Coal producer ATH issues fresh profit warning

ATH Resources said its full-year profit would fall slightly short of market expectations, as the British coal producer continued to face margin pressure due to higher costs, and it would not reinstate dividend payments in the near term.

The Doncaster, South Yorkshire-based company, which recently terminated takeover talks with potential suitors, has been crippled by higher costs of about £6m this year and does not expect the current level of costs to come down in the near future.

In June, ATH posted a wider first-half loss and said full-year sales volumes would be lower than expected, two months after the company warned on its full-year profit.

The company also raised its provision for future restoration of its sites by about 1.6 million pounds.

Second-half sales volumes were 960,000 tonnes of coal, up from 706,000 tonnes in the first half. The company said average selling prices for the year rose by about 15 percent to over 50 pounds per tonne.