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EPIC: APF
Market: AIM:APF
TSX:APY
52-week High/Low: 145.50p / 101.00p
Sector: General Mining
Market Cap: 253.72M
Anglo Pacific Group plc

Anglo Pacific Group plc

Anglo Pacific is the only company listed on the London Stock Exchange focused on royalties connected with the mining of natural resources. It is an objective of the Company to pay a substantial portion of its royalty revenues to shareholders as dividends.

The Group aims to develop as a leading international diversified royalty company with a portfolio centred on base metals and bulk materials. Anglo Pacific is the only listed company on the London Stock Exchange focused on royalties connected with the mining of natural resources. Its strategy is to build a diversified portfolio of royalties, focusing on accelerating income growth through acquiring royalties in cash or near-term cash producing assets. It is an objective of the Company to pay a substantial portion of these royalties to shareholders as dividends.

Article September 2015: Anglo Pacific has 'turned the corner,' CEO says

Article November 2015: With lending tight, miners look to swap cash for royalties

Mines and Money in London 2015 

Anglo Pacific Group plc

www.anglopacificgroup.com

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Julian Treger, chief executive of Anglo Pacific Group plc (LON:APF), pitches the company to investors. For more information visit www.anglopacificgroup.com

Big picture - Why invest in Anglo Pacific Group plc


Anglo Pacific Group plc Snapshot

Julian Treger, Chief Executive Officer, Anglo Pacific Group PLC (APY), joined Richard Rohan, VP, Global Sales, Equity Capital Markets, Toronto Stock Exchange, to open the market to celebrate 50 years as an organization. Anglo Pacific Group PLC is a global natural resources royalty and streaming company with a portfolio centred on base metals and bulk materials. Anglo Pacific Group PLC commenced trading on Toronto Stock Exchange on July 9, 2010.

 

A GLOBAL NATURAL RESOURCES ROYALTY COMPANY.

Anglo Pacific’s strategy is to expand its royalty portfolio in order to increase royalty related income, to diversify its portfolio and ensure that it will be able to replace revenues from its current royalty properties as they reach the end of their mine lives. This will be achieved through both direct acquisition of primary and secondary royalties and investment in projects at the development and production stage. It is a continuing policy of Anglo Pacific to pay a substantial proportion of these royalty revenues to shareholders as dividends.

Anglo Pacific is mainly focused on producing or near-term producing long-life assets in established natural resources jurisdictions.

The Group’s directors and management have both corporate finance and real-world mining experience and take an active approach to each royalty investment to achieve better returns at reduced risk.

 

THE GROUP’S STRATEGIC OBJECTIVES

AIM - To develop as a leading international diversified royalty company with a portfolio centred on income producing base metals and bulk materials royalties and streams.

STRATEGY - Achieving our aim through acquisition of both primary and secondary royalties together with metal streams.

CRITERIA - Achieving strategy through acquisitions which satisfy these criteria ·

  • Established natural resources jurisdictions
  • Long-life assets
  • High-quality and low-cost assets
  • Near-term producing assets
  • Production and exploration upside potential
  • Strong operational management teams
  • Diversification of royalty portfolio

GOAL - Executing the strategy will result in additional cash producing royalties, a substantial proportion of whose cash flows will be paid to shareholders as dividends.

 

 

 

Producing Royalties

What we own Kestrel is an underground coal mine located in the Bowen Basin, Queensland, Australia. It is operated by Rio Tinto Limited (‘Rio Tinto’). The Group owns 50% of certain sub-stratum lands which, under Queensland law, entitle it to coal royalty receipts from the Kestrel mine.

The royalty rate to which the Group is presently entitled is prescribed by the Queensland Mineral Resources Regulations. These regulations currently stipulate that the basis of calculation is a three-tiered fixed percentage of the invoiced value of the coal as follows: 7% of value up to and including A$100; 12.5% of the value over A$100 and up to and including A$150; and 15% thereafter.

