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Primary Recommendation

ATH Resources - Significant potential for uplift from non-contracted coal

July 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ATH
  • Price:
  • 196p
The curious fact about shares in ATH Resources, which operates four open pit coal mines in Scotland, is that they have been hidebound in a tight trading range for the past few months. The company has an estimated 8.4 million tonnes of coal reserves but the bad news is that one-half has been sold on long-term contracts at a fixed average price of £32 a tonne. It’s easy to say management made an unwise move but hindsight is a wonderful thing.The good news however is that the other half of ATH’s reserves are unhedged and the share price has barely moved in the last year despite the spot price of coal more than doubling to £60 a tonne as it has followed on the tailcoats of the crude price. This has added significantly to the gro ...

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ATH Resources (September 2008)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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