78.3 million (2009: £77.5 million). 
The average coal price per tonne 
rose by 2.8% to £43.70 per tonne 
(2009: £42.50 per tonne). 
The Group sold the assets of its 
Regeneration business to RecyCoal 
Limited on 29 July 2010 for a cash 
consideration of £6.5 million.  11
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
The previous policy compared the actual ratio for 
the current year with the expected average ratio 
over the mine in accordance with the mine plan. 
Higher than average stripping costs were then 
deferred and included in inventories. When a new 
phase or extension to the existing mine was 
identified, the average ratio for the whole site 
would be adjusted for the impact of this new 
phase. Where the expected ratio of the new 
extension was lower than the mine’s existing 
average ratio, this policy increased the level of 
costs being deferred.
The new policy adopted by the Board is still based 
upon the methodology described above with the 
exception that each phase or extension to the mine 
is now evaluated individually. The Board considers 
this basis to provide a more accurate method of 
recognising costs of production.
The effect of the change in policy on the financial 
year’s ended 2009 and 2010 is summarised below.
DiscontinueD oPerations
The Group sold the assets of its Regeneration 
business to RecyCoal Limited on 29 July 2010 for a 
cash consideration of £6.5 million. This resulted in 
a loss on disposal of £1.1 million and a write down 
of £2.3 million in the value of goodwill. This 
business had generated a loss up to the date of 
disposal of £1.6 million (2009: £2.4 million).
The Group has entered into a technology licence 
arrangement with RecyCoal which entitles the 
Group to future royalties. The Group is continuing 
to recognise £4 million of goodwill, based upon 
the expectation of receiving these royalties.
earnings anD DiviDenDs Per sHare
Earnings per share in respect of continuing operations 
were 6.3p (2009:10.3p). After accounting for the 
loss on the sale of the Regeneration business, the Group 
recorded a loss per share of 4.4p (2009: earnings 6.5p) . 
The Board is recommending a final dividend of 2p 
per share which together with the interim dividend 
of 1p per share will total 3p per share and will be 
covered 2.1 times by earnings from continuing 
operations. Based on the year end price of 59.5p 
per share, the total dividend represents a yield of 5.0%.
taxation 
The rate of tax on continuing operations is 31.3%. 
However, an adjustment in respect of the prior year 
has increased the effective rate to 36.6%.
casH flow anD Borrowings
Overall net borrowings reduced by £4.9 million 
to £34.5 million. This is £10 million lower than 
its peak three years ago.
Capital expenditure amounted to £7.3 million 
in the year, representing just over 0.5 times 
depreciation. Financing costs of £3.0 million 
included net bank interest payable of £1.0 million 
which equated to an effective interest rate of 5%. 
The Group is committed to a hedge against rises in 
future interest rates in respect of £17.5 million of 
its borrowings and at the end of the period there 
was an unrealised loss in respect of this hedge 
amounting to £0.36 million. Hire purchase interest 
of £1.0 million represents an effective rate of 6%.
The Group entered into a new three year £30 million 
revolving credit facility in November 2009, which 
was reduced to £23.5 million following the sale of 
the Group’s Regeneration business assets in July 2010. 
Under the terms of the facility, the amount available 
increases to £24.5 million for the period from 
January 2011 to July 2011 and then reduces back 
to £23.5 million. A further reduction is scheduled 
to £18.5 million on the second anniversary of the 
facility in November 2011.
a P weatHerstone
grouP finance Director
     2010 2009 
Profit and loss account    £000 £000
Profit before tax – continuing operations  2,424 8,135
Impact of change of accounting policy  1,564 (1,997)
Profit before tax-continuing operations as reported  3,988 6,138
Tax    (1,022) (2,549)
Tax impact of change of accounting policy  (439) 558
Profit after taxation – continuing operations  2,527 4,147
     2010 2009 
Net assets    £000 £000
Net assets    31,496 37,181
Cumulative impact of change of policy  (5,271) (6,835)
Tax thereon       1,475 1,914
Net assets as reported    27,700 32,260
The effect of the change in policy on 2009 and 2010 is summarised below: 12
ATH ResouRces plc
annual report and accounts 2010
corporate social responsibility
The Group implements many initiatives to improve 
the local environment and environmental legacy 
issues. At the former Grievehill site in Ayrshire, the 
Group employs rangers to assist in supporting 
suitable nesting areas for birds of prey, including 
the rare hen harrier. This enabled hen harrier chicks 
to fledge during the year. At Grievehill, the Group 
improved the condition of 150 hectares of 
degraded bog through a re-wetting programme.
At Muir Dean in Fife, the Group is implementing 
a scheme to resolve what is considered to be the 
worst coal mine legacy pollution of a water course 
in Scotland. Working closely with the Scottish 
Environmental Protection Agency, the scheme 
involves the creation of a minewater treatment 
facility to remove iron and other pollutants from 
the Fordell Day Level, an old deep minewater 
drainage tunnel. The polluted minewater is 
pumped through water cascades and lagoons and 
filtered through organic reed beds before being 
discharged back into its original course. 
ATH is a partner of the East Ayrshire Coalfield 
Environment Initiative, a partnership involving the 
local authority, conservation bodies and industry, 
working to enhance, promote and conserve the 
environment. This initiative has included the 
creation and enhancement of wildlife habitats 
and schools liaison amongst others.
It is most regrettable however to report that the 
Group was fined £10,000 for contravening Section 
19(3) of the Nature (Conservation) Scotland Act 
2004 by carrying out operations out with the 
permitted area without the consent of Scottish 
Natural Heritage (“SNH”). This arose from an 
incident at Grievehill site in March 2008 when 
a section of peat was disturbed adjacent to the 
permitted excavation boundary which caused 
damage to an area designated as a Special Site of 
Scientific Interest (“SSSI”). Whilst ATH management 
acted according to competent external advice 
before, during and after the incident and ultimately 
reinstated the disturbed area by taking emergency 
measures, the Company fully accepts that failure 
to notify SNH of these emergency measures was 
in contravention of the Act. A thorough internal 
review has been carried out to ensure that any 
legal requirements to notify relevant parties are 
fully complied with in the future. 
PeoPle
The Group recognises that its people are the most 
valuable resource within the business and an open 
and challenging working environment is encouraged. 
ATH is committed to the training and development 
of its people to allow all staff members to fulfil 
their potential. 
environment
The Group considers the potential environmental impact of 
its operations at every stage of a mine’s life cycle
The Group is aware that its activities can have an 
impact on a wide range of stakeholders including 
employees, neighbouring communities and local 
and national governmental agencies and departments. 
The Group strategy focuses on the integration of 
its policies to maximise opportunities for its people 
and the communities within which we operate, 
whilst minimising the impact of its activities 
on the environment, neighbours and other 
interested parties. 
environment
The Group is conscious that its activities could have 
a significant impact on the environment. The Group 
considers the potential environmental impact of its 
operations at every stage of a mine’s life cycle from 
the initial planning phase to final restoration. 
Promoting excellence in environmental standards is 
a primary objective of the business and these issues 
are key to the strategic development of each site.
During the planning phase of each potential 
project, a full environmental assessment is carried 
out which is included within a formal planning 
application as the Environmental Statement. 
The potential impact on the environment at each 
stage of the development and operation of a site 
is considered and reported by senior mine 
management which engages specialist external 
consultants as required.  13
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Gold
Award
20 10
The surface mining industry involves the use of 
large plant and machinery and the Group invests 
significant resources to ensure all operatives are 
properly trained to use the equipment safely and 
effectively. The Group undertakes an ongoing 
programme to monitor employee competency 
and each staff member has a tailored development 
and training plan to ensure that ATH remains 
an industry leader in employee competence.
management training
During the year, the Group continued to focus on 
talent management and career development, with 
the objective of identifying the future managers of 
the business and providing them with the training 
and skills to develop. Career ladders have been created 
for all departments to provide a clear career progression 
plan for each team, setting out the expected 
qualifications and anticipated experience required 
for an employee to be considered for promotion.
The Learning and Development Plan has 
amalgamated all the training identified during 
performance reviews. This plan provides cost 
effective, targeted training in order to develop the 
skills and capabilities of the Management of ATH.
oPerational training
During the year, the Group continued to provide 
specialist training through the Mining Training 
School at the Grievehill restoration site. This School 
is responsible for all the new starter inductions and 
delivery of all the NVQ assessments. Conducting 
both the assessments and inductions on a 
restoration site ensures the highest standard of 
training is delivered in a safe environment under the 
close supervision of a qualified trainer and assessor. 
The assessment centre has achieved accreditation 
to continue to offer qualifications under the new 
Qualifications Credit Framework in 2011.
The high level of training capability has seen the 
school train 85% of the workforce to NVQ Level 2 
standards on their primary piece of equipment, 
when combined with the large amount of tertiary 
training delivered to the workforce, means that 
ATH has one of the best qualified and most 
competent workforces within the industry.
HealtH anD safety
A key strategic Group objective is to provide safe 
working environments for all employees and 
visitors at ATH mines and facilities.
Group health and safety policies and procedures are 
controlled through the ATH Resources plc Health and 
Safety Committee, chaired by the Operations Director 
responsible for health and safety. Health and safety is 
managed through the Health and Safety Assessment 
Model which drives Group performance through 
four key stages. The policy strives for continuous 
improvement through awareness, competence, 
compliance and excellence.
The Group provides ongoing high quality training 
to all employees in every aspect of health and safety 
and promotes an open culture where unsafe 
practices are challenged and reported to achieve our 
targets of excellence and continuous improvement. 
The Group had four reportable injuries during the 
year (2009: four) and suffered no major injuries. 
The Group achieved full accreditation to OHSAS 
18001 (Occupational Health and Safety Management 
Systems) in the year which recognised the quality 
of the processes for the management of Health 
and Safety within the Group.
rosP a golD a warD
During the year, ATH was awarded the RoSPA (Royal 
Society for the Prevention of Accidents) Gold Award. 
This accreditation was received in recognition of the 
Group’s performance in promoting and attaining 
a high standard in the management of health and 
safety and in providing a safe place of work. Areas 
of particular strength were in hazard identification, 
the use of safe working practices, compliance with 
industry regulations and the involvement of safety 
representatives in new initiatives.
These achievements are shared by all employees of 
the Group without whose commitment and effort 
the improvements and awards would not have 
been attained.
social anD community
The Group understands the importance of 
communication and interaction with our 
neighbouring communities to provide information 
about its operations and support through 
sponsorship and donations. 
ATH operates community liaison groups at each of 
its sites. These groups meet on a regular basis and 
allow the exchange of information on site progress 
whilst enabling community representatives to raise 
any issues for discussion. 
The Group provides support to community groups 
and projects and provides financial support 
through direct sponsorship and activities or 
through community and environmental trusts. 
Supported independent trusts include the Cumnock 
and Doon Valley Minerals Trust, the Kirkconnel 
Coalfield Trust, the Coalfields Environment Initiative 
and the Muir Dean Environmental Trust. Overall, 
the Group contributed £291,000 to these schemes 
which provide support to a wide range of good 
causes including Scout and Guide groups, local 
Church organisations and sports clubs.
rosP a golD a warD
The Group’s continued 
commitment to excellence in 
health and safety procedures 
and practices was recognised 
in the year with the 
presentation of the RoSPA 
Gold Award in Occupational 
Health and Safety. 14
ATH ResouRces plc
annual report and accounts 2010
Board of directors and advisers
1
2
3 6
4
5
registereD office
Aardvark House 
Sidings Court 
Doncaster DN4 5NU
comP any numBer
4928463
Bankers
HSBC Bank Plc 
8 Canada Square 
London E14 5HQ
Yorkshire Bank 
4 Victoria Place 
Manor Road 
Leeds LS11 5AE
solicitors
Eversheds LLP 
Bridgewater Place 
Water Lane 
Leeds LS11 5DR
auDitors
Baker Tilly UK Audit LLP 
2 Whitehall Quay 
Leeds LS1 4HG
nominateD aDviser  
anD Broker
Seymour Pierce Limited 
20 Old Bailey 
London EC4M 7EN
financial Pr aDvisers
Abchurch Communications Limited 
125 Old Broad Street 
London EC2N 1AR
registrar
Capita Registrars Limited 
Northern House 
Woodsome Park 
Fenay Bridge 
Huddersfield HD8 0GA 15
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
1. DaviD Port
ExEcutivE chairman David Port qualified as a Chartered Management 
Accountant whilst with National Freight Company 
Limited where he rose to become Group Chief 
Accountant and Divisional Finance Director. 
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 of the business 
profitably in a trade sale in 1997. Since then he has 
worked in a number of industries in the private and 
public sectors as either Chairman or Non-Executive 
Director. Currently, he is Chairman of Leach Colour, 
a large format graphics company and a Non-Executive 
Director of Inutec Limited, a nuclear waste consultancy 
and processing company. David has been Chairman 
of ATH since it started operations in 1998.
2. alistair Black 
chiEf ExEcutivE
Alistair Black’s career to date has been dedicated 
to working in the surface coal mining industry, having 
commenced his training with Coal Contractors 
Limited in 1986. Having progressed to various 
managerial positions with Coal Contractors, he 
moved to Rackwood Colliery Company in 1996 
as Regional Manager before commencing 
employment with ATH in 1998.
Alistair has been an executive on the ATH Resources plc 
Board since the Company floated on AIM in 2004 
and was appointed Chief Executive in July 2010 
following the disposal of the ATH Regeneration 
assets from the Group.
Alistair gained his MBA from Heriot Watt University 
in 1999 and is currently Health and Safety Director 
for the Group.
3. anDrew weatHerstone
group financE DirEctor anD 
company SEcrEtary Andrew Weatherstone, a chartered accountant, 
joined the Board in October 2010. Having initially 
developed his career with KPMG, Andrew moved 
on to hold senior financial positions at Commercial 
Vehicle Systems Inc. and Bostrom Plc and was 
Group Finance Director at Chapelthorpe Plc from 
2003 until his appointment with ATH. In these 
roles, Andrew has been responsible for a wide 
range of strategic, operational and corporate 
finance projects.
4. v augHan williams
non-ExEcutivE DirEctor After Exeter University, Vaughan Williams spent 
four years with British Steel from 1968 to 1972 
before joining a predecessor company of 
BHP Minerals Europe Ltd responsible for coal sales 
in Europe, CIS, Middle East and Africa, mainly from 
the developing coal deposits in Queensland. In 
1986 Vaughan moved to BHP Coal Australia Pty Ltd 
in Brisbane as Manager of marketing operations. 
After returning from Australia, he became 
Managing Director of BHP Minerals Europe Ltd 
covering a wide range of commodities. In 2000 
he became Vice President Marketing of BHP Billiton 
Diamonds Inc where he remained until retiring 
in 2003. Since then he has been actively involved 
in farming in Oxfordshire. He joined the Group 
in 2004.
