ath resources plc annual report and accounts 2007
delivering growth
ath resources plc
annual report and accounts 2007 ath resources plc “ath” operates surface 
coal mines and a coal recovery land remediation 
and regeneration business ath is the third largest 
coal producer in the uk and supplies coal to the 
electricity supply industrial and house coal markets
throughout the development mining and 
reclamation process ath focuses on the restoration 
and rehabilitation of the sites and land is returned to 
various uses including agriculture forestry nature 
conservation and other forms of development
ath resources plc became a public company 
in june 2004 when the company was listed on 
aim the company intends to grow organically 
and will pursue suitable complementary acquisitions 
which meet strict pre determined criteria
 01 highlights
 02 chairman’s statement
 06 chief executive’s statement
 14 financial review
 16  board of directors
 17  directors’ report
 20  corporate governance report
 22  remuneration committee report
 25  independent auditors’ report
 26  consolidated profit and loss account
 27 consolidated balance sheet
 28  company balance sheet
 29  consolidated cash flow statement
 30  accounting policies
 33  notes to the financial statements
 45 notice of annual general meeting
 47  form of proxy
 ibc  corporate information 
 ibc  company diary 2008 wwwathcouk
ath resources plc
annual report and accounts 2007
page
01
2007
strengthening 
our performance
highlights
turnover up 30 to £705 million 2006 restated 
£541 million on sales of 22 million tonnes of 
coal 2006 18 million tonnes
ebitda up 31 to £251 million 2006 restated 
£192 million
profit before interest and tax up 27 to 
£103 million 2006 restated £81 million
earnings per share up 11 to 131 pence per 
share 2006 restated 118 pence per share
final proposed dividend of 824 pence 
per share 2006 789 pence per share
proven and probable coal reserves up 9 
to 86 million tonnes 2006 79 million tonnes
highlights post year end
successful appeal for development of ath’s 
muir dean project in fife which will enable 
ath to mine 2 million tonnes of coal
application for a 1 million tonne extension 
at grievehill was approved by the local 
planning authority in november 2007
sales volume million tonnes
22
18
15
22
sales price £tonne
32
30
27
32
earnings per share pence
1308
1177
1086
1308
05 06 07
05 06 07
05 06 07 page
02
ath resources plc
annual report and accounts 2007 wwwathcouk
chairman’s statement
delivering
it is pleasing to report a year of record 
production resulting in the group 
selling its ten millionth tonne of coal 
since commencing operations in 1998 
business progress
the group continues to build on the strategy 
of growing the business organically and by 
acquisition it is pleasing to report a year 
of record production resulting in the group 
selling its ten millionth tonne of coal since 
commencing operations in 1998 the surface 
mining business opened two new mines in the 
year and commissioned the full length of its 
16km conveyor network linking the new mines 
to the railhead
the land regeneration and coal tip washing 
business rebranded as ath regeneration 
is fully integrated within the group and continues 
to perform ahead of expectations a number 
of exciting new opportunities to exploit the 
business’ intellectual property and market 
potential in both the uk and australia are 
being actively pursued 
development
following the year end the board was 
delighted to hear that the group was 
successful in its appeal on the muir dean 
site in fife the planning process has been 
an extended one given the appeal and the 
group is now looking forward to working 
with the local community in opening the 
site later in 2008 
turnover £705 million 
2006 restated £541 million
ebitda £251 million 
2006 £192 million
pbit £103 million 
2006 restated £81 million
total dividend 116 pence 
2006 1125 pence
eps 1308 pence 
2006 restated 1177 pence wwwathcouk
ath resources plc
annual report and accounts 2007
page
03
planning consents for new reserves remain 
a key issue for the group the business is 
awaiting final approval for an extension to 
the grievehill mine from the scottish executive 
planning department “sepd” the board is 
confident that confirmation of sepd’s decision 
will be received within the necessary timeframe 
for the group to meet its production plans in 
200708
board of directors
during the year steven beaumont replaced 
richard croston as group finance director 
in addition the director nominated by the 
alchemy plan ivana ridler left alchemy and 
became an independent nonexecutive director 
following the year end group marketing 
director john hodgson one of the three 
founding directors retired from the board 
john will continue as a director of the 
surface mining business his commitment 
and dedication to the business has been 
fundamental to the success of ath and 
the board is grateful for his contribution 
over the last nine years
strategy
there is a growing recognition of the value 
and importance of uk produced coal in creating 
a balanced and secure portfolio of energy supply 
within the uk with this background the group 
will continue to develop the business organically 
and through acquisition exploiting new 
opportunities especially in the regeneration 
business to build on the reserve base
david port
nonexecutive chairman
coal is loaded at the group’s dedicated rail 
loading facility at crowbandsgate in east ayrshire 
for delivery to energy generating customers
the group celebrated selling its ten millionth 
tonne of coal by commissioning this unique 
piece of human artwork involving children 
from three local east ayrshire and dumfries 
and galloway schools
t here is a growing recognition 
of the value and importance of 
uk produced coal in creating a 
balanced and secure portfolio 
of energy supply within the uk
“ header
page
04
ath resources plc
annual report and accounts 2007 wwwathcouk
strong steady underlying 
organic growth coupled with 
targeted strategic acquisitions 
are key to the continuing 
success of the group header
page
05
ath resources plc
annual report and accounts 2007 wwwathcouk
ath resources plc
strong steady underlying organic growth coupled with targeted strategic acquisitions are 
key to the continuing success of the group with over £70 million invested in plant land and 
the new ath regeneration business over the last three years the group is now well positioned 
to reap the benefits of strong international coal prices
the group’s solid operational base and development expertise enables it to deliver strong 
financial performance and an increasing reserves base page
06
ath resources plc
annual report and accounts 2007 wwwathcouk
chief executive’s statement
increasing
the group delivered a year of 
continued growth reporting record 
sales up 30 to £705 million 
2006 restated £541 million 
review of the period
the group delivered a year of continued 
growth reporting record sales up 30 to 
£705 million 2006 restated £541 million 
with profit before interest tax depreciation 
and goodwill amortisation growing by over 
30 to a record high of £251 million 
2006 restated £192 million operating 
cash flow of £236 million was generated to 
fund the continued expansion of the business
operational review
surface mining
the surface mining business continues to 
grow steadily in line with the group’s strategy 
during the year the group brought two new 
mines at glenmuckloch and laigh glenmuir 
into production and both mines operated 
ahead of expectations in addition 16km 
of overland conveyors linking the sites to the 
rail loading facility at crowbandsgate were 
constructed with the assistance of a £22 million 
freight facilities grant provided by the scottish 
executive the conveyors which can handle 
up to 500 tonnes of coal per hour remove over 
50000 lorry loads of coal from local roads and 
significantly reduce the environmental impact 
of these sites
the grievehill mine finished production 
on existing reserves in november 2007 
an application for a further one million tonne 
extension was approved by the local planning 
authority in november 2007 and ratification 
of this decision by the sepd is awaited 
with mining expected to recommence 
in february 2008  wwwathcouk
ath resources plc
annual report and accounts 2007
page
07
in addition to grievehill a surface mining 
planning application was submitted for rigg 
in dumfries and galloway for 13 million tonnes 
and an extension of 07 million tonnes to the 
glenmuckloch mine was identified during 
2008 the group expects to submit at least 
two further new planning applications for 
21 million tonnes of surface mine reserves 
the surface mining business has an 
estimated 79 million tonnes of proven 
and probable reserves subject to the 
approval of the grievehill extension these 
are sufficient to satisfy production at current 
capacity levels for over three and a half years 
this is approximately double the reserve life 
that the company had when it came to 
the stock market
regeneration
ath regeneration continues to operate 
ahead of expectations at its coal washing 
plant at grimethorpe utilising its unique 
natural medium coal recovery techniques 
coal is being extracted from the coal tip at 
rates and qualities higher than anticipated at 
the time of acquisition in 2006 coal recovery 
at grimethorpe is expected to cease during 
2008 with the site entering a period of restoration
in march 2007 the group acquired 123 acres 
of development land at pinxton in derbyshire 
to facilitate the access and washing of the 
langton coal tip which was part of the 2006 
acquisition a planning application has been 
submitted and the operations are expected 
to commence in 2008
several new tip washing opportunities 
have been identified and negotiations with 
prospective partners where the necessary 
planning permission is in place are ongoing 
on two further projects on agreement of terms 
with these partners 13 million tonnes would 
be added to either the reported proven 
reserves or future order book progress is 
also being made on two further tip washing 
operations expected to commence in the uk 
in the next two years 
in addition a number of projects are being 
actively pursued in australia the directors 
have identified a clear opportunity to build a 
presence in this much larger coal production 
market where the group’s successful coal 
recovery techniques are not presently employed
france
the group continues to pursue its 
development opportunities in france 
the administrative court in toulouse has 
found in the group’s favour on litigation 
brought against the french state after their 
refusal of applications to transfer concessions 
at bertholene in 1997 the directors hope that 
this ruling will have significance in progressing 
the french state’s determination of the group’s 
long outstanding application for a concession 
at commentry
site preparation for a new coal processing plant 
installed at garleffan all coal produced is cleaned 
and sorted into different grades prior to despatch 
to customers
the construction of the conveyor was carefully 
planned to preserve the local environment and 
historic sites the conveyor was placed on a 
specially made bridge to ensure there was no 
damage to historic lime kilns
the group has a dual 
strategy of growing coal 
reserves organicallywhilst 
continuing to identify suitable 
complementary acquisitions
“ ath resources plc
annual report and accounts 2007
page
08 wwwathcouk
the surface mining business 
proudly commissioned its 
overland conveyor this year 
surface mining
the surface mining business proudly commissioned its overland conveyor this year the 16km 
conveyor system quietly and efficiently transports coal from the mines to the company’s rail 
loading facility in east ayrshire through this innovation the majority of the company’s coal 
can reach its power station customers without using the road system – a saving of hundreds 
of thousands of lorry journeys over the next few years – providing a beneficial community and 
environmental solution
with imports of coal at record levels the company plays an important role in producing local 
coal to the high environmental standards necessary in our modern and sophisticated economy
the business plays an active part in the local communities in which it operates and has donated 
over £2 million to local community schemes over the last ten years page