Performance The Group received royalty income of £13.1m from Kestrel during 2016, compared to £3.6m in 2015. The significant increase in royalty income in 2016 was due primarily to increased Kestrel production within the Group’s private royalty land and the weakening of the pound during 2016. In accordance with Anglo Pacific’s Kestrel information rights, the Group estimates that 80-90% of mining at Kestrel will be within its royalty lands during 2017 (2016: 67%), increasing to over 90% from the end of 2017.

Valuation The Kestrel royalty was independently valued at A$200m (£116.9m) and accounts for 46% of the Group’s total assets as at December 31, 2016 (2015: A$167.7m; £82.6m; 42%). The value of the land is calculated by reference to the discounted expected royalty income from mining activity, using a discount rate of 7%.The independent valuation has been undertaken by a Competent Person in accordance with the Valmin code (AusIMM, 2005), which provides guidelines for the preparation of independent expert valuation reports. The Group monitors the accuracy of this valuation by comparing the actual cash received to that forecasted.

The increase in fair value is largely due to the recovery in coking coal consensus prices, combined with the translation benefit following the weakening of the pound during H2 16.

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What we own In March 2015, the Group acquired a royalty interest in the Narrabri coal project, a major thermal coal and Pulverised Coal Injection (‘PCI’) coal mine located in New South Wales, Australia operated by Australian Stock Exchange listed Whitehaven Coal Limited (‘Whitehaven’). The Narrabri Royalty entitles the holder to royalty payments equal to 1% of gross revenue on all coal produced from within the area covered by the Narrabri Royalty. Whitehaven has a consistent historical production track record at Narrabri, as well as established operational expertise in developing and operating coal mines. The Narrabri mine has scope to materially increase production over the short and medium term, with an estimated 22 years of mine life remaining at Narrabri North, and the potential to extend production in the future through the development of Narrabri South.

Performance The Group received royalty income of £4.2m during 2016 from Narrabri compared to £3.2m the previous year. Although the thermal coal price had a mixed year, production at Narrabri continued its impressive ramp up. In their F Y 2016 (to June 30, 2016), Whitehaven announced that Narrabri produced 6.8mt run-of-mine (‘ROM’), the top end of their guidance. They achieved 7.3mt of product, ahead of their previous guidance of 7.0-7.2mt. One of their key stated priorities at the time was to get the 400m wide longwall panel at Narrabri operational during F Y 17. In their 2016 annual report, Whitehaven issued guidance of 8.0-8.3mt ROM for Narrabri, a significant increase on the 6.8mt achieved in FY 2016. On January 9, 2017 Whitehaven announced a revision to their guidance for F Y 17 to 7.5-7.8mt. This was due to adverse geotechnical conditions at certain areas within the longwall panel. Despite this, and a period of wet weather, they remain on track to achieve their F Y 17 saleable production guidance. The Group receives its royalty based on sales and not production Whitehaven remains on track to bring in the 400m wide longwall panel in the first half of 2017, and the surface infrastructure and electrical upgrades were completed on schedule.

On February 5, 2016, Whitehaven announced it intends to extend the Narrabri North longwall panels in the Narrabri South area, and that work to integrate Narrabri South into existing operations at Narrabri North had commenced. Drilling to convert Narrabri South Mineral Resources to Mineral Reserves is scheduled to occur during Whitehaven’s fiscal year ending June 30, 2017.

Valuation The Narrabri royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairment and does not benefit from any valuation uplift resulting from the positive developments in the year, as described above. Its carrying value does, however, reflect the impact of translation from Australian Dollars to pounds which, at the year-end, resulted in favourable uplift. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

What we own In February 2017, the Group entered into an agreement to receive the portion of the toll milling proceeds from the McClean Lake Mill attributable to Toronto Stock Exchange listed Denison Mines Inc. (“Denison”) together with an associated conditional streaming agreement. The McClean Lake Mill, operated by a subsidiary of AREVA SA, receives all of the output from the Cigar Lake uranium (“U3O8”) mine, operated by Cameco Corporation. Denison is entitled to 22.5% of the proceeds from the mill, which earns toll revenue on each pound of U3O8 produced from processing Cigar Lake ore.The Denison Financing is structured as a C$40.8 million 13-year loan maturing in 2030 with an interest rate of 10% per annum payable to Anglo Pacific (the “Denison Loan”) and a right to receive Denison’s portion of the toll milling proceeds from the McClean Lake Mill after the first 215 Mlbs of throughput for an upfront payment of C$2.7 million (the “Denison Stream”. The Denison Loan is structured so as to entitle Anglo Pacific to mandatory prepayments of the loan principal when toll revenues exceed scheduled interest payments, payable quarterly in cash.