5. tim stokelD
non-ExEcutivE DirEctor Tim Stokeld has over 30 years’ experience 
in finance, beginning his career as a trainee 
stockbroker with Middlesbrough-based Stancliffe 
Todd and Hodgson before taking up senior roles in 
leading financial companies such as Charterhouse, 
where he rose to be appointed Managing Director 
of Institutional Sales, Head of UK Equities and Head 
of Equities at CAI Chevreux. In 2002, Tim left CAI 
Chevreux to join Seymour Pierce Partners in 2003 
as Head of Institutional Sales, a post he held for 
a period of four years. Following this time he 
had been with BlueOar Securities which he left 
in April 2009. Tim joined the Board of ATH 
as Non-executive Director in May 2009.
6. tom allcHurcH
non-ExEcutivE DirEctor Tom Allchurch is a graduate mining engineer and 
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 the founding Managing Director of the 
Group and became Chief Executive when the 
Company listed on AIM in 2004. In July 2010, Tom 
stood down as CEO to lead RecyCoal in a management 
buy-out for the assets of ATH Regeneration Limited 
but continues to provide his services to the Group 
as Non-Executive Director. Tom is Chief Executive 
of RecyCoal Limited and is also Chairman of a coal 
industry charity, The Coal Trade Benevolent Association. 16
ATH ResouRces plc
annual report and accounts 2010
Annual General Meeting    18 January 2011
Final dividend paid    28 January 2011
Half year end     3 April 2011
Interim results and dividend declared 14 June 2011
Ordinary shares go ex‑dividend   29 June 2011 
Interim dividend paid    22 July 2011
Financial year end   2 October 2011
Preliminary results and dividend declared  7 December 2011
Financial calendar 17
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Directors’ report
The Directors submit their report and the audited financial statements of ATH Resources plc for the year ended 3 October 2010.
PrIncIPAl ActIvItIes
The principal activity of the Company is that of a holding company. The principal activity of the Group is the operation of surface 
coal mines and the subsequent sale of coal to UK electricity generators, industrial and domestic customers. The Group operates 
under the title of ATH Resources.
revIew OF devel OPMents And Future PrOsPects
A balanced and comprehensive analysis of development and performance of the Group is contained in the Chairman’s Statement, 
the Group Chief Executive’s Statement and Group Finance Director’s Financial Review on pages 4 to 11. This analysis includes 
comments on the position of the Group at the end of the financial period, consideration of the principal risks and uncertainties 
facing the business. The key performance indicators, which are monitored in relation to the achievement of the strategy of the 
business, are set out in this report below.
st AteMent OF dIrectOrs’ resPOnsIbIlItIes
The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law 
and regulations. The Directors are required to prepare the consolidated financial statements in accordance with International 
Financial Reporting Standards (“IFRS”) as adopted by the European Union (“EU”). Company law requires the Directors to prepare 
such financial statements in accordance with IFRS as adopted by the EU and the Companies Act 2006. 
In the case of the Company accounts, UK company law requires the Directors to prepare financial statements for each financial 
year. Under that law the Directors have elected to prepare the financial statements in accordance with UK Generally Accepted 
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not 
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company 
as at the end of the financial year. 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 UK 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 Company will continue 
in business.
In the case of IFRS accounts for the Group, International Accounting Standard 1 requires that financial statements present fairly for 
each financial year the Group’s financial position, financial performance and cash flows. This requires the faithful representation 
of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, 
liabilities, income and expenses set out in the International Accounting Standards Board’s “Framework for the Preparation and 
Presentation of Financial Statements”.
In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable IFRS as adopted by the EU.
Directors are also required to:
 properly select and apply accounting policies;
  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable 
information; and
  provide additional disclosures when compliance with the specific requirements in IFRS as adopted by the EU is insufficient to 
enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position 
and financial performance.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure 
that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 
Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
ATH Resources plc website. Legislation in the United Kingdom (“UK”) governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions.
dIrectOrs’ IndeMnItIes
The Group made third party indemnity provisions for the benefit of its Directors for the whole of the year, which continue 
to remain in force. 18
ATH ResouRces plc
annual report and accounts 2010
Directors’ report 
continued
dIrectOrs
The Directors in office during the period under review and their interests in the ordinary shares of the Company were:
         2010 2009 
         number Number
D C Port        214,959 209,959
A Black        295,106 295,106
S Beaumont (resigned 30 September 2010)      10,000 10,000
T J Allchurch        1,004,049 1,804,049
V M F Williams        1,866 1,866
J T Stokeld        100,000 —
Mr A P Weatherstone was appointed to the Board on 4 October 2010.
Details of Directors’ share options are provided in the Directors’ Remuneration Report on pages 22 to 24
subst AntIAl sHAreHOldInGs
The Company has been informed that on 1 December 2010 the following shareholders held substantial holdings in the issued 
ordinary shares of the Company:
         Number of  
         ordinary Holding 
         shares %
Alchemy Partners Nominees Limited       7,546,059 19
AXA Framlington Investment Management       5,335,000 13
Close Investments        3,854,455 10
Mr W Paterson        2,474,000 6
Midas Balanced Income Fund       1,925,000 5
Gartmore Investment Management       1,569,456 4
Blackrock Smaller Companies Trust plc       1,264,008 3
st AteMent As tO dIscl Osure OF InFOrMA tIOn tO A udItOrs
The Directors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, 
that there is no relevant audit information of which the auditors are unaware. Each of the Directors has confirmed that they have 
taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information 
and to establish that it has been communicated to the auditors.
Key PerFOrMAnce IndIcA tOrs (“KPI s”)
The Board monitors the Group’s progress and financial performance on a regular basis. Performance is assessed against budget 
using financial and non‑financial measures. The following are the most significant KPIs used by the Group:
         2010 2009
Sales price – revenue earned per tonne of coal sold (£)     44 43
Cost price – operating cost per tonne of coal sold (£)     35 33
Coal reserves – the volume of coal which is classed as proved or probable reserves (million tonnes)  8.6 8.2
Health and safety – reportable accidents (number)      4 4
Environmental incidents – breaches of environmental legislation (number)    1 Nil
Return on capital employed – profit before interest and tax divided by capital employed (%)   11 13
PrIncIPAl rIsKs And uncert AIntIes FAcInG tHe GrOuP
Replacement of pRoduction The Group’s operations have a finite life due to the geology of each site and will become exhausted at some point in the future. 
Production is replaced through the development or acquisition of new sites and extensions to existing sites.
exploRation and development The exploration for, and development of, coal deposits involves significant risks, which are managed through the combination 
of careful evaluation, experience and knowledge. Not all sites which are explored are ultimately developed into producing mines. 
There can be no guarantee that estimates of quantities and qualities made will be realised or that appropriate consents will be 
granted. With all mining operations there is uncertainty and therefore risks associated with operating parameters and costs.  19
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
PrIncIPAl rIsKs And uncert AIntIes FAcInG tHe GrOuP cOntInued
GeneRal mininG and pRocessinG Risks The Group’s operations are subject to all of the hazards and risks normally encountered in the exploration, development and 
production of coal. Appropriate levels of site investigation are undertaken to minimise the risk but these risks could include unusual 
and unexpected geological formations, geo‑technical instability, flooding and other conditions involved in the extraction of material.
volatility of pRice of coal
The market price of coal is volatile and is affected by numerous factors which are beyond the Group’s control. These include 
international supply and demand, the level of consumer product demand, international economic trends, currency exchange rate 
fluctuations, the level of interest rates, the rate of inflation, the cost of freight, global or regional political events and international 
events, as well as a range of other market forces. This volatility is managed through the entering into of long term, fixed price, 
supply agreements with electricity generating companies.
enviRonmental issues
The Group’s activities and the markets in which it operates are subject to environmental regulation. Such regulations typically cover 
a wide variety of matters including prevention of waste, pollution and protection of the environment. The risk is managed by daily 
inspections of all operations with a potential to cause environmental breaches and by careful design of the operations to mitigate 
any potential risk.
HealtH and safety
The Group’s activities are, and will continue to be, subject to health and safety standards and regulations. Failure to comply with 
such requirements may result in fines, penalties and/or litigation. Risk assessments are carried out by management as well as 
retaining the services of external risk consultants to identify any potential risks and ensure safe methods of working.
RestoRation Bonds
The Group’s activities result in the creation of working sites and mining voids that require substantial remedial and restoration 
works at the end of coaling operations. As part of the planning approvals process, the Group is normally required to obtain agreed 
restoration bonds that cover the anticipated remedial works, which are substantial in certain instances. The impact of recent 
uncertainty in the financial markets has reduced the potential sources of restoration bonds, although the Group has good 
relationships with a number of providers.
FInAncIAl InstruMents
Details relating to financial instruments are given in note 27.
eMPl Oyees
The Directors recognise the importance of the Group’s employees in the success of the business. 
The Group is committed to equal opportunities in employment and seeks to ensure that all current employees or applicants are 
treated equally regardless of age, sex, nationality, race, colour, creed or disability.
The Directors retain regular contact with employees using both formal and informal lines of communication to ensure relevant 
financial and operational information is disseminated. Regular meetings take place to allow employees of all levels to contribute 
to the Group’s development. 
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 3 October 2010, the trade creditors of the Group represented 37 days (2009: 63 days) of purchases. 
AudItOrs
Baker Tilly UK Audit LLP has indicated its willingness to continue in office as auditors of the Company and a resolution to that effect 
will be proposed at the Annual General Meeting. 
By order of the Board
A P weA tHerstOne
GrOuP FInAnce dIrectOr
7 deceMber 2010  20
ATH ResouRces plc
annual report and accounts 2010
corporate governance report
IntrOductIOn
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 comprised three Executive Directors and three Non‑executive Directors. During the year Mr Alistair Black 
was appointed as the Group’s Chief Executive. Mr Tom Allchurch stood down from the position of Chief Executive to lead the 
management buyout of the ATH Regeneration assets and remains on the Board as a Non‑executive Director.
Mr Steven Beaumont was part of the ATH Regeneration buyout team and stood down from the Board during the year. 
Mr Andrew Weatherstone was appointed as Group Finance Director immediately following the year end.
Mr David Port was appointed as Executive Chairman during the year to provide continuity and additional experience during the 
period of change.
The Alchemy Plan has the right to nominate a Non‑executive Director but has chosen not to do so. If the Alchemy Plan’s 
shareholding in the Company falls below 10% of the issued share capital, the right to appoint ceases.
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.
During the year ended 3 October 2010 the Board met a total of 14 times.
bOArd cOMMIttees
The Board has established three committees: Audit, Remuneration and Nominations, all having written terms of delegated responsibilities.
a udit committee The Audit Committee comprised the three Non‑executive Directors until the sale of the ATH Regeneration assets. Since then the 
committee comprises Mr Vaughan Williams and Mr Tim Stokeld. The Committee 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. 
During the year ended 3 October 2010 the Audit Committee met on two occasions.
RemuneRation committee The Remuneration Committee comprises the three Non‑executive Directors 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.
During the year ended 3 October 2010 the Remuneration Committee met on two occasions.
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 relA tIOns
The Company meets with its institutional shareholders and analysts as appropriate and encourages communication with private 
shareholders via the Annual General Meeting. In addition, the Company uses the Annual Report and Accounts, Interim Statement 
and website (www.ath.co.uk) to provide further information to shareholders.
The Board considers Mr Vaughan Williams to be the Senior Independent Director. 21
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
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 discussions with the external auditors.
The Group does not currently have an internal audit function due to the small size of the administrative function 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.
FInAncIAl InstruMents
Details of the Group’s financial instruments and associated policies are set out in note 27.
GOInG cOncern bAsIs
The Group’s business activities, together with the factors likely to affect future developments, are set out in the Chairman’s Statement, 
the Chief Executive’s Statement and the Financial Review. The financial position of the Group, its cash flows, liquidity and 
borrowing facilities are also described in the Chief Executive’s Statement and the Financial Review. The Group’s objectives, policies 
and processes for managing its capital; its financial risk management objectives; details of financial instruments and hedging 
activities; and its exposure to price, interest rate credit and liquidity risk are set out in note 27.
The Group entered into a three year, £30 million senior credit facility with HSBC and Yorkshire Bank in November 2009. 
Following the sale of the ATH Regeneration assets on 29 July 2010, this facility reduced to £23.5 million. The facility will increase 
to £24.5 million from 1 January 2011 and revert back to £23.5 million from 1 July 2011. A planned reduction in facility will reduce 
the amount available to be drawn to £18.5 million from 2 November 2011. 
The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, show the Group 
should be able to operate within the level of its current facilities.
Accordingly, the Directors have reasonable expectation that the Company and the Group have adequate resources to continue 
in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting 
in preparing the financial statements. 22
ATH ResouRces plc
annual report and accounts 2010
Remuneration committee report
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. 
reMunerA tIOn POlIcy
Remuneration packages are designed to be competitive and to reward above average performance. Executive Directors receive 
salary, a fully financed company car or car allowance, death in service benefit, critical illness and medical cover, pension 
contribution, annual bonuses and share options.
servIce cOntrActs
Mr Alistair Black’s agreement is dated 29 July 2010 terminable upon twelve months’ notice being given by either party. Mr David Port 
entered into a letter of appointment dated 12 May 2004, amended when Mr Port became Executive Chairman, which requires 
twelve months’ notice to be given by either party. Mr Andrew Weatherstone entered into a service agreement on 4 October 2010 
with an initial notice period by the Group of six months’, which increases to twelve months after one year’s service, 
Mr Andrew Weatherstone is required to give twelve months notice.
nOn‑executIve dIrectOrs
Mr Vaughan Williams entered into a Letter of Appointment dated 12 May 2004 which was renewed in October 2009. Mr Williams 
was appointed for an initial three year term, which can be terminated upon six months’ notice being given by either party. Mr Tim Stokeld 
was appointed as an Independent Non‑executive Director on 6 May 2009 and the appointment is subject to an annual review and 
can be terminated upon three months’ notice being given by either party.
Following the sale of the ATH Regeneration assets, the Group entered into an arrangement with Recycoal Limited for the provision 
of the services of Mr Tom Allchurch as a Non‑executive Director. The arrangement can be terminated by either party by giving three 
months notice.
PensIOns
The Group does not have a pension scheme, instead it makes contributions to Executive Directors’ personal pension schemes 
of 12.5% of annual salary.
dIrectOrs’ reMunerA tIOn
Details of Directors’ remuneration are set out below:
       Sub‑total  2010 2009 
    Salary Benefits Bonus  emoluments  Pension total Total 
    £000 £000 £000 £000 £000 £000 £000
executive directors       
D C Port (from June 2010)  45 — — 45 — 45 —
T J Allchurch   196 1 — 197 23 220 280
A Black   150 16 — 166 19 185 188
S Beaumont (resigned  30 September 2010) 168 15 46 229 21 250 220
non‑executive directors       
D C Port   47 — — 47 — 47 70
T J Allchurch (from 1 August 2010)  4 — — 4 — 4 —
V M F Williams   31 — — 31 — 31 30
J T Stokeld   26 — — 26 — 26 10
I Ridler (resigned 23 February 2009)  — — — — — — 11
Total   667 32 46 745 63 808 809
Mr Stokeld’s fee was paid to a third party company and Mr Allchurch’s fee was paid to RecyCoal Limited. 23
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
PerFOrMAnce IncentIves
The Group operates an annual cash bonus scheme and grants share options.