09
ath resources plc
annual report and accounts 2007 wwwathcouk page
10
ath resources plc
annual report and accounts 2007 wwwathcouk
surface mining business
chief executive’s statement
operational review continued
reserves 
the group has a dual strategy of growing 
coal reserves organically from its existing 
portfolio whilst continuing to identify suitable 
complimentary acquisitions estimated 
reserves of recoverable coal proven and 
probable grew by 9 during the year to 
86 million tonnes 2006 79 million tonnes 
despite a year of record production current 
planning activity levels will continue to replace 
mined coal with new reserves securing 
production for the foreseeable future
market
demand for coal in the uk was exceptional 
during 2006 and as expected returned to 
near previous normal levels in 2007 uk coal 
production meets approximately one third of 
demand with the balance being imported 
predominantly from russia south africa 
and colombia 
international coal prices are at an all time high 
largely due to soaring demand from china 
india and smaller developing countries in the 
far east leading to severe logistical difficulties 
particularly at australian ports that are struggling 
to cope with the required throughputs 
the conveyor’s modular design ensures 
the system operates quietly and efficiently 
minimising the environmental impact
the skares road site having been mined since 
1998 has some fully restored sections which 
include a designated wetland area inhabited by 
aquatic birds and animals
t he group brought two new 
mines at glenmuckloch 
and laigh glenmuir 
into production
“
coal reserves at 30 september 2007
  proven probable total 
  tonnes tonnes tonnes 
site  000 000 000
skares road  340 — 340
laigh glenmuir  360 — 360
grievehill  60 1060 1120
glenmuckloch  2510 700 3210
muir dean  — 2275 2275
rigg  — 600 600
t otal surface mining  3270 4635 7905
grimethorpe  220 — 220
langton  — 475 475
t otal regeneration  220 475 695
group reserves  3490 5110 8600
the information in this report relating to exploration results mineral resources 
or mineral reserves is based on 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 the report of the matters based on his information 
in the form and context in which it appears a glossary of terms is available on 
our website – wwwathcouk wwwathcouk
ath resources plc
annual report and accounts 2007
page
11
although there is currently resistance among 
uk electricity generators to pay these higher 
international coal prices to indigenous producers 
the directors expect an outcome that will 
satisfy both producer and generator 
consequently the directors anticipate a 
prolonged period of higher uk coal prices 
in the medium term these higher prices for 
coal are already starting to benefit the group 
as long term supply contracts are renewed 
the group holds supply agreements with 
a number of major uk electricity generators 
these cover the supply of 31 million tonnes 
of coal up to 2011 new contract agreements 
have recently been secured for a further 
13 million tonnes at a price in 200910 
15 above the legacy contract 
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
each operational site has a nominated 
and qualified health and safety manager 
and employees are regularly trained in the 
group’s processes which aim to exceed 
hse best practice 
staff
the board recognises the critical importance 
of its employees in the group’s continued 
growth and success the business has a 
skilled innovative and highly motivated 
workforce approaching a total of 400 and 
the group continues to deliver structured 
and targeted training programmes to ensure 
staff are competent to carry out their duties
the board joins me in thanking all of our 
employees for the efforts they have made 
during the past year of trading
summary
these strong results reflect a busy period 
for the group in growing the reserve base 
and identifying important future opportunities 
particularly for ath regeneration in the uk 
and australia the board looks forward to 
delivering value from these opportunities and 
further strengthening the group’s market position
t om allchurch
chief executive
regeneration business
the former coal tip at barnburgh has been 
restored to a mixed wildlife landscape and has 
the transpennine way running through the site
previously derelict coal tips are restored to various 
uses including the regeneration of land for use in 
commercial developments 
ath regeneration 
continues to operate 
ahead of expectations
“ page
12
ath resources plc
annual report and accounts 2007 wwwathcouk
ath regeneration is preeminent 
in the field of colliery tip reclamation 
restoration and regeneration  page
13
ath resources plc
annual report and accounts 2007 wwwathcouk
ath regeneration
utilising its unique and innovative technology ath regeneration is preeminent in the field 
of colliery tip reclamation restoration and regeneration with end uses such as commercial 
development infrastructure projects and nature conservation the company provides the 
most sustainable as well as the most efficient long term reclamation solutions
the company continues to play a vital role in meeting the challenge of regenerating the 
derelict coalfields landscape from the nation’s industrial past to a rejuvenated environment 
with an emphasis on biodiversity and nature conservation in amongst employment and residential 
uses whilst remaining at the forefront of uk coalfield regeneration the company is now 
seeking to develop opportunities to apply its technology and expertise further afield page
14
ath resources plc
annual report and accounts 2007 wwwathcouk
financial review
continuing
the results are presented for the 
52 week period to 30 september 2007 
against a similar period to 1 october 2006 
and incorporate a full year’s trading of 
ath regeneration acquired during 2006 
the results are presented for the 52 week 
period to 30 september 2007 against a similar 
period to 1 october 2006 and incorporate a full 
year’s trading of ath regeneration acquired 
during 2006
t urnover
the group’s turnover for the year was 
£705 million 2006 restated £541 million 
on sales of 22 million tonnes 2006 18 million 
the average coal price was £32 per tonne 
2006 £30 per tonne
turnover on surface mining was £573 million 
2006 restated £482 million and on regeneration 
was £132 million 2006 restated £59 million
the increase in turnover from surface 
mining reflects the greater resources available 
following the opening of the glenmuckloch 
and laigh glenmuir mines to complement 
existing production and the cessation of coaling 
at the garleffan site in 2006 regeneration 
provided a full year of production
the increase in average coal prices reflects 
a full year contribution from regeneration 
and new contracts with power generators
profit before interest and tax
profit before interest and tax “pbit” was 
£103 million 2006 restated £81 million 
and earnings before interest tax depreciation 
and amortisation “ebitda” was £251 million 
2006 restated £192 million
return on capital employed of 16 
2006 restated 15 reflects good cost 
control and careful management of capital 
within the business
three year trading summary
   restated restated 
  2007 2006 2005
sales million tonnes  22 18 15
average sales pricetonne £  32 30 27
  £000 £000 £000
turnover  70508 54126 39103
profit before interest and tax  10263 8127 6126
net interest  2425 984 698
profit before tax  7838 7143 5428
t ax  2640 2470 1840
profit after tax  5198 4673 3588
dividend  4466 4335 2334
net assets  31487 30022 29208
dividend per share pence  1125 1092 672
earnings per share pence  1308 1177 1086
dividend cover  116 108 154 wwwathcouk
ath resources plc
annual report and accounts 2007
page
15
interest
net interest of £24 million 2006 restated 
£10 million was charged in the year following 
current and prior year plant acquisitions hire 
purchase interest charges increased to 
£11 million 2006 restated £06 million and 
£03 million 2006 restated £nil was charged 
in respect of the unwinding of the discount 
on restoration provisions additional investment 
in the asset base and the regeneration 
acquisition in 2006 resulted in an increase 
in bank loan and overdraft interest charges 
of £10 million 2006 restated £04 million
corporation tax
the effective rate of tax was 34 2006 restated 
35 compared with a standard rate of tax 
of 30 the difference between the actual 
and standard rate is primarily due to the 
amortisation of acquired goodwill which 
is not allowable against tax
dividends
the board is recommending a final dividend 
of 824 pence per share 2006 789 pence 
payable on 18 january 2008 subject to approval 
by the members at the annual general meeting 
to be held on 15 january 2008 to members 
on the share register at 21 december 2007
on approval the total dividend will be 
116 pence per share an increase of 3 
on the 2006 figure of 1125 pence under uk 
accounting rules the proposed final dividend 
has not been accrued as a liability in these 
financial statements
earnings per share
earnings per share was 1308 pence 
2006 restated 1177 pence an 11 increase 
overall fully diluted earnings per share taking 
into account shares expected to be issued under 
employee option schemes was 1288 pence 
2006 restated 1161 pence
net assets
net assets were £314 million 2006 restated 
£300 million investment in fixed assets was 
£120 million with £50 million on plant and 
machinery including the conveyor £23 million 
to acquire development land at pinxton and 
£47 million on the development of new 
surface mining assets
cash flows
the group continues to generate strong cash 
flows from its operations with a net cash inflow 
on operations of £236 million 2006 restated 
£176 million cash outflows on fixed assets 
£71 million 2006 restated £78 million 
and hire purchase payments £82 million 
2006 restated £55 million reflect the group’s 
capital investment programme a oneoff 
corporation tax payment of £39 million relating 
to a preacquisition liability of regeneration 
was made during the year overall net cash 
outflow was £53 million 2006 restated 
£12 million
net debt at 30 september 2007 was 
£316 million 2006 restated £314 million 
debt repaid during the year was replaced 
by new hire purchase agreements and bank 
loans gearing defined as net debt divided by 
capital employed was 50 2006 restated 51
financing
following the year end the group renegotiated 
its banking facilities with the royal bank of 
scotland in order to take advantage of new 
investment opportunities in both the surface 
mining and regeneration businesses
the new arrangements include three year loan 
facilities totalling £15 million replacing existing 
term loans of £3 million further loans have 
been agreed in principle to finance the capital 
investment required to bring future projects 
and mines into production 
frs 20 ‘sharebased payment’
the group adopted frs 20 ‘sharebased 
payment’ in the year which is treated as 
a change in accounting policy under uk 
accounting rules requiring both current 
and prior year figures to be restated
on implementation of this new standard 
the group’s pbit was reduced by £05 million 
in both 2007 and 2006
international financial reporting 
standards “ifrs”
the group will fully implement ifrs 
during 2008 both the interim accounts to 
march 2008 and full year financial statements 
to september 2008 will be prepared on this 
basis with full comparative information
the group has not quantified the full potential 
impact on its earnings of ifrs but the key 
areas identified are noted below
ifrs 3 ‘business combinations’
this standard will require the goodwill 
arising on consolidation of the group’s 
results to cease being charged to profit 
instead the goodwill balance will be subject 
to an annual impairment test
ifrs 12 ‘income taxes’
this standard will require a deferred tax 
provision to be created for all differences 
between fair values of assets and liabilities 
and their tax bases which would not normally 
be required under current practice
steven beaumont
finance director page
16
ath resources plc
annual report and accounts 2007 wwwathcouk
board of directors
01 02
03 04 05
06 07
01 david port
nonexecutive 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 from 1997 to 
2001 david was executive chairman of sylvan 
international limited a £200 million turnover 
timber business with operations in france david 
