Hi there On the back of record production figures for 2012 from Atlantic Coal’s Stockton Colliery in Pennsylvania USA, including a 100% increase in run of mine coal production and a 61% increase in clean coal production, Fox Davies has published a flash note reiterating its BUY rating and 1p target price.

The company is currently trading at 0.29p and was up 23% yesterday on the back of the news.

These figures have pushed Atlantic into the top 5 producers of anthracite in the prime Pennsylvanian coal region. The full note and the press release can be found below. Best Lizzie
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Atlantic Coal
Current Price: £0.003 Target Price: £0.01 Market Cap (M): £17.7 EV (M): £21.9
Event Atlantic Coal has announced its production figures for the fourth quarter of 2012.

A total of 66,989t of run-of-mine coal were mined, which yielded 47,514t of clean anthracite.

Sales totalled 53,677t of coal and 948.16y3 of overburden was removed.

The net result was that 2012 was a record year for Atlantic Coal at its Stockton anthracite mine.

In total, 417,839t of run-of-mine coal were mined and total overburden mined came to 3,728,597 bank cubic yards.

This resulted in clean coal production of 161,529t and anthracite sales of 140,213t.

The average price received for the year was US$149.20/t. Comment This was another good quarter for Atlantic Coal.

Overburden mined, clean coal produced, coal sold and coal prices were all higher than in 2011.

Whilst the stripping ratio, expressed as the ratio of overburden removed for a ton of clean coal produced dropped to 23.1 from 32.5 in 2011, it did not quite drop to the forecast level of 17.7.

This drop in the stripping ratio was due to the moving of the Norfolk and Southern Railway line.

This facilitated access to over one million tonnes of coal and will allow for more efficient working of the remaining reserves of the mine. Atlantic Coal ended 2012 with stocks of 23,371t of clean coal.

This figure was much higher than the 1,484t at the end of 2011, despite the higher sales figures.

During 2012, the sales channels were expanded with the first major export shipment outside of North America, comprising 11,000 tons of anthracite from Fairless Hills Port, Philadelphia to Germany for use in the steel industry.

We are positive about further such sales in the future. There is however one area of concern.

Although sales prices rose year on year from US$142.33/t in 2011 to US$149.20/t in 2012, this masks the fact that prices were significantly higher in the first half of the year.

In the first half they averaged US$134.4/t in the final quarter following US$148.5/t in the third quarter.

We believe that this reflects the fact that coal prices in North America have been weak following the build-up in supplies of natural gas from fracking. Recommendation We retain the BUY recommendation with an unchanged Target Price of £0.01/share. Download the Atlantic Coal Flashnote here
Atlantic Coal plc / Index: AIM / Epic: ATC / Sector: Mining 15 January 2013 Atlantic Coal plc ("Atlantic Coal" or the "Company") 2012 Production Update Record Production from Stockton Anthracite Mine Atlantic Coal plc, the AIM listed anthracite coal mining company operating in Pennsylvania, USA, is pleased to announce a positive production update for the year ended 31 December 2012 from its Stockton Anthracite Mine (“Stockton”), located near Hazleton, Pennsylvania. Key production and sales fundamentals: ● 61% increase in clean coal produced to 161,529 tons (2011: 100,139 tons) - ahead of the Company’s target of 155,000 tons ● 100% increase in run-of-mine (“ROM”) coal produced to 417,839 tons (2011: 208,730 tons) ● 32% increase in coal sales to 140,213 tons over 2011 (2011: 106,403 tons) ● Increase in average sales price realised to US$149.20, (excluding by-product fine coal) (2011: US$142.33) ● Robust levels of stockpile inventory as at 31 December 2012.

ROM: 44,061 tons (2011 - 23,149) and clean coal: 23,370 tons (2011 - 1,484) available for sale during the main winter home heating season (January-March) ● 3,728,597 bank cubic yards (“BCY”) of overburden removed (2011: 3,257,776 BCY) ● Significant improvement to strip ratio of overburden to clean coal to 23.1 (2011: 32.5) Production Summary: Run-of-mine Production (tons) Overburden Removed (BCY) Clean Coal Production (tons) Coal Sales (tons) Average Price (US$)
417,839 3,728,597 161,529 140,213 149.20
Atlantic Coal’s Managing Director Steve Best said: “I am delighted to report these positive production and sales figures from Stockton, which have established Atlantic as one of the top five anthracite producers in Pennsylvania.

We are now beginning to see the benefits of our investment programme to improve the operation of the mine, and I look forward to continued improvement in performance. “With a 61% increase in production and the 32% increase in sales of clean coal over 2011, our revenue also benefited from the 5% increase in the average sales price of coal. “During the year we expanded our sales channels and achieved a significant milestone with the first major export shipment outside of North America, comprising 11,000 tons of anthracite from Fairless Hills Port, Philadelphia to Germany for use in the steel industry.

We are positive about further such sales in the future. “As well as continuing to maximise production at Stockton, we continue to hold options over three larger anthracite sites in Pennsylvania, each with the potential to enlarge our portfolio substantially, and further details of these options are contained in previous announcements.

Further announcements on the progress of these transactions will be made at the appropriate time and we look to the coming year with optimism.” **ENDS** For further information on the Company, visit: www.atlanticcoal.com or contact: Steve Best Atlantic Coal plc Tel: 020 3328 5670 Nick Naylor Allenby Capital Limited Tel: 020 3328 5656 Mark Connelly Allenby Capital Limited Tel: 020 3328 5656 Alex Price Allenby Capital Limited Tel: 020 3328 5656 Elisabeth Cowell St Brides Media & Finance Ltd Tel: 020 7236 1177