The annual bonus scheme provides for a maximum bonus of 35% of salary to be paid by reference to achievement of a Group 
earnings target (10%) and surpassing the earnings target (10%) and individual personal targets (15%).
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”).
None of the option shares or LTIP requires payment to be made by participants to receive the benefit of an option.
dIrectOrs’ Interests In sHAre OPtIOns
The options and awards have been granted pursuant to the Schemes to the following Directors:
    Number of share options    Performance period 
Performance
 
 Exercisable
  Exercise 4 October   3 October   target   
  price 2009 Granted Lapsed  2010 from to (pence) from to
t J Allchurch         
Approved £1.46 20,471 — (20,471) — 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 340,614 — (340,614) — 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 88,003 — (88,003) — 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
Unapproved £2.05 102,439 — (102,439) — — — None 15 Jan 11 15 Jan 18
Unapproved £0.8125 — 215,976 (215,976) — 1 Oct 09 30 Sep 12 (2) 20 Jan 13 20 Jan 15
LTIP £1.70 88,003 — (88,003) — 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
LTIP £0.01 102,439 — (102,439) — 1 Oct 07 30 Sep 10 (1) 15 Jan 11 15 Jan 18
LTIP £0.01 — 215,976 (215,976) — 1 Oct 09 30 Sep 12 (1) 20 Jan 13 20 Jan 20
total  741,969 431,952 (1,173,921) —    
A black         
Approved £1.46 20,471 — — 20,471 1 Oct 03 30 Sep 06 38.68 2 Nov 07 31 Oct 14
Unapproved £1.33 152,513 — — 152,513 1 Oct 03 30 Sep 06 38.68 12 Jun 07 10 Jun 14
Unapproved £1.85 41,068 — — 41,068 1 Oct 04 30 Sep 07 44.20 30 Sep 08 28 Sep 15
Unapproved £2.05 66,341 — — 66,341 — — None 15 Jan 11 15 Jan 18
Unapproved £0.8125 — 139,870 — 139,870 1 Oct 09 30 Sep 12 (2) 20 Jan 13 20 Jan 15
LTIP £1.70 41,068 — — 41,068 1 Oct 04 30 Sep 08 59.80 30 Sep 10 28 Sep 15
LTIP £0.01 66,341 — — 66,341 1 Oct 07 30 Sep 10 (1) 15 Jan 11 15 Jan 18
LTIP £0.01 — 139,870 — 139,870 1 Oct 09 30 Sep 12 (1) 20 Jan 13 20 Jan 20
total  387,802 279,740 — 667,542    
s beaumont         
Approved £1.95 15,384 — (15,384) — 1 Oct 06 30 Sep 09 55.40 8 Jan 10 7 Jan 17
Unapproved £1.95 84,616 — (84,616) — 1 Oct 06 30 Sep 09 55.40 8 Jan 10 7 Jan 17
Unapproved £2.05 77,073 — (77,073) — — — None 15 Jan 11 15 Jan 18
Unapproved £0.8125 — 162,496 (162,496) — 1 Oct 09 30 Sep 12 (2) 20 Jan 13 20 Jan 15
LTIP £1.75 100,000 — (100,000) — 1 Oct 06 30 Sep 10 75.70 8 Jan 12 7 Jan 17
LTIP £0.01 77,073 — (77,073) — 1 Oct 07 30 Sep 10 (1) 15 Jan 11 15 Jan 18
LTIP £0.01 — 162,496 (162,496) — 1 Oct 09 30 Sep 12 (1) 20 Jan 13 20 Jan 20
total  354,146 324,992 (679,138) —     24
ATH ResouRces plc
annual report and accounts 2010
Remuneration committee report 
continued
dIrectOrs’ Interests In sHAre OPtIOns cOntInued
(1) The LTIP options have an average annual percentage growth in pre‑tax earnings per share performance target and will vest as follows:
Average annual growth in pre‑tax earnings per share      Proportion of options that will vest
Over 10%         100%
Between 7.5% and 10%         75%
Between 5% and 7.5%         50%
Under 5%         Nil
The performance target on all other options is cumulative pre‑tax earnings per share.
(2) The unapproved options have an average annual percentage growth in pre‑tax earnings per share performance target and will 
only vest if the average annual growth in EPS is greater than 4%. 
No Directors exercised any options during the period.
v M F wIllIAMs
cHAIrMAn OF tHe reMunerA tIOn cOMMIttee
7 deceMber 2010 25
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Independent auditors’ report
to the members of ATH Resources plc
We have audited the financial statements which comprise the Consolidated Income Statement, the Consolidated Balance Sheet, 
the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity and the related notes. The financial 
reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards 
(IFRSs) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
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 A udItOrs
As more fully explained in the Directors’ Responsibilities Statement set out on page 17, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the 
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
scOPe OF tHe A udIt OF tHe FInAncIAl st AteMents
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
OPInIOn On tHe FInAncIAl st AteMents
In our opinion: 
  the financial statements give a true and fair view of the state of the Group’s affairs as at 3 October 2010 and of the Group’s loss 
for the year then ended;
 the consolidated financial statements have been properly prepared in accordance with IFRS as adopted by the European Union; and
 the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
OPInIOn On OtHer MA tters PrescrIbed by tHe cOMPAnIes Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared 
is consistent with the financial statements.
MAtters On wHIcH we Are requIred tO rePOrt by excePtIOn
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our 
opinion:
  adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 the parent company financial statements are not in agreement with the accounting records and returns; or
 certain disclosures of directors’ remuneration specified by law are not made; or
 we have not received all the information and explanations we require for our audit. 
rIcHArd KInG (senIOr st AtutOry AudItOr)
FOr And On beHAlF OF bAKer tIlly uK AudIt llP
st AtutOry AudItOr 
cHArtered AccOunt Ants
2 wHIteHAll qu Ay
leeds ls1 4HG
7 deceMber 2010 26
ATH ResouRces plc
annual report and accounts 2010
consolidated income statement
for the year ended 3 October 2010
        Restated 
        2010 2009 
      Note £000 £000
continuing operations
revenue     4 78,307 77,465
Cost of sales      (62,520) (59,474)
Gross profit      15,787 17,991
Other operating income      73 21
Administrative expenses      (8,906) (9,007)
Operating profit      6,954 9,005
Finance costs     6 (2,966) (2,867)
Profit before taxation      3,988 6,138
Tax expense     8 (1,461) (1,991)
Profit for the year from continuing operations    5 2,527 4,147
discontinued operations   
Loss for the year from discontinued operations     9 (4,294) (1,558)
(Loss)/profit for the year attributable to ordinary shareholders   5 (1,767) 2,589
(loss)/earnings per share   
From continuing and discontinued operations   
Basic     10 (4.4)p 6.5p
Diluted     10 (4.4)p 6.5p
From continuing operations   
Basic     10 6.3p 10.3p
Diluted     10 6.2p 10.3p
There is no income or expense other than as stated in the consolidated income statement. 27
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
consolidated balance sheet
as at 3 October 2010
Company number: 4928463
       Restated Restated 
      2010 2009 2008 
     Note £000 £000 £000
Assets    
non‑current assets    
Intangible assets    11 5,413 7,657 7,657
Property, plant and equipment    12 67,097 78,661 83,458
      72,510 86,318 91,115
current assets    
Inventories    14 11,925 12,790 10,129
Trade and other receivables    15 11,257 9,621 11,133
Cash and cash equivalents     2,353 370 1,207
      25,535 22,781 22,469
total assets     98,045 109,099 113,584
lIAbIlItIes    
current liabilities    
Trade and other payables    16 (11,227) (13,668) (14,899)
Tax liabilities     (407) (319) (87)
Financial liabilities     17 (6,335) (19,374) (14,649)
Final void provision    18 (2,315) (3,337) (1,811)
      (20,284) (36,698) (31,446)
non‑current liabilities    
Financial liabilities     17 (30,309) (20,346) (31,810)
Final void provision    18 (16,498) (15,123) (15,018)
Deferred tax liabilities    18 (3,254) (4,334) (4,208)
Other provisions    18 — (338) (338)
      (50,061) (40,141) (51,374)
total liabilities     (70,345) (76,839) (82,820)
net assets     27,700 32,260 30,764
equIty     
Share capital    19 200 200 200
Share premium    21 27,855 27,855 27,855
Retained earnings    21 (355) 4,205 2,709
total equity     27,700 32,260 30,764
The financial statements on pages 26 to 54 were approved by the Board of Directors and authorised for issue on 7 December 2010 
and are signed on its behalf by:
A P weA tHerstOne
GrOuP FInAnce dIrectOr 28
ATH ResouRces plc
annual report and accounts 2010
consolidated statement of changes in equity
for the year ended 3 October 2010
        Total 
     Called up  Share  equity 
     share premium Retained shareholders’ 
     capital account  earnings funds 
    Note £000 £000 £000 £000
At 28 September 2008    200 27,855 6,191 34,246
Effect of change in accounting policy for work in progress  2 — — (3,482) (3,482)
At 28 september 2008 – restated    200 27,855 2,709 30,764
Profit for the year    — — 2,589 2,589
Other comprehensive income for the year    — — — —
Total comprehensive income for the year    — — 2,589 2,589
Transactions with equity shareholders     
Adjustment in respect of share‑based payments    — — (35) (35)
Dividends paid    — — (1,058) (1,058)
Total transactions with equity shareholders    — — (1,093) (1,093)
At 4 October 2009 – restated    200 27,855 4,205 32,260
Loss for the year    — — (1,767) (1,767)
Other comprehensive income for the year    — — — —
Total comprehensive income for the year    — — (1,767) (1,767)
Transactions with equity shareholders     
Adjustment in respect of share‑based payments    — — 72 72
Dividends paid    — — (2,865) (2,865)
Total transactions with equity shareholders    — — (2,793) (2,793)
At 3 October 2010    200 27,855 (355) 27,700 29
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
consolidated cash flow statement
for the year ended 3 October 2010
        Restated 
       2010 2009 
      Note £000 £000
Cash flows from operating activities   
Cash generated from operations     25 12,736 17,777
Interest paid      (2,058) (2,546)
Tax paid      (1,806) (813)
net cash from operating activities      8,872 14,418
Cash flows from investing activities   
Proceeds from sale of property, plant and equipment     438 20
Net proceeds from the sale of ATH Regeneration assets     6,258 —
Interest received      — 3
Purchases of property, plant and equipment      (7,288) (7,252)
net cash used in investing activities      (592) (7,229)
Cash flows from financing activities   
Dividends paid      (2,865) (1,058)
Repayment of borrowings      (14,335) (5,344)
Payment of finance lease liabilities      (11,247) (9,938)
New asset‑backed finance raised      8,501 2,725
Drawings from new revolving credit facility      19,238  —
Net cash used in financing activities      (708) (13,615)
net increase/(decrease) in cash and cash equivalents     7,572 (6,426)
Cash and cash equivalents at beginning of year      (5,219) 1,207
cash and cash equivalents at end of year      2,353 (5,219) 30
ATH ResouRces plc
annual report and accounts 2010
Group accounting policies
The Group’s principal accounting policies, which have been applied consistently to all years presented, are set out below.
bAsIs OF AccOuntInG
The financial statements have been prepared in accordance with IFRS. The financial statements have also been prepared in 
accordance with IFRS adopted by the EU and therefore these financial statements comply with Article 4 of the EU IAS Regulation.
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments 
which are carried at fair value. The principal accounting policies adopted are set out below.
The Directors have prepared cash flow projections for the coming twelve months which show that the level of cash requirements 
are within the Group’s existing borrowing facilities. On the basis of this cash flow information, the Directors consider that the 
Group will continue to operate within the facilities currently and anticipated to be available to the Group. On this basis, the 
Directors consider it is appropriate to prepare the financial statements on the going concern basis. The financial statements 
do not include any adjustments that would result from this not being the case.
bAsIs OF cOnsOlIdA tIOn 
The consolidated financial statements incorporate the financial statements of ATH Resources plc and entities controlled by the 
Company made up to the end of September each year. Control is achieved where the Company has the power to govern the 
financial and operating policies of an investee entity so as to obtain benefits from its activities.
Aardvark TMC Limited (“Aardvark”) has 20,000 ‘B’ ordinary shares not owned by ATH Resources plc, subscribed at their nominal 
value of 1 pence 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 as it is not material for the purposes of giving a true and fair view.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the 
effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line 
with those used by the Group.
All intra‑group transactions, balances, income and expenses are eliminated on consolidation.
dIscOntInued OPerA tIOns
A discontinued operation is a component of the Group that has either been disposed of, or is classified as being held for sale and 
represents a separate major line of business, is part of a single co‑ordinated plan to dispose of a separate major line of business 
or is a subsidiary acquired exclusively with a view to resale.
seGMent rePOrtInG
A business segment is a group of assets and operations engaged in producing coal using production methods that are substantially 
different to other business segments. A geographical segment produces coal in a particular economic environment that is subject 
to different risks and returns from those of segments operating in other economic environments.
Segment reporting information is detailed in note 3 of the Group financial statements.
revenue recOGnItIOn
Revenue from the sale of coal is recognised when the risks and rewards of ownership have passed to the customer. This is usually 
when the coal is delivered to the location specified by the customer, generally on loading into transport where the customer is 
responsible for the transportation. Revenue is measured at the fair value of the consideration received or receivable and is shown 
net of discounts, VAT and other sales‑related taxes. 
retIreMent beneFIt cOsts 
The Group only makes payments to defined contribution retirement benefit schemes which are charged as an expense as they fall due. 
bOrrOwInG cOsts
All borrowing costs are recognised in the consolidated income statement in the period in which they are incurred.
dIvIdends
Dividends are recorded in the Group’s financial statements in the period in which they are declared and paid. 31
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
tAxA tIOn
Income tax on the profit or loss for the periods presented comprises both current and deferred tax. Income tax is recognised in 
the consolidated income statement except to the extent that it relates to items recognised directly in equity, in which case it is 
recognised in the consolidated statement of recognised changes in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates that have been enacted or substantively 
enacted by the balance sheet date and any adjustment to tax payable in respect of previous years.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the consolidated 
income statement because it excludes items of income or expense that are taxable or deductible in other years and it further 
excludes items that are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using 
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred 
tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised.
The following temporary differences are not provided for in accordance with IFRS:
 goodwill not deductible for taxation purposes;
 initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and
 differences relating to investments in subsidiaries to the extent that these will probably not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
using tax rates enacted or substantively enacted by the balance sheet date.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax 
assets and liabilities on a net basis.