is currently chairman of petrol express limited 
executive chairman of gne limited nonexecutive 
director of voller energy plc nonexecutive chairman 
of leach colour limited and nonexecutive chairman 
of wmt limited david has been nonexecutive 
chairman of the group since its establishment 
in 1998
02 t om allchurch
chief executive
tom allchurch is a graduate mining engineer 
and has spent his entire career in the development 
and operation of surface coal mines tom initially 
trained as a site engineer with shand mining limited 
a contractor to british coal before joining bayford 
mining limited a smaller private mining company 
in 1986 in 1991 tom joined rackwood colliery 
company limited as projects manager and was 
responsible for the development of a number of 
uk and french projects including skares road 
t om left rackwood in 1998 leading the management 
team in acquiring the rights to operate and 
subsequently acquire the skares road mine 
tom was chairman of the coal industry trade 
association the confederation of uk coal 
producers in 2001 and 2002 from 1998 tom 
was managing director of the group and became 
chief executive when the company listed on aim
03 john hodgson
marketing director
john hodgson commenced his career with the 
national coal board in 1964 as a chemist in the 
scientific department from where he progressed to 
assistant regional marketing and preparation officer 
in 1975 in 1981 john joined burnett  hallamshire 
fuels plc as production director responsible for the 
production and marketing of coal from twelve coal 
washing operations in 1984 john transferred to 
rushcliffe fuels limited and was managing director 
from 1989 to 1993 john joined british fuels in 
1993 as general manager of the international 
and sourcing division responsible for sourcing 
the entire company’s solid fuel requirements 
john joined the group in 1998 as its marketing director  
john retired from the board on 31 october 2007 
but remains with the group as marketing director 
of the surface mining division
04 steven beaumont
finance director and company secretary
steven beaumont is a chartered accountant 
having previously worked for arthur andersen 
and deloitte haskins and sells steven joined the 
board in october 2006 prior to joining ath he 
spent the majority of his career with united utilities 
where from 2001 he held the senior positions 
of both finance director and then commercial 
director of united utilities’ north west division 
as commercial director he managed over 1000 
people responsible for the investment delivery 
programme front line network customer service 
commercial activities supply chain legal and 
business services he was group financial 
controller from 1998 to 2001 
05 alistair black
operations director
alistair black commenced his training as a site 
engineer with coal contractors limited in 1986 
progressing to site manager of the roughcastle 
north site in 1994 in 1996 alistair joined rackwood 
as regional production manager responsible 
for two surface and one underground mine 
in scotland alistair joined the group in 1998 as 
operations manager for the skares road mine 
and became operations director in 2000 alistair 
gained his mba from heriot watt university in 1999 
he is also the health and safety director for the group
06 vaughan w illiams
nonexecutive director
vaughan williams has a degree in politics from 
exeter university vaughan spent four years at 
british steel from 1968 to 1972 before joining a 
predecessor company of bhp minerals europe 
limited as coal sales manager later promoted to 
director responsible for coal sales in europe cis 
the middle east and africa vaughan then moved to 
bhp coal australia pty limited in 1986 as manager 
of their marketing operations after returning from 
australia vaughan became deputy managing 
director at bhp minerals europe limited in 1988 
and subsequently managing director in 1990 
vaughan then became vice president marketing 
at bhp billiton diamonds inc in 2000 where he 
remained until 2003 he joined the group in 2004
07 ivana ridler
nonexecutive director
ivana is a vice president of lexington partners 
uk ltd where she is responsible for private equity 
coinvestments in europe ivana was an investment 
executive at alchemy partners between 2001 and 
2006 and previously was the alchemy plan’s 
representative on the board until november 2006 
before that ivana worked at bear stearns in london 
and new york as an investment banker in the ma 
team she holds a masters degree in business 
administration and economics from the university 
of st gallen switzerland  wwwathcouk
ath resources plc
annual report and accounts 2007
page
17
the directors submit their report and the audited financial statements of ath resources plc for the year ended 30 september 2007
principal activities
the principal activity of the company is that of a holding company the principal activities of the group are the operation 
of surface coal mines and the recovery of coal via tip washing and its subsequent sale to uk electricity generators industrial 
and domestic customers the group operates under the title of ath resources
review of developments and future prospects
the group’s trading performance for the year was in line with directors’ expectations and is discussed in greater detail 
in the chief executive’s statement the directors are pleased with the group’s progress and believe the businesses are 
ideally placed to continue to develop and mine new prospects
statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable 
law and united kingdom generally accepted accounting practice “uk gaap” company law requires the directors to 
prepare financial statements for each financial year which give a true and fair view in accordance with uk gaap  of the state 
of affairs of the company and the group and of the profit or loss of the group for that period in preparing those financial 
statements the directors are required to
 select suitable accounting policies and then apply them consistently
 make judgements and estimates that are reasonable and prudent 
  state whether applicable accounting standards have been followed subject to any material departures disclosed and 
explained in the financial statements and
  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will 
continue in business
the directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time 
the financial position of the company and to enable them to ensure that the financial statements comply with the requirements 
of the companies act 1985 they are responsible for safeguarding the assets of the group 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 
group’s website legislation in the united kingdom governing the preparation and dissemination or 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
directors
the directors in office during the period under review were
         
        
d c port         
t j allchurch         
a black         
s beaumont appointed 9 october 2006        
j k hodgson resigned 31 october 2007        
r a croston resigned 9 october 2006         
v m f williams         
i ridler         
during the year mrs ivana ridler left the alchemy investment plan coinvestment scheme and became an independent 
nonexecutive director
directors’ report  page
18
ath resources plc
annual report and accounts 2007 wwwathcouk
substantial shareholdings
the company has been informed that on 30 november 2007 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 extra income trust         3700000 9
 artemis high income fund         3256097 8
 rathbones income fund         3094999 8
 mr t j allchurch         1749181 4
 midas balanced income fund         1425000 4
 shires incomes plc         1250000 3
statement as to disclosure of information to auditors
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 have 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 auditor
key performance indicators “kpis”
the board monitors the group’s progress and financial performance on a regular basis performance is assessed against 
budget using financial and nonfinancial measures the following are the most significant kpis used by the group
         restated 
        2007 2006
sales price – revenue earned per tonne of coal sold £      32 30
cost price – operating cost per tonne of coal sold £      23 22
coal reserves – the volume of coal which is classed as permitted or probable reserves million tonnes  86 79
health and safety – number of reportable accidents number      8 6
environmental incidents – breaches of environmental legislation number    nil nil
return on capital employed – profit before interest and tax divided by capital employed    16 15
principal risks and uncertainties 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 properties 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 
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 geotechnical instability flooding and other conditions involved in the 
extraction of material
directors’ report  wwwathcouk
ath resources plc
annual report and accounts 2007
page
19
principal risks and uncertainties facing the group continued
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
financial instruments
details relating to financial instruments are given in the corporate governance report on page 21
employees
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 30 september 2007 the trade creditors of the group represented 50 days 2006 50 days 
of purchases
auditors
the directors having been notified of the cessation of the partnership known as baker tilly resolved that baker tilly uk audit llp 
be appointed successor auditor with effect from 1 april 2007 in accordance with the provisions of the companies act 1989 
s265 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
s beaumont
group finance director and company secretary
4 december 2007  page
20
ath resources plc
annual report and accounts 2007 wwwathcouk
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
at the start of the year the board of directors comprised four executive directors two independent nonexecutive directors 
one of whom is the chairman and an alchemy plan nominated nonexecutive director during the year the director nominated 
by the alchemy plan left alchemy and became an independent nonexecutive director the alchemy plan did not nominate a 
new director but retains the right 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 after the year end mr john hodgson retired as an executive director reducing 
the number of executive directors to three it is not intended that john will be replaced on the board in the short term
mr richard croston resigned as an executive director on 9 october 2006 following the appointment of mr steven beaumont 
richard continued to work for the group until may 2007
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 to 30 september 2007 the board met a total of eleven times
board committees
the board has established three committees audit remuneration and nominations all having written terms 
of delegated responsibilities
audit committee
the audit committee comprises the three nonexecutive directors and is scheduled to meet twice a year it is the 
audit committee’s role to provide formal and transparent arrangements for considering how to apply the financial 
reporting and internal control requirements of the code whilst maintaining an appropriate relationship with the 
independent auditors of the group in order to comply with the requirement of the code that at least one member 
has relevant financial experience the chairman of the board sits on the audit committee
during the year to 30 september 2007 the audit committee met on two occasions
remuneration committee
the remuneration committee comprises the three nonexecutive directors and the chief executive and meets at least once 
a year normally in june it is the remuneration committee’s role to establish a formal and transparent policy on executive 
remuneration and to set remuneration packages for individual directors
during the year to 30 september 2007 the remuneration committee met on six occasions
nominations committee
the nominations committee comprises the three nonexecutive directors and the chief executive and meets as required 
to consider and make recommendations on the appointment of directors to the board
shareholder relations
the company meets with its institutional shareholders and analysts as appropriate and 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
