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. 

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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,

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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 United Kingdom-based holding company. The Company is a coal production and processing company. It is focused on the open cast mining of anthracite coal from its 100% owned Stockton Colliery in the Pennsylvania Coal Field, United States. Its Stockton Colliery has proven reserves of circa 4.4 million tons run-of-mine (ROM) coal. The Company’s Pott & Bannon anthracite property has an estimated reserve base of 4.1 million tons of saleable coal. Its subsidiaries include Coal Contractors (1991), Inc., The Pennsylvanian Anthracite Company LLC and Atlantic (Badallan) Limited. more »

Share Price (AIM)
0.145p
Change
0.0  0.0%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
6.8

Edenville Energy plc is engaged in the exploration and development of energy commodities predominantly coal and uranium in Africa. The Company’s segments include Coal, Uranium and Emerald exploration Projects. The Company has three coal deposits of Mkomolo, Namwele and Muze all lie within the Rukwa Coalfield. All three projects are controlled by the Company, Namwele and Mkomolo are adjacent and Muze lies just 12 kilometers to the east. The Company holds Tanzanian prospecting licenses through its subsidiary, Edenville International (Tanzania) Limited. The Company’s subsidiaries include GOA Tanzania Limited, Edenville International (Seychelles) Limited and Edenville International (Tanzania) Limited. more »

Share Price (AIM)
0.05p
Change
0.0  11.1%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
3.0

Ncondezi Energy, formerly Ncondezi Coal Company Ltd, is a United Kingdom-based company. The Company along with its subsidiaries is an exploration and development company with four coal exploration and prospecting licenses in the Tete Province of Mozambique. The Company holds prospecting and exploration licenses over more than 73,160 hectare in the Zambezi Basin. The Ncondezi Project is the its flagship asset and covers a total area of 38,700 hectares in the coal bearing Zambezi Basin in Mozambique. The majority of the exploration work to date has been focused on the Company’s two licenses, 804L and 805L, which comprises the Ncondezi Project, where 122 boreholes or 16,737meters have been drilled and a 1.8 billion tons JORC resource identified. more »

Share Price (AIM)
5.75p
Change
-0.1  -2.1%
P/E (fwd)
n/a
Yield (fwd)
n/a
Mkt Cap (£m)
10.7



  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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