30th Nov 2007 16:15
Atlantic Coal PLC30 November 2007 Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining 30th November 2007 Atlantic Coal plc ('Atlantic Coal' or the 'Company') Stockton Coal Group's Final Results for the year ended 31 August 2007 Overview • Improved performance of US operating subsidiary prior to acquisition by Atlantic Coal • Extensive investment programme in infrastructure has lead to turnaround in figures • 90% year on year increase in revenue to US$4,450,695 • 199% revenue increase in second half of the year • Average sales prices remained at or above forecasted $119 per tonne - price expectations remain strong as the Company enters the winter heating season. • On target to raise production towards 400,000 run-of-mine ("ROM") tonnes of coal per annum Atlantic Coal plc, the AIM listed open cast coal production and processingcompany, announces the final results for the year ended 31st August 2007 (the "Year") for its US operating subsidiary, the Stockton Coal Group ("SCG") whichthe Company acquired on 19th November 2007. SCG's assets include the Stockton Colliery which comprises of the producingStockton Mine and an anthracitic washing plant. The mine is an establishedunion free surface mine encompassing circa 900 land acres in the Hazle CreekValley, Pennsylvania and has an estimated production potential of over 400,000run-of-mine ("ROM") tonnes of coal per annum and a ten year mine life fromexisting proven reserves. Over the last twelve months there has been significant investment ininfrastructure including an anthracite preparation plant. Resumption of miningoperations commenced in November 2006 followed by the start-up of the newanthracite preparation plant in February 2007. Sales of a variety of cleananthracite products began in February 2007 which transformed the revenue modelof the operation. Accordingly there was a marked improvement in the financialperformance during the second half of the Year. Trading has continued to improve with more consistent performance from theanthracite preparation plant. The shipment of high value coal products todomestic heating customers typically begins towards the end of the third quarterof the year, which coincides with the start of the winter season. Average salesprices have remained at or slightly above the forecasted levels of $119 pertonne. Importantly, price expectations remain strong as the Company enters thewinter heating season. For the year ended 31st August 2007, SCG made sales of US$4,450,695 a 90%increase from the US$2,348,358 reported for the previous year, and a 199%increase over the sales of US$1,115,590 reported in the first half of the Year. Operating Loss for the Year was (US$1,393,096) and operating profit of US$52,861in the second half of the year was a considerable improvement on the operatingloss of (US$1,445,957) reported for the previous six months. Atlantic Coal Managing Director Stephen Best said, "These improved numbers andoperating profit shown in the second half of the year reflect the dramaticturnaround in operational performance of SCG following the significantinvestment programme. The mine, which produces, processes and sells high qualityanthracitic coal, continues to improve its operational performance. We believethat production levels can increase to over 400,000 tonnes per annum. I amhighly confident in the potential of the Stockton Coal Group and with theincreasing prices being offered for our product, I believe Atlantic Coal has avery bright future." FINANCIAL INFORMATION ON STOCKTON COAL GROUP The following financial information regarding the results for the twelve monthsto 31 August 2007 and 2006 and six months to 28 February 2007 for Stockton CoalGroup was provided by the directors of the Group and is unaudited. The financialinformation for the year to 31 August 2006 is audited. Consolidated income statement Year ended 6 months to Year ended 31 31 August 28 February August 2006 2007 2007 $ $ $ Revenue 4,450,695 1,115,590 2,348,358 Cost of goods sold (4,488,292) (1,776,459) (4,429,129) Gross loss (37,596) (660,869) (2,080,771) Selling, general and administrative expenses (871,163) (461,025) (880,859)Accretion, restoration costs (484,336) (324,063) (287,648)Provision for settlement of legal case - - (2,500,000) Loss from operations (1,393,096) (1,445,957) (5,749,278) Other income 65,582 37,659 22,820Interest costs (648,363) (248,086) (412,532)Exchange loss (352,330) (235,770) (151,798) Loss before income tax (2,328,207) (1,892,154) (6,290,788) Income