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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 
£783m
increased by £08m
a verage selling price
£4370 per 
tonne
increased by 28
 proved coal reserves
61m tonnes
increased by 30 
net borrowings
£345m
reduced by £49m
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 £65 million
final dividend of 2 pence per share making 
full year dividend of 3 pence per share 
2009 615 pence per share
profit before tax from continuing operations 
of £40 million  £24 million pre change 
in accounting policy 2009 £61 million  
£81 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 200910 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 179 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 £783 million 2009 £775 million 
operating profit of the continuing activities totalled 
£70 million 2009 restated £90 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 writeoff of work in 
progress of £53 million operating profits have 
been reduced in 2009 by £20 million and increased 
in 2010 by £16 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 £40 million £24 million prechange 
in accounting policy compared with £61 million 
for the prior year £81 million prechange 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 
£18 million which compared with a profit of 
£26 million for the previous year
net borrowings fell by £49 million to £345 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 20 pence per 
share 2009 615 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 £65 million together 
with an option to take a further £2 million in 
respect of royalty payments in january 2011 plus 
the prospect of realising £25 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 20 pence per share 2009 615 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 nonexecutive 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 £18 million after 
allowing for a loss of £34 million on disposal of 
the regeneration business cash generation was 
good with debt reduced by a further £49 million 
in the period proved reserves at the end of the 
year were at a record level of 61 million tonnes 
a 30 increase over the previous year
operational review continuing 
operations
revenue for the period was £783 million 
2009 £775 million this was in spite of sales 
of 179 million tonnes from 182 million tonnes 
the previous year average selling prices per tonne 
were up 28 at £4370 per tonne 2009 £4250 
operating profits of £70 million were £20 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 
50000 tonnes and an accelerated write down 
of work in progress of £07 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 179 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 
61 million tonnes a 30 increase 
over the previous year 
cash generation was good 
with debt reduced by a further 
£49 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
£783m
783
775 769
705
541 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 31 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
£31m 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 – wwwathcouk
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 £4370 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 £65 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 £25 million 
during the financial year the business had incurred 
losses of £16 million the loss on sale of the business 
including a write down in the value of goodwill 
amounted to £34 million
proved reser ves million tonnes
2006 2007 2008 2009 2010
61m
14m
the group is well positioned to 
deliver increasing returns to 
shareholders as the impact of 
its legacy contracts reduces 
significantly during 2012
coal reserves 
61m tonnes
in proved reserves
86m tonnes
in total reserves
61
47
45
35
57
site   proved probable total 
    tonnes ‘000’ tonnes ‘000’ tonnes ‘000’
skares road   200 — 200
netherton   2300 900 3200
duncanziemere   800 — 800
glenmuckloch   430 500 930
muir dean   1270 1100 2370
rigg   1100 — 1100
    6100 2500 8600
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
86m
04m
86
82
79
82
86
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 
£08 million to £783 million 2009 £775 million 
on volumes of 179 million tonnes 2009 182 
million tonnes
the average coal price per tonne rose by 28 to 
£4370 per tonne 2009 £4250 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 £20 million 
to £70 million 2009 restated £90 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 £08 million to 
£783 million 2009 £775 million 
the average coal price per tonne 
rose by 28 to £4370 per tonne 
2009 £4250 per tonne 
the group sold the assets of its 
regeneration business to recycoal 
limited on 29 july 2010 for a cash 
consideration of £65 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 £65 million this resulted in 
a loss on disposal of £11 million and a write down 
of £23 million in the value of goodwill this 
business had generated a loss up to the date of 
disposal of £16 million 2009 £24 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 63p 2009103p after accounting for the 
loss on the sale of the regeneration business the group 
recorded a loss per share of 44p 2009 earnings 65p  
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 21 times by earnings from continuing 
operations based on the year end price of 595p 
per share the total dividend represents a yield of 50
taxation 
the rate of tax on continuing operations is 313 
