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EPIC: APF
Market: AIM:APF
TSX:APY
52-week High/Low: 134.50p / 90.70p
Sector: General Mining
Market Cap: 203.97M
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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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.

STRATEGY - Achieving our aim through acquisition of both primary and secondary royalties.

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 £3.6m from Kestrel during 2015, compared to £1.7m in 2014. The significant increase in royalty income in 2015 was due to increased Kestrel production within the Group’s private royalty land.In accordance with Anglo Pacific’s Kestrel information rights, the Group estimates that 60-65% of mining at Kestrel will be within its royalty lands during 2016 (H1 2016: 30-35% and H2 2016: 85-90%), increasing to over 90% during 2017.

Valuation The Kestrel royalty was independently valued at A$167.6m (£82.6m) and accounts for 42% of the Group’s total assets as at December 31, 2015 (2014: A$223.0m; £117.1m; 59%). 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 fall in fair value is largely due to the decline on coking coal prices, partially offset by a weakening of the Australian dollar.

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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 Recent strong performance by the longwall in the current production panel has resulted in Whitehaven upgrading guidance for production from the Narrabri Mine for the fiscal year ending June 30, 2015 to between 7.0Mt and 7.2Mt ROM coal from 6.5Mt previously.

On December 10, 2015 Whitehaven announced that the New South Wales Government’s Department of Planning and Environment has granted approval to increase annual production from 8 Mtpa to 11 Mtpa and to install a 400 metre wide longwall face at the Narrabri Mine. The 400 metre wide longwall face is expected to initially increase run of mine (“ROM”) coal production by an estimated 750 Ktpa. The first 400 metre wide longwall panel is expected to come into production in the first half of calendar year 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. 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.

 

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 its maiden royalty receipts from Maracás Menchen in Q1 2015, following the commencement of vanadium pentoxide (‘V2O5′) on August 2, 2014. Largo continued to ramp up production at the Maracás Menchen mine towards nameplate production capacity of 9.634t of V2O5 per annum throughout 2015, resulting in royalty income of £0.6m for the Group, from production of 5,840t V2O5 for the year ended December 31, 2015.Largo announced that it had achieved commercial production on October 1, 2015, and also achieved new daily production records in Q3 2015 of 27t and 29t of V2O5, representing 102% and 110% of nameplate capacity respectively. Despite these records, Largo announced that it is undertaking several critical optimisation projects on the plant aimed at addressing ongoing variances in daily production rates, such that production capacity is achieved more consistently.

Largo has issued guidance for 2016 Maracás Menchen production levels in the range of 7,610 tonnes and 8,610 tonnes of V2O5, and has reported Q1 2016 production of 1,169 tonnes. On 2 June 2016, Largo announced Maracás Menchen production of 780tonnes V2O5 during May 2016, a record level of monthly production surpassing its previous record for monthly production of approximately 730 tonnes set in April 2016. Under the terms of the royalty sale agreement, the Group is required to pay a further US$1.5 million once production reaches an annualised rate over a calendar quarter of 9,500 tonnes. Given the production guidance issued 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 The Four Mile uranium mine was previously a joint venture between Quasar (75%) and ASX-listed Alliance Resources Limited (‘Alliance’) (25%). On September 18, 2015, Alliance announced the completion of the sale of its 25% interest in the joint venture to Quasar.

Production commenced at Four Mile in 2014 with the intention to produce 2.4Mlbs of uranium ore concentrate in 2015. All production in 2014 and 2015 was stockpiled. As a result, the Group did not receive any royalty income from Four Mile in 2015. In February 2016, the Group received maiden royalty receipts of £0.1m from Four Mile, following the commencement of sales by Quasar.

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 The Group received royalty income of £1.2m from EVBC during the past year. This compares to £1.7m received in 2014.