GOvernMent GrAnts
Government grants relating to property, plant and equipment are released to profit or loss over the expected useful lives of the 
assets concerned. The grant received is deducted from the carrying amount of the asset and the income is recognised by way of 
a reduced depreciation charge. The consolidated cash flow statement discloses the purchase of assets and the receipt of related 
grants as separate items.
sHAre‑bAsed PA yMents
The Group issues equity‑settled share‑based payments to certain employees. Equity‑settled share‑based payments are measured at 
fair value (excluding the effect of non market‑based vesting conditions) at the date of grant. The fair value determined at the grant 
date of the equity‑settled share‑based payments is expensed on a straight‑line basis over the vesting period, based on the Group’s 
estimate of shares that will eventually vest and adjusted for the effect of non market‑based vesting conditions. Fair value is 
measured by use of a Binomial model.
GOOdwIll And busIness cOMbInA tIOns
The acquisition of subsidiaries is accounted for using the purchase method. For acquisitions prior to 5 October 2009, the cost 
of the acquisition is measured at the aggregate of the fair values at the date of exchange of assets given, liabilities incurred or 
assumed and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable 
to the business combination. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for 
recognition under IFRS 3 are recognised at their fair value at the acquisition date.
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the 
identifiable assets and liabilities of a subsidiary at the date of acquisition. Goodwill is initially recognised as an asset at cost and is 
subsequently measured at cost less any accumulated impairment losses. Negative goodwill arising on an acquisition is recognised 
immediately in the consolidated income statement.
Goodwill, which is recognised as an asset, is reviewed for impairment at least annually. Any impairment is recognised immediately 
in the consolidated income statement and is not subsequently reversed. For the purpose of impairment testing, goodwill is 
allocated to each of the Group’s cash‑generating units (“CGUs”) expected to benefit from the synergies of the combination. CGUs 
to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the 
unit may be impaired. If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is 
allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata 
on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a 
subsequent period.
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal. 32
ATH ResouRces plc
annual report and accounts 2010
Group accounting policies 
continued
PrOPerty , PlAnt And equIPMent 
All property, plant and equipment is stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation 
commences when the asset is brought into use or, in the case of mine purchase and development costs, on the commencement of 
full production.
Mine exploration and development costs are expensed until such time that the Group has the legal rights to explore the prospective 
site. Exploration and evaluation costs, incurred after legal rights are obtained, are capitalised and subsequently impaired if facts 
and circumstances indicate that the site is not commercially viable and will not therefore be worked. 
Costs incurred in preparing and developing sites which are considered commercially viable and technically feasible are capitalised 
up to the start of production.
Depreciation is charged so as to write off the cost of assets less estimated residual value, over their estimated useful lives, in annual 
instalments, on the following bases:
Freehold land:   not depreciated
Freehold buildings:   4%
Mine purchase and development: tonnage basis over the estimated total recoverable reserve
Plant and machinery:  10–50%
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or over the term 
of the relevant lease.
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and 
the carrying amount of the asset and is recognised in income.
IMPAIrMent OF PlAnt, PrOPerty And equIPMent And Int AnGIble Assets excludInG GOOdwIll
At each balance sheet date, the Group reviews the carrying amounts of its plant, property and equipment and intangible assets 
to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the 
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does 
not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the CGU to which 
the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash 
flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value 
of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset 
(CGU) is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset (CGU) is increased to the revised estimate of 
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset (CGU) in prior years. A reversal of an impairment loss is 
recognised as income immediately.
leAsInG
The Group only acts as a lessee. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the 
risks and rewards of ownership. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Group at their fair value or, at the present value of the minimum 
lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the 
consolidated balance sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction 
of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are 
charged directly against income.
Rentals payable under operating leases are charged to income on a straight‑line basis over the term of the relevant lease.
InventOrIes 
Inventories include coal stocks, work in progress and spare parts and tyres stated at the lower of cost and net realisable value. 
cOAl InventOrIes
Coal inventories are mined inventories to hand. Cost comprises direct materials, plant costs, direct labour and relevant overheads 
that have been incurred in bringing the coal to its present location and condition. Cost is calculated using the weighted average 
method. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred 
in marketing, selling and distribution. 33
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
wOrK In PrOGress
Work in progress represents the costs incurred on mining operations where the coal has not yet been extracted from the ground. 
Cost comprises direct materials, plant costs, direct labour and relevant overheads that have been incurred in removing the overburden 
on site. Cost is calculated using the weighted average method over the period represented by the volume of work in progress on hand. 
The Group has undertaken a detailed review during the year of its accounting policies and concluded that it should implement a change 
in the policy relating to work in progress in respect of calculating the volume of overburden moved that should be included in work 
in progress.
The Group assesses the volume of overburden moved on a site or site extension at the end of a period and compares this to the 
volume that would be expected to be moved had coal been mined at exactly the expected ratio of overburden to coal. Where the 
actual volume of overburden moved on a site or site extension is greater than the volume expected at the site ratio, the excess is 
classified as work in progress.
This treatment results in a change in the accounting policy. Previously, each site, including all extensions, was treated as a single entity 
with any new extensions treated as a change to the overall site ratio. The Group considers the new policy to be more appropriate 
because the carrying value of work in progress is more reflective of the work being undertaken. The impact of the change in 
accounting policy is discussed in detail in note 2.
FInAncIAl InstruMents
Financial assets and financial liabilities are recognised in the consolidated balance sheet when the Group becomes a party to the 
contractual provisions of the instrument, and are only derecognised when the contractual provisions expire or have been 
discharged, or substantially all the risks and rewards of ownership have been transferred.
FInAncIAl Assets
Financial assets are principally made up of items classified under IFRS as “loans and receivables”. The classification depends on the 
nature and purpose of the financial assets and is determined at the time of initial recognition.
Loans and receivables constitute trade receivables, loans and other receivables that have fixed or determinable payments that are 
not quoted in an active market. Loans and receivables are measured at amortised cost using the effective interest method, less any 
impairment. Interest income is recognised by applying the effective interest rate, except for short term receivables when the 
recognition of interest would be immaterial.
These financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where 
there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, 
its estimated future cash flows have been impacted. 
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are 
subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could 
include the Group’s past experience of collecting payments, an increase in the number of delayed payments in the portfolio past 
the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with 
default on receivables.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of 
trade receivables, where the carrying amount is reduced through the use of an allowance for bad debts. When a trade receivable is 
considered uncollectible, it is written off against the allowance for bad debts. Subsequent recoveries of amounts previously written 
off are credited against the allowance for bad debts. Changes in the carrying amount of the allowance account are recognised in 
the consolidated income statement.
cAsH And cAsH equIv Alents
Cash and cash equivalents comprise cash at hand, cash on demand deposits and other short term highly liquid investments that are 
readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
FInAncIAl lIAbIlItIes And equIty
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. 
equIty InstruMents
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. 
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs. 34
ATH ResouRces plc
annual report and accounts 2010
Group accounting policies 
continued
FInAncIAl lIAbIlItIes 
Financial liabilities are classified as either financial liabilities at “fair value through profit or loss” (“FVTPL”) or “other financial liabilities”. 
Financial liabilities are classified as FVTPL where the financial liability is either held for trading or it is designated as at FVTPL.
Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction 
costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest 
expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of 
a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly 
discounts estimated future cash payments through the expected life of the financial liability or, where appropriate, a shorter period.
PrOvIsIOns
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that the Group will 
be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle 
the obligation at the balance sheet date and are discounted to present value where the effect is material.
FInAl vOId PrOvIsIOns
Following the conclusion of coal extraction, the final working void of a surface 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 consolidated income statement on a tonnage 
basis over the estimated life of the recoverable reserves.
AdOPtIOn OF new And revIsed IFrs
The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 
5 October 2009 and are relevant to the Group Financial Statements.
ias 1 ‘pResentation of financial statements’ (Revised)
The revised standard requires non‑owner changes in equity to be presented separately from owner changes in equity. 
The Group has elected to present two statements: an income statement and a statement of comprehensive income.
ifRs 8 ‘opeRatinG seGments’ 
The adoption of this standard has not required any change in reported segments.
At the date of approval of these financial statements the following revised standards, amended standards and interpretations, 
which have not been applied in these financial statements, were in issue but not yet effective:
IAS 32 ‘Financial Instruments: Presentation’
IAS 24 ‘Related Party Disclosure’
IFRS 7 ‘Financial Instruments: Disclosure’
IFRS 9 ‘Financial Instruments’
IFRIC 14 ‘Prepayments of a Minimum Funding Requirement’ (amendment)
IFRIC 19 ‘Extinguishing Financial Liabilities with Equity Instruments’
IFRS 5 ‘Non‑current Assets Held for Sale and Discontinued Operations’ (amendment)
IFRS 6 ‘Exploration for and Evaluation of Mineral Resources’ (amendment)
IFRS 8 ‘Operating Segments’ (amendment)
IAS 1 ‘Presentation of Financial Statements’ (amendment)
IAS 7 ‘Statement of Cash Flow’ (amendment)
IAS 17 ‘Leases’ (amendment)
IAS 18 ‘Revenue’ (amendment)
IAS 36 ‘Impairment of Assets’ (amendment)
IAS 39 ‘Financial Instruments: Recognition and Measurement’ (amendment) 35
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
crItIcAl AccOuntInG estIMA tes And JudGMents
The Group makes estimates and assumptions concerning the future. Due to the nature of an estimate, the eventual actual result 
will rarely equal the amount originally estimated. The estimates and assumptions that have significant risk of causing a material 
misstatement within the financial statements are discussed below:
coal ReseRves, oveRBuRden and coal Ratio Each working and prospective mine has overlaying rock strata that must be removed before the in‑situ coal seams can be accessed. 
The volume of overburden rock compared to coal tonnage in a site is classified as the site ratio. The site ratio for each mine is assessed 
through the examination of drilled cores and extrapolation using experience and detailed modelling techniques. 
Capitalised mine purchase and development costs are amortised over the tonnage of coal expected to be extracted in the future, which 
has been calculated through the assessment of the site ratio, management experience and geo‑technical findings. If the amount of coal 
expected to be extracted varies this will impact on the amount of the asset which should be carried in the consolidated balance sheet.
Work in progress balances are based on an analysis of the remaining coal and overburden volumes in the mine or mine extension 
at the period end. If the amount of remaining coal or overburden varies, this will impact on the work in progress volume that should 
be carried in the consolidated balance sheet.
RestoRation and closuRe pRovisions Management exercises significant judgement in the determination of the provisions for the costs required in respect of restoring 
the final void and site to an agreed condition. Amounts provided are based on management experience and historical outturns.
Estimated provisions are established in the consolidated balance sheet and amortised in proportion to the coal expected to be extracted 
from a site. If that expected tonnage or the actual cost varies, then the provision may be under or overstated. Final void provision 
values are assessed using experience and detailed restoration plans. The Group appoints independent experts to review the carrying 
value of final void provisions on an annual basis. The provisions are disclosed in note 18.
Goodwill impaiRment Determining whether goodwill is impaired requires an estimation of the value in use of the CGU to which these assets have been 
allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the CGU and a 
suitable discount rate in order to calculate present value. Goodwill is disclosed in note 11. 36
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements
for the year ended 3 October 2010
1 GenerAl InFOrMA tIOn
ATH Resources plc is a company incorporated in the UK under the Companies Act 2006. The address of the registered office is 
given on page 14. The nature of the Group’s operations and its principal activities are set out in the Directors’ Report.
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment 
in which the Group operates.
2 PrIOr yeAr AdJustMent
During the year, the Group changed its policy in respect of work in progress. As described in the Financial Review, the Board adopted a 
policy that evaluates the amount of work in progress on an individual site or site extension basis rather than treating a mine and all its 
extensions as a single entity.
The impact of the change in accounting policy on the consolidated financial statements is set out below. At the end of the 2010 
financial year, the cumulative net impact is to reduce the carrying value of work in progress by £5,271,000. This adjustment arises 
due to the impact of the treatment of significant extensions at the Group’s surface mines as separate phases rather than averaging 
the ratio of overburden to coal over the whole site including extensions.
The change in accounting policy has no impact on the results or the loss on disposal of the discontinued operations (note 9).
As a result of the above change in accounting policy, comparative figures have been restated:
      2010  2009
       restated   Restated 
     Pre-policy Application of now Previously Application of now 
     change new policy reported reported new policy reported 
Income statement    £000 £000 £000 £000 £000 £000
Cost of sales    (64,084) 1,564 (62,520) (57,477) (1,997) (59,474)
Taxation – current tax    (1,022) (439) (1,461) (2,549) 558 (1,991)
Profit for the year from continuing operations  1,402 1,125 2,527 5,586 (1,439) 4,147
The impact on the balance sheet and cash flows for 2009 and 2008 are set out below:
      2009  2008
       Restated   Restated 
     Previously Application of now Previously Application of now 
     reported new policy reported reported new policy reported 
balance sheet    £000 £000 £000 £000 £000 £000
current assets      
Inventories    19,626 (6,836) 12,790 14,967 (4,838) 10,129
current liabilities      
Tax liabilities    (2,234) 1,915 (319) (1,443) 1,356 (87)
shareholders’ equity      
Retained earnings      
Brought forward    6,191 (3,482) 2,709 4,341 — 4,341
Profit for the year    4,028 (1,439) 2,589 6,130 (3,482) 2,648
Carried forward    7,479 (3,274) 4,205 6,191 (3,482) 2,709
      2009  2008
       Restated   Restated 
     Previously Application of now Previously Application of now 
     reported new policy reported reported new policy reported 
Cash flow statement    £000 £000 £000 £000 £000 £000
cash generated from operations      
Profit before tax    5,759 (1,997) 3,762 9,008 (4,838) 4,170
Decrease/(increase) in inventories   (4,659) 1,997 (2,662) (7,174) 4,838 (2,336)
Reported profit before tax is for continuing and discontinued operations.
The impact of the change in policy on the reported earnings per share is detailed in note 10. 37
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
3 seGMent Al rePOrtInG
The chief operating decision‑maker has been identified as the Board of Directors (“the Board”). The Board reviews the Group’s 
internal reporting in order to assess performance and allocate resources. The Board has determined that the operating segments, 
based on these reports, are Surface Mining and Coal Tip Washing.
As described in note 9, the Group completed the disposal of the assets of the Coal Tip Washing business on 29 July 2010.
The Board considers the business from a type of operations aspect and that all operations are carried out in one geographical 
segment, being the UK.
The nature of the segmental business operations is set out below:
continuinG opeRations Surface Mining – the development, operation and restoration of surface coal mines within the UK and the sale of coal to the 
electricity generation, industrial and domestic markets.
discontinued opeRations Coal Tip Washing – the extraction of coal from redundant coal tips and its sale to UK electricity generators through the 
construction and operation of specialist processing plant. Results for discontinued operations are disclosed in note 9.
The Board assesses the performance of the operating segments based on a measure of operating profit. Central Group overheads 
finance costs and taxation are not included in the segment result assessed by the Board.
The following segmental analysis results include continuing operations only. The other category includes central assets and liabilities 
and residual items following the disposal of the ATH Regeneration assets.