however an adjustment in respect of the prior year 
has increased the effective rate to 366
cash flow and borrowings
overall net borrowings reduced by £49 million 
to £345 million this is £10 million lower than 
its peak three years ago
capital expenditure amounted to £73 million 
in the year representing just over 05 times 
depreciation financing costs of £30 million 
included net bank interest payable of £10 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 £175 million of 
its borrowings and at the end of the period there 
was an unrealised loss in respect of this hedge 
amounting to £036 million hire purchase interest 
of £10 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 £235 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 £245 million for the period from 
january 2011 to july 2011 and then reduces back 
to £235 million a further reduction is scheduled 
to £185 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  2424 8135
impact of change of accounting policy  1564 1997
profit before taxcontinuing operations as reported  3988 6138
tax    1022 2549
tax impact of change of accounting policy  439 558
profit after taxation – continuing operations  2527 4147
     2010 2009 
net assets    £000 £000
net assets    31496 37181
cumulative impact of change of policy  5271 6835
tax thereon       1475 1914
net assets as reported    27700 32260
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 rewetting 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 £10000 for contravening section 
193 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 £291000 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 nonexecutive 
director currently he is chairman of leach colour 
a large format graphics company and a nonexecutive 
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
nonexecutive 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
nonexecutive director tim stokeld has over 30 years’ experience 
in finance beginning his career as a trainee 
stockbroker with middlesbroughbased 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 nonexecutive director in may 2009
6 tom allchurch
nonexecutive 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 
buyout for the assets of ath regeneration limited 
but continues to provide his services to the group 
as nonexecutive 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        214959 209959
a black        295106 295106
s beaumont resigned 30 september 2010      10000 10000
t j allchurch        1004049 1804049
v m f williams        1866 1866
j t stokeld        100000 —
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       7546059 19
axa framlington investment management       5335000 13
close investments        3854455 10
mr w paterson        2474000 6
midas balanced income fund       1925000 5
gartmore investment management       1569456 4
blackrock smaller companies trust plc       1264008 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  86 82
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 andor 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 wwwathcouk 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 £235 million the facility will increase 
to £245 million from 1 january 2011 and revert back to £235 million from 1 july 2011 a planned reduction in facility will reduce 
the amount available to be drawn to £185 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 125 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 £146 20471 — 20471 — 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 340614 — 340614 — 1 oct 03 30 sep 06 3868 12 jun 07 10 jun 14
unapproved £185 88003 — 88003 — 1 oct 04 30 sep 07 4420 30 sep 08 28 sep 15
unapproved £205 102439 — 102439 — — — none 15 jan 11 15 jan 18
unapproved £08125 — 215976 215976 — 1 oct 09 30 sep 12 2 20 jan 13 20 jan 15
ltip £170 88003 — 88003 — 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
ltip £001 102439 — 102439 — 1 oct 07 30 sep 10 1 15 jan 11 15 jan 18
ltip £001 — 215976 215976 — 1 oct 09 30 sep 12 1 20 jan 13 20 jan 20
total  741969 431952 1173921 —    
a black         
approved £146 20471 — — 20471 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 152513 — — 152513 1 oct 03 30 sep 06 3868 12 jun 07 10 jun 14
unapproved £185 41068 — — 41068 1 oct 04 30 sep 07 4420 30 sep 08 28 sep 15
unapproved £205 66341 — — 66341 — — none 15 jan 11 15 jan 18
unapproved £08125 — 139870 — 139870 1 oct 09 30 sep 12 2 20 jan 13 20 jan 15
ltip £170 41068 — — 41068 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
ltip £001 66341 — — 66341 1 oct 07 30 sep 10 1 15 jan 11 15 jan 18
ltip £001 — 139870 — 139870 1 oct 09 30 sep 12 1 20 jan 13 20 jan 20
total  387802 279740 — 667542    
s beaumont         
approved £195 15384 — 15384 — 1 oct 06 30 sep 09 5540 8 jan 10 7 jan 17
unapproved £195 84616 — 84616 — 1 oct 06 30 sep 09 5540 8 jan 10 7 jan 17
unapproved £205 77073 — 77073 — — — none 15 jan 11 15 jan 18
unapproved £08125 — 162496 162496 — 1 oct 09 30 sep 12 2 20 jan 13 20 jan 15
ltip £175 100000 — 100000 — 1 oct 06 30 sep 10 7570 8 jan 12 7 jan 17
ltip £001 77073 — 77073 — 1 oct 07 30 sep 10 1 15 jan 11 15 jan 18
ltip £001 — 162496 162496 — 1 oct 09 30 sep 12 1 20 jan 13 20 jan 20
total  354146 324992 679138 —     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 75 and 10         75
between 5 and 75         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 wwwfrcorgukapbscopeuknp 
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 78307 77465