On December 18, 2015, Orvana announced EVBC production for the period ending September 30, 2015, of 53,733 oz of gold(2014: 62,957 oz), 166,744 oz of silver (2014: 156,977 oz) and 6.1Mlbs of copper (2014: 5.6Mlbs). Orvana also announced EVBC production guidance for the 12 month period ending September 30, 2016, of 43,000 oz to 48,000 oz of gold, 120,000 oz to 130,000 oz of silver, and 4.5Mlbs to 5.0Mlbs of copper.During 2015, production at the El Valle mine was impacted by a number of challenges, including de-watering, power and maintenance issues, together with a transition from contractor mining to owner/operator mining. However, from August 2015 onwards, the production level at El Valle reached previously achieved production and development rates. Orvana continues to focus on productivity improvements, infrastructure upgrades and cost reductions at the mine and expects to implement solutions to some of the on-going challenges the mine faces during its fiscal year 2016 (ending September 30, 2016).At the end of February 2015, the Carlés mine was placed on care and maintenance. Orvana has stated its intention to leave the Carlés mine on care and maintenance while it reviews alternative mining methods, or until the price of gold becomes more sustainable for the mine.
On February 3, 2016, Orvana announced its fiscal year 2016 first quarter production results for EVBC. The mine produced 13,893 oz of gold (Q1 FY2015: 15,276 oz), 43,431 oz of silver (Q1 FY2015: 43,946 oz) and 1.2Mlbs of copper (Q1 FY2015: 1.85Mlbs).
On February 3, 2016, Orvana also announced a new Mineral Resource at the Villar Zone of the El Valle mine, and at the nearby La Breuva Zone, in-line with Orvana’s previously announced plans to increase the EVBC Reserves and Resource estimates.

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 On July 20, 2015, Berkeley announced that the Nuclear Safety Council had issued a favourable report for the grant of the Initial Authorisation of the proposed process plant to be built on Retortillo, as a radioactive facility, the first in a 3-step process required to authorise the plant for operation.

On October 21, 2015, Berkeley announced the receipt of all the European Union, National, Regional and Provincial level approvals required for the initial infrastructure development of the Salamanca project. These represent major milestones in advancing the project towards first production, with the Environmental License and Mining License already granted at the Retortillo deposit.
On October 7, 2015, Berkeley announced that following an infill drill program at Zona 7, the mineral resource estimate for Zona 7 was updated for an increase in resource grade, an increase in resource pounds and the upgrade of almost 90% of the Inferred Resource to the Indicated category.
On November 4, 2015, Berkeley announced an updated pre-feasibility study (‘PFS’) on the Salamanca project that now includes the updated Zona 7 deposit. Its inclusion in the updates PFS has increased the mine life from 11 to 18 years and reduced operating costs from US$24.60 to US$15.60 per pound of uranium produced during steady state operations, which should make it amongst the lowest cost producers in the world, once developed.
During 2016, Berkeley expects to conduct additional exploration drilling at Salamanca to test a number of drill targets located within the 100km of the approved processing facility and where historical drilling has intersected high grades of uranium without being fully advanced.

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.

Performance In 2014, Atrum announced the results of a Supplementary PFS for a 5.4Mtpa ROM underground mine. Based on inputs on pricing from Wood Mackenzie, the project generated a post-tax NPV10 (nominal) of approximately A$1.7b, on a capex of US$596m and FOB production cost including royalties of US$86/t.Exploration activities in 2015 focussed on consolidating knowledge of the two key economic targets, Discovery B seam and the lower, Duke E seam. Atrum is currently finalising a new PFS study which includes underground mines in these target horizons, and low cost highwall options.

Atrum announced on February 26, 2015, that it had signed non-binding memorandums of understanding for offtake with Japanese counterparties for anthracite produced from the Groundhog North Mining Complex. In March 2015, Atrum signed a binding equipment finance agreement with China Coal Technology & Engineering Group Corp (‘CCTEG’) for the supply and finance of anthracite mining equipment to facilitate development at the Groundhog North project. Stage one of the equipment finance package is valued at US$100m and includes the supply of mining equipment required to complete the initial small scale mine and subsequent mine wall development for the full scale 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.

 

 

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.

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 On April 28, 2015, Noront completed its acquisition of the claims on the Black Thor, Black Label and Big Daddy chromite deposits from Cliffs Natural Resources Limited (‘Cliffs’). These claims are adjacent to Noront’s Eagles Nest nickel-copper-platinum group element and Blackbird chromite deposit.

Noront intends to complete a strategic plan and preliminary economic assessment for the development of the newly acquired chromite deposits during 2016. Whilst Noront’s acquisition of these deposits is considered very favourable by the Group, the timeline to production remains unclear and chromite prices remain under pressure. As a result, the Directors have recognised a further impairment charge of £1.6m during 2015, reducing the carrying value of the Group’s Ring of Fire royalty to £3.1m as at December 31, 2015.

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 On July 10, 2015, Hummingbird announced that it had signed a 25 year mineral development agreement (‘MDA’) with the Government of Liberia for the Dugbe Shear Zone which contains the Dugbe 1 project. Hummingbird is currently in the process of optimising an on-going definitive feasibility study on the project in order to unlock further value of this large-scale development opportunity.

Valuation The advances made to Hummingbird under the royalty financing arrangement are classified as non-current receivables and carried at fair value on the balance sheet.

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%

 

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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