THE MCCLEAN LAKE MILL

The McClean Lake Mill is located in the Athabasca Basin in northern Saskatchewan, Canada. The McClean Lake Mill began producing uranium concentrate from ore mined at the Cigar Lake mine in October 2014. The McClean Lake Mill is a joint-venture between a subsidiary of AREVA SA (70%), a subsidiary of Denison Mines Corp. (22.5%) and a subsidiary of OURD Ltd. (7.5%), and is operated by a subsidiary of AREVA SA. The McClean Lake Mill has been designed and constructed to process high grade uranium ores in a safe and environmentally responsible manner. To accommodate the future 18.0 Mlbs U3O8 per year production, the McClean Lake Mill has obtained authorisation from the Canadian Nuclear Safety Commission (“CNSC”) to increase its annual production capacity of U3O8 from 13 Mlbs to 24 Mlbs per year which will lead to a progressive ramp-up of the mill in line with the Cigar Lake mine’s ramp-up to 18 Mlbs per year. Cnstruction of the expansion would be fully funded by the Cigar Lake Joint Venture.

THE CIGAR LAKE MINE

The Cigar Lake mine is a world-class mine located in the Athabasca Basin, a leading uranium district in Saskatchewan, Canada. The minesite is located near Waterbury Lake, approximately 660 km north of Saskatoon. The McClean Lake Mill is located 69km northeast of the minesite by road. The Cigar Lake mine is accessible by an all-weather road and by air. Site activities occur year round, including supply deliveries. The mine is operated on behalf of the Cigar Lake Joint Venture by Cameco. The Cigar Lake Joint Venture parties are Cameco (50.025% per cent.), a subsidiary of AREVA SA (37.1 per cent.), a subsidiary of Idemitsu Kosan Co Ltd. (7.875%) and a subsidiary of Tokyo Electric Power Company Holdings Inc. (5%).

Performance Anglo Pacific is entitled to payment in respect of toll milling revenues as and from July 1, 2016 and, this will be treated as prepayment of the principal amount outstanding under the Denison Loan. Anglo Pacific expects to receive the prepayment during Q1 2017.

Valuation The Loan will be accounted for as a receivable on the Balance Sheet and carried at amortised cost, with the interest portion recognized in the Income Statement and the remaining amount received offsetting the outstanding principal. The Stream will be treated as an IAS 39 debt financial asset and will be carried at fair value at each reporting date.

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What we own Anglo Pacific has a 2% NSR royalty on all mineral products sold from the area of the Maracás Menchen project to which the royalty interest relates. The project is located 250km south-west of the city of Salvador, the capital of Bahia State, Brazil and is 99.97% owned and operated by TSX Venture Exchange listed Largo Resources Limited (‘Largo’).

Performance The Group received royalty income of £0.8m in 2016, an increase from the £0.6m it received in 2015, which was the first year of royalty revenue. Production ramp up was slower than envisaged at the time the Group acquired the royalty, not assisted by the pronounced decrease in the vanadium price during 2015 which persisted into the first half of 2016 and which will have impacted on the operator’s cash flow profile.

Despite the weak vanadium price, and following a series of financings announced by Largo, production began to increase significantly from H2 15 onwards. Largo announced production of 600t of Vanadium in July 2015, increasing to 730t in April 2016, achieving a run rate of ~800t thereafter with a record month of 828t in December 2016.
This steady ramp up in production coincided with a recovery in the vanadium price in H2 16 which increased from $2.38/lb at the start of 2016 to reach $5.02/lb at December 31, 2016, and the Group’s royalty income began to increase towards the end of 2016 accordingly Under the terms of the royalty sale agreement, the Group is required to pay a further US$1.5m once production reaches an annualised rate over a quarter of 9,500t. Given the production achieved in H2 16 by Largo, the Directors consider it probable that this production milestone will be achieved possibly in the next 18 to 24 months and as such the Group has recognised both an asset and corresponding liability for this additional payment.

