ATH Resources up 12% on contract win

ATH Resources, the Scotland-focused coal mining company, says it has "successfully renegotiated" the terms of one of its key contracts.

Without disclosing the other party, ATH says "there will be an increase in the selling price for higher quality coal which will enhance both earnings and cash".

The new agreement will kick in on 2 January 2012.

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ATH, which is listed on the AIM exchange, operates four surface mines in Scotland and supplies coal to four of the UK's main electricity companies.

News of the deal has seen ATH shares climb 12% in morning trading to hit 38p. In the year to date, however, the stock is down 46%.

BS