Proactiveinvestors USA & Canada Anglo Pacific Group PLC https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Anglo Pacific Group PLC RSS feed en Wed, 22 May 2019 16:07:22 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Anglo Pacific Group makes major royalty deal with a bigger move into Canada ]]> https://www.proactiveinvestors.com/companies/stocktube/10840/anglo-pacific-group-makes-major-royalty-deal-with-a-bigger-move-into-canada-10840.html Mon, 15 Oct 2018 08:28:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10840/anglo-pacific-group-makes-major-royalty-deal-with-a-bigger-move-into-canada-10840.html <![CDATA[Media files - Anglo Pacific CEO says Kestrel royalty brings increased confidence in growth from organic sources ]]> https://www.proactiveinvestors.com/companies/stocktube/9254/anglo-pacific-ceo-says-kestrel-royalty-brings-increased-confidence-in-growth-from-organic-sources-9254.html Wed, 09 May 2018 16:10:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/9254/anglo-pacific-ceo-says-kestrel-royalty-brings-increased-confidence-in-growth-from-organic-sources-9254.html <![CDATA[News - Anglo Pacific on look out for more deals as royalty income soars ]]> https://www.proactiveinvestors.com/companies/news/193948/anglo-pacific-on-look-out-for-more-deals-as-royalty-income-soars-193948.html A huge increase in the contribution from its Kestrel coal royalty in Australia helped Anglo Pacific Holdings PLC (LON:APF) to record revenues.

Total royalty income in 2017 rose by 90% to £37.4mln, but it was Kestrel, which is being mined by Rio Tinto, that stood out.

WATCH: Anglo Pacific enjoys record 2017 with royalty income of £37.4 mln

Higher coal prices and more mining on Anglo’s royalty area saw Kestrel’s income rise 115% to £28.8mln.

Maracás Menchen, a vanadium royalty in Brazil, also chipped in strongly with its income jumping 150% to £2mln as prices soared and production increased.

Julian Treger, chief executive, said: "2017 was a record year for Anglo Pacific with royalty income of £37.4mln, and total income of £42.4mln when the cash flows from our Denison transaction are included.

Adjusted earnings rose by 82% to £30mln and shareholders get a 7p dividend for the year, a 17% increase.

Treger added that the group intends to maintain the momentum by acquiring new royalties as Anglo has access to over US$50m of liquidity from its balance sheet and a favourable commodity pricing outlook.

“Our pipeline is in very good shape and we move forward into 2018 with optimism." 

Shares were unchanged at 152.5p.

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Wed, 28 Mar 2018 08:47:00 -0400 https://www.proactiveinvestors.com/companies/news/193948/anglo-pacific-on-look-out-for-more-deals-as-royalty-income-soars-193948.html
<![CDATA[Media files - Anglo Pacific enjoys record year with strengthening coal and vanadium prices ]]> https://www.proactiveinvestors.com/companies/stocktube/8712/anglo-pacific-enjoys-record-year-with-strengthening-coal-and-vanadium-prices-8712.html Wed, 07 Feb 2018 08:20:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/8712/anglo-pacific-enjoys-record-year-with-strengthening-coal-and-vanadium-prices-8712.html <![CDATA[News - Record year for Anglo Pacific as coal prices recover ]]> https://www.proactiveinvestors.com/companies/news/191277/record-year-for-anglo-pacific-as-coal-prices-recover-191277.html Anglo Pacific Group plc (LON:APF), the royalty specialist, enjoyed a record year in 2017 as higher coal and vanadium prices combined with increased production on its land.

Royalty income rose 90% to £37mln-£37.75mln with a further £4.7mln/£5mln to come from uranium operation Denison/McClean.

Julian Treger, the chief executive, said the average price realised at Australian coking coal royalty Kestrel was some 40% higher than a year earlier.

READ: Anglo Pacific could become the go-to royalty vehicle for the 21st century

Added to increased production there from its land, the weighted average royalty rate increased from 8.5% to 10.5%.

Thermal coal producer Narribri, also in Australia, saw royalty revenue rise by 15% despite lower volumes.

Treger also highlighted vanadium producer Maracás Menchen, which produced a record year of royalty income.

WATCH: Anglo Pacific enjoys record year with strengthening coal and vanadium prices

“The outlook for the year ahead, assuming consistent volumes, remains positive, with 90%+ of production at Kestrel expected to come from within our lands, and with commodity prices remaining resilient," he said.

“Prices for both coking and thermal coal are being buoyed by Chinese environmental restrictions on low-quality coal.

“It has long been our view that, over time, high quality lower polluting coal would start to become more desirable. It appears that this is now happening.”

The higher royalty receipts meant there was a net cash position of £8.1mln, debts of £1mln, at the year-end while the final dividend rises by two-thirds to 2.5p to make 7p for the year overall.

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Wed, 07 Feb 2018 07:38:00 -0500 https://www.proactiveinvestors.com/companies/news/191277/record-year-for-anglo-pacific-as-coal-prices-recover-191277.html
<![CDATA[News - Anglo Pacific could become the go-to royalty vehicle for the 21st century ]]> https://www.proactiveinvestors.com/companies/news/190752/anglo-pacific-could-become-the-go-to-royalty-vehicle-for-the-21st-century-190752.html Anglo Pacific Group PLC (LON:APF) hit a three-year high in January, which may surprise those who thought coal was dead as an investment.

Not that the mining royalties specialist is totally reliant on coal for its income, but it does form a large part of its cash flow, and the share price rise has gone hand-in-hand with strong coal prices.

