Falling coal prices dent ATH Resources

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SHARES in coal miner ATH Resources plunged 25 per cent in early trading after the firm – which has all four of its sites in Scotland – warned falling coal prices, rising diesel costs and the milder winter mean its full-year financial performance will miss City expectations.

Diesel prices have risen by 10 per cent since the start of the year, while international coal prices have dropped by more than 20 per cent, the Doncaster-based company warned.

ATH Resources told shareholders about the issues at last month’s annual general meeting, but today added that slow progress at its Muir Dean site was also hampering the group.

Matthew McDonald, an analyst at house broker Seymour Pierce, now expects ATH to make a full-year loss of £6.5 million, compared with previous predictions for it to break-even.