corpora te governance report wwwathcouk
ath resources plc
annual report and accounts 2007
page
21
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 which 
amounts to six people and the high level of director review and authorisation of transactions
a comprehensive budgeting process is completed once a year and is reviewed and approved by the board the group’s 
results as compared against budget are reported to the board on a monthly basis and discussed in detail at each meeting 
of the board
the group maintains appropriate insurance cover in respect of legal actions against the directors as well as against material 
loss or claims against the group and reviews the adequacy of the cover regularly
financial instruments
currency risks
the group does not have any direct exposure to currency risk as all of the group’s business is conducted within the uk
interest rate risk
the group uses fixed rate hire purchase agreements in order to hedge its interest rate risk
price risk
the group uses a mixture of short term and fixed price long term contracts with suppliers and customers to manage 
its exposure to variation in market prices
credit risk
the group trades predominantly with long standing customers the nature of these relationships assist management 
in controlling its credit risk in addition to the normal credit management in addition the group carries credit insurance 
against material loss from the failure of a customer to pay
liquidity
management control and monitor the group’s cash flow on a regular basis including forecasting future cash flows page
22
ath resources plc
annual report and accounts 2007 wwwathcouk
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 nonexecutive directors and meets at least once a year 
normally in june 
remuneration policy
remuneration packages are designed to be competitive and to reward above average performance executive directors 
receive salary fully financed company car death in service benefit critical illness and medical cover pension contribution 
annual bonuses and share options
service contracts
the executive directors have service agreements with the company mr t om allchurch mr john hodgson and mr alistair black’s 
agreements are dated 28 november 2003 for an initial twelve months thereafter subject to termination upon twelve months’ 
notice being given by either party mr steven beaumont’s agreement is dated 9 october 2006 with an initial notice period 
of six months which increased to twelve months after one year’s service
pensions
the group does not have a pension scheme instead makes contributions to executive directors’ personal pension schemes 
of 125 of annual salary
nonexecutive directors
the nonexecutive directors entered into letters of appointment dated 12 may 2004 both mr david port and mr vaughan williams 
were appointed for an initial three year term which can be terminated upon six months’ notice being given by either party 
they receive a fee of £65488 and £26514 respectively until october 2006 mrs ivana ridler was the alchemy plan nominated 
nonexecutive director mrs ivana ridler was appointed an independent nonexecutive on 31 october 2006 for an initial three 
year term she received a fee of £22367 the group paid fees and expenses of £7769 2006 £23239 to alchemy partners 
in the year 
directors’ remuneration
details of directors’ remuneration are set out below
      subtotal   2007 2006 
   salary benefits bonus  emoluments  pension t otal total 
   £000 £000 £000 £000 £000 £000 £000
executive directors       
t j allchurch   193 17 43 253 24 277 197
j k hodgson resigned 31 october 2007  83 10 16 109 10 119 104
r a croston resigned 9 october 2006   2 1 — 3 — 3 100
a black   122 14 24 160 15 175 109
s beaumont appointed 9 october 2006  138 29 — 167 18 185 —
m t w tod resigned 23 june 2006   — — — — — — 95
nonexecutive directors       
d c port   65 — — 65 — 65 52
v m f williams   27 — — 27 — 27 21
i ridler   22 — — 22 — 22 —
t otal   652 71 83 806 67 873 678
mr richard croston resigned as an employee of the group in may 2007 and received a payment of £55703 in respect of loss 
of office
performance incentives
the group operates an annual cash bonus scheme and grants share options
the annual bonus scheme provides for a maximum bonus of 30 of salary to be paid by reference to achievement 
of a group earnings target 10 surpassing the earnings target 10 and individual personal targets 10
remunera tion committee report  wwwathcouk
ath resources plc
annual report and accounts 2007
page
23
performance incentives continued
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 require 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  exercisable
 exercise  1 october     30 september   performance 
 price 2006 revised granted lapsed 2007 from to target from to
t j allchurch            
approved £146 20134 337 — —  20471 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 335000 5614 — — 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
ltip £000 335000 25949 — 360949 — 1 oct 03 30 sep 07 6442 12 jun 09 10 jun 14
ltip £170 88003 — — — 88003 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
t otal  866140 31900 — 360949 537091     
j k hodgson
approved £146 20134 337 — — 20471 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 150000 2513 — — 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
ltip £000 170000 2849 — 172849 — 1 oct 03 30 sep 07 6442 12 jun 09 10 jun 14
ltip £170 41068 — — — 41068 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
t otal  422270 5699 — 172849 255120
r a croston
approved £146 20134 337 — — 20471 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 150000 2513 — — 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
ltip £000 170000 2849 — 172849  — 1 oct 03 30 sep 07 6442 12 jun 09 10 jun 14
ltip £170 41068 — — — 41068 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
t otal  422270 5699 — 172849 255120
a black
approved £146 20134 337 — — 20471 1 oct 03 30 sep 06 3868 2 nov 07 31 oct 14
unapproved £133 150000 2513 — — 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
ltip £000 170000 2849 — 172849 — 1 oct 03 30 sep 07 6442 12 jun 09 10 jun 14
ltip £170 41068 — — — 41068 1 oct 04 30 sep 08 5980 30 sep 10 28 sep 15
t otal  422270 5699 — 172849 255120
s beaumont
approved £195 — — 15384 — 15384 1 oct 06 30 sep 09 5540 08 jan 10 07 jan 17
unapproved £195 — — 84616 — 84616 1 oct 06 30 sep 09 5540 08 jan 10 07 jan 17
ltip £175 — — 100000 — 100000 1 oct 06 30 sep 10 7570 08 jan 12 07 jan 17
t otal  — — 200000 — 200000     page
24
ath resources plc
annual report and accounts 2007 wwwathcouk
directors’ interests in share options continued
the performance target is cumulative pretax earnings per share 
the number of options available to the members of the approved scheme with performance period from 1 october 2003 
to 30 september 2006 the unapproved scheme with performance period from 1 october 2003 to 30 october 2006 and 
the ltip scheme with performance period from 1 october 2003 to 30 september 2007 have been amended during the year 
following agreement of the schemes with the inland revenue the revision to the number of options available was due to 
a previous share rights issue in 2005 as set out in the ‘revised’ column on the table 
the performance targets for the approved and unapproved schemes with performance periods ending 30 september 2006 
were achieved and the options have vested
the performance target for the ltip scheme ending on 30 september 2007 was not achieved and these options have 
now lapsed 
no directors exercised any options during the period
v m f williams
chairman of the remuneration committee
4 december 2007
remunera tion committee report  wwwathcouk
ath resources plc
annual report and accounts 2007
page
25
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable 
law and united kingdom accounting standards united kingdom generally accepted accounting practice are set out in 
the statement of directors’ responsibilities
our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and 
international standards on auditing uk and ireland
we report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared 
in accordance with the companies act 1985 we also report to you whether in our opinion the information given in the 
directors’ report is consistent with the financial statements the information given in the directors’ report includes that 
specific information presented in the chairman’s statement the chief executive’s statement the financial review 
the corporate governance report and the remuneration committee report
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received 
all the information and explanations we require for our audit or if information specified by law regarding directors’ remuneration 
and other transactions is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited financial 
statements the other information comprises only the chairman’s statement the chief executive’s statement the financial 
review and the directors’ report we consider the implications for our report if we become aware of any apparent misstatements 
or material inconsistencies with the financial statements our responsibilities do not extend to any other information
basis of audit opinion
we conducted our audit in accordance with the international standards on auditing uk and ireland issued by the auditing 
practices board an audit includes examination on a test basis of evidence relating to the amounts and disclosures in the 
financial statements it also includes an assessment of the significant estimates and judgements made by the directors in the 
preparation of the financial statements and of whether the accounting policies are appropriate to the group’s and company’s 
circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the relevant information and explanations which we consider 
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free 
from material misstatement whether caused by fraud or other irregularity or error in forming our opinion we also evaluated 
the overall adequacy of the presentation of the information in the financial statements 
opinion
in our opinion 
  the financial statements give a true and fair view in accordance with united kingdom generally accepted accounting 
practice of the state of the group’s and company’s affairs as at 30 september 2007 and of the group’s profit for the year 
then ended and have been properly prepared in accordance with the companies act 1985 and
 the information given in the directors’ report is consistent with the financial statements
baker tilly uk audit llp
registered auditor
chartered accountants
leeds
4 december 2007 
independent auditors’ report
to the members of ath resources plc page
26
ath resources plc
annual report and accounts 2007 wwwathcouk
         restated 
        2007 2006 
       notes £000 £000
t urnover       1 70508   54126
cost of sales        50856 40470
gross profit        19652 13656
administrative expenses        9460  5575
other operating income        129 18
operating profit       2 10321 8099
lossprofit on disposal of fixed assets        58 28
profit on ordinary activities before interest       10263 8127
interest receivable       3 23 65
interest payable and similar charges       4 2448 1049
profit on ordinary activities before taxation       7838 7143
t ax on profit on ordinary activities       6 2640 2470
profit on ordinary activities after taxation      18 5198 4673
basic earnings per share       7 1308p 1177p
diluted earnings per share       7 1288p 1161p
the profit on ordinary activities before taxation arises from the group’s continuing activities
there are no recognised gains or losses other than as stated in the profit and loss account
 
consolida ted profit and l oss account
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
27
      2007  restated 2006
     notes £000 £000 £000 £000
fixed assets       
goodwill     8  6376  7169
tangible fixed assets     9  64356  65143
investments     10  1  1
       70733  72313
current assets      
stocks     11 7793  6762 
debtors     12 11229  8796 
cash at bank      64  — 
      19086  15558 
creditors amounts falling due within one year    13 29216  28555  
net current liabilities       10130  12997
t otal assets less current liabilities       60603  59316
creditors amounts falling due after more than one year   14  13467  16602
provisions for liabilities and charges    16  15699  12692
net assets       31437  30022