WATCH: Anglo Pacific enjoys record year with strengthening coal and vanadium prices

An investment in coal may not be as sexy as one in lithium or cobalt, but to Julian Treger, Anglo Pacific’s chief executive, it makes a lot of sense.

Mining, he argues, is a perfect way for investors to mix the old with the new: As enthusiasm for the latest fad ebbs and flows there’s always one element of certainty, that the materials for whatever it is that’s being made will have to be mined.

Hence, there’s been a boom in the lithium mining sector in response to hype about electric car batteries, with cobalt slipstreaming along behind. Copper has enjoyed some benefit from this narrative too, as the thinking is that more wiring will be needed in electric vehicles than in petrol-powered ones.

In the case of coal, there’s power generation.

How much power is being used to mine the cryptocurrencies that are sweeping through world markets at the moment? That’s hard to quantify, but it has been notable that a US investor in Atlantic Power Corp (NYSE:AT) has been urging the company to use surplus electricity to mine cryptos, while in China, the authorities are said to have curbed power supply to known cryptocurrency miners.

The 21st-century technological revolution is steam-powered

In the US, much of the power generated for use in Tesla’s electric vehicles actually comes from steam-powered coal stations, an irony not lost on Treger. “These cars are powered by steam, as they were 120 years ago,” he muses.

Perhaps even more significantly for the longer-term, an immense amount of power is used to cool the world’s computers and to keep them cool, and in many countries, particularly outside of Europe, that means coal.

“It’s pretty unfortunate for UK investors that there’s a perception that coal is done for,” says Treger. “But demand continues to grow in absolute terms, although its share is falling.”

That dynamic, though subtle in itself, has had a fairly unsubtle read-through: coal price has been rising. Indeed, in the past 12 months, coal price has outperformed the expectations of many analysts by at least 100%.

The other side of the same coin, though, is, of course, pollution, but paradoxically perhaps, here there is help for coal producers too. That’s because, in China, a key bellwether for the world’s attitudes towards coal mining and pollution, production of the dirtiest coal is being aggressively phased out in favour of the highest quality coal.

This type of coal also commands the highest margin, and those that have it are quids in.

Dirty coal: bad; clean coal: good (or not so bad)

This is true in the case of Anglo Pacific, which derives the bulk of its royalty income from Kestrel, a high-quality clean-coal mine in Australia operated by Rio Tinto.

Anglo Pacific doesn’t hold a royalty over the entire mine, and nor is the quality of the ground over which it does hold its royalty completely consistent, so, three years ago, when Rio wasn’t mining as much of the Anglo royalty area as it is now, and when the coal price was lower, there was less money for Anglo Pacific. It is not surprising that the share price dipped back then and took some time to recover.

Since then, Treger’s been active; he’s raised money and acquired more royalties for the company, in clean coal at Whitehaven’s Narrabri mine, but also in other commodities.

READ: Anglo Pacific has the fire power and looking to 'bring home the deals'

“Coal isn’t going to go away,” he says. “It’s cheaper for the poorer economies of the world. The more thoughtful response isn’t no coal, but cleaner coal.”

Even so, the overall percentage of Anglo Pacific’s portfolio devoted to coal is now smaller, given the overall exposure to uranium, vanadium, gold, copper, silver, cobalt, iron ore and nickel.

“Generally we’ve done one or two transactions per year, but this year I hope we can do three or four,” says Treger.

He’s helped by higher share price, of course, but also by a market that seems open to business, and seems well and truly over the optimistic sky-high valuations that were generated by the last boom.

What type of deal would he like to do, bearing in mind that different markets around the world have had different responses to the new technologies that are emerging?

“Toronto has been a bit subdued,” he says.

“But Australia has been on a lithium, electric vehicle bandwagon for probably about 18 months now. There’s been a bull market for the more speculative mining stocks, but that’s a sort of universe on its own. We try to block out the chatter but other than in the energy space, we’re not seeing yet a very hyped story.”

Cobalt, for example, he thinks is probably nearing the end of its run. The emphasis instead, goes on general, longer-term global economic development.

“Base metals like zinc, copper and nickel could still run. The price of copper bottomed out at US$2.00. It’s now US$3.20 but it could go to US$4.00 or US$5.00 or more. We’ll have to see.”

In that sense, Anglo Pacific stands out from most of its peers, in that it’s not focussed on gold and silver royalties. Instead, this is a royalty company that’s geared to the global economy and advancing technology.

“We as a sector are actually a beneficiary of disruption and there’s an opportunity for us to become the go-to royalty vehicle for the twenty-first century,” Treger believes.

Broker sees plenty of opportunities for more royalty acquisitions

Peel Hunt appears to be coming round to this point of view.

Strong coal prices should give Anglo another year of solid income in 2018, it said.

The broker, which has upgraded the stock to 'add' from 'hold', thinks the current coal price environment could enable management to start acquiring royalties from internal cash resources.

Anglo Pacific currently derives the bulk of its royalty income from Kestrel, a high-quality clean-coal mine in Australia operated by Rio Tinto, but is always on the look-out for more royalties.

“Ongoing coal price strength or royalty acquisitions can each plot a route to a valuation range of 220p-250p, suggesting further upside beyond our revised 160p base case target price,” Peel Hunt said.

WATCH: A mini renaissance likely for London's coal companies

Coal prices have already held up better than many expected so far in 2018.

The broker's cash flow estimates plus an undrawn US$40mln credit facility suggests a budget of up to US$135mln for royalty deals in 2018 without the need for the company to issue shares.

At a 10% acquisition yield, this could add 25-40% to the broker's medium-term operating cash flows.