      2010  2009
     surface    Surface   
     Mining Other Group Mining Other Group 
Income statement    £000 £000 £000 £000 £000 £000
revenue      
Total revenue    78,307 — 78,307 77,465 — 77,465
result      
Segment result – operating profit   7,834 (880) 6,954 9,767 (762) 9,005
Finance costs      (2,966)   (2,867)
Profit before tax      3,988   6,138
Tax      (1,461)   (1,991)
Profit after tax       2,527   4,147
balance sheet    
Assets      
Segment assets    92,370 5,675 98,045 93,274 15,825 109,099
liabilities      
Segment liabilities    (59,189) (11,156) (70,345) (64,060) (12,779) (76,839)
Other information      
Capital additions    4,045 3,243 7,288 6,437 1,043 7,480
Depreciation    13,564 194 13,758 15,222 242 15,464
infoRmation aBout majoR customeRs Included in revenues from Surface Mining are transactions with the following customers which each comprise over 10% of 
total revenue:
         2010 2009 
         £000 £000
Customer 1        16,193 12,915
Customer 2        13,242 7,763
Customer 3        11,410 12,015
Customer 4        9,306 9,020
Customer 5        6,743 12,156 38
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
4 revenue
The Group’s revenue is analysed as follows:
         2010 2009 
         £000 £000
continuing operations
Sales of goods        78,307 77,465
Other operating income – sundry services      73 21
         78,380 77,486
discontinued operations
Other operating income         11 88
         78,391 77,574
5 PrOFIt FOr tHe yeAr – cOntInuInG OPerA tIOns
          Restated 
         2010 2009 
         £000 £000
Profit for the year has been arrived at after charging:  
Depreciation of tangible assets:  
   – owned assets      10,243 10,679
   – leased assets      3,321 4,543
Cost of inventories        62,520 59,474
Share‑based payment charge/(credit) (note 20)      72 (35)
Staff costs (note 7)        14,109 15,130
Rentals under operating leases:        
   – plant and machinery      270 233
Auditors’ remuneration   
Associates of Baker Tilly UK Audit LLP:  
   – fees payable to the Company’s auditors for the audit of the Company’s annual accounts 27 25
   – the audit of the Company’s subsidiaries pursuant to legislation   35 35
Total audit fees:        62 60
  –  tax services – Baker Tilly Tax and Accounting Ltd    32 20
   – corporate finance services – Baker Tilly Corporate Finance LLP   64 —
         158 80
6 FInAnce cOsts – cOntInuInG OPerA tIOns
         2010 2009 
         £000 £000
Bank overdraft and loan interest       1,031 947
Finance leases and hire purchase contracts interest      1,027 1,329
Final void provision discount       551 591
Unrealised losses on derivative financial contracts (note 27)     357 —
         2,966 2,867
7 st AFF cOsts – cOntInuInG OPerA tIOns
          Restated 
         2010 2009 
staff costs during the year (including directors)      £000 £000
Wages and salaries        12,415 13,313
Social security costs        1,415 1,509
Pension costs        279 308
         14,109 15,130 39
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
7 st AFF cOsts – cOntInuInG OPerA tIOns cOntInued
          Restated 
         2010 2009 
Average number of employees       number Number
Office and management        67 70
Production        267 285
         334 355
          Restated 
         2010 2009 
directors’ emoluments        £000 £000
Directors’ emoluments        745 743
Pension contributions        63 66
         808 809
          Restated 
         2010 2009 
Highest paid director        £000 £000
Emoluments        229 253
Pension contributions        21 27
         250 280
8 tAx exPense – cOntInuInG OPerA tIOns
Tax recognised in the income statement:
          Restated 
         2010 2009 
         £000 £000
United Kingdom Corporation Tax:  
– on profits for the year        1,740 1,829
– adjustment in respect of prior periods      214 106
Total current tax recognised       1,954 1,935
Deferred taxation charge:  
– accelerated capital allowances       (493) (124)
– on share‑based payments       — 180
Total deferred tax recognised       (493) 56
Total tax expense recognised       1,461 1,991
The total tax charge assessed for the year differs from the standard rate of UK tax as reconciled below:
          Restated 
         2010 2009 
         £000 £000
Profit on ordinary activities before taxation      3,988 6,138
Profit before taxation multiplied by standard rate of tax for the period of 28% (2009: 28%)   1,117 1,718
Expenses not deductible for tax purposes      106 76
Depreciation not allowable for tax purposes      28 28
Adjustments to deferred tax relating to prior years      — (117)
Impact of deferred tax on share options      — 180
Tax losses not utilised        117 —
Effect of change in tax rates       (121) —
Adjustment in respect of prior periods       214 106
Total tax expense        1,461 1,991
Effective tax rate        36.6% 32.4% 40
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
9 dIscOntInued OPerA tIOns
On 29 July 2010, the Group disposed of the business assets of ATH Regeneration Limited which specialised in the recovery of coal 
through the washing of redundant coal tips and its subsequent sale to UK electricity generators. 
The disposal was to a newly formed company, RecyCoal Limited, which is funded by a European based private equity fund. Among the 
shareholders of RecyCoal Limited are Tom Allchurch, the Group’s Chief Executive prior to the disposal and currently a Non‑executive 
Director and Steven Beaumont the Group’s Finance Director until 30 September 2010. Details of related party transactions are set out in 
note 28.
The consideration received for the assets is £6.5 million, resulting in a loss on disposal of £1.1 million together with an associated 
write off of goodwill of £2.3 million.
The Group has entered into a licence agreement with RecyCoal Limited to exclusively license the intellectual property of the unique 
coal processing technology, ownership of which is retained within the Group.
analysis of tHe loss foR tHe yeaR fRom discontinued opeRations         2010 2009 
         £000 £000
Revenue        — —
Other operating income        11 88
Expenses        (1,573) (2,464)
Loss on sale of business assets       (1,136) —
Goodwill amortisation associated with disposal      (2,244) —
Loss before tax        (4,942) (2,376)
Attributable tax expense        648 818
loss for the year attributable to discontinued operations     (4,294) (1,558)
         2010 2009 
         £000 £000
Cash flows from discontinued operations  
Net cash flows from operating activities      (5,455) (2,779)
Net cash flows from investing activities      3,015 (1,020)
Net cash flows from financing activities       (426) (293)
Net cash flows        (2,866) (4,092)
The net proceeds and the loss on disposal of the business assets were:
          2010 
          £000
consideration  
Cash consideration received        6,518
net assets and liabilities disposed  
Assets  
Property, plant and equipment        6,975
Inventories         662
net assets disposed         7,637
        2010 
        £000
loss on disposal of assets
Consideration received       6,518
Net assets disposed       (7,637)
Release of deferred consideration provision       338
Costs associated with the disposal       (355)
        (1,136)
Goodwill amortisation associated with the disposal       (2,244)
loss on disposal of business assets       (3,380) 41
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
10 eArnInGs Per sHAre
Basic and diluted eaRninGs peR sHaRe The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are 
as follows:
         2010 2009 
         £000 £000
(Loss)/profit for the year used in the calculation of basic and diluted earnings per share   (1,767) 2,589
Loss for the year from discontinued operations      4,294 1,558
Earnings used in the calculation of basic and diluted earnings per share from continuing operations  2,527 4,147
The weighted number of ordinary shares used in the calculation of basic and diluted earnings per share on continuing operations 
only are as follows:
         number Number 
         000 000
Weighted number of ordinary shares for the purpose of basic earnings per share   40,075 40,075
Effect of dilutive potential ordinary shares from share options     875 —
Weighted number of ordinary shares for the purpose of diluted earnings per share   40,950 40,075
There are no potential dilutive ordinary shares on continuing and discontinued operations.
impact of cHanGes in accountinG policies
Changes in the Group accounting policy in respect of work in progress has had an impact on the reported results and reported 
earnings per share in 2009 and 2010. The impact on reported basic and diluted earnings per share is as follows:
   Effect on basic  Effect on diluted 
 Effect on profit for the year  earnings per share  earnings per share
       2010 2009 2010 2009 
     2010 2009 pence pence  pence  pence 
     £000 £000 per share per share per share per share
Change in work in progress accounting policy      
On profit for the year on continuing operations   1,125 (1,439) 2.8 (3.6) 2.7 (3.6)
On profit for the year on continuing and  
discontinued operations    1,125 (1,439) 2.8 (3.6) 2.7 (3.6) 42
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
11 Int AnGIble Assets – GOOdwIll
        2010 2009 2008 
        £000 £000 £000
Cost        7,657 7,657 7,657
Accumulated impairment losses      (2,244) — —
        5,413 7,657 7,657
         2010 2009 
         £000 £000
cost  
Balance at beginning and end of year       7,657 7,657
Accumulated impairment losses  
Balance at beginning of year       — —
Recognised on disposal of business assets      (2,244) —
Balance at end of year        (2,244) —
Goodwill is not amortised but is reviewed annually for impairment, or more frequently if internal or external factors indicate that 
goodwill might be impaired. Goodwill acquired in a business combination is allocated to the CGU which is expected to benefit from 
that acquisition. CGUs are the lowest level of trading operation at which goodwill is separately considered and are consistent with the 
segmental analysis set out in note 3.
The carrying value is allocated to CGUs as follows:
        2010 2009 2008 
        £000 £000 £000
Surface Mining business       1,413 1,413 1,413
Regeneration       4,000 6,244 6,244
        5,413 7,657 7,657
A goodwill asset is impaired if its carrying value exceeds the CGU’s recoverable amount which is based on its value in use. For the 
Surface Mining business at both 4 October 2009 and 3 October 2010, impairment reviews were performed by calculating the value in use 
of the CGU and comparing this with the carrying value of goodwill. The value in use is calculated using cash flow forecasts from the most 
recent budget and business plan for the next five years and then at a terminal value based on a five year multiple of earnings. 
Following the disposal of the business assets of ATH Regeneration, the impairment review was performed by calculating the present value 
of the expected income stream from the licensing of technology retained within the business and comparing this with the carrying value of 
goodwill. The value in use is calculated by using cash forecasts from the most recent budget and business plan for the next seven years over 
which income will be received from the licensing of the technology.
The forecasts include the following key assumptions:
         Surface  
         Mining Regeneration
Growth rate        2% —
Discount rate        8% 8%
Direct costs growth – other direct costs      3% —
Direct costs growth – fuel costs       11% —
Sales prices growth        11% —
The estimated growth rates are based on past experience, knowledge of the market sectors and the current forecast of the 
opportunities open to the business in all of their markets.
Management estimates discount rates using pre‑tax rates that reflect current assessments of the time value of money and the risks 
specific to each CGU.
Changes in direct costs are based on past experience and expectations of the future, particularly the impact of oil prices.
Sales price growth is based on current contractual agreements and expectation of new sales contracts based on the future changes 
given the market forward price curves and estimate of exchange rates, particularly sterling and the US dollar. New contracts will 
replace current contracts that are significantly below market prices. 43
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
11 Int AnGIble Assets – GOOdwIll cOntInued
Following the disposal of the ATH Regeneration assets, the present value of the expected licensing income indicated that the 
goodwill had been impaired by £2.3 million (2009: £nil). The goodwill is charged to the income statement through the loss on 
discontinued operations (note 9). There are no instances of goodwill impairment in the Surface Mining business from the goodwill 
impairment tasks performed in 2009 and 2010. 
The Group has conducted a sensitivity analysis on the impairment test of the carrying value of each CGU. In the Surface Mining 
business, an increase in the discount rate of 31% would result in the carrying value being reduced to its carrying amount. In the 
analysis of carrying value for the Regeneration goodwill, forecast cash flows would need to reduce by 2% to reduce the carrying 
value to its carrying amount.
12 PrOPerty , PlAnt And equIPMent
       Freehold Mine   
       land and  purchase and  Plant and  
       buildings development machinery Total 
       £000 £000 £000 £000
cost     
28 September 2008      10,875 55,520 59,807 126,202
Additions      — 4,639 2,841 7,480
Recognised in year      — 3,229 — 3,229
Disposals      — (24) (70) (94)
4 October 2009      10,875 63,364 62,578 136,817
Additions      482 5,930 876 7,288
Recognised in year      — 2,322 — 2,322
Disposals      — (4,509) (7,937) (12,446)
3 October 2010      11,357 67,107 55,517 133,981
depreciation    
28 September 2008      213 26,397 16,134 42,744
Charge in the year      81 9,228 6,155 15,464
Disposals      — — (52) (52)
4 October 2009      294 35,625 22,237 58,156
Charge in the year      55 8,474 5,229 13,758
Disposals      — — (5,030) (5,030)
3 October 2010      349 44,099 22,436 66,884
net book value    
3 October 2010      11,008 23,008 33,081 67,097
4 October 2009      10,581 27,739 40,341 78,661
28 September 2008      10,662 29,123 43,673 83,458
The Group’s obligations under finance leases and hire purchase contracts (note 17) are secured by the lessor’s title to the leased 
assets which have a carrying value of £26,263,000 (2009: £30,419,000).
Mine purchase and development includes assets under construction with a carrying value of £0.2 million (2009: £1.0 million).
The depreciation charge is allocated to the income statement as follows: cost of sales £13,478,000 (2009: £15,133,000); 
administrative expenses £86,000 (2009: £89,000) and discontinued operations £194,000 (2009: £242,000). 44
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
13 InvestMents
      Proportion   
    Country of Type of   of voting Proportion of    Nature of 
    registration shares rights held shareholding   business
Name of company directly owned     
Aardvark TMC Limited   England Ordinary 100% 100% Surface coal mining
ATH Garleffan Limited   England Ordinary 100% 100% Non‑trading
ATH Regeneration Limited  England Ordinary 100% 100% Land remediation
ATH (2009) Limited    England Ordinary 100% 100% Surface mining project development
Held by subsidiary     
A Ogden & Sons Limited   England Ordinary 100% 100% Non‑trading
Aardvark TFC Limited   England Ordinary 100% 100% Intermediary holding company
Pacific West Coal Pty Ltd   Australia Ordinary 100% 100% Non‑trading
Société des Ressources Minières du 
Massif Central (“SRMMC”)  France Ordinary 100% 100% Surface mining project development 
Aardvark TMC Limited has 20,000 ‘B’ ordinary shares, subscribed at a nominal value of 1 pence each, in addition to the ordinary 
shares wholly owned by ATH Resources plc.
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 
SRMMC, are 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.
14 InventOrIes
         Restated Restated 
        2010 2009 2008 
        £000 £000 £000
Coal inventories       4,754 7,237 5,873
Work in progress       5,952 4,054 2,887
Other inventories       1,219 1,499 1,369
        11,925 12,790 10,129
In 2009, the Group pledged £2.8 million of coal inventories as security for borrowings drawn under the debtors and stock based, 
short term lending facility. With effect from 2 November 2009, under the new revolving credit facility these inventories are subject 
to a fixed and floating charge arrangement in favour of the Group’s new lenders.
15 trAde And OtHer receIv Ables
        2010 2009 2008 
        £000 £000 £000
Trade receivables       10,172 8,403 10,321
Prepayments and accrued income      310 827 386
Other debtors       775 391 426
        11,257 9,621 11,133
The average credit period taken on sales of goods in 2010 is 47 days (2009: 39 days; 2008: 49 days). No allowance for bad debts 
is held due to the insignificant levels of default arising in recent years and the credit insurance held.