capital and reserves       
called up share capital     17  199  198
share premium account     18  27563  27341
sharebased payment reserve     18  1313  853
profit and loss account     18  2362  1630
equity shareholders’ funds     20  31437  30022
the financial statements on pages 26 to 44 were approved by the board of directors and authorised for issue on 4 december 2007 
and are signed on its behalf by
s beaumont
finance director
 
consolida ted balance sheet
as at 30 september 2007 page
28
ath resources plc
annual report and accounts 2007 wwwathcouk
      2007  restated 2006
     notes £000 £000 £000 £000
fixed assets       
investments     10  8907  5907
current assets       
debtors due in less than one year     12 394  256
  due after more than one year      51753  50266 
cash at bank      —  1285 
      52147  51807 
creditors amounts falling due within one year    13 5591  4100 
net current assets       46556  47707
t otal assets less current liabilities       55463  53614
creditors  amounts falling due after more than one year   14  22976  22687
net assets       32487  30927
capital and reserves       
called up share capital     17  199  198
share premium account     18  27563  27341
sharebased payment reserve     18  1313  853
profit and loss account     18  3412  2535
equity shareholders’ funds     20  32487  30927
the financial statements on pages 26 to 44 were approved by the board of directors and authorised for issue on 4 december 2007 
and are signed on its behalf by
s beaumont
finance director
company balance sheet
as at 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
29
      2007  restated 2006
     notes £000 £000 £000 £000
net cash flow from operating activities    23a  23580  17601
returns on investment and servicing of finance       
interest received      23  65 
interest paid      1077  423 
interest element of finance leases      1107  626 
       2161  984
t axation paid       5234  640
capital expenditure      
payments to acquire tangible fixed assets     7120  7838 
receipts from sales of tangible fixed assets     352  376 
acquisition         
cash acquired with subsidiary      —  22321 
purchase of business      1000  25944 
       7768  11085
equity dividends paid       4466  4335
cash flow before financing       3951  557
financing      
issue of ordinary shares      223  — 
new secured loan      1602  5500 
repayment of secured loan      2784  1793 
capital element of finance lease payments     8248  5460 
       9207  1753
decrease in cash     23c  5256  1196
consolida ted cash fl ow st atement
for the year ended 30 september 2007 page
30
ath resources plc
annual report and accounts 2007 wwwathcouk
basis of accounting
the financial statements have been prepared under the historical cost convention and in accordance with applicable 
accounting standards
basis of preparation
the group has net current liabilities of £10130000 2006 £12997000 the group meets its day to day working capital 
requirements through an overdraft facility which is repayable on demand
the directors have prepared cash flow projections for the coming twelve months which show that the margin of cash 
requirements is 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 facility 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
accounting period
the company has drawn up its accounts for the 52 week period to 30 september 2007 52 week period to 1 october 2006
consolidation
the accounts utilise the acquisition method to consolidate the accounts of the company and all of its subsidiary undertakings 
other than as stated below the accounts do not consolidate the results of the french subsidiary société des ressources 
minières du massif central “srmmc” as it is not material for the purposes of giving a true and fair view note 10
aardvark tmc limited “aardvark” has 20000 ‘b’ ordinary shares not owned by ath resources plc subscribed at 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 subsubsidiary 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 company has not presented its own profit and loss account as permitted by section 2304 of the companies act 1985
mine development costs
the costs of prospecting and identifying new sites are expensed until such time that a prospective site is considered by the 
board to be economically viable and that there is a high degree of probability and commitment that the site will be worked 
costs then incurred in preparing and developing sites are capitalised up to the start of production upon commencement 
of production depreciation is charged on a tonnage basis
goodwill
consolidated goodwill being the excess consideration over the fair values of the assets acquired on the purchase of subsidiary 
undertakings is capitalised and charged to profit over ten years as in the opinion of the directors this represents the period 
over which the goodwill is effective
tangible fixed assets
depreciation is provided on cost in annual instalments over the estimated useful life of assets which are reviewed annually 
the rates of depreciation are as follows
freehold land   not depreciated
freehold buildings   depreciated to their estimated residual value over their estimated remaining 
economic lives – 20 years
mine purchase and development t onnage basis over the estimated total recoverable reserve
plant and machinery  10 – 50
accounting policies wwwathcouk
ath resources plc
annual report and accounts 2007
page
31
stocks and work in progress
stocks and work in progress are valued at the lower of cost and net realisable value
finance leases and hire purchase contracts
tangible assets acquired under finance leases and hire purchase contracts are capitalised at the estimated fair value at 
the date of inception of each lease or contract the total finance charges are allocated over the period of the lease in such 
a way as to give a reasonably constant charge on the outstanding liability
operating lease agreements
rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor 
are charged against profits on a straight line basis over the period of the lease
deferred taxation
deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date 
where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have 
occurred at the balance sheet date timing differences are differences between the group’s taxable profits and its results as 
stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from 
those in which they are recognised in the financial statements
deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are 
expected to reverse based on tax rates and laws that have been enacted or substantially enacted by the balance sheet date 
deferred tax is measured on a nondiscounted basis
pension contributions
the group does not operate a pension scheme for the benefit of its employees but instead makes contributions to their 
personal pension policies the contributions due for the period are charged to the profit and loss account
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 profit and loss account 
on a tonnage basis over the estimated life of the recoverable reserves
t urnover
turnover is recognised at the fair value of the consideration received or receivable for sale of goods in the ordinary nature 
of the business turnover is shown net of value added tax of goods sold to customers outside the group
employee share schemes
the company operates a number of sharebased incentives as outlined in the remuneration committee’s report the cost 
of awards to employees being the difference between the market price at the date of award and the amount of consideration 
due is recognised over the period of the employee’s related performance where there is a reasonable expectation that the 
performance criteria will be met page
32
ath resources plc
annual report and accounts 2007 wwwathcouk
frs 20 ‘sharebased payment’
during the year the group adopted frs 20 ‘sharebased payment’ the adoption of this standard constitutes 
a change in accounting policy and therefore the impact has been reflected as a prior year adjustment in accordance 
with frs 3 ‘reporting financial performance’
the standard requires that where shares or rights to shares are granted to third parties including employees a charge should 
be recognised in the profit and loss account based on the fair values of the shares at the date the grant of shares or right to 
shares is made the group operates share option schemes for senior executives which are required under the standard to 
be valued and charged against profit before tax
the effect of the adoption of frs 20 on prior year comparatives is to reduce operating profit by £480000 in the year 
to 1 october 2006 operating profit in the year to 30 september 2007 is reduced by £460000
a corresponding reserve is created in the balance sheet – sharebased payment reserve – which is a distributable reserve 
in addition a deferred tax credit is recognised in the profit and loss account to reflect tax relief available when the options 
are exercised the impact on net assets is an increase of £255855 for the period ended 1 october 2006 and an increase 
of £393855 for the period ended 30 september 2007
financial instruments
income and expenditure arising on financial instruments are recognised on an accruals basis and credited or charged 
to the profit and loss account in the financial period to which they relate
investments
investments are stated at cost and provision is made for any impairment in the value of fixed asset investments
accounting policies wwwathcouk
ath resources plc
annual report and accounts 2007
page
33
1 t urnover and segmental reporting
the group’s turnover was derived from its principal activity undertaken wholly within the uk
2 operating profit
         restated 
        2007 2006 
        £000 £000
operating profit is stated after charging  
depreciation of tangible assets  – owned assets      9005 6925
  – leased assets      4643 3299
amortisation of goodwill arising on consolidation       793 396
frs 20 ‘sharebased payment’ charge        460 480
rentals under operating leases  – plant and machinery     259 355
  – land and buildings      17 —
auditors’ remuneration 
associates of baker tilly uk audit llp
 – audit       50 —
 – tax and advisory      20 —
 – employee benefits      10 —
        80 —
associates of baker tilly  
 – audit       — 38
 – tax and advisory      — 16
 – corporate finance      — 3
        — 57
3 interest receivable
         restated 
        2007 2006 
        £000 £000
other interest receivable        23 65
4 interest payable and similar charges
         restated 
        2007 2006 
        £000 £000
bank overdraft and loan interest        1077 423
finance leases and hire purchase contracts interest      1107 626
final void provision discount        264 —
        2448 1049
notes to the financial st atements 
for the year ended 30 september 2007 page
34
ath resources plc
annual report and accounts 2007 wwwathcouk
5 employees
         restated 
        2007 2006 
staff costs during the year including directors       £000 £000
wages and salaries        12663 9541
social security costs        1442 955
pension costs        211 148
        14316 10644
         restated 
        2007 2006 
average number of employees        no no
office and management        63 43
production        321 236
        384 279
         restated 
        2007 2006 
directors’ emoluments        £000 £000
directors’ emoluments        806 619
pension contributions        67 59
        873 678
         restated 
        2007 2006 
highest paid director        £000 £000
emoluments        253 178
pension contributions        24 19
        277 197
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
35
6 t axation
         restated 
        2007 2006 
group        £000 £000
corporation tax   
current year        1173 1491
adjustment to prior year        337 72
deferred taxation        1804 907
        2640 2470
the tax assessed for the year is lower than the standard rate of corporation tax as explained below
         restated 
        2007 2006 
group        £000 £000
profit on ordinary activities before taxation       7838 7143
profit on ordinary activities multiplied by standard rate of tax for the period of 30    2351 2143
effect of expenses not allowable for tax purposes       448 357
effect of depreciation in excess of capital allowances      1764 1135
effect of short term timing differences        138 126
t otal current tax        1173 1491
7 earnings per share