Furthermore, based on the broker's recent meetings with management, it is clear the company has confidence in the deals coming down the pipe.

It did two deals in 2017 but is looking to top that in 2018.

“The overarching trend is for further base metal exposure but, that said, no commodity would be ruled out if the transaction surpasses management’s internal metrics of quality, jurisdiction, and yield. This is particularly the case in the secondary royalty market,” the broker noted.

Royalty income in 2017 rose 90% to £37mln-£37.75mln from the year before, with a further £4.7mln/£5mln to come from uranium operation Denison/McClean.

READ: Record year for Anglo Pacific as coal prices recover

The broker is forecasting adjusted profit before tax of £33.2mln in 2017, up from £16.8mln in 2016, and sees this rising to £43.2mln in 2018 on the back of a rise in sales to £43.3mln.

The cash generation should not only assist in landing more royalty deals for Anglo but should also underpin Peel Hunt's forecast of an 8.5p dividend in 2018.

Based on Anglo's current share price of around 144p, that would give a dividend yield of 5.9%.

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Mon, 29 Jan 2018 11:22:00 -0500 https://www.proactiveinvestors.com/companies/news/190752/anglo-pacific-could-become-the-go-to-royalty-vehicle-for-the-21st-century-190752.html
<![CDATA[Media files - A mini renaissance likely for London's coal companies ]]> https://www.proactiveinvestors.com/companies/stocktube/8670/a-mini-renaissance-likely-for-london-s-coal-companies-8670.html Fri, 26 Jan 2018 12:38:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/8670/a-mini-renaissance-likely-for-london-s-coal-companies-8670.html <![CDATA[Media files - Anglo Pacific has the fire power and looking to 'bring home the deals' ]]> https://www.proactiveinvestors.com/companies/stocktube/8447/anglo-pacific-has-the-fire-power-and-looking-to-bring-home-the-deals--8447.html Wed, 29 Nov 2017 20:42:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/8447/anglo-pacific-has-the-fire-power-and-looking-to-bring-home-the-deals--8447.html <![CDATA[News - Anglo Pacific investors eye with interest Orvana Minerals Corp's drill results in Northern Spain ]]> https://www.proactiveinvestors.com/companies/news/187887/anglo-pacific-investors-eye-with-interest-orvana-minerals-corp-s-drill-results-in-northern-spain-187887.html One of our eagle-eyed correspondents in Canada spotted an interesting release from Orvana Minerals Corp (TSX:ORV) that has a read-across for London-listed Anglo Pacific Group plc (LON:APF).

It was a drilling report from the El Valle-Boinàs and Carlés copper-gold mines in northern Spain (collectively known as EVBC).

READ: Higher coal and vanadium prices sees Anglo Pacific post 89% increase in Q3 royalty income

The head-turner from the programmes was the bonanza-grade 64.27 grams per tonne of gold found in a near five-metre section at El Valle.

Another hole on the site intersected 8.29 grams of gold over 9.6 metres with kicker of copper at a decent grade (1.92%).

Open at depth

Over at Carlés the exploration team found 12.54 grams per tonne of the yellow metal over 10.2 metres in a skarn orebody that remains open at depth.

The interest to Anglo Pacific investors? Well, it’s quite simple: the UK mining investment house has a 2.5% net smelter royalty over EVBC, rising to 3% when the price of gold tops US$1,100 an ounce (the current price is closer to US$1,300).  

As one analyst pointed out: “The royalty is on the mill, which means all material pushed through it - ie all near-mine exploration - will be paid.”

A nice little earner. But interestingly, on Anglo’s site it reveals EVBC is classified as “an available-for-sale equity financial asset”.

One suspects Anglo will be receiving quite few calls from potential buyers after the latest round of drill results.

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Tue, 28 Nov 2017 09:30:00 -0500 https://www.proactiveinvestors.com/companies/news/187887/anglo-pacific-investors-eye-with-interest-orvana-minerals-corp-s-drill-results-in-northern-spain-187887.html
<![CDATA[Media files - Higher coal and vanadium prices sees Anglo Pacific post 89% increase in Q3 royalty income ]]> https://www.proactiveinvestors.com/companies/stocktube/8344/higher-coal-and-vanadium-prices-sees-anglo-pacific-post-89-increase-in-q3-royalty-income-8344.html Thu, 09 Nov 2017 09:31:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/8344/higher-coal-and-vanadium-prices-sees-anglo-pacific-post-89-increase-in-q3-royalty-income-8344.html <![CDATA[News - Anglo Pacific on a roll as commodities move in its favour ]]> https://www.proactiveinvestors.com/companies/news/186037/anglo-pacific-on-a-roll-as-commodities-move-in-its-favour-186037.html Anglo Pacific Group PLC (LON:APF TSE:APY) is set for a strong year in 2017 as commodity prices have moved in its favour.

The mining royalty specialist’s results have already been aided by a rally in the price of coking coal and vanadium

WATCH: Anglo Pacific to give investors more regular income with quarterly dividend

Anglo has royalty interests in two coal mines in Australia: Rio Tinto’s Kestrel and Whitehaven’s Narrabri.

Royalty income shot up by 295% to £16.1mln in the half year to June as strong production led to a record performance at the Maracás Menchen project in Brazil and a significant improvement in vanadium prices to an average of US$5.46 per pound from US$3.15 last year.

Anglo has a 2% net smelter return royalty on all mineral products sold from the project to which the royalty interest relates.

Kestrel mine supported by rebound in coking coal price

Royalty income was also boosted by a favourable exchange rate and an increase in mining within the company’s private royalty land at the Kestrel underground coal mine in Queensland, Australia.