cost of sales      62520 59474
gross profit      15787 17991
other operating income      73 21
administrative expenses      8906 9007
operating profit      6954 9005
finance costs     6 2966 2867
profit before taxation      3988 6138
tax expense     8 1461 1991
profit for the year from continuing operations    5 2527 4147
discontinued operations   
loss for the year from discontinued operations     9 4294 1558
lossprofit for the year attributable to ordinary shareholders   5 1767 2589
lossearnings per share   
from continuing and discontinued operations   
basic     10 44p 65p
diluted     10 44p 65p
from continuing operations   
basic     10 63p 103p
diluted     10 62p 103p
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 5413 7657 7657
property plant and equipment    12 67097 78661 83458
      72510 86318 91115
current assets    
inventories    14 11925 12790 10129
trade and other receivables    15 11257 9621 11133
cash and cash equivalents     2353 370 1207
      25535 22781 22469
total assets     98045 109099 113584
liabilities    
current liabilities    
trade and other payables    16 11227 13668 14899
tax liabilities     407 319 87
financial liabilities     17 6335 19374 14649
final void provision    18 2315 3337 1811
      20284 36698 31446
non‑current liabilities    
financial liabilities     17 30309 20346 31810
final void provision    18 16498 15123 15018
deferred tax liabilities    18 3254 4334 4208
other provisions    18 — 338 338
      50061 40141 51374
total liabilities     70345 76839 82820
net assets     27700 32260 30764
equity     
share capital    19 200 200 200
share premium    21 27855 27855 27855
retained earnings    21 355 4205 2709
total equity     27700 32260 30764
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 27855 6191 34246
effect of change in accounting policy for work in progress  2 — — 3482 3482
at 28 september 2008 – restated    200 27855 2709 30764
profit for the year    — — 2589 2589
other comprehensive income for the year    — — — —
total comprehensive income for the year    — — 2589 2589
transactions with equity shareholders     
adjustment in respect of share‑based payments    — — 35 35
dividends paid    — — 1058 1058
total transactions with equity shareholders    — — 1093 1093
at 4 october 2009 – restated    200 27855 4205 32260
loss for the year    — — 1767 1767
other comprehensive income for the year    — — — —
total comprehensive income for the year    — — 1767 1767
transactions with equity shareholders     
adjustment in respect of share‑based payments    — — 72 72
dividends paid    — — 2865 2865
total transactions with equity shareholders    — — 2793 2793
at 3 october 2010    200 27855 355 27700 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 12736 17777
interest paid      2058 2546
tax paid      1806 813
net cash from operating activities      8872 14418
cash flows from investing activities   
proceeds from sale of property plant and equipment     438 20
net proceeds from the sale of ath regeneration assets     6258 —
interest received      — 3
purchases of property plant and equipment      7288 7252
net cash used in investing activities      592 7229
cash flows from financing activities   
dividends paid      2865 1058
repayment of borrowings      14335 5344
payment of finance lease liabilities      11247 9938
new asset‑backed finance raised      8501 2725
drawings from new revolving credit facility      19238  —
net cash used in financing activities      708 13615
net increasedecrease in cash and cash equivalents     7572 6426
cash and cash equivalents at beginning of year      5219 1207
cash and cash equivalents at end of year      2353 5219 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 20000 ‘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 £5271000 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 
     prepolicy 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    64084 1564 62520 57477 1997 59474
taxation – current tax    1022 439 1461 2549 558 1991
profit for the year from continuing operations  1402 1125 2527 5586 1439 4147
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    19626 6836 12790 14967 4838 10129
current liabilities      
tax liabilities    2234 1915 319 1443 1356 87
shareholders’ equity      
retained earnings      
brought forward    6191 3482 2709 4341 — 4341
profit for the year    4028 1439 2589 6130 3482 2648
carried forward    7479 3274 4205 6191 3482 2709
      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    5759 1997 3762 9008 4838 4170
decreaseincrease in inventories   4659 1997 2662 7174 4838 2336
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    78307 — 78307 77465 — 77465
result      
segment result – operating profit   7834 880 6954 9767 762 9005
finance costs      2966   2867
profit before tax      3988   6138
tax      1461   1991
profit after tax       2527   4147
balance sheet    
assets      
segment assets    92370 5675 98045 93274 15825 109099
liabilities      
segment liabilities    59189 11156 70345 64060 12779 76839
other information      
capital additions    4045 3243 7288 6437 1043 7480
depreciation    13564 194 13758 15222 242 15464
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        16193 12915
customer 2        13242 7763
customer 3        11410 12015
customer 4        9306 9020
customer 5        6743 12156 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        78307 77465
other operating income – sundry services      73 21