Due to the nature of the Group’s activities, trade receivables consist of a relatively small number of individual balances. Credit 
insurance is maintained and the Directors monitor receivable balances to ensure any exposure is minimised. Before accepting 
any new customer the Directors review and consider the potential customer’s credit worthiness using experience of the relevant 
company, the industries into which it sells and the availability of insurance. 
        2010 2009 2008 
Ageing of overdue but not impaired receivables     £000 £000 £000
1–30 days overdue       1,985 796 520
31–60 days overdue       — — —
60+ days overdue       — 219 84
        1,985 1,015 604 45
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
16 trAde And OtHer PA yAbles
        2010 2009 2008 
        £000 £000 £000
Trade payables       6,412 8,318 9,090
Other taxation and social security      2,221 2,943 1,798
Other payables       314 283 305
Accruals and deferred income      2,280 2,124 3,706
        11,227 13,668 14,899
17 FInAncIAl lIAbIlItIes 
        2010 2009 2008 
current       £000 £000 £000
Bank overdraft       — 5,589 —
Bank loans       — 5,992 5,317
Obligations under finance leases and hire purchase contracts    6,175 7,793 9,332
Derivative financial instruments (note 27)     160 — —
        6,335 19,374 14,649
        2010 2009 2008 
non‑current       £000 £000 £000
Bank loans       — 8,542 14,560
Drawings under revolving credit facility     20,000 — —
Obligations under finance leases and hire purchase contracts    10,676 11,804 17,250
Derivative financial instruments (note 27)     197 —  —
        30,873 20,346  31,810
Unamortised cost of borrowings      (564) — —
        30,309 20,346 31,810
The effective interest rates at the balance sheet date were as follows:
        2010 2009 2008 
        % % %
Bank overdraft       — 1.9 6.0
Bank loans       — 3.0 6.3
Drawings under revolving credit facility     3.6 — —
Obligations under finance leases and hire purchase contracts    5.4 6.0 6.1
Total financial liabilities are repayable as follows:
       2010
      revolving   Finance  
      credit bank bank leases and  
      facility overdraft loans HP contracts total 
      £000 £000 £000 £000 £000
On demand or within one year    — — — 6,175 6,175
More than one year but not more than two years   1,500 —  — 5,070 6,570
More than two years but not more than five years   18,500 — — 5,606 24,106
      20,000 — — 16,851 36,851 46
ATH ResouRces plc
annual report and accounts 2010
17 FInAncIAl lIAbIlItIes cOntInued
       2009
      Revolving   Finance  
      credit Bank Bank leases and  
      facility overdraft loans HP contracts Total 
      £000 £000 £000 £000 £000
On demand or within one year    —  5,589 5,992 7,793 19,374
More than one year but not more than two years   — — 8,233 5,727 13,960
More than two years but not more than five years   — — 150 6,077 6,227
Five years or more     — — 159 — 159
      — 5,589 14,534 19,597 39,720
The revolving credit facility is secured by a fixed and floating charge over certain assets of the Group. Obligations under finance 
leases and hire purchase contracts are secured on the related assets.
Undrawn borrowing facilities at the balance sheet date amounted to £3.5 million.
Minimum obligations under finance leases:
        2010 2009 2008 
        £000 £000 £000
Within one year       6,924 8,686 10,508
In the second to fifth years      11,313 12,776 18,897
        18,237 21,462 29,405
Less future finance charges      (1,386) (1,865) (2,823)
Present value of lease obligations      16,851 19,597 26,582
All obligations under finance leases and hire purchase contracts relate to the acquisition of plant and machinery.
The fair value of the Group’s lease obligations approximates to their carrying amount.
18 PrOvIsIOns
       Deferred Final void  Deferred  
       consideration provision  tax Total 
       £000 £000 £000 £000
28 September 2008      338 16,829 4,208 21,375
Created in the year      — 2,437 126 2,563
Discount accrued      — 591 — 591
Charged to profit and loss     — 653 — 653
Utilised in the year      — (2,050) — (2,050)
4 October 2009      338 18,460 4,334 23,132
Created in the year      — 2,322 — 2,322
Discount accrued      — 551 — 551
Released on disposal of discontinued operations    (338) — — (338)
Charged to profit and loss     — 55 (1,080) (1,025)
Utilised in the year      — (2,575) — (2,575)
3 October 2010      — 18,813 3,254 22,067
A total of £2,315,000 (2009: £3,337,000) of the final void provision is classified as a current liability to reflect the time profile of 
anticipated works.
The deferred consideration related to the acquisition in 2008 of Pacific West Coal Pty Ltd where under the terms of the acquisition 
agreement, a contingent consideration was payable depending on the Group’s level of success in obtaining future contracts. This business 
is no longer operational following the sale of the ATH Regeneration assets and no additional consideration will be payable.
Notes to the Group financial statements 
for the year ended 3 October 2010 continued 47
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
18 PrOvIsIOns cOntInued
Deferred tax comprises:
        2010 2009 2008 
        £000 £000 £000
Capital allowances in excess of depreciation     3,260 4,362 4,434
Temporary timing differences      (6) (28) (226)
        3,254 4,334 4,208
Deferred tax assets of £6,000 (2009: £28,000) have been recognised to the extent that they are expected to be recovered, based 
on forecasts of future taxable profits. Further deferred tax assets of £39,000 (2009: £nil) have not been recognised due to uncertainty 
regarding their recoverability. 
19 cAlled uP sHAre cAPIt Al
     2010  2009  2008
Ordinary shares of 0.5 pence each   number £000  Number  £000  Number  £000
Authorised    200,000,000 1,000 200,000,000 1,000 200,000,000 1,000
Called up and fully paid    40,075,158 200 40,075,158 200 40,075,158 200
During the year, the Company issued no new share capital.
20 sHAre‑bAsed PA yMents
Share options have been granted and are still outstanding under the ATH Resources plc Approved Executive Share Option Scheme, 
the ATH Resources plc Unapproved Executive Share Option Scheme and the ATH Resources plc Long Term Incentive Plan as follows:
atH ResouRces plc appRoved executive sHaRe option scHeme The following options had been granted and were still outstanding under the scheme:
AT 3 OCTOBER 2010
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 4 October during during during 3 October   target 
date of grant £ 2009 the year the year the year 2010 from to (pence)
1 November 2004 1.46 102,355 — (40,942) — 61,413 1 Oct 03 30 Sep 06 38.68
7 January 2007 1.95 30,768 — (30,768) — — 1 Oct 06 30 Sep 09 55.40
   133,123 — (71,710) — 61,413   
AT 4 OCTOBER 2009
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 28 September during during during 4 October   target 
date of grant £ 2008 the year the year the year 2009 from to (pence)
1 November 2004 1.46 102,355 — — — 102,355 1 Oct 03 30 Sep 06 38.68
7 January 2007 1.95 30,768 — — — 30,768 1 Oct 06 30 Sep 09 55.40
   133,123 — — — 133,123   
The options are exercisable between three and ten years from the date of grant subject to the achievement of performance criteria. 
The performance target is cumulative pre‑tax earnings per share. 48
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
20 sHAre‑bAsed PA yMents cOntInued
atH ResouRces plc unappRoved executive sHaRe option scHeme The following options had been granted and were still outstanding under the scheme:
AT 3 OCTOBER 2010
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 4 October during during during 3 October   target 
date of grant £ 2009 the year the year the year 2010 from to (pence)
11 June 2004 1.33 972,002 — (564,301) — 407,701 1 Oct 03 30 Sep 06 38.68
29 September 2005 1.85 382,132 — (163,760) — 218,372 1 Oct 04 30 Sep 07 44.20
3 October 2006 2.065 76,950 — — — 76,950 1 Oct 05 30 Sep 08 44.50
8 January 2007 1.95 141,732 — (141,732) — — 1 Oct 06 30 Sep 09 55.40
15 January 2008 2.05 301,951 — (235,610) — 66,341 — — None
20 January 2010 0.8125 — 636,616 (496,746) — 139,870 1 Oct 09 30 Sep 12  (1)
   1,874,767 636,616 (1,602,149) — 909,234   
AT 4 OCTOBER 2009
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 28 September during during during 4 October   target 
date of grant £ 2008 the year the year the year 2009 from to (pence)
11 June 2004 1.33 972,002 — — — 972,002 1 Oct 03 30 Sep 06 38.68
29 September 2005 1.85 404,916 — (22,784) — 382,132 1 Oct 04 30 Sep 07 44.20
3 October 2006 2.065 76,950 — — — 76,950 1 Oct 05 30 Sep 08 44.50
8 January 2007 1.95 141,732 — — — 141,732 1 Oct 06 30 Sep 09 55.40
15 January 2008 2.05 301,951 — — — 301,951 — — None
   1,897,551 — (22,784) — 1,874,767   
The options are exercisable between three and ten years from the date of grant subject to the achievement of performance criteria. 
The performance target is cumulative pre‑tax earnings per share.
(1)  The options issued in 2010 are exercisable between three and five years from the date of grant subject to the achievement 
of the performance criteria. The performance target is 4% annual growth in pre‑tax earnings per share.
atH ResouRces plc l onG teRm incentive plan The following options had been granted and were still outstanding under the scheme:
AT 3 OCTOBER 2010
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 4 October during during during 3 October   target 
date of grant £ 2009 the year the year the year 2010 from to (pence)
29 September 2005 1.70 382,132 —  (163,760) —  218,372 1 Oct 04 30 Sep 08 59.80
3 October 2006 1.80 76,950 —  —  —  76,950 1 Oct 05 30 Sep 09 60.80
8 January 2007 1.75 172,500 —  (172,500) —  —  1 Oct 06 30 Sep 10 75.70
15 January 2008 0.01 649,856 — (324,498) —  325,358 1 Oct 07 30 Sep 10 (2)
8 October 2009 0.01 — 552,999 (191,468) — 361,531 1 Oct 09 30 Sep 12 (2)
20 January 2010 0.01 — 1,084,012 (558,993) — 525,019 1 Oct 09 30 Sep 12 (2)
   1,281,438 1,637,011 (1,411,219) —  1,507,230    49
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
20 sHAre‑bAsed PA yMents cOntInued
atH ResouRces plc l onG teRm incentive plan continued AT 4 OCTOBER 2009
   Options    Options   
  Exercise outstanding Granted Forefeited Exercised outstanding  Performance period Performance
  price 28 September during during during 4 October   target 
date of grant £ 2008 the year the year the year 2009 from to (pence)
29 September 2005 1.70 404,916 — (22,784) — 382,132 1 Oct 04 30 Sep 08 59.80
3 October 2006 1.80 76,950 — — — 76,950 1 Oct 05 30 Sep 09 60.80
8 January 2007 1.75 172,500 — — — 172,500 1 Oct 06 30 Sep 10 75.70
15 January 2008 0.01 665,110 — (15,254) — 649,856 1 Oct 07 30 Sep 10 (2)
   1,319,476 — (38,038) — 1,281,438   
(2)  The options issued in 2005, 2006 and 2007 are exercisable between five and ten years from the date of grant subject to the 
achievement of performance criteria. The performance criteria are cumulative pre‑tax earnings per share. The options issued 
in 2008, 2009 and 2010 are exercisable between three and ten years from the date of grant subject to the achievement of the 
performance criteria. The performance target is average annual growth in pre‑tax earnings per share. If the average pre‑tax 
earnings per share increases by over 10% per annum over the performance period, the full award will vest. If the average 
pre‑tax earnings per share increases by between 7.5% and 10%, 75% of the award will vest. If the average pre‑tax earnings 
per share increases by between 5% and 7.5%, 50% of the award will vest. If the average pre‑tax earnings per share increases 
by less than 5% per annum, the options will lapse. 
Total options exercisable over the shares of the Company at the year end were 982,808 (2009: 1,533,439).
The Group recognised a total charge/(credit) in relation to share‑based payments as follows:
         2010 2009 
         £000 £000
Equity‑settled share‑based payments       72 (35)
21 reserves
         Share Retained 
         premium earnings 
         £000 £000
28 September 2008 – restated       27,855 2,709
Reduction in respect of share‑based payments      — (35)
Profit for the year        — 2,589
Dividends paid        — (1,058)
4 October 2009 – restated       27,855 4,205
Addition in respect of share‑based payments      — 72
Loss for the year        — (1,767)
Dividends paid        — (2,865)
3 October 2010        27,855 (355)
22 equIty dIvIdends
declaRed and paid duRinG tHe financial yeaR
         2010 2009 
         £000 £000
Final dividend for the year ended 4 October 2009: 6.15 pence per share (2008: 2.64 pence per share)  2,464 1,058
Interim dividend for the year ended 3 October 2010: 1.00 pence per share (2009: nil pence per share)  401 —
         2,865 1,058
Proposed after the balance sheet date and not recognised as a liability   
Final dividend for the year ended 3 October 2010: 2.00 pence per share (2009: 6.15 pence per share)  802 2,464 50
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
23 OPerA tInG leAse cOMMItMents
At 3 October 2010 the Group was committed to making the following minimum lease payments in respect of operating leases:
       2010  2009
       land and  Land and  
       buildings Other buildings Other 
       £000 £000 £000 £000
Plant and machinery    
Not later than one year      — 532 1 14
Later than one year but not later than five years    — 749 — 162
       — 1,281 1 176
24 cAPIt Al cOMMItMents And Gu ArAntees
At 3 October 2010 the Group was committed to acquiring plant and machinery:
         2010 2009 
         £000 £000
Contracted but not provided       346 —
The Group issues restoration bonds in the normal course of trading.
25 recOncIlIA tIOn OF PrOFIt beFOre t Ax tO net cAsH GenerA ted FrOM OPerA tIOns
          Restated 
         2010 2009 
         £000 £000
Profit before tax on continuing operations      3,988 6,138
Loss before tax on discontinued operations      (4,942) (2,376)
Adjustments for:  
Finance costs        2,966 2,867
Depreciation of property, plant and equipment      13,758 15,464
Loss on disposal of fixed assets       3,380 22
Share‑based payment expense/(credit)       72 (35)
Operating cash flows before movements in working capital     19,222 22,080
Decrease/(increase) in inventories       203 (2,661)
(Increase)/decrease in receivables       (1,636) 1,512
Decrease in payables and provisions       (5,053) (3,154)
cash generated from operations       12,736 17,777
For the purpose of the cash flow statement, cash and cash equivalents comprise the following:
         2010 2009 
         £000 £000
Cash and cash equivalents       2,353 370
Bank overdraft        — (5,589)
         2,353 (5,219)
26 AnAlysIs OF net debt
        4 October net cash 3 October 
        2009 flow 2010 
        £000 £000 £000
Cash at bank and in hand      370 1,983 2,353
Overdrafts and short term facilities      (5,589) 5,589 —
        (5,219) 7,572 2,353
Debt due after one year       (20,346) (10,330) (30,676)
Debt due within one year      (13,785) 7,610 (6,175)
        (34,131) (2,720) (36,851)
Total       (39,350) 4,852 (34,498) 51
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
27 FInAncIAl InstruMents
GeneRal Risk manaGement pRinciples The Board has overall responsibility for the establishment and oversight of the Group’s risk management framework. A formal risk 
assessment and management framework for assessing, monitoring and managing the strategic, operational and financial risks of 
the Group is in place to ensure appropriate risk management of its operations. Internal control and risk management systems are 
embedded in the operations of the divisions.
capital Risk manaGement The Group manages its capital to ensure that the Group will be able to continue as a going concern whilst taking advantage of the 
opportunities in its chosen markets, providing returns for its shareholders and to maintain an optimal level of both debt and equity finance.