“It is pleasing to see that this increased volume in mined coal that is subject to the group's royalty has coincided with a strong rebound in the coking coal price,” said chief executive Julian Treger in a statement.

“This, along with the contribution from the rest of the portfolio and the recent Denison financing arrangement, has seen us post a doubling of income over the last two years and a similar outcome is expected this year.”

READ: Anglo Pacific Group reveals steep rise in royalty income

Adjusted earnings for the period came to £12.9mln, up 438% on the previous year.

The company declared an interim dividend of 3p per share as it ended the period debt free after repaying all its loans following the receipt of royalty income in the second quarter and paying a 2016 final dividend. In June, Anglo said it would be making quarterly dividend payments.

Anglo had net assets of £209.6mln at the end of the period.

Treger added that the company has access to between US$30.0-US$40.0mln of cash and borrowing facilities for further royalty investments, which will be “very much the focus” for the second half of the year.

Positioned for electric cars

In keeping with that, the group acquired a royalty over a nickel-cobalt mine in Brazil to position itself for the expected surge in electric car usage.

Cobalt, alongside lithium, is a key component in battery packs for electric vehicles and is in scarce supply.

Initially, Anglo will pay Brazilian Nickel Limited (BRN) US$2mln for a 1% gross revenue royalty (GRR) on the Piauí nickel – cobalt project in the north-east of the country.

WATCH: Anglo Pacific widens portfolio with nickel-cobalt acquisition

Anglo-Pacific also has an option to spend up to an additional US$70mln to increase the gross royalty on Piaui by up to a further 4.5 percentage points dependent on when it is exercised and how the project has developed.

Julian Treger, Anglo Pacific’s chief executive, said: "The Piauí royalty reflects the company's strategy of investing into earlier stage, high growth potential royalties.

“Combined with our Maracás Menchen vanadium royalty, this investment also represents a continuing strategic pivot into metals which are exposed to the burgeoning electric vehicle story.”

BRN will use the initial funding for a pilot plant with nameplate annual production capacity of 1,000 tonnes of saleable nickel, which, if successful, will be followed by a full plant producing 24,000t of nickel each year and 1,000t of cobalt.

WATCH: Anglo Pacific boss says first quarter 'the sign of a good year ahead' 

Anglo Pacific has already notched up a major success in backing the Salamanca uranium project in Spain, held by the consummate operators at Berkeley Energia (LON:BKY).

And it followed that up with a substantial stake in a North American operation, securing an income stream from processing ore from the famous Cigar Lake uranium mine in Canada.

Under the terms of the deal, Denison Mines (TSE:DML), a famous name in uranium mining, sold a right to 22.5% of the toll milling proceeds from the McClean Lake Mill, which takes ore from Cigar Lake.

The transaction comprised an up-front payment of C$2.7 mln, plus the granting to Denison of a C$40.8 mln loan.

It took Anglo Pacific into partnership with another great name in uranium production, Areva, which owns 70% of the McClean Lake Mill and 37.1% of Cigar Lake, and really begins to set it amongst the big leagues. 

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Mon, 23 Oct 2017 13:46:00 -0400 https://www.proactiveinvestors.com/companies/news/186037/anglo-pacific-on-a-roll-as-commodities-move-in-its-favour-186037.html
<![CDATA[Media files - Anglo Pacific widens portfolio with nickel-cobalt acquisition ]]> https://www.proactiveinvestors.com/companies/stocktube/8080/anglo-pacific-widens-portfolio-with-nickel-cobalt-acquisition-8080.html Thu, 14 Sep 2017 08:15:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/8080/anglo-pacific-widens-portfolio-with-nickel-cobalt-acquisition-8080.html <![CDATA[News - Anglo Pacific to take royalty on Brazil nickel and cobalt project ]]> https://www.proactiveinvestors.com/companies/news/183959/anglo-pacific-to-take-royalty-on-brazil-nickel-and-cobalt-project-183959.html Anglo Pacific Group plc (LON:APF TSX:APY) has acquired of a royalty over a nickel-cobalt mine in Brazil to position itself for the expected surge in electric car usage.

Cobalt, alongside lithium, is a key component in battery packs for electric vehicles and is in scarce supply.

Initially, royalty specialist Anglo will pay Brazilian Nickel Limited (BRN) US$2mln for a 1% gross revenue royalty (GRR) on the Piauí nickel – cobalt project in the north-east of the country.

WATCH: Anglo Pacific widens portfolio with nickel-cobalt acquisition

Anglo-Pacific also has an option to spend up to an additional US$70mln to increase the gross royalty on Piaui by up to a further 4.5 percentage points dependent on when it is exercised and how the project has developed.

Julian Treger, Anglo Pacific’s chief executive, said: "The Piauí royalty reflects the company's strategy of investing into earlier stage, high growth potential royalties.

“Combined with our Maracás Menchen vanadium royalty, this investment also represents a continuing strategic pivot into metals which are exposed to the burgeoning electric vehicle story.”

BRN will use the initial funding for a pilot plant with nameplate annual production capacity of 1,000 tonnes of saleable nickel, which, if successful, will be followed by a full plant producing 24,000t of nickel each year and 1,000t of cobalt.

The project is close to water, power and transport and BRN currently estimates it can produce nickel at below US$3 per pound. The nickel spot price currently US$5.08 per lb.

Shares rose 1% to 137.4p.