basic earnings per share is calculated on profit after tax of £5198000 2006 restated £4673000 and a weighted average 
number of shares of 39728508 2006 39693568 the diluted earnings per share takes account of share options 
outstanding to employees as set out below
        restated 
       2007 2006 
group       no no
weighted average number of shares in issue     39728508 39693568
weighted average number of dilutive share options     619714 550714
total number of shares for calculating diluted earnings per share   40348222 40244282 page
36
ath resources plc
annual report and accounts 2007 wwwathcouk
8 goodwill
         restated 
group         £000
cost 
1 october 2006 and 30 september 2007        7926
amortisation 
1 october 2006         757
charge in the year         793
30 september 2007         1550
net book value 
30 september 2007         6376
1 october 2006         7169
9 tangible fixed assets
     mine   
   freehold   purchase    
   land and    and   plant and  
   buildings   development  machinery  total  
group   £000  £000  £000  £000
cost       
1 october 2006   3261  38009  41775  83045
recognised in the year   —  1275  —  1275
additions   2300  4673  5023  11996
disposals   —  —  2079  2079
30 september 2007   5561  43957  44719  94237
depreciation
1 october 2006    29  11777  6096  17902
charge in the year   37  7590  6021  13648
disposals   —  —  1669  1669
30 september 2007   66  19367  10448  29881
net book value
30 september 2007   5495  24590  34271  64356
1 october 2006    3232  26232  35679  65143
finance leases and hire purchase contracts       
depreciation charge   —  —  4643  4643
net book value    —  —  24831  24831
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
37
10 investments
        group  company  
investments in subsidiary undertakings        £000 £000
cost  
1 october 2006 – restated        — 5907
additions        — 3000
30 september 2007        — 8907
other investments  
cost  
1 october 2006 and 30 september 2007       1 —
   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 surface coal mining
ath regeneration limited england ordinary 100 100 land remediation
held by subsidiary     
a ogden  sons limited england ordinary 100 100 land remediation
aardvark tfc limited england ordinary 100 100 intermediary holding 
     company
société des ressources minières  
du massif central “srmmc” france ordinary 100 100 coal prospecting
aardvark tmc limited has 20000 ‘b’ ordinary shares subscribed at 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
aardvark tfc limited had share capital and reserves at 30 september 2007 of £1 2006 £1
srmmc share capital and reserves at 31 december 2006 were €48122 and the company incurred a loss of €53994 during 
that year the group provided funding to the company of £100700 2006 £44280 during the year to 30 september 2007 
which has been charged to profit there were no balances owing at the balance sheet date
aardvark tfc limited and srmmc are not consolidated in the accounts as they are not considered material for the purposes 
of giving a true and fair view page
38
ath resources plc
annual report and accounts 2007 wwwathcouk
11 stocks
      2007  restated 2006
      group company group company 
      £000 £000 £000 £000
coal stocks      2887 — 1703 —
work in progress      3857 — 4201 —
other stocks      1049 — 858 —
      7793 — 6762 —
12 debtors
      2007  restated 2006
      group company group company 
      £000 £000 £000 £000
amounts due from subsidiary undertakings     — 51753 — 50266
trade debtors      10817 — 8257 —
deferred tax      — 394 — 256
prepayments and accrued income      376 — 240 —
other debtors      36 — 299 —
      11229 52147 8796 50522
13 creditors amounts falling due within one year
      2007  restated 2006
      group company group company 
      £000 £000 £000 £000
bank loan note 14      2747 2675 4172 4100
bank overdraft      8158 2896 2838 —
finance leases and hire purchase contracts note 14    7418 — 7837 —
trade creditors      5354 — 5777 —
corporation tax      712 — 5110 —
other taxation and social security      2968 — 386 —
other creditors      307 — 136 —
deferred consideration      — — 1000 —
accruals and deferred income      1552 20 1299 —
      29216 5591 28555 4100
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
39
14 creditors amounts falling due after more than one year
      2007  restated 2006
      group company group company 
      £000 £000 £000 £000
bank loan      753 289 510 —
finance leases and hire purchase contracts     12539 — 16092 —
other creditors      175 — — —
amounts due to subsidiary undertaking      — 22687 — 22687
      13467 22976 16602 22687
amounts included above are repayable over varying periods by monthly instalments as follows
        finance leases and  
      bank loan  hire purchase contracts
       restated  restated 
      2007 2006 2007 2006 
      £000 £000 £000 £000
within one year      2747 4172 7418 7837
more than one year but not more than two years     362 122 5860 6393
more than two years but not more than five years     216 366 6679 9699
five years or more      175 22 — —
      3500 4682 19957 23929
the bank loan is secured by a fixed charge over certain assets of the group the company is party to a cross guarantee 
with its subsidiary undertakings in respect of bank loans and overdrafts held by group companies which are secured by 
debentures over the assets of the group obligations under finance leases and hire purchase contracts are secured on 
the related assets
the group entered into a loan facility for the acquisition of land and buildings during the year and the loan is secured on 
this property
15 financial instruments
the group’s financial instruments comprise bank loans cash and finance leases and hire purchase contracts the purpose 
of these financial instruments is to finance the group’s operations all are considered to be stated at fair value short term 
debtors and creditors have been omitted from all disclosures
it is and has been throughout the period under review the group’s policy that no trading in financial instruments shall be 
undertaken the main risk arising from the group’s financial instruments is interest rate risk
the bank loan is secured by a fixed charge over certain assets of the group the bank loan is repayable over eight years and 
bears interest based on the bank’s base rate plus 1 2006 base rate plus 1
the group entered into a loan to fund the regeneration acquisition in 2006 this loan will be fully repaid in 2008 and bears 
interest at 74 2006 65
the group entered into a new loan facility for the acquisition of development land and the loan is secured on this property 
this loan is repayable over two years and an interest rate of 68 2006 nil
finance leases and hire purchase contracts are secured on the specific asset to which the agreement relates and are on 
fund rate terms the weighted average interest rate is 56 2006 5
the group enters into hedging agreements to fix the forward price of gas oil a significant operating cost these instruments 
are entered into to minimise the price risk of oil on the group page
40
ath resources plc
annual report and accounts 2007 wwwathcouk
16 provisions for liabilities and charges
       group  company
      final void  deferred  deferred 
      provision  tax total  tax 
      £000 £000 £000  £000
1 october 2006 as reported      11020 1928 12948 —
prior year adjustment – frs 20 ‘sharebased payment’    — 256 256 256
1 october 2006 – restated      11020 1672 12692 256
created in the year      1913 1804 3717 138
discount accrued      264 — 264 —
released to profit and loss      411 — 411 —
utilised in the year      563 — 563 —
30 september 2007      12223 3476 15699 394
deferred tax comprises
         restated 
        2007 2006 
        £000 £000
capital allowances in excess of depreciation       3915 1973
other timing differences        439 301
        3476 1672
the company’s deferred tax asset wholly relates to short term timing differences and is expected to be recoverable in full as 
share options are exercised and costs become chargeable against corporation tax
17 called up share capital
     2007  restated 2006
ordinary shares of 05 pence each    number £000 number £000
authorised    200000000 1000 200000000 1000
called up and fully paid    39861282 199 39693568 198
during the year the company issued 167764 ordinary 05 pence shares at £133 per share with the exercise of options under 
share option schemes 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
at 30 september 2007 the following options had been granted and were still outstanding under the scheme
        
performance
 
     
number of  exercise
 performance period  
target
date of grant    shares price from  to pence
1 november 2004    163768 £146 1 oct 03 30 sep 06 3868
7 january 2007    30768 £195 1 oct 06 30 sep 09 5540
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 share
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
41
17 called up share capital continued
ath resources plc unapproved executive share option scheme
at 30 september 2007 the following options had been granted and were still outstanding under this scheme
        
performance
 
     
number of  exercise
 performance period  
target
date of grant    shares price from  to pence
11 june 2004    1292279 £133 1 oct 03 30 sep 06 3868
29 september 2005    496170 £185 1 oct 04 30 sep 07 4420
3 october 2006    76950 £2065 1 oct 05 30 sep 08 4450
8 january 2007    141732 £195 1 oct 06 30 sep 09 5540
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
options granted under the approved and unapproved schemes during the year were valued using a binominal model 
volatility was estimated at 391 after inspecting the historic volatility of a comparable company the group’s own volatility 
was not used due to the relatively short period of share trading history vesting estimates take account of the group’s high 
retention rates the exercise price was the market price at the close of trading on the date of grant expected exercise of 
the options is after 65 years the risk free interest rate is 46 with an expected dividend yield of 363
ath resources plc long term incentive plan
at 30 september 2007 the following options had been granted and were still outstanding under the scheme
        
performance
 
     
number of  exercise
 performance period  
target
date of grant    shares price from  to pence
29 september 2005    496170 £170 1 oct 04 30 sep 08 5980
3 october 2006    76950 £180 1 oct 05 30 sep 09  6080
8 january 2007    172500 £175 1 oct 06  30 sep 10 7570
the options are exercisable between five and ten years from the date of the grant subject to the achievement of performance 
criteria the performance criteria are cumulative pretax earnings per share
options on 1493963 shares lapsed during the year as the required performance criteria was not achieved
options granted under the long term incentive plan during the year were valued using a binominal model volatility was 
estimated at 377 after inspecting the historic volatility of a comparable company the group having insufficient trading 
history to be used vesting estimates take account of the group’s high retention rate the exercise price was the market price 
less 10 at the close of trading on the date of grant expected exercise of the options is after 75 years the risk free interest 
rate is 46 with an expected dividend yield of 363
18 reserves
       group  
         sharebased  profit 
       share payment and loss  
       premium reserve account 
group       £000 £000 £000
1 october 2006 as reported       27341 — 2227
prior year adjustment – frs 20 ‘sharebased payment’     — 853 597
1 october 2006 – restated       27341 853 1630
additions       222 460 —
profit on ordinary activities after taxation       — — 5198
dividends paid       — — 4466
30 september 2007       27563 1313 2362 page
42
ath resources plc
annual report and accounts 2007 wwwathcouk
18 reserves continued
       company  
         sharebased profit 
       share payment and loss  
       premium reserve account 
company       £000 £000 £000
1 october 2006 as reported       27341 — 3132
prior year adjustment – frs 20 ‘sharebased payment’     — 853 597
1 october 2006 – restated       27341 853 2535
additions       222 460 —
profit on ordinary activities after taxation       — — 5343
dividends paid       — — 4466
30 september 2007       27563 1313 3412
19 equity dividends
declared and paid during the financial year
         restated 
