ath resources plc annual report and financial statements 2005
annual report and financial statements 2005
aardvark house
sidings court 
doncaster dn4 5nu
tel 44 01302 760462
fax 44 01302 760463
web wwwathcouk
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1 corporate statement and highlights
2 chairman’s statement
3 chief executive’s statement
6 financial review
9 board of directors
10 directors’ report
12 corporate governance report
13 remuneration committee report
15 independent auditors’ report
16 consolidated profit and loss account
17 consolidated balance sheet
18 company balance sheet
19 consolidated cash flow statement
20 accounting policies
22 notes to the financial statements
31 notice of annual general meeting
ibc corporate information and company diary


Summary:
 chief executive’s statement
operational review
the skares road mine continued to perform
well throughout the year and came to the
end of what was originally the final phase of
production for the site in september however
with the rise in coal prices two areas of the site
which had originally not been economical to
work due to the high stripping ratio are now
commercially viable with a successful
planning application being submitted and
determined during the year for 350000 tonnes
of coal skares road is now planned to
continue in production until spring 2009 
the garleffan site is now in the final phase
of production and will cease coaling in
spring 2006 with restoration being undertaken
to return the site to nature conservation and
mixed agricultural use thereafter however
the site infrastructure access road plant repair
yard and processing area will continue to
be used for some years to come by both
the grievehill and laigh glenmuir sites
grievehill which was acquired in june
was successfully started prior to the winter
and dispatched its first coal in september early
indications are that this geologically complex site
is meeting the directors’ expectations
ath resources plc annual report and financial statements 2005 03
“following the purchase of grievehill and
glenmuckloch sites the group now has
the coal reserves sufficient for the next
five years this provides the group with
the necessary platform to develop its reserve
base organically over the coming years”
overburden is removed from above the coal seams by 265 tonne excavators which load 100 tonnes
of earth in four passes
0atharf05qxd  15122005  1228  page 03 chief executive’s statement continued
04 ath resources plc annual report and financial statements 2005
operational review continued
the glenmuckloch site is due to enter
production in summer 2006 and internal
planning is proceeding to ensure that this
target is met although originally conceived
with its own railhead due to network rail
issues it is now intended to convey the
coal from this site to the group’s existing
processing and dispatch point at garleffan
at the year end the group had reserves
with planning consent amounting to
55 million tonnes 2004 25 million tonnes
as announced during the summer the group
placed the largest ever order with finning
the uk distributor of caterpillar equipment
to replace some existing coal lifting and
processing equipment as well as to secure
delivery of the plant necessary to work the
grievehill and glenmuckloch sites due to
the worldwide boom in mining activities
the lead time for large earthmoving equipment
has become a major issue for the extractive
industries however the group has secured
delivery of all the plant which it requires
to maintain forecast production for at least
the next three years
at the same time worldwide tyre availability
has become critical due to the lack of
production capacity for large earthmoving
equipment the group has been working
closely with the major tyre suppliers to ensure
that it has commitment for the majority of its
tyre requirements whilst ensuring that the tyre
management regimes on site are as good
as possible to ensure that the maximum life
possible is obtained from the limited supply
development projects
development of new sites continues to be
the main focus of the business the group
submitted an application to east ayrshire council
for a 500000 tonne coal site at laigh glenmuir
and subsequent to the year end an application
was submitted for a 20 million tonne site
at muir dean in fife
at the same time the development team
has been pursuing a number of other proposals
to ensure that the organic development of
the reserve base of the group grows over
the coming years
in france progress has been made in developing
the group’s projects an application for a new
mining concession from the french government
has been processed and presently awaits
determination by the general council of mines
at bertholene where the group already has a
concession the reserve is currently being drilled
applications for authorisation with full
environmental impact assessments
are planned for both projects next year
market
the world coal market has been extremely
bullish during the past year with international
coal prices delivered into north west europe
at high prices in excess of 70tonne these
prices eased in the second half of the year
with reductions in freight costs and some over
supply the key driver remains china there
seems to have been a fundamental uplift
in commodity prices including coal as a
consequence we look forward to a period of
better pricing and stability in the coal market
for some years to come
the acquisition of grievehill and glenmuckloch
combined with the uplift in world coal prices
presented an opportunity to renegotiate some
of the group’s coal supply agreements this
has been achieved with three customers
and overall the group anticipates a 20 uplift
in the income from sales to generators next year
which is in line with our expectations at the time
of the grievehill and glenmuckloch acquisition
as at the year end the group had electricity
supply industry “esi” sales cover for five
million tonnes running out to 2008
staff
it is pleasing to note the longevity of service
of the group’s senior management and staff
the group prizes its key employees highly
and ensures that they are suitably rewarded
at the same time with the decline in the size
of the coal industry there is a shortage
of skilled operators developing the group
120m 
tonnes of coal were produced by the uk opencast coal industry
in 2004 which accounted for 48 of uk production
0atharf05qxd  15122005  1228  page 04 ath resources plc annual report and financial statements 2005 05
327 
of the uk’s electricity was generated from coal in 2004
and amounted to a burn of 505 million tonnes
is able to offer new employees a progression
from dump truck driver to excavator operator
and foreman for those with the aptitude and
skills to develop which ensures the group
has the right skill sets to meet the operational
needs of the business 
health and safety is a critical issue for the
group with it being reported upon at every
board meeting from the group’s selection
and training procedures to the day to day
supervision of the operations health and
safety of the workforce is placed above
any other consideration 
during the year three accidents which required
more than three days off sick occurred all
three employees have subsequently returned
to normal duties
without the hard work and dedication of
our employees the group would not be in
the position it is today to enable it to develop
the business over the coming years for which
i am very grateful and offer my thanks to them
tom allchurch
chief executive 
plant maintenance is undertaken by a team of manufacturer supplied and our own in house fitters
0atharf05qxd  15122005  1228  page 05