Valuation The Maracás Menchen royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of mine.

 

What we own The Group has a 1% life of mine NSR royalty on the Four Mile uranium mine in South Australia. Four Mile is operated by Quasar Resources Pty Ltd (‘Quasar’).

Performance Total royalty income was £0.3m with maiden royalty receipts of £0.1m from Four Mile in February 2016, following the commencement of sales by Quasar. Although royalties to date have not been to the level the Group was expecting, due to lower sales volumes and higher deductions – which the Group are currently disputing – the key benefit of this royalty should accrue when Quasar enters into supply contracts which achieve higher pricing levels.

Valuation The Four Mile royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments.

Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

What we own Anglo Pacific has a 2.5% life of mine NSR royalty on the El Valle-Boinàs/Carlés (‘EVBC’) gold, copper and silver mine owned by TSX-listed Orvana Minerals Corp (‘Orvana’). EVBC is located in the Rio Narcea Gold Belt of northern Spain and was previously mined from 1997 to 2006 by Rio Narcea Gold Mines. The royalty rate increases to 3% when the gold price is over US$1,100 per ounce.

Performance Orvana acknowledged that EVBC produced a disappointing financial result in Q4 2016 (their Q1 FY 17). This resulted in overall production for the calendar year 2016 being some 20% lower than 2015.

Orvana is determined to extract operational efficiencies at the mine by targeting higher grade oxide zones along with targeting a ramp up from the recommenced Carlés operation. They also intend to revisit the mine plan to transition away from zones with poor ground conditions which impacted on production in 2016.

The strategy seems to be succeeding, as EVBC reached nameplate capacity of 2,000t per day in December 2016.

Valuation The EVBC royalty is classified as an available-for-sale equity financial asset within royalty financial instruments on the balance sheet. As such, the asset is carried at fair value by reference to the discounted expected future cash flows over the life of the mine.ValuationThe EVBC royalty is classified as an available-for-sale equity financial asset within the royalty financial instruments on the balance sheet. As such, the asset is carried at fair value by reference to the discounted expected future cash flows over the life of the mine.

 

 

DEVELOPMENT ROYALTIES

 

What we own The Group has a 1% life of mine NSR royalty on the Salamanca uranium project located in Spain and operated by ASX-listed Berkeley Energia Limited (‘Berkeley’). The project consists of four main deposits (Retortillo, Alameda, Zona 7 and Gambuta) and is located in Salamanca Province, Spain, approximately 250km west of Madrid.

Performance Berkeley had a very eventful and successful 2016 which saw them build on the progress they made in 2015 by raising finance during the year to fund construction.

On January 31, 2017, Berkeley announced its fourth quarter update in which it reported an oversubscribed $30m equity raise, signing of an off-take agreement and continued to develop the infrastructure required to construct the mine. They appear on track to complete the construction of the mine during 2017 which, if completed, should bring forward the start date for the commencement of our royalty. In addition to having a royalty over the Salamanca project, Anglo Pacific is also a large shareholder in the company and currently holds just over 9%.
The value of this investment increased considerably over the course of the year and the Group took the opportunity to realise a modest amount of cash from this position. We were pleased to see the successful fundraisings undertaken in 2016 which clearly demonstrates considerable support for the project and has increased liquidity in the stock.

We were also pleased to see the announcement on June 8, 2016 that Berkeley had entered into a financing agreement with Resource Capital Funds (RCF), which included a further 0.375% royalty on the project for US$5m. This would imply a fair value of $13.3m for the Group’s 1% royalty. Anglo Pacific paid A$4.1m for the royalty a number of years ago, which implies that the value of the Group’s royalty, which is not reflected on our balance sheet, is considerably higher.

