ATLANTIC COAL PLC - Set for Growth in 2012

Thursday, Apr 26 2012 by
2

http://www.atlanticcoal.com/

Atlantic Coal plc, headquartered in the UK, is a coal production and processing company, focussed predominantly on open cast mining and the processing of high-grade, low emission coal.  Its primary asset is the Stockton Colliery, a union free opencast anthracite mining and processing operation in the Pennsylvania Coal Field, US.  Atlantic Coal is traded on the London Stock Exchange’s Alternative Investment Market (AIM: ATC) and the OTCQX Market (OTCQX: ATCLY).

 

Latest Developments and News:

The company recently announced completion of a railroad diversion into its Stockton colliery in Pennsylvania,this diversion  now gives the group access to one million tonnes of previously unworkable reserves.This means there is now the potential to increase annual production of clean coal to 160,000 tons according to an independent report compiled by Mine Engineers Inc.In calculating this production rate the Mine Engineers Inc assessed both the mine's current operational capacity as well as the positive impact of the new rail line diversion.

The company also confirmed they have acquired options over two prospective anthracite projects and are currently conducting due diligence on those assets. Further updates on these are expected in the near future. It has estimated that there is an additional 10Mt of resource within a 10 mile radius of Stockton and 300Mt within a 30 mile radius.

Further to this was announced a new Liebherr 9250 19-yard bucket hydraulic excavator on order and set to be operational during H2 2012,clear signs that further growth is planned.

To put some numbers to these latest figures and significance to the balance sheet, an annual production of  160.000 tonnes at an average price per tonne of  $160 would equate to revenues of $25m per year. Atlantic are certainly on a path of fundamental growth and look like a solid play in the junior resource sector at the moment where its trading at little over its cash value . And with further aquisitions under option currently the company are not looking to stand still . A healthy move into profits is looking likely in 2012 and should see quite a dramatic re-rating of the shareprice.

 

Stockton Colliery:


The Stockton Colliery comprises a producing surface coal mine and adjacent anthracite preparation plant encompassing an area of approximately 900ha located in Hazle Creek in North-East Pennsylvania, a region renowned for anthracite. 

The site, mined at various times from the 1900s, has an abundance of high quality anthracite in close proximity to the surface, making it economical to recover.  The mine has current Proven Reserves of 3.2 million tons run-of-mine ('ROM') coal, which equates to approximately 1.7 million tons of high quality, high carbon, washed anthracite, giving Stockton a forecasted 8-year mine life.   The Company believes that there is huge potential to increase the resource base, either by exploring the current deposit to depth or by broadening the range and targeting areas in the vicinity. 

Stockton has good facilities and infrastructure in place including a anthracite preparation plant capable of washing 300,000 tons of coal per annum as well as a 21-yard bucket hydraulic excavator.  Furthermore, it has good transport links, with state roads and the Norfolk and Southern rail line providing nationwide access. 

Mining operations are conducted by Stockton’s union-free staff and operated using its own existing plant and equipment.  The current mine operations are being conducted under a valid mining permit issued by Pennsylvania’s Department of Environmental Protection.  The Stockton Colliery trades through Atlantic Coal’s 100% subsidiary Coal Contractors (1991) Inc.

There is strong demand for Stockton’s coal output from the domestic home heating market and a non-seasonal industrial customer base that uses its output for filtration and metallurgical treatments.  The anthracite coal that Stockton yields is ranked as a higher energy fuel (containing over 86% carbon) than other more commonly used coals, like bituminous and lignite, and for this reason a premium can be attached to the washed output from the mine. 

 


Recent News Link:

http://www.atlanticcoal.com/News.html

Fox Davies Flash Note:

http://www.fox-davies.com/media/26404/atlanticcoalflashnote180412.pdf

 

 

                                                 

 

 

 


Filed Under: Mining, Resources, Coal,

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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Atlantic Coal Plc is a United Kingdom-based holding company. The Company and its subsidiaries are engaged in the development and operation of the Stockton Colliery which comprises the Stockton Mine and an anthracite washing plant in Pennsylvania, in the United States. The Company is an anthracite mining and processing company. The Company's Stockton Mine is operated by its 100% owned subsidiary Coal Contractors (1991) Inc., and is located approximately one mile from Hazleton, Luzerne County, Pennsylvania. The Company also has mining interest in the Pott & Bannon anthracite mining property located in New Castle Township, Schuylkill County, approximately 25 miles from the Stockton Mine. The Company also owns Gowen Mine. more »

Share Price (AIM)
0.135p
Change
-10.0%
Mkt Cap (£m)
6.3
P/E (fwd)
n/a
Yield (fwd)
n/a

Edenville Energy plc is a United Kingdom-based company engaged in the exploration and development of energy commodities, primarily coal and uranium in Africa. The Company's two segments include Coal and Uranium exploration Projects. The Company has three coal deposits of Mkomolo, Namwele and Muze within the Rukwa Coalfields. The Company has a 90% interest in these deposits. Mkomolot is situated approximately 25 kilometers northwest of Sumbawanga located in western Tanzania, the capital of the Rukwa Region and commercial center. Namwele is adjacent to the Mkomolo and situated approximately four kilometers to the south east of the Mkomolo deposit. Muze is located approximately 10 kilometers east of the Mkomolo and Namwele deposits. The Company's other projects include Matiri North and South, and Lake Nyasa. more »

Share Price (AIM)
0.065p
Change
13.0%
Mkt Cap (£m)
5.5
P/E (fwd)
n/a
Yield (fwd)
n/a

Ncondezi Energy Limited is a power development company. The Company operates a thermal coal mine and power plant project, the Ncondezi Project, which is located near Tete in northern Mozambique. The principal activity of the Company is the development of an integrated 300 megawatt (MW) power plant and mine to produce and supply electricity to the Mozambican domestic market. The Company operates through three segments, including mine project, which is involved in the exploration for coal and development of coal mine within the Company's license areas in Mozambique; power project, which relates to the development of a 300MW integrated power plant in Mozambique, and corporate, which includes head office operations and the provision of services to companies. more »

Share Price (AIM)
1.88p
Change
 
Mkt Cap (£m)
4.4
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is Atlantic Coal fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

Marc Benjamin 28th Apr '12 1 of 1

Some further research reading for those interested in Clean Coal technology, incuding cost / benefit analysis carried out by the American Coal Council over a number of years.

 

http://www.americancoalcouncil.org/associations/10586/files/Benefits_of_Investment_in_Clean_Coal_Technology_Bezdek_MSI.pdf

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