         78380 77486
discontinued operations
other operating income         11 88
         78391 77574
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      10243 10679
   – leased assets      3321 4543
cost of inventories        62520 59474
share‑based payment chargecredit note 20      72 35
staff costs note 7        14109 15130
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       1031 947
finance leases and hire purchase contracts interest      1027 1329
final void provision discount       551 591
unrealised losses on derivative financial contracts note 27     357 —
         2966 2867
7 st aff costs – continuing opera tions
          restated 
         2010 2009 
staff costs during the year including directors      £000 £000
wages and salaries        12415 13313
social security costs        1415 1509
pension costs        279 308
         14109 15130 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        1740 1829
– adjustment in respect of prior periods      214 106
total current tax recognised       1954 1935
deferred taxation charge  
– accelerated capital allowances       493 124
– on share‑based payments       — 180
total deferred tax recognised       493 56
total tax expense recognised       1461 1991
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      3988 6138
profit before taxation multiplied by standard rate of tax for the period of 28 2009 28   1117 1718
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        1461 1991
effective tax rate        366 324 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 £65 million resulting in a loss on disposal of £11 million together with an associated 
write off of goodwill of £23 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        1573 2464
loss on sale of business assets       1136 —
goodwill amortisation associated with disposal      2244 —
loss before tax        4942 2376
attributable tax expense        648 818
loss for the year attributable to discontinued operations     4294 1558
         2010 2009 
         £000 £000
cash flows from discontinued operations  
net cash flows from operating activities      5455 2779
net cash flows from investing activities      3015 1020
net cash flows from financing activities       426 293
net cash flows        2866 4092
the net proceeds and the loss on disposal of the business assets were
          2010 
          £000
consideration  
cash consideration received        6518
net assets and liabilities disposed  
assets  
property plant and equipment        6975
inventories         662
net assets disposed         7637
        2010 
        £000
loss on disposal of assets
consideration received       6518
net assets disposed       7637
release of deferred consideration provision       338
costs associated with the disposal       355
        1136
goodwill amortisation associated with the disposal       2244
loss on disposal of business assets       3380 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
lossprofit for the year used in the calculation of basic and diluted earnings per share   1767 2589
loss for the year from discontinued operations      4294 1558
earnings used in the calculation of basic and diluted earnings per share from continuing operations  2527 4147
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   40075 40075
effect of dilutive potential ordinary shares from share options     875 —
weighted number of ordinary shares for the purpose of diluted earnings per share   40950 40075
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   1125 1439 28 36 27 36
on profit for the year on continuing and  
discontinued operations    1125 1439 28 36 27 36 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        7657 7657 7657
accumulated impairment losses      2244 — —
        5413 7657 7657
         2010 2009 
         £000 £000
cost  
balance at beginning and end of year       7657 7657
accumulated impairment losses  
balance at beginning of year       — —
recognised on disposal of business assets      2244 —
balance at end of year        2244 —
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       1413 1413 1413
regeneration       4000 6244 6244
        5413 7657 7657
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 £23 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      10875 55520 59807 126202
additions      — 4639 2841 7480
recognised in year      — 3229 — 3229
disposals      — 24 70 94
4 october 2009      10875 63364 62578 136817
additions      482 5930 876 7288
recognised in year      — 2322 — 2322
disposals      — 4509 7937 12446
3 october 2010      11357 67107 55517 133981
depreciation    
28 september 2008      213 26397 16134 42744
charge in the year      81 9228 6155 15464
disposals      — — 52 52
4 october 2009      294 35625 22237 58156
charge in the year      55 8474 5229 13758
disposals      — — 5030 5030
3 october 2010      349 44099 22436 66884
net book value    
3 october 2010      11008 23008 33081 67097
4 october 2009      10581 27739 40341 78661
28 september 2008      10662 29123 43673 83458
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 £26263000 2009 £30419000
mine purchase and development includes assets under construction with a carrying value of £02 million 2009 £10 million
the depreciation charge is allocated to the income statement as follows cost of sales £13478000 2009 £15133000 