        2007 2006 
        £000 £000
final dividend for the year ended 1 october 2006 789 pence per share 2005 756 pence per share  3132 3001
interim dividend for the year ended 30 september 2007 336 pence per share 2006 336 pence per share 1334 1334
        4466 4335
proposed after the balance sheet date and not recognised as a liability
final dividend for the year ended 30 september 2007 824 pence per share 2006 789 pence per share 3285 3132
20 reconciliation of movement in shareholders’ funds
      2007  restated 2006
      group company group company 
      £000 £000 £000 £000
issue of ordinary shares      223 223 — —
addition in respect of frs 20 ‘sharebased payment’    460 460 480 480
profit for the year      5198 5343 4673 7131
dividends paid      4466 4466 4335  4335
net increase in shareholders’ funds      1415 1560 818 3276
opening shareholders’ funds      30022 30927 29204 27651
closing shareholders’ funds      31437 32487 30022 30927
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
43
21 operating lease commitments
at 30 september 2007 the group was committed to making the following payments during the next year in respect of 
operating leases
         restated 
        2007 2006 
        £000 £000
plant and machinery  
leases which expire within one year        19 —
leases which expire between two and five years       55 105
22 capital commitments
at 30 september 2007 the group was committed to acquiring plant and machinery
         restated 
        2007 2006 
        £000 £000
contracted but not provided        13259 9949
23 cash flows
a reconciliation of operating profit to net cash inflow from operating activities
         restated 
        2007 2006 
        £000 £000
operating profit        10263 8127
depreciation and amortisation        14441 10620
lossprofit on disposal of fixed assets        58 28
increase in stocks        1031 746
increasedecrease in debtors        2433 2118
increasedecrease in creditors and provisions       2282 2490
net cash flow from operating activities       23580 17601
b analysis of net debt
   restated    
   1 october   cash  other 30 september 
   2006   flow  movements 2007  
   £000  £000  £000 £000
cash at bank   2838  5256  — 8094 
debt due within one year   4172  2627  1202 2747 
debt due beyond one year   510  157  400  753 
finance leases and hire purchase contracts  23929  8248  4276  19957 
   31449  5776  5878   31551  page
44
ath resources plc
annual report and accounts 2007 wwwathcouk
23 cash flows continued
c reconciliation of net cash inflow to movement in net debt
         restated 
        2007 2006 
        £000 £000
decrease in cash        5256 1196
cash flow from changes in debt        11032 1753
change in net debt resulting from cash flows       5776 557
new finance leases and hire purchase contracts       4276 17705
new loans        1602 —
movement in net debt in year        102 17148
net debt at 1 october 2006        31449 14301
net debt at 30 september 2007        31551 31449
d other movements in net debt
during the year the group entered into finance leases and hire purchase contracts arrangements in respect of assets 
with a total capital value at the inception of the agreements of £4276000 2006 £17705000
the group entered into a new loan facility for £1602000 in respect of the acquisition of development land at pinxton 
in derbyshire
24 related party transactions
during the year the group paid alchemy partners llp £7769 2006 £23239 for the services of mrs ivana ridler 
nonexecutive director of the company no balances were owed to alchemy partners llp at 30 september 2007
notes to the financial st atements 
for the year ended 30 september 2007 wwwathcouk
ath resources plc
annual report and accounts 2007
page
45
notice is hereby given that the annual general meeting of the company will be held at 1100 am at the offices of eversheds llp 
solicitors cloth hall court infirmary street leeds ls1 2jb on 15 january 2008 to transact the following business
ordinary business
to consider and if thought fit pass the following ordinary resolutions
1  to receive the accounts of the company for the year ended 30 september 2007 and the reports of the directors 
and auditors
2 to declare a final dividend
3 to reelect mr t om allchurch as a director
4 to reelect mr alistair black as a director
5 to receive and approve the remuneration committee report
6  to reappoint baker tilly uk audit llp as auditors to the company to hold office until the conclusion of the next general 
meeting at which accounts are laid before the company
7 to authorise the directors to fix the remuneration of the auditors
special business
to consider and if thought fit and in the case of resolution 9 to the passing of resolution 8 pass the following resolutions 
resolution 8 will be proposed as an ordinary resolution and resolutions 9 and 10 as special resolutions
8  that the directors be and are hereby generally and unconditionally authorised in accordance with section 80 of the 
companies act 1985 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 £59593 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 15 april 2009 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
9  that  subject to the passing of resolution 8 the directors be and are hereby empowered pursuant to section 951 of 
the act to allot equity securities as defined in section 942 of the act for cash as if section 891 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 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 subparagraph i above of equity securities up to an aggregate nominal 
value of £9932 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 15 april 2009 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
notice of annu al general meeting page
46
ath resources plc
annual report and accounts 2007 wwwathcouk
notice of annu al general meeting
special business continued
10  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 163 of the companies act 1985 of up to 2003758 ordinary 
shares of 05p 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 1 5 above the average 
market valueof 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 2 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 2009 annual general meeting of the company 
or if earlier 15 april 2009 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 hereby conferred hereby had not expired
s beaumont
group finance director and company secretary
4 december 2007
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
2  if you are a person with information rights under section 146 of the companies act 2006 you do not have the right to appoint a proxy any purported 
exercise by such persons whether by completion and return of a form of proxy or otherwise will be ineffective you may however have specific 
rights to instruct the member who granted you information rights as to how such member exercises their right to appoint a proxy
3  in order to be valid any form of proxy and power of attorney or such 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 not less than 48 hours before the time of the meeting or of any 
adjournment of the meeting
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 1100 am on 11 january 2008 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
5  copies of the service contracts and letters of appointment of each of the directors will be available for inspection at the registered office of the 
company during usual business hours on any weekday saturdays and public holidays excluded and at the place of the annual general meeting 
from at least 15 minutes prior to and until the conclusion of the annual general meeting
6  crest members who wish to appoint a proxy or proxies by utilising crest electronic appointment service may do so for the annual general 
meeting and any adjournments thereof by utilising 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 made by means of crest to be valid the appropriate crest message crest proxy instruction must be 
properly authenticated in accordance with crestcos 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 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 capita registrars id ra10 by 
the latest time for receipt of proxy appointments specified in the notice of annual general meeting for this purpose the time of receipt shall be 
taken as the time as determined by the timestamp applied to the message by the crest applications host from which the company’s agent 
capita registrars 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 hisher crest sponsor or voting service providers takes such 
action as is necessary to ensure that a message is transmitted by means of the crest system by a particular time in this connection crest 
members and where applicable 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 regulations 355 of the uncertified securities 
regulations 2001
  with effect from 1 july 2007 crestco ltd changed its legal and operating name to euroclear uk  ireland limited wwwathcouk
ath resources plc
annual report and accounts 2007
page
47

iwe block capitals 
of  
being a membermembers of the abovenamed 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 15 january 2008 
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
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
 resolution for against vote withheld
 1  to receive the accounts for the year ended 30 september 2007
 2 to declare a final dividend of 824 pence per share
 3 to reelect mr tom allchurch as a director
 4 to reelect mr alistair black as a director
 5 to receive and approve the remuneration committee report
 6 to reappoint baker tilly uk audit llp as auditors
 7 to authorise the directors to determine their remuneration
 8  to authorise the directors to allot relevant securities pursuant  
to section 80 of the companies act 1985
 9  to authorise the directors to allot equity securities pursuant  
to section 95 of the companies act 1985
 10  to authorise the purchase of shares pursuant to section 166  
of the companies act 1985
signed 
dated  
  if you wish to appoint some other person as your proxy please insert their name and address here delete the words “chairman of the 
meeting” and initial the alteration the proxy need not be a member of the company
notes
1  any member entitled to attend and vote at the annual general meeting is entitled to appoint one or more proxies who need not be a 
member if the company of his own choice to attend and on a poll to vote in hisher place if a member wishes to appoint a proxy other 
than the chairman delete the words “the chairman of the meeting or” initial the alteration and insert the name of the person you wish to 
appoint as your proxy
2 all members are entitled to attend and vote at the meeting whether or not they have returned a form of proxy
3   if you indicate that you want your vote withheld your proxy may abstain from voting and therefore there is no vote at law to be counted in 
the calculation of the proportion of votes for and against the resolution
4  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
5  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
6  in order to be valid this form of proxy duly executed together with any power of attorney or other authority under which it is signed 
or a notarially certified or office copy of such power or authority must be lodged at the company’s registrars not less than 48 hours 
before the time of meeting or any adjournment of the meeting
7 any alterations made to this form of proxy should be initialled
8   crest users should note that they can lodge their proxy votes for the meeting through crest proxy voting system for further 
instructions users should refer to the crest user manual any crest sponsored members should contact their crest sponsor
9   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 1100 am on 11 january 2008 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
form of proxy
for use at the annual general meeting to be held at 1100 am on 15 january 2008 business reply
licence number
mb 122
capita registrars 
proxies department 
po box 25 
beckenham 
kent br3 4br
first fold
second fold
third fold and tuck in registered office
aardvark house 
sidings court 
doncaster dn4 5nu
company number
4928463
bankers
royal bank of scotland 
2 whitehall quay 
leeds ls1 4hr
solicitors
eversheds llp 
cloth hall court 
infirmary street 
leeds ls1 2jb
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 
100 cannon street 
london ec4n 6eu
