Miner hit by low coal price

Shares in miner ATH Resources plunged yesterday after it warned that low coal prices and rising operating costs would lead to “significant” write downs on its assets.

The firm said coal sold for an average £57 a ton in the year to 30 September, 30 per cent lower than the rate paid at the start of its financial year. Meanwhile the cost of diesel had increased, it said, squeezing its margins as volumes remained flat.

ATH – which is based in Doncaster but operates all four of its pits in Scotland – said it was undertaking a full review of its planned operations, working capital requirement and accounting policies.

“It is expected that this will result in significant non-cash write downs,” it said.