The Group’s capital structure consists of debt, including the borrowings as set out in note 17; bank overdraft and cash and cash 
equivalents; and equity attributable to equity holders of the parent, comprising issued share capital, reserves and retained earnings 
as disclosed in notes 19 and 21.
The Group has satisfied all reportable banking covenants during the current and previous years. 
The Group uses its gearing ratio to monitor its capital structure, gearing being calculated as net debt divided by total capital. Net debt 
is bank loans, bank overdrafts, drawings under the revolving credit facility and finance lease liabilities less cash and cash equivalents. 
Total capital is net debt and the equity attributable to equity holders of the parent.
The gearing ratio at the year end is as follows:
         2010 2009 
         £000 £000
Bank loans, bank overdrafts, drawings under the revolving credit facility and  
finance lease liabilities        36,851 39,720
Cash and cash equivalents       (2,353) (370)
Net debt        34,498 39,350
Total equity        27,700 32,260
Total capital        62,198 71,610
Gearing ratio        55% 55%
The reported gearing for the year has remained unchanged and is attributable to reducing levels of debt and the loss reported for 
the year following the disposal of the business assets of ATH Regeneration.
siGnificant accountinG policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement 
and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity 
instrument are disclosed in the Group Accounting Policies on pages 30 to 35.
cateGoRies of financial instRuments         2010 2009 
         £000 £000
Financial assets  
Cash and cash equivalents       2,353 370
Trade receivables        10,172 8,403
Financial liabilities  
Trade payables        (6,412) (8,318)
Drawings under revolving credit facility      (20,000) —
Bank overdraft        — (5,589)
Bank loans        — (14,534)
Derivative financial instruments       (357) — 
Obligations under finance leases and hire purchase contracts     (16,851) (19,597)
The carrying amount of financial assets and financial liabilities are recorded at amortised cost in the financial statements and are 
considered to approximate to their fair value, with the exclusion of derivative financial instruments which are carried at fair value. 
The drawings under the revolving credit facility are shown gross of unamortised borrowing costs of £564,000.
Cash and cash equivalents are cash balances held by the Group. All financial assets are classified as loans and receivables and all 
financial liabilities are classified as other liabilities.
In November 2009, all existing bank loan, overdraft and asset‑backed facilities were replaced by a new £30 million revolving credit facility 
in a club deal with two new banks. Following the sale of the business assets of ATH Regeneration, the Group utilised the proceeds 
to repay borrowings. From 29 July 2010, the facility was, by agreement, reduced to £23.5 million and will increase to £24.5 million from 
1 January 2011. The facilities available step down to £23.5 million from 1 July 2011 and £18.5 million from 2 November 2011. 
Overall, the arrangement secures facilities until November 2012. ATH ResouRces plc
annual report and accounts 2010
52
27 FInAncIAl InstruMents cOntInued
financial Risk manaGement oBjectives The Group has exposure to a variety of financial risks through the conduct of its operations. The overall risk management policies 
of the Group are designed to minimise implicit credit risk, market risk, foreign currency risk and liquidity risk. Risk management 
is governed by the Group’s operational policies which are managed and reviewed by the Board of Directors. 
maRket Risk The Group’s activities expose it primarily to the financial risks of changes in credit risks, foreign currency risk, liquidity risk and 
interest rate movements described below.
Market risk exposures are monitored and are supplemented by sensitivity analysis. There has been no change to the Group’s 
exposure to market risks or the manner in which it manages and measures the risk.
The Group enters into hedging agreements to fix the forward price of gas oil, a significant operating cost. These instruments are 
deemed “own use” contracts and are not required to be stated at fair value under IFRS. These instruments are entered into to 
provide certainity and minimise the price of oil on the Group.
foReiGn cuRRency Risk manaGement The Group undertakes certain transactions denominated in foreign currencies when purchasing significant capital equipment 
from abroad and exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy 
parameters utilising forward foreign exchange contracts if considered appropriate.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities were insignificant 
at each balance sheet date.
cRedit Risk Credit risk predominantly arises from trade receivables and cash and cash equivalents and refers to the risk that a counterparty 
will default on its contractual obligations resulting in financial loss to the Group. The Group has a policy of only dealing with 
credit worthy counterparties and obtaining sufficient insurance where appropriate as a means of mitigating the risk of financial 
loss from defaults.
The Group generally transacts with large entities that are in the power generating, coal wholesale and manufacturing industries 
and has had little history of default in recent years. Credit exposures are reviewed by the Board regularly. 
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having 
similar characteristics. The Group defines counterparties as having similar characteristics if they are connected entities.
Cash and cash equivalents are held with banks.
The Group’s maximum exposure to credit risk relating to its financial assets is equivalent to their carrying value as disclosed below:
         2010 2009 
         £000 £000
Trade receivables        10,172 8,403
Cash and cash equivalents       2,353 370
         12,525 8,773
The Group carries credit risk insurance to mitigate the risk of default from trade receivables.
The ageing analysis of trade receivables is shown in note 15.
liquidity Risk manaGement Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity 
risk management framework for the management of the Group’s short, medium and long term funding and liquidity 
management requirements. 
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowings facilities by 
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. 
Included in note 17 is an analysis of the maturity of the Group’s borrowings along with a description of additional undrawn 
facilities that the Group has at its disposal to further reduce liquidity risk.
The average credit period taken for trade purchases is 37 days (2009: 63 days) which reflects the mix of when these amounts 
are contractually due.
Notes to the Group financial statements 
for the year ended 3 October 2010 continued 53
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
27 FInAncIAl InstruMents cOntInued
inteRest Rate Risk manaGement The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The risk is 
managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest 
rate swap contracts when necessary. Hedging activities are evaluated regularly with a policy of aligning interest rate views and 
defined risk profiles to ensure optimal hedging strategies are applied, as considered appropriate.
The Group’s primary interest rate profile on financial liabilities is as follows:
     2010  2009
     Fixed Floating  Fixed Floating  
     rate rate total rate rate Total 
     £000 £000 £000 £000 £000 £000
Bank overdraft    — — — — 5,589 5,589
Bank loans    — — — — 14,534 14,534
Drawing under revolving credit facility   — 20,000 20,000 — — —
Finance leases and hire purchase contracts  16,101 750 16,851 18,048 1,549 19,597
     16,101 20,750 36,851 18,048 21,672 39,720
inteRest Rate swap contRacts The Group has entered into interest rate swap contracts to mitigate the risk of changes to the variable rate of interest payable 
on certain borrowings.
The contracts enable the Group to exchange variable rates of interest for fixed rates. The fair value of the interest rate swaps is 
determined by discounting the future cash flows using the curves at the end of the reporting period and the credit risk interest 
in the contract and is disclosed below. The average interest rate is based on the outstanding balances at the period end.
deRivatives used foR HedGinG
The notional principal amounts and remaining terms of interest rate swap contracts at the end of the reporting period are set out below:
  Average contracted  Notional  
  fixed interest rate  principal value  Fair value
     2010 2009 2010 2009 2010 2009 
Outstanding receive floating pay fixed contracts  % % £000 £000 £000 £000
Less than 1 year    2.4 — 10,000 — (160) —
1 to 2 years    3.9 — 7,500 — (197) —
       17,500 — (357) —
The interest rate swaps are settled on a quarterly basis. The floating rate is the LIBOR based rate implicit on the Group revolving 
credit facility. The Group will settle the difference between the fixed and floating rates on a net basis.
inteRest Rate sensitivity analysis The sensitivity analysis below has been determined based on the exposure to interest rates in respect of the Group’s borrowings. 
For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the balance sheet date was 
outstanding for the whole year. A 2% increase (2009: 2%) or 1% decrease (2009: 1%) represents management’s assessment 
of the reasonably possible change in interest rates, which is attributable to the Group’s exposure to interest rates on its variable 
rate borrowings.
impact on post‑tax pRofit foR tHe yeaR
         2010 2009 
         £000 £000
Increase in floating rate of 2% (2009: 2%)      (299) (312)
Decrease in floating rate of 1% (2009: 1%)      149 156
RestoRation Bonds The Group is required to enter into restoration bonds in the normal course of trading. During the year, the Group issued new 
bonds totalling £3.5 million (2009: £11.0 million) and had bonds in issue of £26.7 million at the year end (2009: £23.2 million). 54
ATH ResouRces plc
annual report and accounts 2010
Notes to the Group financial statements 
for the year ended 3 October 2010 continued
28 relA ted PArty trAnsActIOns
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and have 
not therefore been disclosed.
asset disposal and tRadinG tRansaction During the year, the Group disposed of the business assets of ATH Regeneration to a newly formed company, RecyCoal Limited. 
Mr Tom Allchurch, formerly Chief Executive and current Non‑Executive Director, and Mr Steven Beaumont, Group Finance Director 
until 30 September 2010, are part owners and directors of RecyCoal Limited.
The business assets were sold for £6.5 million and the Group reported a loss on the disposal of £3.4 million (note 9).
licensinG of tecHnoloGy The Group has entered into a licensing agreement with RecyCoal for the exclusive worldwide use of Group’s coal washing 
technology and intellectual property, ownership of which has been retained within the Group. The licence is for a period of seven 
years and under the agreement, the Group will receive royalties based on the performance of RecyCoal Limited. The royalties that 
can be earned are subject to a cap of £8 million. RecyCoal Limited has the option to purchase the intellectual property rights at 
the end of the licensing period.
leasinG of pRopeRty The Group has leased its property at Pinxton, where the former ATH Regeneration coal tip washing plant is situated, to RecyCoal Limited. 
The initial lease runs until January 2014 and is at a nominal rental.
manaGement seRvices Following the disposal, the Group entered into an agreement for the short term provision of management and support services from 
the Group to RecyCoal Limited and to receive such from RecyCoal Limited. The Group entered into the following transactions:
        Provision of services  Receipt of services 
       2010 2009 2010 2009 
       £000 £000 £000 £000
RecyCoal Limited      36 — 8 —
The following balances were outstanding at the end of the reporting period:
        Amounts owed by  Amounts owed to 
        related parties  related parties
       2010 2009 2010 2009 
       £000 £000 £000 £000
RecyCoal Limited      18 — 6 —
The provision and receipt of services is at market rates.
The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. No expense has 
been recognised in the current period for bad or doubtful debts in respect of the amounts owed by related parties.
compensation of key manaGement peRsonnel The remuneration of the Directors, together with other key management personnel of the Group, is set out below in aggregate 
for each of the categories specified in IAS 24 ‘Related Party Disclosures’. Further information about the remuneration of individual 
Directors is provided in the Remuneration Committee Report on pages 22 to 24.
         2010 2009 
         £000 £000
Salaries and short term employee benefits      859 881
Pension contributions        76 80
Share‑based payments        (12) (2)
         923 959 55
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Independent auditors’ report
to the members of ATH Resources plc
We have audited the financial statements which comprise the Balance Sheet and the related notes. The financial reporting framework 
that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally 
Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
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 A udItOrs
As more fully explained in the Directors’ Responsibilities Statement set out on page 17 the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the 
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
scOPe OF tHe A udIt 
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
OPInIOn On tHe FInAncIAl st AteMents
In our opinion the financial statements:
 give a true and fair view of the state of the Company’s affairs as at 3 October 2010 and of its loss for the year then ended;
 have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
 have been prepared in accordance with the requirements of the Companies Act 2006.
OPInIOn On OtHer MA tter PrescrIbed by tHe cOMPAnIes Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared 
is consistent with the financial statements.
MAtters On wHIcH we Are requIred tO rePOrt by excePtIOn
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our 
opinion:
  adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not 
visited by us; or
 the financial statements are not in agreement with the accounting records and returns; or
 certain disclosures of Directors’ remuneration specified by law are not made; or
 we have not received all the information and explanations we require for our audit.
rIcHArd KInG (senIOr st AtutOry AudItOr)
FOr And On beHAlF OF bAKer tIlly uK AudIt llP 
st AtutOry AudItOr 
cHArtered AccOunt Ants
2 wHIteHAll qu Ay
leeds ls1 4HG
7 deceMber 2010 56
ATH ResouRces plc
annual report and accounts 2010
company balance sheet
as at 3 October 2010
Company number: 4928463
      2010  2009
    Notes £000 £000 £000 £000
Fixed assets     
Investments   3  5,907  8,907
current assets     
debtors: due in less than one year   4 —  56 
  due after more than one year  4 33,263  35,297 
     33,263  35,353 
cash in hand    —  12 
     33,263  35,365 
creditors: amounts falling due within one year   5 (128)  (3,405) 
net current assets     33,135  31,960
total assets less current liabilities     39,042  40,867
creditors: amounts falling due after more than one year  6  (9,949)  (6,912)
net assets     29,093  33,955
capital and reserves       
Called up share capital   7  200  200
Share premium account   8  27,855  27,855
Profit and loss account   8  1,038  5,900
equity shareholders’ funds   9  29,093  33,955
The financial statements on pages 56 to 59 were approved by the Board of Directors and authorised for issue on 7 December 2010 
and are signed on its behalf by:
A P weA tHerstOne
GrOuP FInAnce dIrectOr 57
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
company accounting policies
bAsIs OF AccOuntInG
The separate financial statements of the Company are presented as required by the Companies Act 2006. They have been prepared 
under the historical cost convention and in accordance with applicable UK GAAP and law.
bAsIs OF PrePArA tIOn
The Company is a holding company and meets its day to day working capital requirements through an overdraft facility which 
is repayable on demand and through the support of its trading subsidiaries.
AccOuntInG PerIOd
The Company has drawn up its accounts for the 52 week period to 3 October 2010 (53 week period to 4 October 2009).
PrOFIt And l Oss AccOunt
The Company has not presented its own profit and loss account, as permitted by Section 408 of the Companies Act 2006.
cAsH Fl Ow The Company is exempt from the requirements of Financial Reporting Standard 1 ‘Cash Flow Statements’ (Revised).
InvestMents
Investments are stated at cost and provision is made for any impairment in the value of fixed asset investments.
deFerred t AxAtIOn
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 substantively enacted by the balance sheet date. Deferred tax is 
measured on a non‑discounted basis.
sHAre‑bAsed PA yMents
Share‑based payments are accounted for as described in the Group Accounting Policies on page 31. 58
ATH ResouRces plc
annual report and accounts 2010
Notes to the company financial statements
for the year ended 3 October 2010
1 OPerA tInG PrOFIt
The auditors’ remuneration for audit services to the Company expensed was £10,000 (2009: £10,000).