registrar
capita registrars 
the registry 
34 beckenham road 
beckenham 
kent br3 4tu
15 january 2008  annual general meeting
18 january 2008   final dividend paid
30 march 2008   half year end
10 june 2008  interim results and dividend declared
25 june 2008   ordinary shares go exdividend
17 july 2008   interim dividend paid
28 september 2008   financial year end
3 december 2008   preliminary results and dividend declared
corporate information
company diary 2008 ath resources plc
aardvark house 
sidings court 
doncaster dn4 5nu
t el 44 0 1302 760462 
fax 44 0 1302 760463 
web wwwathcouk
ath resources’ commitment to environmental issues 
is reflected in this annual report which has been printed 
on revive 75 gloss and offset a recycled paper stock 
it contains 75 recovered fibre and 25 virgin fibre
this document was printed by beacon press 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 90 of all  
waste associated with this production has been recycled 
the printer is a carbon neutral company
both the printer and the paper mill are registered to 
iso 14001


Summary:
 page
06
ath resources plc
annual report and accounts 2007 wwwathcouk
chief executive’s statement
increasing
the group delivered a year of 
continued growth reporting record 
sales up 30 to £705 million 
2006 restated £541 million 
review of the period
the group delivered a year of continued 
growth reporting record sales up 30 to 
£705 million 2006 restated £541 million 
with profit before interest tax depreciation 
and goodwill amortisation growing by over 
30 to a record high of £251 million 
2006 restated £192 million operating 
cash flow of £236 million was generated to 
fund the continued expansion of the business
operational review
surface mining
the surface mining business continues to 
grow steadily in line with the group’s strategy 
during the year the group brought two new 
mines at glenmuckloch and laigh glenmuir 
into production and both mines operated 
ahead of expectations in addition 16km 
of overland conveyors linking the sites to the 
rail loading facility at crowbandsgate were 
constructed with the assistance of a £22 million 
freight facilities grant provided by the scottish 
executive the conveyors which can handle 
up to 500 tonnes of coal per hour remove over 
50000 lorry loads of coal from local roads and 
significantly reduce the environmental impact 
of these sites
the grievehill mine finished production 
on existing reserves in november 2007 
an application for a further one million tonne 
extension was approved by the local planning 
authority in november 2007 and ratification 
of this decision by the sepd is awaited 
with mining expected to recommence 
in february 2008  wwwathcouk
ath resources plc
annual report and accounts 2007
page
07
in addition to grievehill a surface mining 
planning application was submitted for rigg 
in dumfries and galloway for 13 million tonnes 
and an extension of 07 million tonnes to the 
glenmuckloch mine was identified during 
2008 the group expects to submit at least 
two further new planning applications for 
21 million tonnes of surface mine reserves 
the surface mining business has an 
estimated 79 million tonnes of proven 
and probable reserves subject to the 
approval of the grievehill extension these 
are sufficient to satisfy production at current 
capacity levels for over three and a half years 
this is approximately double the reserve life 
that the company had when it came to 
the stock market
regeneration
ath regeneration continues to operate 
ahead of expectations at its coal washing 
plant at grimethorpe utilising its unique 
natural medium coal recovery techniques 
coal is being extracted from the coal tip at 
rates and qualities higher than anticipated at 
the time of acquisition in 2006 coal recovery 
at grimethorpe is expected to cease during 
2008 with the site entering a period of restoration
in march 2007 the group acquired 123 acres 
of development land at pinxton in derbyshire 
to facilitate the access and washing of the 
langton coal tip which was part of the 2006 
acquisition a planning application has been 
submitted and the operations are expected 
to commence in 2008
several new tip washing opportunities 
have been identified and negotiations with 
prospective partners where the necessary 
planning permission is in place are ongoing 
on two further projects on agreement of terms 
with these partners 13 million tonnes would 
be added to either the reported proven 
reserves or future order book progress is 
also being made on two further tip washing 
operations expected to commence in the uk 
in the next two years 
in addition a number of projects are being 
actively pursued in australia the directors 
have identified a clear opportunity to build a 
presence in this much larger coal production 
market where the group’s successful coal 
recovery techniques are not presently employed
france
the group continues to pursue its 
development opportunities in france 
the administrative court in toulouse has 
found in the group’s favour on litigation 
brought against the french state after their 
refusal of applications to transfer concessions 
at bertholene in 1997 the directors hope that 
this ruling will have significance in progressing 
the french state’s determination of the group’s 
long outstanding application for a concession 
at commentry
site preparation for a new coal processing plant 
installed at garleffan all coal produced is cleaned 
and sorted into different grades prior to despatch 
to customers
the construction of the conveyor was carefully 
planned to preserve the local environment and 
historic sites the conveyor was placed on a 
specially made bridge to ensure there was no 
damage to historic lime kilns
the group has a dual 
strategy of growing coal 
reserves organicallywhilst 
continuing to identify suitable 
complementary acquisitions
“ ath resources plc
annual report and accounts 2007
page
08 wwwathcouk
the surface mining business 
proudly commissioned its 
overland conveyor this year 
surface mining
the surface mining business proudly commissioned its overland conveyor this year the 16km 
conveyor system quietly and efficiently transports coal from the mines to the company’s rail 
loading facility in east ayrshire through this innovation the majority of the company’s coal 
can reach its power station customers without using the road system – a saving of hundreds 
of thousands of lorry journeys over the next few years – providing a beneficial community and 
environmental solution
with imports of coal at record levels the company plays an important role in producing local 
coal to the high environmental standards necessary in our modern and sophisticated economy
the business plays an active part in the local communities in which it operates and has donated 
over £2 million to local community schemes over the last ten years page
09
ath resources plc
annual report and accounts 2007 wwwathcouk page
10
ath resources plc
annual report and accounts 2007 wwwathcouk
surface mining business
chief executive’s statement
operational review continued
reserves 
the group has a dual strategy of growing 
coal reserves organically from its existing 
portfolio whilst continuing to identify suitable 
complimentary acquisitions estimated 
reserves of recoverable coal proven and 
probable grew by 9 during the year to 
86 million tonnes 2006 79 million tonnes 
despite a year of record production current 
planning activity levels will continue to replace 
mined coal with new reserves securing 
production for the foreseeable future
market
demand for coal in the uk was exceptional 
during 2006 and as expected returned to 
near previous normal levels in 2007 uk coal 
production meets approximately one third of 
demand with the balance being imported 
predominantly from russia south africa 
and colombia 
international coal prices are at an all time high 
largely due to soaring demand from china 
india and smaller developing countries in the 
far east leading to severe logistical difficulties 
particularly at australian ports that are struggling 
to cope with the required throughputs 
the conveyor’s modular design ensures 
the system operates quietly and efficiently 
minimising the environmental impact
the skares road site having been mined since 
1998 has some fully restored sections which 
include a designated wetland area inhabited by 
aquatic birds and animals
t he group brought two new 
mines at glenmuckloch 
and laigh glenmuir 
into production
“
coal reserves at 30 september 2007
  proven probable total 
  tonnes tonnes tonnes 
site  000 000 000
skares road  340 — 340
laigh glenmuir  360 — 360
grievehill  60 1060 1120
glenmuckloch  2510 700 3210
muir dean  — 2275 2275
rigg  — 600 600
t otal surface mining  3270 4635 7905
grimethorpe  220 — 220
langton  — 475 475
t otal regeneration  220 475 695
group reserves  3490 5110 8600
the information in this report relating to exploration results mineral resources 
or mineral reserves is based on 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 the report of the matters based on his information 
in the form and context in which it appears a glossary of terms is available on 
our website – wwwathcouk wwwathcouk
ath resources plc
annual report and accounts 2007
page
11
although there is currently resistance among 
uk electricity generators to pay these higher 
international coal prices to indigenous producers 
the directors expect an outcome that will 
satisfy both producer and generator 
consequently the directors anticipate a 
prolonged period of higher uk coal prices 
in the medium term these higher prices for 
coal are already starting to benefit the group 
as long term supply contracts are renewed 
the group holds supply agreements with 
a number of major uk electricity generators 
these cover the supply of 31 million tonnes 
of coal up to 2011 new contract agreements 
have recently been secured for a further 
13 million tonnes at a price in 200910 
15 above the legacy contract 
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
each operational site has a nominated 
and qualified health and safety manager 
and employees are regularly trained in the 
group’s processes which aim to exceed 
hse best practice 
staff
the board recognises the critical importance 
of its employees in the group’s continued 
growth and success the business has a 
skilled innovative and highly motivated 
workforce approaching a total of 400 and 
the group continues to deliver structured 
and targeted training programmes to ensure 
staff are competent to carry out their duties
the board joins me in thanking all of our 
employees for the efforts they have made 
during the past year of trading
summary
these strong results reflect a busy period 
for the group in growing the reserve base 
and identifying important future opportunities 
particularly for ath regeneration in the uk 
and australia the board looks forward to 
delivering value from these opportunities and 
further strengthening the group’s market position
t om allchurch
chief executive
regeneration business
the former coal tip at barnburgh has been 
restored to a mixed wildlife landscape and has 
the transpennine way running through the site
previously derelict coal tips are restored to various 
uses including the regeneration of land for use in 
commercial developments 
ath regeneration 
continues to operate 
ahead of expectations
“ page
12
ath resources plc
annual report and accounts 2007 wwwathcouk
ath regeneration is preeminent 
in the field of colliery tip reclamation 
restoration and regeneration  page
13
ath resources plc
annual report and accounts 2007 wwwathcouk
ath regeneration
utilising its unique and innovative technology ath regeneration is preeminent in the field 
of colliery tip reclamation restoration and regeneration with end uses such as commercial 
development infrastructure projects and nature conservation the company provides the 
most sustainable as well as the most efficient long term reclamation solutions
the company continues to play a vital role in meeting the challenge of regenerating the 
derelict coalfields landscape from the nation’s industrial past to a rejuvenated environment 
with an emphasis on biodiversity and nature conservation in amongst employment and residential 
uses whilst remaining at the forefront of uk coalfield regeneration the company is now 
seeking to develop opportunities to apply its technology and expertise further afield