Valuation The Salamanca royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

 

What we own The Group retained a royalty on the Groundhog anthracite project located in north-west British Columbia, Canada, following its disposal of the related mining licenses in 2014 to the project’s operator, ASX-listed, Atrum Coal NL (‘Atrum’). The royalty entitles the Group to the higher of 1% of gross revenue on a mine gate basis or US$1.00/t from coal sales derived from Panorama licences. Following a series of discussions during 2016, an agreement was reached to settle amounts outstanding under a promissory note in return for additional royalties as follows: 0.5% GRR covering all production within Atrum’s Groundhog Anthracite Project (“Groundhog”) tenements from first production until ten years from the date that Atrum declares commercial production on the project; and subsequently 0.1% GRR from production within the Groundhog North Mining Complex project area.

Performance On June 9, 2016 Atrum announced a revised PFS which outlined an underground project capable of producing 880ktpa of ultra-high grade anthracite over a mine life of 28 years. Atrum published its key objectives for 2917 of February 14, 2017 which targets a small mine permit to enable them to produce up to 250kt from Groundhog per annum.ValuationThe Groundhog royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight-line basis over the expected life of the mine.

Valuation The Groundhog royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight-line basis over the expected life of the mine.

 

 

What we own

AMAPÁ The Group has a 1% life of mine GRR on all iron ore and other non-precious minerals produced from the Amapá Iron Ore System (‘Amapá’) in northern Brazil, owned and operated by Zamin Ferrous Limited (‘Zamin’). Amapá consists of the mine in Pedra Branca do Amapári and the port in Santana, which are linked by a railway. The mine has not resumed commercial production since it was suspended in mid-2013 following the port incident. Prior to production being suspended, it was producing a mix of sinter feed, pellet feed and spiral concentrates.

TUCANO The Group has a 1% life of mine GRR on all iron ore and other non-precious metals (other than copper) produced from the Tucano project, owned by ASX-listed Beadell Resources Limited (‘Beadell’). Tucano was acquired by Beadell in 2010 and is located adjacent to Amapá in northern Brazil. Tucano is focused on gold mining, with first gold being poured in 2012. However, it also has the capacity to produce an iron ore concentrate from the tailings created by its gold processing plant. Any iron ore produced can be sold to Zamin pursuant to an off-take agreement for 500Ktpa of ~65% Fe concentrate. The Group is also entitled to royalties over a number of concessions governed by a joint exploration arrangement between Zamin and Beadell.

Performance Operations at Amapá remained suspended throughout 2015, with Zamin attempting to restructure its finances to fund the rebuilding of the Santana port. In light of the continued suspension of operation at Amapá, together with further declines in iron ore prices, the Directors have recognised a further impairment charge of £2.8m during 2015, reducing the carrying value of the Amapá royalty to £1.8m as at December 31, 2015.

Valuation The Amapá and Tucano royalties are classified as royalty intangible assets on the balance sheet. As such, these assets are carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

EARLY STAGE ROYALTIES

 

What we own The Group has a 1.5% life of mine GRR over three exploration tenements in the central Pilbara region of Western Australia owned by a wholly-owned subsidiary of BHP Billiton Limited (‘BHP Billiton’), which is dual-listed on the LSE and ASX.

The tenements, covering 263km2, host a number of known iron occurrences, including the Railway deposit. The tenements are supported by extensive rail infrastructure including the rail lines from Rio Tinto’s West Angelas and Yandicoogina mines and BHP Billiton’s rail line serving its current operations at Mining Area C, which lie immediately to the east of the Railway deposit.

Performance The Pilbara royalties are over undeveloped tenements of BHP Billiton’s iron ore operations in Western Australia. The Group was encouraged that BHP approached the Company in 2016 to seek certain consents to advance the tenements towards planning, an indication that BHP is moving this asset towards production.

Valuation The Pilbara royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

 

What we own The Group has a 1% life of mine NSR royalty over a number of claims on the Black Thor, Black Label and Big Daddy chromite deposits owned by TSX-listed Noront Resources Limited (‘Noront’), in the Ring of Fire region of Northern Ontario, Canada.