-- adds interview, share price --

 

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Thu, 14 Sep 2017 07:31:00 -0400 https://www.proactiveinvestors.com/companies/news/183959/anglo-pacific-to-take-royalty-on-brazil-nickel-and-cobalt-project-183959.html
<![CDATA[Media files - Significant income, cash flow and profits growth in first half for Anglo Pacific Group ]]> https://www.proactiveinvestors.com/companies/stocktube/7980/significant-income-cash-flow-and-profits-growth-in-first-half-for-anglo-pacific-group-7980.html Wed, 23 Aug 2017 09:12:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7980/significant-income-cash-flow-and-profits-growth-in-first-half-for-anglo-pacific-group-7980.html <![CDATA[News - Anglo Pacific Group posts first half jump in royalty income and free cash flow ]]> https://www.proactiveinvestors.com/companies/news/182846/anglo-pacific-group-posts-first-half-jump-in-royalty-income-and-free-cash-flow-182846.html Anglo Pacific Group PLC (LON:APF) said it made a “very strong” start to the year after free cash flow and royalty income surged in the first half.

The mining royalty business reported a 300% jump in free cash flow to £18.9mln in the six months ended 30 June, compared to the same period a year earlier, including an impact of the Denison financing arrangement of £3.3bn.

WATCH: Significant income, cash flow and profits growth in first half for Anglo Pacific Group

Royalty income shot up 295% to £16.1mln with a record performance at the Maracás Menchen project in Brazil due to strong production and a significant improvement in vanadium prices to an average of US$5.46 per pound from US$3.15 last year.

Anglo has a 2% net smelter return royalty on all mineral products sold from the project to which the royalty interest relates.

Kestrel mine supported by rebound in coking coal price

Royalty income was also boosted by a favourable exchange rate and an increase in mining within the company’s private royalty land at the Kestrel underground coal mine in Queensland, Australia.

“It is pleasing to see that this increased volume in mined coal that is subject to the group's royalty has coincided with a strong rebound in the coking coal price,” said chief executive Julian Treger in a statement.

“This, along with the contribution from the rest of the portfolio and the recent Denison financing arrangement, has seen us post a doubling of income over the last two years and a similar outcome is expected this year.”

However, the Kestrel valuation dropped 8% to £107.5mln at June 2017 from £116.9mln at the beginning of the year, primarily as a result of resource depletion and forward pricing assumptions.

READ: Anglo Pacific Group reveals steep rise in royalty income Anglo Pacific's earnings soar 

Adjusted earnings for the period came to £12.9mln, up 438% on the previous year.

The company declared an interim dividend of 3p per share as it ended the period debt free after repaying all its loans following the receipt of royalty income in the second quarter and paying a 2016 final dividend. In June, Anglo said it would be making quarterly dividend payments.

Anglo had net assets of £209.6mln at the end of the period, compared to £210.1mln on 31 December, equating to net assets per share of 116p, down from 124p.  

“Anglo Pacific has had a very strong start to 2017, which has seen us add to our portfolio with the Denison financing arrangement, report significant further increases in royalty revenue, and become debt free,” Treger said.

“This gave us the confidence to implement the payment of our dividend on a quarterly basis, to match the timing of our quarterly revenue, and also to accelerate the timing of dividend payments post declaration.”

Treger added that the company has access to between US$30.0-US$40.0mln of cash and borrowing facilities for further royalty investments, which will be “very much the focus” for the second half of the year.

WATCH: Zak Mir: Anglo Pacific Group looking at 150p

Shore Capital analysts said: “For the second half, Anglo Pacific’s focus will continue to be on adding further royalties to its portfolio. Given its revolving credit facility, relatively strong coking coal and vanadium prices and a relatively weak pound, we see Anglo Pacific as being well-positioned in this respect.”

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Wed, 23 Aug 2017 07:42:00 -0400 https://www.proactiveinvestors.com/companies/news/182846/anglo-pacific-group-posts-first-half-jump-in-royalty-income-and-free-cash-flow-182846.html
<![CDATA[Media files - Anglo Pacific in very good financial health after boost in royalty income ]]> https://www.proactiveinvestors.com/companies/stocktube/7858/anglo-pacific-in-very-good-financial-health-after-boost-in-royalty-income-7858.html Mon, 31 Jul 2017 13:40:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7858/anglo-pacific-in-very-good-financial-health-after-boost-in-royalty-income-7858.html <![CDATA[Media files - Zak Mir: Anglo Pacific Group looking at 150p ]]> https://www.proactiveinvestors.com/companies/stocktube/7857/zak-mir-anglo-pacific-group-looking-at-150p-7857.html Mon, 31 Jul 2017 10:47:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7857/zak-mir-anglo-pacific-group-looking-at-150p-7857.html <![CDATA[News - Anglo Pacific Group reveals steep rise in royalty income ]]> https://www.proactiveinvestors.com/companies/news/181693/anglo-pacific-group-reveals-steep-rise-in-royalty-income-181693.html Mining royalty business Anglo Pacific Group plc (LON:APF) revealed a steep rise in free cash flow as it reported a trading update for the six months to July 31.

Anglo Pacific said that free cash flow for the half would be between £18.5mln and £19mln, compared to £4.7mln in the same period of 2016, adding that the figure includes the impact of the Denison financing arrangement (this impact was seen between £3.1mln and £3.4mln).

Royalty income was up 290% for the period, at between £15.9mln and £16.3mln, mostly attributable to an increase in sales from the Kestrel mine which is now paying royalties on around 95% of its sales.

"We are encouraged by the level of royalty income received in the first half of the year, and expect this trend to continue into the second half now that we anticipate being paid a royalty on almost all sales by Rio Tinto at Kestrel,” said Julian Treger, Anglo Pacific chief executive.

“However on the flip side of such strong revenue from Kestrel is that it will impact on the valuation of the asset through resource depletion.”

