Proactive Investors - Run By Investors For Investors

Atlantic Coal boosts sales and profits from American mine

Atlantic Coal moves strongly into profits after the impact of the refurbishment of the Stockton mine begins to show through
Atlantic Coal boosts sales and profits from American mine
New haul trucks have helped drive significant operating improvements


Shares in Atlantic Coal (LON:ATC) more than doubled on Thursday after revealing what Adam Wilson, the company’s chairman, described as a “remarkable” turnaround.

A cursory look at the AIM quoted coal miners results quickly shows why Wilson didn’t mince words in his commentary.

In the six months to June 30, Atlantic Coal delivered sales of US$10.4mln, up 9.7% on the corresponding period a year ago, and an increase in profit from operations of just over US$4.4mln as last year’s small loss turned into a profit of US$4.24mln.

A dramatic 29.9% cut in costs was surely helpful in delivering those numbers, but the key figure was the increase in total coal sales from 75,761 tons last year to nearly 106,000 tons this time round.

Given that market conditions have been tough and that there was some severe adverse weather at the company’s Stockton mine during the period, Wilson’s enthusiasm for these numbers is understandable.

At heart, the improvement was due, he said, to the company’s decision to modernise Stockton to exploit high value anthracite reserves.

That modernisation included the acquisition of new haul trucks and excavators, and the refurbishment and expansion of the wash plant.

After the end of the period, the company also commissioned a new rail loading facility.

All of which bodes well for Atlantic's future ambitions.

“We have long stated that our ambition is to grow both our reserve base of anthracite and our production capacity and have been actively looking for further high quality and economically viable anthracite coal properties,” said Wilson.

On AIM, Atlantic Coal shares gained 0.11p or 143% to trade at 0.19p. At this price the company is valued in the market at around £9mln.




View full ATC profile View Profile

Atlantic Carbon Group Timeline

January 12 2016

Related Articles

Picture of coal
May 10 2017
Pakistan has its problems but there is an improving degree of political stability,
Aspire Mining: Access latest PPT from Proactive's CEO Sessions
April 13 2017
David Paull talked world-class deposit and infrastructure options with investors.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use