administrative expenses £86000 2009 £89000 and discontinued operations £194000 2009 £242000 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 20000 ‘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       4754 7237 5873
work in progress       5952 4054 2887
other inventories       1219 1499 1369
        11925 12790 10129
in 2009 the group pledged £28 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       10172 8403 10321
prepayments and accrued income      310 827 386
other debtors       775 391 426
        11257 9621 11133
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       1985 796 520
31–60 days overdue       — — —
60 days overdue       — 219 84
        1985 1015 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       6412 8318 9090
other taxation and social security      2221 2943 1798
other payables       314 283 305
accruals and deferred income      2280 2124 3706
        11227 13668 14899
17 financial liabilities 
        2010 2009 2008 
current       £000 £000 £000
bank overdraft       — 5589 —
bank loans       — 5992 5317
obligations under finance leases and hire purchase contracts    6175 7793 9332
derivative financial instruments note 27     160 — —
        6335 19374 14649
        2010 2009 2008 
non‑current       £000 £000 £000
bank loans       — 8542 14560
drawings under revolving credit facility     20000 — —
obligations under finance leases and hire purchase contracts    10676 11804 17250
derivative financial instruments note 27     197 —  —
        30873 20346  31810
unamortised cost of borrowings      564 — —
        30309 20346 31810
the effective interest rates at the balance sheet date were as follows
        2010 2009 2008 
          
bank overdraft       — 19 60
bank loans       — 30 63
drawings under revolving credit facility     36 — —
obligations under finance leases and hire purchase contracts    54 60 61
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    — — — 6175 6175
more than one year but not more than two years   1500 —  — 5070 6570
more than two years but not more than five years   18500 — — 5606 24106
      20000 — — 16851 36851 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    —  5589 5992 7793 19374
more than one year but not more than two years   — — 8233 5727 13960
more than two years but not more than five years   — — 150 6077 6227
five years or more     — — 159 — 159
      — 5589 14534 19597 39720
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 £35 million
minimum obligations under finance leases
        2010 2009 2008 
        £000 £000 £000
within one year       6924 8686 10508
in the second to fifth years      11313 12776 18897
        18237 21462 29405
less future finance charges      1386 1865 2823
present value of lease obligations      16851 19597 26582
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 16829 4208 21375
created in the year      — 2437 126 2563
discount accrued      — 591 — 591
charged to profit and loss     — 653 — 653
utilised in the year      — 2050 — 2050
4 october 2009      338 18460 4334 23132
created in the year      — 2322 — 2322
discount accrued      — 551 — 551
released on disposal of discontinued operations    338 — — 338
charged to profit and loss     — 55 1080 1025
utilised in the year      — 2575 — 2575
3 october 2010      — 18813 3254 22067
a total of £2315000 2009 £3337000 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     3260 4362 4434
temporary timing differences      6 28 226
        3254 4334 4208
deferred tax assets of £6000 2009 £28000 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 £39000 2009 £nil have not been recognised due to uncertainty 
regarding their recoverability 
19 called up share capit al
     2010  2009  2008
ordinary shares of 05 pence each   number £000  number  £000  number  £000
authorised    200000000 1000 200000000 1000 200000000 1000
called up and fully paid    40075158 200 40075158 200 40075158 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 146 102355 — 40942 — 61413 1 oct 03 30 sep 06 3868
7 january 2007 195 30768 — 30768 — — 1 oct 06 30 sep 09 5540
   133123 — 71710 — 61413   
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 146 102355 — — — 102355 1 oct 03 30 sep 06 3868
7 january 2007 195 30768 — — — 30768 1 oct 06 30 sep 09 5540
   133123 — — — 133123   
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 133 972002 — 564301 — 407701 1 oct 03 30 sep 06 3868
29 september 2005 185 382132 — 163760 — 218372 1 oct 04 30 sep 07 4420
3 october 2006 2065 76950 — — — 76950 1 oct 05 30 sep 08 4450
8 january 2007 195 141732 — 141732 — — 1 oct 06 30 sep 09 5540
15 january 2008 205 301951 — 235610 — 66341 — — none
20 january 2010 08125 — 636616 496746 — 139870 1 oct 09 30 sep 12  1
   1874767 636616 1602149 — 909234   
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 133 972002 — — — 972002 1 oct 03 30 sep 06 3868
29 september 2005 185 404916 — 22784 — 382132 1 oct 04 30 sep 07 4420
3 october 2006 2065 76950 — — — 76950 1 oct 05 30 sep 08 4450
8 january 2007 195 141732 — — — 141732 1 oct 06 30 sep 09 5540
15 january 2008 205 301951 — — — 301951 — — none
   1897551 — 22784 — 1874767   
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 170 382132 —  163760 —  218372 1 oct 04 30 sep 08 5980
3 october 2006 180 76950 —  —  —  76950 1 oct 05 30 sep 09 6080
8 january 2007 175 172500 —  172500 —  —  1 oct 06 30 sep 10 7570
15 january 2008 001 649856 — 324498 —  325358 1 oct 07 30 sep 10 2
8 october 2009 001 — 552999 191468 — 361531 1 oct 09 30 sep 12 2
20 january 2010 001 — 1084012 558993 — 525019 1 oct 09 30 sep 12 2