“The level of cash generated during the first six months is also pleasing, and is already ahead of that generated in 2016 as a whole.”

Treger added: “With the full availability of our US$30m revolving credit facility, a recent strengthening of the spot coking coal price, further weakening of the pound against our income currencies and a comfortably covered dividend expected in 2017, we are in a healthy financial position with good liquidity to pursue further royalty acquisitions and provide meaningful returns to our shareholders."

 

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Mon, 31 Jul 2017 08:27:00 -0400 https://www.proactiveinvestors.com/companies/news/181693/anglo-pacific-group-reveals-steep-rise-in-royalty-income-181693.html
<![CDATA[Media files - Anglo Pacific to give investors more regular income with quarterly dividend ]]> https://www.proactiveinvestors.com/companies/stocktube/7690/anglo-pacific-to-give-investors-more-regular-income-with-quarterly-dividend-7690.html Mon, 26 Jun 2017 08:35:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7690/anglo-pacific-to-give-investors-more-regular-income-with-quarterly-dividend-7690.html <![CDATA[News - Anglo Pacific yield looking increasingly anomalous suggests broker Macquarie ]]> https://www.proactiveinvestors.com/companies/news/177668/ When it rains in Australia it pours, but for Anglo Pacific Group PLC (LON:APF TSE:APY) that has proved a boon in  2017.

The mining royalty specialist’s results are set to be even better than previously expected after heavy storms (cyclone Debbie) caused another spike in the price of coking coal.

It had already surged compared to a year ago, but the storms affected both infrastructure and supplies, a combination that has sent prices beyond the levels Anglo anticipated at the beginning of 2017.

WATCH: Anglo Pacific to give investors more regular income with quarterly dividend

“It is our view that higher coking coal prices will now prevail for longer in 2017. With Kestrel's operations reportedly unaffected by weather events, we now anticipate an even stronger year of growth for Anglo Pacific than at the time we reported our 2016 results.”

Two coal mines, uranium and vanadium

Anglo has royalty interests in two coal mines in Australia: Rio Tinto’s Kestrel and Whitehaven’s Narrabri.

In the three months to March, and before the latest spike, Kestrel saw a 130% increase in its average coal price over a year ago while Narrabri was up 56%.

WATCH: Anglo Pacific boss says first quarter 'the sign of a good year ahead' 

That helped royalty income jump to £7.5mln from a comparable £1.9mln.

An additional £2.5mln (C$4.0mln) came from the Denison [uranium] financing and streaming agreement signed in February while the recovery in vanadium prices boosted revenues from Maracás Menchen to £0.4mln from £0.1mln.

Anglo added that this quarter is also expected to see the lowest sales volumes from Kestrel and Narrabri in 2017, with all material production at Kestrel also set to be on its royalty land for the foreseeable future.

Total free cash flow generated in the period was £13.4mln (£3.3mln) and Anglo now expects to be debt free by mid-2017.  

Julian Treger, chief executive, said:  "The additional £2.5mln generated from the recent Denison transaction is further evidence of the importance of continuing to diversify our portfolio.

Treger has stated previously its focus is to add further royalties to the portfolio.

“We see a number of prospective opportunities in the mid-tier and development arena where the lack of recent M&A activity, combined with underinvestment in growth, should spur renewed interest in developing the next wave of projects that will be required to meet expected supply deficits in the future.”

A flavour of that came last year 

Anglo Pacific has recorded a major success in backing the Salamanca uranium project in Spain, held by the consummate operators at Berkeley Energia (LON:BKY). adn it followed that up with a substantial stake in a North American operation, securing an income stream from processing ore from the famous Cigar Lake uranium mine in Canada.

Under the terms of the deal, Denison Mines (TSE:DML), a famous name in uranium mining, sold a right to 22.5% of the toll milling proceeds from the McClean Lake Mill, which takes ore from Cigar Lake.

The transaction comprised an up-front payment of C$2.7 mln, plus the granting to Denison of a C$40.8 mln loan.

It took Anglo Pacific into partnership with another great name in uranium production, Areva, which owns 70% of the McClean Lake Mill and 37.1% of Cigar Lake, and really begins to set it amongst the big leagues.

Dividend focus …

The group paid a dividend of 6p in 2016 and had already said it would consider the dividend level at the half year point of the current year, something that it reiterated again with the latest update.

Macquarie keen  

Aussie broker Macquarie reckons the shares are worth 190p ignoring any windfall benefit from the latest coal price gain.

“The stubbornly high 5.8% dividend yield currently on offer places the company well ahead of the ~2% yield offered by peers.

“A rerating to between 2-3% would imply a valuation range of £2.00-3.00/sh (TP: £1.90), and with FCF [free cash flow] dividend around 2 times going forward, there is a significant margin for error in our cash flow forecasts, even if coal prices weaken significantly from current levels.”

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Thu, 11 May 2017 13:41:00 -0400 https://www.proactiveinvestors.com/companies/news/177668/
<![CDATA[Media files - First quarter 'the sign of a good year ahead' - Anglo Pacific's Julian Treger ]]> https://www.proactiveinvestors.com/companies/stocktube/7432/first-quarter-the-sign-of-a-good-year-ahead-anglo-pacific-s-julian-treger-7432.html Wed, 10 May 2017 13:52:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7432/first-quarter-the-sign-of-a-good-year-ahead-anglo-pacific-s-julian-treger-7432.html <![CDATA[News - Anglo Pacific reaps windfall as storms batter Australian coal sector ]]> https://www.proactiveinvestors.com/companies/news/177568/anglo-pacific-reaps-windfall-as-storms-batter-australian-coal-sector-177568.html Anglo Pacific Group plc's (LON:APF TSE:APY) trading in 2017 will be even better than previously expected after heavy storms in Australia caused another spike in the price of coking coal.

