When the BlackRock UK Smaller Companies Fund started selling off its stake in AIM listed Atlantic Coal (LON:ATC) last summer, the company’s managing director Stephen Best was quick to respond. A meeting between the two sides led to a u-turn by the fund manager, which went on to double its stake in the US focused coal miner. For Best, the renewed vote of confidence was the prelude to a £12m fundraising that looks set to fund a shopping list far beyond the equipment he needs to expand the Atlantic’s current operations. For the straight-talking mining engineer, major expansion is on the agenda.
Atlantic joined AIM in October 2007 through the reverse takeover of cash shell Summit Resources. Its coal mining peers on the market range from Canadian giant Western Canadian Coal (LON:WTN) to Global Coal Management (LON:GCM) , UK miner Ath Resources (LON:ATH) and Australian focused companies Caledon Resources (LON:CDN) and Altona Resources (LON:ANR) . At the time of the listing, Best was looking to fund development work at the company’s Stockton Colliery, an opencast anthracite mining and processing operation in the Pennsylvania Coal Field. Since then, his team have been working to ramp up production and cut costs on the project, which currently boasts proven reserves of 4.2 million tons of coal, or approximately 2.1 million tons of high quality, high carbon, washed anthracite.
At the same time as driving Stockton towards profitability, Best has been keen to explore ways of expanding Atlantic’s ground holding. Earlier this year, the company aborted a move to buy US coal company Maple Carpenter Creek and a previous attempt on fellow AIM company Strategic Natural Resources (LON:SNRP) also fell through. However, with cash available from latest £12m fundraising, Best is this year prioritising his plans for expansion and is urging Atlantic shareholders to support the Placing at the company’s General Meeting next month.
Steve, you have a long history in the coal mining industry so how did that lead to the Pennsylvania Coal Field?
I started off as a junior engineer when I was 18 and…
This has been tipped in the shares mag as a solid share and a buy at 0.8p ,fundamentals look good at this price and worth a long term buy.imo