Performance The projects which Noront intend to develop require considerable capital expenditure to be invested along with co-operation from local government and native land owners, all of which will take time. On September 29, 2016 Noront announced that the Premier of Ontario was targeting commencing road work access to the region beginning in 2018. Although this will not directly benefit the underlying licences which the Group has a royalty over, the commencement of infrastructure works will mark a significant event in progressing the asset towards production.

In the meantime, the price of chromite increased fourfold in 2016, which continued to underpin the carrying value of the royalty on the Group’s balance sheet.

Valuation The Ring of Fire royalty is classified as a royalty intangible asset on the balance sheet. As such, this asset is carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.

 

 

What we own The Group entered into a royalty financing agreement with the AIM-listed Hummingbird Resources PLC (‘Hummingbird’) in December 2012 in relation to Hummingbird’s Dugbe 1 gold project in Liberia. In exchange for US$15.0m, payable in three tranches of US$5.0m, the Group is entitled to a 2% life of mine NSR royalty from any sales of gold mined within a 20km radius of a specified point in the Dugbe 1 Resource.

Performance Due to limited progress during the year, and Hummingbird’s short-term focus on its Yanfolila project in Mali, the Group extended the likely start date of the Dugbe 1 project. This resulted in the net present value no longer exceeding cost and a fair value adjustment was recorded in the income statement.

Valuation The Dugbe 1 royalty is classified as an available-on-sale debt financial asset within royalty financial instruments on the balance sheet. As such, the asset is carried at fair value by reference to the discounted expected future cash flows over the life of the mine.

 

STRATEGIC MINING INTERESTS

THE GROUP INVESTS IN A NUMBER OF STRATEGIC MINING INTERESTS WITH A VIEW TO GENERATING NEW ROYALTY FLOWS AND MAXIMISING VALUE FOR SHAREHOLDERS. THESE INVESTMENTS ARE NEVER STATIC OR PASSIVE. IT IS THE GROUP’S POLICY TO ACTIVELY SUPPORT MANAGEMENT WITH THE NECESSARY RESOURCES TO CREATE VALUE.

TREFI COAL PROJECT

The Group owns 15 coal exploration licences (across 7,337ha) over thermal coal in British Columbia, Canada, through its wholly-owned subsidiary, Trefi Coal Corp. On July 9, 2010, Anglo Pacific released NI 43-101 compliant Resources of weak coking coal saleable into either the thermal or PCI markets. The NI 43-101 report is dated March 18, 2010.
The coal Resource estimate is based on drilling and exploration undertaken by Gulf Canada between 1980 and 1982 and by Anglo Pacific in 2008 and 2009. The Resource estimate was prepared by Moose Mountain Technical Services, an independent consultancy based in Canada. The Resource is reported in accordance with the Australian JORC Code and Canadian National Instrument 43-101.

FLOWSTREAM

In October 2013, Anglo Pacific became a minority founding shareholder in FlowStream Commodities Ltd and simultaneously entered into a Strategic Co-Investment Agreement with the company. FlowStream Commodities Ltd is a privately owned streaming and royalty company focused on the oil and gas sector. Anglo Pacific is entitled to co-invest up to a 10% interest in a defined number of streaming and royalty projects in the oil and gas sector that FlowStream Commodities Ltd invests in from October 25, 2013.

OTHER

Anglo Pacific has a number of other smaller royalties and options over a variety of projects and claims, including in relation to the Crinum mine in Queensland, Australia, the Mount Ida magnetite iron ore project in Western Australia, the Engenho gold mine in Brazil, the Jogjakarta mine in Indonesia, the Bulqiza deposit in Albania, the Isua iron ore mine in Greenland, tenements in the Athabasca Basin in Saskatchewan, Canada and uranium properties owned by Uranium Resources Inc. in New Mexico, USA.
On October 16, 2014, London Mining PLC, the owner of the Isua mine, announced it had appointed administrators. As a result, the Company made a full provision against the value of its Isua royalty, resulting in the recognition of an impairment charge of £15.4 million. On January 8, 2015, the Government of Greenland announced that it had approved the transfer of all shares of London Mining Greenland (Jersey) (1) Ltd (‘London Mining Greenland’) to General Nice Development Limited (‘General Nice’). The Isua project licence is owned by London Mining Greenland A/S, a wholly-owned subsidiary of London Mining Greenland. On January 26, 2015, Anglo Pacific received official confirmation of this transfer from PricewaterhouseCoopers LLP, the administrator of London Mining PLC. Anglo Pacific intends to waive its rights to the repayment of the US$30m advanced to London Mining PLC in 2011 under the change of control provisions of the royalty financing agreement due to the inability of London Mining PLC to make this repayment. The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and therefore the royalty will continue to apply to the project. With the Isua project under the ownership of General Nice, there is scope for recovery of value from this royalty in the future.