   1281438 1637011 1411219 —  1507230    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 170 404916 — 22784 — 382132 1 oct 04 30 sep 08 5980
3 october 2006 180 76950 — — — 76950 1 oct 05 30 sep 09 6080
8 january 2007 175 172500 — — — 172500 1 oct 06 30 sep 10 7570
15 january 2008 001 665110 — 15254 — 649856 1 oct 07 30 sep 10 2
   1319476 — 38038 — 1281438   
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 75 and 10 75 of the award will vest if the average pre‑tax earnings 
per share increases by between 5 and 75 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 982808 2009 1533439
the group recognised a total chargecredit 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       27855 2709
reduction in respect of share‑based payments      — 35
profit for the year        — 2589
dividends paid        — 1058
4 october 2009 – restated       27855 4205
addition in respect of share‑based payments      — 72
loss for the year        — 1767
dividends paid        — 2865
3 october 2010        27855 355
22 equity dividends
declared and paid during the financial year
         2010 2009 
         £000 £000
final dividend for the year ended 4 october 2009 615 pence per share 2008 264 pence per share  2464 1058
interim dividend for the year ended 3 october 2010 100 pence per share 2009 nil pence per share  401 —
         2865 1058
proposed after the balance sheet date and not recognised as a liability   
final dividend for the year ended 3 october 2010 200 pence per share 2009 615 pence per share  802 2464 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
       — 1281 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      3988 6138
loss before tax on discontinued operations      4942 2376
adjustments for  
finance costs        2966 2867
depreciation of property plant and equipment      13758 15464
loss on disposal of fixed assets       3380 22
share‑based payment expensecredit       72 35
operating cash flows before movements in working capital     19222 22080
decreaseincrease in inventories       203 2661
increasedecrease in receivables       1636 1512
decrease in payables and provisions       5053 3154
cash generated from operations       12736 17777
for the purpose of the cash flow statement cash and cash equivalents comprise the following
         2010 2009 
         £000 £000
cash and cash equivalents       2353 370
bank overdraft        — 5589
         2353 5219
26 analysis of net debt
        4 october net cash 3 october 
        2009 flow 2010 
        £000 £000 £000
cash at bank and in hand      370 1983 2353
overdrafts and short term facilities      5589 5589 —
        5219 7572 2353
debt due after one year       20346 10330 30676
debt due within one year      13785 7610 6175
        34131 2720 36851
total       39350 4852 34498 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        36851 39720
cash and cash equivalents       2353 370
net debt        34498 39350
total equity        27700 32260
total capital        62198 71610
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       2353 370
trade receivables        10172 8403
financial liabilities  
trade payables        6412 8318
drawings under revolving credit facility      20000 —
bank overdraft        — 5589
bank loans        — 14534
derivative financial instruments       357 — 
obligations under finance leases and hire purchase contracts     16851 19597
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 £564000
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 £235 million and will increase to £245 million from 
1 january 2011 the facilities available step down to £235 million from 1 july 2011 and £185 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        10172 8403
cash and cash equivalents       2353 370
         12525 8773
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    — — — — 5589 5589
bank loans    — — — — 14534 14534
drawing under revolving credit facility   — 20000 20000 — — —
finance leases and hire purchase contracts  16101 750 16851 18048 1549 19597
     16101 20750 36851 18048 21672 39720
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    24 — 10000 — 160 —
1 to 2 years    39 — 7500 — 197 —
       17500 — 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 £35 million 2009 £110 million and had bonds in issue of £267 million at the year end 2009 £232 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 £65 million and the group reported a loss on the disposal of £34 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 wwwfrcorgukapbscopeuknp 
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  5907  8907
current assets     
debtors due in less than one year   4 —  56 
  due after more than one year  4 33263  35297 
     33263  35353 
cash in hand    —  12 
     33263  35365 
creditors amounts falling due within one year   5 128  3405 
net current assets     33135  31960
total assets less current liabilities     39042  40867
creditors amounts falling due after more than one year  6  9949  6912
net assets     29093  33955
capital and reserves       
called up share capital   7  200  200
share premium account   8  27855  27855
profit and loss account   8  1038  5900
equity shareholders’ funds   9  29093  33955
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 £10000 2009 £10000
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 £2069000 2009 profit 
of £2296000 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       8907 8907
provisions for impairment  