tax expense - - - Loss for the period (2,328,207) (1,892,154) (6,290,788) Combined balance sheet As at As at As at 31 August 28 February 31 August 2007 2007 2006 $ $ $Assets Non current assetsProperty, plant and equipment 6,492,461 7,050,792 5,925,443Land, coal rights and restoration 7,803,733 7,942,396 7,988,971 14,296,194 14,993,188 13,914,414Current assetsInventories 966,776 652,580 173,808Trade and other receivables 2,376,134 753,466 483,447Other assets 640,285 623,079 597,368Cash and cash equivalents 133,087 99,937 106,035 4,116,282 2,129,062 1,360,658 Total assets 18,412,476 17,122,250 15,275,072 Equity liabilities Capital and reservesShare capital 1 1 1Capital in excess of par 3,674,078 2,674,078 2,674,078Other reserves (8,263,041) (7,826,988) (5,934,834)Total equity (4,588,962) (5,152,909) (3,260,755) Non current liabilitiesBorrowings 4,001,902 2,523,327 2,031,016Accrued restoration costs 5,971,211 5,768,894 5,635,680Provisions - 2,500,000 2,500,000 9,973,113 10,792,221 10,166,696Current liabilitiesTrade and other payables 3,536,937 3,452,085 2,561,235Accrued restoration costs 428,000 428,000 428,000Borrowings 9,063,388 7,602,853 5,379,896 13,028,325 11,482,938 8,369,131 Total liabilities 23,001,438 22,275,159 18,535,827 Total equity and liabilities 18,412,476 17,122,250 15,275,072 Combined statement of changes in equity Share Capital in excess Accumulated loss Partners' capital of par equity Total $ $ $ $ $ As at 1 September 2006 1 2,674,078 (7,702,429) 1,767,595 (3,260,755) Equity Contribution 1,000,000 - - 1,000,000 Loss for the period - - (3,655,700) 1,327,493 (2,328,206) As at 31 August 2007 1 3,674,078 (11,358,129) 3,095,088 (4,588,962) Share Capital in excess Accumulated loss Partners' capital of par equity Total $ $ $ $ $ As at 1 September 2006 1 2,674,078 (7,702,429) 1,767,595 (3,260,755) Loss for the period - - (2,237,794) 345,640 (1,892,154) As at 28 February 2007 1 2,674,078 (9,940,223) 2,113,235 (5,152,909) Share Capital in excess Accumulated loss Partners' capital of par equity Total $ $ $ $ $ As at 1 September 2005 1 2,674,078 (1,461,968) 1,817,922 3,030,033 Loss for the period - - (3,740,461) (50,327) (3,790,788) As at 31 August 2007 1 3,674,078 (5,202,429) 1,767,595 (760,755) Combined cash flow statement Year ended 6 months ended 28 Year ended 31 August 31 August February 2006 2007 2007 $ $ $Cash flows from operating activitiesLoss for the period (1,393,096) (1,445,957) (5,749,278)Adjustments for:Depreciation 1,193,693 582,971 1,007,639Depletion 185,237 46,575 150,412Provision for settlement of legal case - - 2,500,000Gain on sale of asset 5,853 - - Changes in working capital:-Inventories (792,968) (478,772) 184,185-Trade and other receivables (892,686) (270,020) (131,696)-Trade and other payables 975,702 261,149 962,053-Accrued restoration costs 335,531 561,215 194,058 Cash used in operations (382,734) (742,839) (882,627) Cash flows from investing activitiesPurchase of property, plant and equipment (1,766,564) (1,708,319) (2,872,106)Purchase of restricted deposits (42,917) (25,711) (51,372) Net cash used in investing activities (1,809,481) (1,734,030) (2,923,478) Cash flows from financing activitiesProceeds from borrowings 6,280,074 2,968,666 4,510,597Repayment of borrowings (978,026) (287,468) (424,531)Other income 65,582 37,659 22,820Interest costs (648,363) (248,086) (412,532) Net cash generated from financing activities (5,302,048) 2,470,771 3,696,354 Net increase /(decrease) in cash and cash 27,052 (6,098) (109,751)equivalents Cash and cash equivalents at beginning of the 106,035 106,035 215,786period Cash and cash equivalents 133,087 99,937 106,035 Notes to the interim financial information 1. Accounting policies The interim results for the six months ended 28 February 2007, and the finalresults for the year ended 31 August 2007 are unaudited and do not constituteaccounts within the meaning of section 240 of the Companies Act 1985. Theresults have been drawn up using accounting policies and presentation consistentwith those that will be applied in the audited accounts for its next statutoryfinancial period end. *****ENDS***** For further information, visit www.atlanticcoal.com or contact: Toby Howell Atlantic Coal plc Tel: 020 7182 1747Rod Venables/Cecil Jordaan HB Corporate Tel: 020 7510 8600Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477Victoria Thomas St Brides Media & Finance Ltd Tel: 020 7242 4477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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