Patrick Meier - NON-EXECUTIVE CHAIRMAN

Patrick Meier was appointed as Non-Executive Director in April 2015 and became Non-Executive Chairman on 10 May 2017. He has over thirty years of experience in investment banking with specialist knowledge of the mining sector. Patrick has an MA (Hons) in Natural Sciences from Cambridge University.
Most recently he headed up the investment banking activities for RBC Capital Markets in Europe and Asia and drove a major expansion of RBC’s European presence. Prior to this role, he headed up RBC’s activities in the metals and mining sector in Europe, Africa and Asia for many years, and continues to enjoy strong relationships within the sector. He also served as a Director on the Board of RBC’s main operating subsidiary in Europe.

Julian Treger - EXECUTIVE DIRECTOR AND CHIEF EXECUTIVE OFFICER

Julian Treger joined Anglo Pacific as Chief Executive Officer and Executive Director on 21 October 2013.
Julian has an MBA from Harvard Business School and a BA from Harvard University. He began his career working for Lord Rothschild as an in-house corporate financier, managing a portfolio of public and private equity investments before co-founding Active Value Advisors Ltd. to invest in undervalued, predominantly UK-listed companies, where he advised on more than US$900.0m of funds over a 12-year period. Most recently, he has served as one of the principals of Audley Capital Advisors LLP, an investment advisory firm, which he co-founded in 2005, managing value-orientated, special situations investment strategies through hedge fund and co-investment vehicles, with a principal focus on the natural resources sector. Julian also holds an external Non-Executive directorship with Mantos Copper S.A.

David Archer - NON-EXECUTIVE DIRECTOR AND SENIOR INDEPENDENT DIRECTOR

David Archer was appointed Non-Executive Director in October 2014 and currently chairs the Group’s Remuneration Committee. He is also the Group’s Senior Independent Director. David has over 34 years’ international resources industry experience in the Americas, Asia, Australia and the Middle East. He is the Chief Executive Officer of AIM-listed Savannah Resources PLC, which owns majority stakes in a mineral sands project in Mozambique and a copper project in Oman, and was previously the Managing Director of ASX-listed company, Hillgrove Resources Ltd, where he was responsible for growing the company into a significant, dividend paying, mineral explorer and copper producer with assets in Australia and Indonesia. David was the founder and Deputy Chairman of Savage Resources Ltd, a coal, copper and zinc producer, and the founder and Executive Chairman of PowerTel Ltd. He is also a barrister (non-practicing) of the Supreme Court of New South Wales.

Mike Blyth - NON-EXECUTIVE DIRECTOR

Mike Blyth was appointed Director in March 2013 and acted as Non-Executive Chairman from 1 April 2014 to 10 May 2017. He has a BSc from St Andrews University and is a Chartered Accountant. He was, until his retirement in 2011, a partner for 30 years in RSM (previously Baker Tilly), specialising in providing audit and related services to AIM and full list clients. During his career he held a number of senior management positions with the firm, including a period on its National Executive Committee. In addition to his chairmanship of Anglo Pacific, Mike is a board member of Wheatley Housing Group and director of Haldane Property Company Ltd and Glasgow & Suburban Property Company Ltd. He also acts as trustee for a number of small charities.