Prices had already surged compared to a year ago, but the storms in Australia affected both infrastructure and supplies during the second quarter and sent them soaring above the levels Anglo anticipated at the beginning of 2017.

“It is our view that higher coking coal prices will now prevail for longer in 2017. With Kestrel's operations reportedly unaffected by weather events, we now anticipate an even stronger year of growth for Anglo Pacific than at the time we reported our 2016 results.”

Anglo has royalty interests in two coal mines in Australia: Kestrel and Narrabri. In the three months to March, and before the latest spike, Kestrel saw a 130% increase in its average coal price while Narrabri was up 56%.

WATCH: Anglo Pacific boss says first quarter 'the sign of a good year ahead' 

That helped royalty income royalty income jump to £7.5mln from a comparable £1.9mln, while there was an additional £2.5mln (C$4.0mln) from the Denison [uranium] financing and streaming agreement signed in February while the recovery in vanadium prices boosted revenues from Maracás Menchen to £0.4mln from £0.1mln.

Anglo added that this quarter is also expected to see the lowest sales volumes from Kestrel and Narrabri in 2017, while it is also unlikely there will be any material production at Kestrel outside of its royalty land for the foreseeable future.

Total free cash flow generated in the period was £13.4mln (£3.3mln) and Anglo now expects to be debt free by mid-2017.    

Julian Treger, chief executive, added:  "The additional £2.5mln generated from the recent Denison transaction is further evidence of the importance of continuing to diversify our portfolio.

“We feel now is the right time to put capital to work in the sector and are continuing to work hard to identify and execute new royalties which will provide meaningful additional revenue over many years to come."

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Wed, 10 May 2017 08:04:00 -0400 https://www.proactiveinvestors.com/companies/news/177568/anglo-pacific-reaps-windfall-as-storms-batter-australian-coal-sector-177568.html
<![CDATA[Media files - Anglo Pacific's Julian Treger looking forward to a 'year of continued organic growth' ]]> https://www.proactiveinvestors.com/companies/stocktube/7189/anglo-pacific-s-julian-treger-looking-forward-to-a-year-of-continued-organic-growth--7189.html Thu, 30 Mar 2017 11:45:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/7189/anglo-pacific-s-julian-treger-looking-forward-to-a-year-of-continued-organic-growth--7189.html <![CDATA[News - Anglo Pacific Group reports surge in 2016 royalty income, to reconsider its dividend levels with interims ]]> https://www.proactiveinvestors.com/companies/news/175665/anglo-pacific-group-reports-surge-in-2016-royalty-income-to-reconsider-its-dividend-levels-with-interims-175665.html Anglo Pacific Group PLC (LON:APF, TSE:APY) has reported a surge in royalty income in full-year 2016, mainly thanks to a significant increase in overall saleable tonnes from its Kestrel mine in Australia and is to reconsider its dividend levels with its 2017 interims.

The group reported a 127% increase in royalty income for the full-year to December 31 to £19.7mln, up from £8.7mln in 2015.

The group also saw a significant increase in basic earnings per share to 15.60p, after a loss of 14.06p in 2015, with adjusted earnings per share jumping to 9.76p from 2.47p.

WATCH: Anglo Pacific boss looks forward to year of "continued organic growth" ...

It pointed out that its earnings benefitted from upward revisions to coal prices and the weakening of the pound following June’s EU Referendum Brexit vote.

The firm said the improved earnings translated into free cash flow generation of £13.2mln in 2016, up from £4.7mln a year earlier, with net debt reduced to £1.0mln as at December 31 2016.

Julian Treger, Anglo Pacific’s chief executive officer of Anglo Pacific, said: "2017 should be a year of significant organic growth for Anglo Pacific as production at Kestrel moves increasingly into our royalty lands and we benefit from planned production increases at Narrabri.

“Coal prices remain much higher than in the previous year and this, we believe, has set a new base level for prices above those forecast this time last year”.

He added: “Our focus continues to be on adding further royalties to the portfolio. We see a number of prospective opportunities in the mid-tier and development arena where the lack of recent M&A activity, combined with underinvestment in growth, should spur renewed interest in developing the next wave of projects that will be required to meet expected supply deficits in the future.”

Dividend focus …

The group has recommended a final dividend of 3.00p per share resulting in a total dividend for 2016 of 6.00p, albeit down from the 7.00p paid in 2015.

Treger concluded: “The strong results reported today means that we will reconsider dividend levels at the time of the interims, when we have greater visibility as to coal price movements for the year and the outlook for the next few years.”

In an initial reaction to the Anglo Pacific numbers, analysts at Shore Capital said: “2016 financials significantly improved, profits ahead of our expectations.”

In early trading, Anglo Pacific shares were 4%, or 4.5p higher at 117.0p.

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Thu, 30 Mar 2017 08:27:00 -0400 https://www.proactiveinvestors.com/companies/news/175665/anglo-pacific-group-reports-surge-in-2016-royalty-income-to-reconsider-its-dividend-levels-with-interims-175665.html
<![CDATA[Media files - Anglo Pacific's Julian Treger talks of 'very positive' shareholder response to uranium acquisition ]]> https://www.proactiveinvestors.com/companies/stocktube/6956/anglo-pacific-s-julian-treger-talks-of-very-positive-shareholder-response-to-uranium-acquisition-6956.html Tue, 21 Feb 2017 08:43:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6956/anglo-pacific-s-julian-treger-talks-of-very-positive-shareholder-response-to-uranium-acquisition-6956.html <![CDATA[News - Anglo Pacific appoints new chairman ]]> https://www.proactiveinvestors.com/companies/news/173447/anglo-pacific-appoints-new-chairman-173447.html Anglo Pacific Group PLC (LON:APF, TSX:APY) has appointed investment bank veteran Patrick Meier as its new chairman.

