Secondary Recommendation

ATH Resources - UK coal miner benefiting from rising energy prices

March 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.

With fears that the UKâ€™s once plentiful supply of North Sea oil& gas is now running out, attention is turning towards thecoal industry, which although much slimmed down since the long-runningminers strike in the mid 80s, is nevertheless leaner and fitter. Onerelatively small but fast-growing player in this space is AIM-listedATH Resources (FT sector: AIM, Mining), which in less than a decade hasbeen transformed from start-up to a company producing more than 2mtonnes of coal a year and generating a turnover of Â£70m, from which itmade a pretax profit of nearly Â£8m. Chief executive Tom Allchurch, a graduate mining engineer who hasspent his entire career in the development and operation of surfacemines, explained to TMI ...

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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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