The Company has no employees other than the Directors whose remuneration was borne by subsidiary undertakings and 
is disclosed on page 22.
2 PrOFIt OF tHe cOMPAny
The Company has taken advantage of Section 408 of the Companies Act 2006 and consequently its profit and loss account is 
not presented as part of these accounts. The loss of the Company for the financial year amounted to £2,069,000 (2009: profit 
of £2,296,000). Dividends paid and proposed are disclosed in note 22 to the consolidated financial statements.
3 InvestMents
         2010 2009 
Investments in subsidiary undertakings       £000 £000
cost  
At beginning and end of year       8,907 8,907
Provisions for impairment  
At beginning of year        — —
Written off        (3,000) —
At end of year        (3,000) —
net book value        5,907 8,907
Details of the Company’s investments are disclosed in note 13 to the consolidated financial statements. 
4 debtOrs
         2010 2009 
         £000 £000
Amounts due from subsidiary undertakings      33,263 35,297
Other debtors        — 56
         33,263 35,353
5 credItOrs: AMOunts FAllInG due wItHIn One yeAr
         2010 2009 
         £000 £000
Bank loan        — 3,375
Bank overdraft        58 —
Corporation Tax        41 —
Accruals and deferred income       29 30
         128 3,405
6 credItOrs: AMOunts FAllInG due AF ter MOre tHAn One yeAr
         2010 2009 
         £000 £000
Bank loan        — 6,900
Drawings under revolving credit facility      10,500 —
Amounts due to subsidiary undertaking      13 12
         10,513 6,912
Unamortised borrowing costs       (564) —
         9,949 6,912
The revolving credit facility 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. 59
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
7 cAlled uP sHAre cAPIt Al
       2010  2009
Ordinary shares of 0.5 pence each     number £000 Number £000
Authorised      200,000,000 1,000 200,000,000 1,000
Called up and fully paid      40,075,158 200 40,075,158 200
During the year, the Company issued no new shares.
Share options have been granted and are still outstanding under the ATH Resources plc Approved Executive Share Option Scheme, 
the ATH Resources plc Unapproved Executive Share Option Scheme and the ATH Resources plc Long Term Incentive Plan as set out 
in note 20 to the consolidated financial statements.
8 OtHer reserves
          Profi t 
         Share and loss 
         premium account 
         £000 £000
4 October 2009        27,855 5,900
Addition in respect of share‑based payment      — 72
Loss on ordinary activities after taxation      — (2,069)
Dividends paid        — (2,865)
3 October 2010        27,855 1,038
9 recOncIlIA tIOn OF MOveMent In sHAreHOlders’ Funds
         2010 2009 
         £000 £000
Addition/(reduction) in respect of share‑based payments     72 (35)
(Loss)/profit for the year        (2,069) 2,296
Dividends paid        (2,865) (1,058)
net (decrease)/increase in shareholders’ funds     (4,862) 1,203
Opening shareholders’ funds       33,955 32,752
closing shareholders’ funds       29,093 33,955
10 FInAncIAl InstruMents
The Company recognises and manages financial instruments as set out in note 27 to the consolidated financial statements. 60
ATH ResouRces plc
annual report and accounts 2010
Notice of annual general meeting – ATH Resources plc
NOTICE IS HEREBY GIVEN that the Annual General Meeting of the Company will be held at the offices of Eversheds LLP solicitors, 
Bridgewater Place, Water Lane, Leeds LS11 5DR on Tuesday 18 January 2011 at 11am to transact the following business:
OrdInAry busIness
1. To receive the accounts of the Company for the year ended 3 October 2010 and the reports of the Directors and the auditors.
2. To declare a final dividend.
3. To re‑elect Alistair Black as a Director.
4. To re‑appoint Andrew Paul Weatherstone as a Director.
5.  To re‑appoint Baker Tilly UK Audit LLP as auditor to the Company, to hold office until the conclusion of the next general 
meeting at which accounts are laid before the Company and to authorise the Directors to fix their remuneration.
6. To receive and approve the Remuneration Committee Report.
sPecIAl busIness
To consider and, if thought fit, and in the case of resolution 8 to the passing of resolution 7 pass the following resolutions. 
Resolution 7 will be proposed as an ordinary resolution. Resolutions 8 and 9 will be proposed as special resolutions. 
7.(i)  THAT the Directors be and are hereby generally and unconditionally authorised in accordance with Section 551 of the 
Companies Act 2006 (the “Act”) (in substitution for any existing authorities to allot relevant securities) to exercise all the 
powers of the Company to allot relevant securities (within the meaning of Section 80 of the Act) up to a maximum nominal 
amount of £60,112 (being approximately 30% of the issued share capital of the Company) provided that such authority shall 
expire at the conclusion of the next Annual General Meeting (or, if earlier on 31 March 2012) and provided further that the 
Company may before such expiry make such offers or agreements which would or might require relevant securities to be 
allotted after such expiry;
 and further 
7.(ii)  THAT the Directors be and they are hereby generally and unconditionally authorised to exercise all powers of the Company 
to allot equity securities (within the meaning of Section 560 of the Act) in connection with a rights issue in favour of ordinary 
shareholders where the equity securities respectively attributable to the interests of all ordinary shareholders are proportionate 
(as nearly as may be) to the respective numbers of ordinary shares held by them up to an aggregate nominal amount of 
£60,112 (being approximately 30% of the issued share capital of the Company) provided that this authority shall expire 
on the conclusion of the next Annual General Meeting of the Company after the passing of this resolution 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 authority 
conferred hereby had not expired.
8.  THAT, subject to the passing of resolution 7, the Directors be and are hereby empowered pursuant to Section 570 of the Act 
to allot equity securities (as defined in Section 560 of the Act) for cash as if Section 561(1) did not apply to such allotment, 
provided that this power shall be limited to:
 (i)  the allotment of equity securities in connection with a rights issue or other issue in favour of the holders of ordinary 
shares (notwithstanding that, by reason of such exclusions or other arrangements as the Directors may deem necessary or 
expedient to deal with fractional entitlements or legal or practical problems under the laws of, or the requirements of any 
recognised regulatory body or any stock exchange in, any territory, the equity securities to be issued are not offered to all 
such holders in proportion to the number of ordinary shares held by each of them); and
 (ii)  the allotment (otherwise than pursuant to sub‑paragraph (i) above) of equity securities up to an aggregate nominal value 
of £10,018 being approximately 5% of the Company’s issued share capital;
  and such power shall expire on the conclusion of the next Annual General Meeting of the Company after the passing of this 
resolution (or if earlier 31 March 2012), save that the Company may before such expiry make any offers or agreements which 
would or might require equity securities to be allotted after such expiry. 61
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
sPecIAl busIness cOntInued
9.  THAT, the Company be generally and unconditionally authorised, pursuant to Article 9 of the Articles of Association of the 
Company to make market purchases (as defined in Section 693 of the Act) of up to 2,003,758 ordinary shares of 0.5 pence 
each in the capital of the Company (being approximately 5% of the current issued ordinary share capital of the Company) 
on such terms and in such manner as the Directors of the Company may from time to time determine, provided that:
 (a)  the amount paid for each share (exclusive of expenses) shall not be more than the higher of: (i) 5% above the average of 
the middle market quotation for ordinary shares as derived from the Daily Official List of London Stock Exchange plc for 
the five business days before the date on which the contract for the purchase is made; and (ii) an amount equal to the 
higher of the price of the last independent trade and current independent bid as derived from the London Stock 
Exchange Trading system or less than 0.5 pence per share; and
 (b)  the authority herein contained shall expire at the conclusion of the 2012 Annual General Meeting or 31 March 2012, 
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
A P weA tHerstOne  reGIstered OFFIce
GrOuP FInAnce dIrectOr AArdv ArK HOuse
7 deceMber 2010 sIdInGs cOurt
 dOncAster dn4 5nu 62
ATH ResouRces plc
annual report and accounts 2010
Notice of annual general meeting – ATH Resources plc 
continued
nOtes
1.  A member who is entitled to attend and vote at the Annual General Meeting 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.
  The right to appoint a proxy does not apply to persons whose shares are held on their behalf by another person and who have 
been nominated to receive communications from the Company in accordance with Section 146 of the Companies Act 2006 
(“nominated persons”). Nominated persons may have a right under an agreement with the registered shareholder who holds 
the shares on their behalf to be appointed (or to have someone else appointed) as a proxy. Alternatively, if nominated persons 
do not have such a right, or do not wish to exercise it, they may have a right under such an agreement to give instructions to 
the person holding the shares as to the exercise of voting rights.
2.  In order to be valid, any form of proxy and power of attorney or other authority under which it is signed, or notarially certified or 
office copy of such power or authority, must reach the Company’s registrars, Capita Registrars, 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.  CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do 
so for the Annual General Meeting to be held on 18 January 2011 and any adjournment(s) thereof by using the procedures 
described in the CREST Manual. CREST personal members or other CREST sponsored members, and those CREST members who 
have appointed a voting service provider(s), should refer to their CREST sponsor or voting service provider(s), who will be able 
to take the appropriate action on their behalf.
  In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST message 
(a “CREST Proxy Instruction”) must be properly authenticated in accordance with CRESTCo’s specifications and must contain 
the information required for such instructions, as described in the CREST Manual. The message, regardless of whether it 
constitutes the appointment of a proxy or to an amendment to the instruction given to a previously appointed proxy must, 
in order to be valid, be transmitted so as to be received by the issuer’s agent (ID RA10) by the latest time(s) for receipt of 
proxy appointments specified in the notice of meeting. For this purpose, the time of receipt will be taken to be the time (as 
determined by the timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able 
to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any change of instructions 
to proxies appointed through CREST should be communicated to the appointee through other means.
  CREST members and, where applicable, their CREST sponsors or voting service providers should note that CRESTCo does not 
make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore 
apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take 
(or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service provider(s), to 
procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message 
is transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where applicable, 
their CREST sponsors or voting service providers are referred, in particular, to those sections of the CREST Manual concerning 
practical limitations of the CREST system and timings.
  The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of the 
Uncertificated Securities Regulations 2001.
4.  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 6pm on 16 January 2011 in order to be entitled to 
attend and vote at the Annual General Meeting. 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.  63
ATH ResouRces plc
annual report and accounts 2010
The year Governance Accounts
Form of proxy – ATH Resources plc
for use at the Annual General Meeting 
to be held at Eversheds LLP , Bridgewater Place, Water Lane, Leeds LS11 5DR, 
11am on Tuesday 18 January 2011
I/We .............................................................................................................................................................................................
(Please insert full name(s) and address(es) in block letters)
of ................................................................................................................................................................................................
being (a) member/members of the above‑named Company hereby appoint the Chairman of the Meeting, or (see note 1 below) 
of ................................................................................................................................................................................................
as my/our proxy to vote for me/us on my/our behalf at the Annual General Meeting of the Company to be held on 
Tuesday 18 January 2011 and at any adjournment thereof, and to vote as indicated below.
Please indicate how you wish your proxy to vote by inserting “X” in the box below. If no indication is given, and on any other 
resolutions proposed at the meeting, your proxy will vote or abstain from voting as he/she thinks fit. 
 
Please tick here if this proxy is one of multiple appointments being made (see note 3)
            
Enter number of shares in relation to which your proxy is authorised to vote or leave blank to authorise your proxy 
to act in relation to your full voting entitlement.
 resOl utIOns: FOr AGAInst vOte   
    wItHHeld
 1 To receive the accounts for the year ended 3 October 2010.
 2 To declare a final dividend of 2 pence per share.
 3 To re‑elect Alistair Black as a Director.
 4 To re‑appoint Andrew Paul Weatherstone as a Director.
 5  To re‑appoint Baker Tilly UK Audit LLP as auditors and to authorise the Directors  
to determine their remuneration.
 6 To receive and approve the Remuneration Committee Report.
 7  To authorise the Directors to allot relevant securities pursuant to Section 551 of the  
Companies Act 2006.
 8  To authorise the Directors to allot equity securities pursuant to Section 570 of the  
Companies Act 2006.
 9 To authorise the purchase of shares pursuant to Section 701 of the Companies Act 2006.
NAME: (Block capitals) .................................................................................................................................................................
ADDRESS: ....................................................................................................................................................................................
SIGNATURE(S): .............................................................................................................................................................................
or COMMON SEAL .......................................................................................................................................................................
Date: ...........................................................................................................................................................................................
 64
ATH ResouRces plc
annual report and accounts 2010
Form of proxy – ATH Resources plc continued
for use at the Annual General Meeting continued
nOtes
1.  Every holder has the right to appoint some other person(s) of their choice, who need not be a shareholder, as his proxy to 
exercise all or any of his rights, to attend, speak and vote on their behalf at the meeting. If you wish to appoint a person 
other than the Chairman, please insert the name of your chosen proxy holder in the space provided above. If the proxy is 
being appointed in relation to less than your full voting entitlement, please enter the number of shares in relation to which 
they are authorised to act as your proxy. If left blank your proxy will be deemed to be authorised in respect of your full 
voting entitlement (or if this proxy form has been issued in respect of a designated account for a shareholder, the full 
voting entitlement for that designated account).
2.  In order to be valid, any form of proxy and power of attorney or other authority under which it is signed, or notarially 
certified or office copy of such power or authority, must reach the Company’s registrars, Capita Registrars, 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.  To appoint more than one proxy you may photocopy this form. Please indicate the proxy holder’s name and the number of 
shares in relation to which they are authorised to act as your proxy (which, in aggregate, should not exceed the number of 
shares held by you). Please also indicate if the proxy instruction is one of multiple instructions being given. All forms must 
be signed and should be returned together in the same envelope.
4.  The vote withheld option is provided to enable you to abstain on any particular resolution. However, it should be noted 
that a “Vote withheld” is not a vote in law, and will not be counted in the calculation of the proportion of votes “For” and 
“Against” a resolution. 
5.  If a member is a corporation, this form of proxy must be executed under its common seal or by the signature of an officer 
or attorney duly authorised in writing. 
6.  Entitlement to attend and vote at the meeting and the number of votes which may be cast thereat will be determined by 
reference to the Register of Members of the Company as at 6pm on 16 January 2011. Changes to entries on the Register 
of Members after that time shall be disregarded in determining the rights of any person to attend and vote at the meeting.
7.  Shares held in uncertificated form (i.e. in CREST) may be voted through the CREST Proxy Voting Service in accordance with 
the procedures set out in the CREST Manual. 
8.  The completion and return of this form will not preclude a member from attending the meeting and voting in person. If 
you attend the meeting in person, your proxy appointment will automatically be terminated.
9.  In the case of joint holders, the signature of any one holder will be sufficient, but the names of all joint holders should be 
stated, and the vote of the senior holder who tenders a vote will be accepted to the exclusion of the vote(s) of other joint 
holder(s), seniority being determined by the order in which the names stand in the Register of Members of the Company.
10. Any alterations made to this form of proxy should be initialled.