at beginning of year        — —
written off        3000 —
at end of year        3000 —
net book value        5907 8907
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      33263 35297
other debtors        — 56
         33263 35353
5 creditors amounts falling due within one year
         2010 2009 
         £000 £000
bank loan        — 3375
bank overdraft        58 —
corporation tax        41 —
accruals and deferred income       29 30
         128 3405
6 creditors amounts falling due af ter more than one year
         2010 2009 
         £000 £000
bank loan        — 6900
drawings under revolving credit facility      10500 —
amounts due to subsidiary undertaking      13 12
         10513 6912
unamortised borrowing costs       564 —
         9949 6912
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 05 pence each     number £000 number £000
authorised      200000000 1000 200000000 1000
called up and fully paid      40075158 200 40075158 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        27855 5900
addition in respect of share‑based payment      — 72
loss on ordinary activities after taxation      — 2069
dividends paid        — 2865
3 october 2010        27855 1038
9 reconcilia tion of movement in shareholders’ funds
         2010 2009 
         £000 £000
additionreduction in respect of share‑based payments     72 35
lossprofit for the year        2069 2296
dividends paid        2865 1058
net decreaseincrease in shareholders’ funds     4862 1203
opening shareholders’ funds       33955 32752
closing shareholders’ funds       29093 33955
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 
7i  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 £60112 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 
7ii  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 
£60112 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 5611 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 £10018 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 2003758 ordinary shares of 05 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 05 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 adjournments 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 providers should refer to their crest sponsor or voting service providers 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 times 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 providers to 
procure that his crest sponsor or voting service providers takes 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 355a 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
iwe 
please insert full names and addresses in block letters
of 
being a membermembers of the above‑named company hereby appoint the chairman of the meeting or see note 1 below 
of 
as myour proxy to vote for meus on myour 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 heshe 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 
signatures 
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 persons 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 ie 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 votes of other joint 
holders 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



Summary:
 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 £18 million after 
allowing for a loss of £34 million on disposal of 
the regeneration business cash generation was 
good with debt reduced by a further £49 million 
in the period proved reserves at the end of the 
year were at a record level of 61 million tonnes 
a 30 increase over the previous year
operational review continuing 
operations
revenue for the period was £783 million 
2009 £775 million this was in spite of sales 
of 179 million tonnes from 182 million tonnes 
the previous year average selling prices per tonne 
were up 28 at £4370 per tonne 2009 £4250 
operating profits of £70 million were £20 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 
50000 tonnes and an accelerated write down 
of work in progress of £07 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 179 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 
61 million tonnes a 30 increase 
over the previous year 
cash generation was good 
with debt reduced by a further 
£49 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
£783m
783
775 769
705
541 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 31 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
£31m 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 – wwwathcouk
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 £4370 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 £65 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 £25 million 
during the financial year the business had incurred 
losses of £16 million the loss on sale of the business 
including a write down in the value of goodwill 
amounted to £34 million
proved reser ves million tonnes
2006 2007 2008 2009 2010
61m
14m
the group is well positioned to 
deliver increasing returns to 
shareholders as the impact of 
its legacy contracts reduces 
significantly during 2012
coal reserves 
61m tonnes
in proved reserves
86m tonnes
in total reserves
61
47
45
35
57
site   proved probable total 
    tonnes ‘000’ tonnes ‘000’ tonnes ‘000’
skares road   200 — 200
netherton   2300 900 3200
duncanziemere   800 — 800
glenmuckloch   430 500 930
muir dean   1270 1100 2370
rigg   1100 — 1100
    6100 2500 8600
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
86m
04m
86
82
79
82
86
2006 2007 2008 2009 2010