Rachel Rhodes - NON-EXECUTIVE DIRECTOR

Rachel Rhodes was appointed Non-Executive Director in May 2014 and currently chairs the Group’s Audit Committee. Rachel has an MA in Economics from the University of Cambridge and is a member of the Institute of Chartered Accountants in England and Wales, having qualified with Coopers and Lybrand in London in 1997. She has over fifteen years of experience in the mining industry, including with Anglo American PLC (until August 2008)and London Mining PLC (until November 2013) and is now CFO of Alufer Mining Ltd. Rachel also serves on the boards of Alufer Mining Services Ltd and Bel Air Mining S.A. and has played a leading role in listing companies on LSE, AIM and JSE, in raising significant project and corporate finance and in negotiating mining licences and fiscal platforms.

Robert Stan - NON-EXECUTIVE DIRECTOR

Robert (‘Bob’) Stan was appointed Non-Executive Director in February 2014. He has a B.Comm from the University of Saskatchewan. Bob has over 34 years’ experience in the mining industry. He has held several senior positions with Fording Coal Limited, Westar Mining Ltd, and TECK Corporation before becoming a founding shareholder and director of publicly quoted Grande Cache Coal Corporation (“GCC”), an Alberta-based metallurgical coal mining company, in 2000. At GCC, Bob served as President, CEO and Director from 2001 to 2012, when the company was sold for US$1.0bn to Winsway Coking Coal and Marubeni Corp, an Asian-backed strategic investor consortium. He has served as Chairman of the Coal Association of Canada Board of Directors and has acted as a board member of the International Energy Agency’s Coal Industry Advisory Board. Bob currently serves on the board of several private companies, including Quantex Resources Ltd, Lighthouse Resources Inc. and Spruce Bluff Resources Ltd, and formerly served on the board of publicly-listed Whetstone Minerals Ltd.
 

Kevin Flynn - CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY

Kevin Flynn joined Anglo Pacific as Chief Financial Officer in January 2012 and was appointed Company Secretary in March 2015. A Chartered Accountant, having qualified with Deloitte, he has overall responsibility for corporate reporting, treasury and taxation. Prior to joining Anglo Pacific, Kevin spent several years in finance roles in the London commercial real estate sector, with both FTSE 100 and FTSE 250 companies.

SUBSTANTIAL SHAREHOLDINGS

 

The Group has been notified, aside from the interests of Directors, of the following interests of 3% or more in the share capital of the Group at June 8, 2016.

  ORDINARY SHARES AT 2P EACH REPRESENTING
Liontrust Investment Partners LLP 17,952,410 9.92%
Aberforth Partners LLP 17,044,444 9.42%
Schroders PLC 12,210,712 7.19%
Ransome’s Dock Limited 7,489,360 4.51%
AXA Investment Managers UK (Framlington) 5,494,332 3.31%

Regulatory notifications of major shareholdings can be made to [email protected]
Copies of received notifications are available through the News section of our website.
*Kings Chapel International Ltd is a connected person of Mr J. A. Treger

 

DIRECTORS’ SHAREHOLDINGS

This information has been provided by the Group’s directors and the accuracy of this information has not been independently verified by the Group as at February 06, 2017.

NAME QUANTITY PERCENTAGE
J. A. Treger 5,616,454 3.10%
D. Archer 20,000 0.01%
N. P. Meier 185,878 0.10%
R. H. Stan 155,540 0.09%
W. M. Blyth 137,590 0.09%
R. C. Rhodes 22,500 0.01%

 

HEAD OFFICE
1 Savile Row, London W1S 3JR
TELEPHONE: +44 (0) 20 3435 7400

UK REGISTRARS
For any queries regarding your UK shareholding in
Anglo Pacific Group PLC please contact the Group
registrars Equiniti Limited.

TELEPHONE: +44 871 384 2030
WEBSITE: www.shareview.co.uk

CANADIAN REGISTRARS
For any queries regarding your Canadian shareholding in
Anglo Pacific Group PLC please contact the Group’s Canadian
registrars Equity Financial Trust Company.

TELEPHONE: +1 866 393 4891
WEBSITE: www.equitytransfer.com

For all Corporate Information please click here

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