A non-executive at the royalty specialist since 2015, Meier has thirty years experience in investment banking at RBC Capital Markets in Europe and Asia.

He will take over from current chairman Mike Blyth following the 2017 Annual General Meeting. Blyth is to stay on as a non-executive. 

Meier said: “The Company is well placed to benefit from the improved sentiment in the sector, and has both a strong balance sheet and growth prospects.”

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Tue, 21 Feb 2017 08:27:00 -0500 https://www.proactiveinvestors.com/companies/news/173447/anglo-pacific-appoints-new-chairman-173447.html
<![CDATA[News - Anglo Pacific upgraded after Denison uranium deal ]]> https://www.proactiveinvestors.com/companies/news/172709/anglo-pacific-upgraded-after-denison-uranium-deal-172709.html Anglo Pacific PLC’s (LON:APF TSE:TPY) acquisition of a royalty stake in Denison’s high grade uranium mine is an interesting diversification reckons Peel Hunt, which has upgraded to ‘buy’.

The deal with Denison Mines gives Anglo Pacific exposure to the highest grade uranium mine in the world, run by Cameco and Areva and in a sensible geography in Canada, said Cantor.

It will receive 22.5% of toll milling revenues from the treatment of Cigar Lake ore at the Mclean Lake mill.

Cantor said it was an accretive deal and highlights the strategy to target tier one assets, backed by strong operators, in appealing geographies.

The target price rises to 156p (from 147p) with the rating now ‘buy’ from ‘add’.

“We see this deal as being instantly accretive to the valuation and dividend cover.

APF is also exposed to the considerable geological upside which is already pointing us to expect meaningful extension of the current mine life. 2017 outlook: With the new income instantly benefiting the financial position of the business (given that the deal is backdated to 1 July 2016), the outlook for the group has strengthened in 2017. “

As a consequence, Cantor is now more confident of its dividend forecasts (6p in 2016, 8p in 2017 and 10p in 2018) especially with rising income from the Kestrel mine.

Shares rose slightly to 130.9p.

 

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Mon, 06 Feb 2017 12:34:00 -0500 https://www.proactiveinvestors.com/companies/news/172709/anglo-pacific-upgraded-after-denison-uranium-deal-172709.html
<![CDATA[News - Anglo Pacific doubles down again on energy with Denison deal ]]> https://www.proactiveinvestors.com/companies/news/172571/anglo-pacific-doubles-down-again-on-energy-with-denison-deal-172571.html You only have to look at a recent Anglo Pacific (LON:APF) share price graph to know whether Julian Treger’s decision to double down on coal has paid off.

The company’s shares have risen by a factor of more than 150% in the past 12 months as the full impact of the acquisition of the Narrabri coal royalty began to show through, and as the coal price in turn improved on the back of increased demand in Asia.

To be sure, sentiment in the wider mining sector has improved too, but not all companies have enjoyed a corresponding uplift. Copper, for example, has remained unrelentingly flat.

So too, has uranium. But, against the run of play Anglo Pacific has had a major success in backing the Salamanca uranium project in Spain, held by the consummate operators at Berkeley Energia (LON:BKY).

Berkeley shares have enjoyed a run out of all proportion to anything that’s happening in the wider uranium market, up by more than 600% in the past 18 months, and Salamanca hasn’t even come on stream yet.

But will one success in uranium breed another?

Julian Treger is certainly hoping so, as his latest deal takes a substantial stake in a North American operation, securing an income stream from processing ore from the famous Cigar Lake uranium mine in Canada.

Under the terms of the deal, Denison Mines (TSE:DML), another famous name in uranium mining, will sell a right to 22.5% of the toll milling proceeds from the McClean Lake Mill, which takes ore from Cigar Lake.

The transaction takes the form of an up-front payment of C$2.7 mln, plus the granting to Denison of a C$40.8 mln loan.

It takes Anglo Pacific into partnership with another great name in uranium production, Areva, which owns 70% of the McClean Lake Mill and 37.1% of Cigar Lake, and really begins to set it amongst the big leagues.

Anglo Pacific’s other major asset is a coal royalty on the producing Kestrel mine in Australia, owned and operated by BHP Billiton.

Treger has done well out of coal, but he’s happy to be diversifying Anglo Pacific’s exposure, both in terms of commodity and in terms of jurisdiction. The timing is important too.

“We like getting more exposure to uranium when the uranium price is low,” he says.

“In mining you’ve got to be contrarian to generate good returns. We think it will be accretive to our earnings this year.”

The market seemed to support that view, as half the deal will be funded by new equity, in the form of £13.7 mln raised at 131.75p, a modest discount of 5% to the market price then prevailing.

Even allowing for the small correction that followed, the shares are still bumping along at close to 12 month highs.

“This transaction ticks all the boxes for Anglo Pacific,” says Treger. It will be interesting to see what he does next.

 

 

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Thu, 02 Feb 2017 14:05:00 -0500 https://www.proactiveinvestors.com/companies/news/172571/anglo-pacific-doubles-down-again-on-energy-with-denison-deal-172571.html
<![CDATA[Media files - Uranium deal 'about expanding our portfolio into a new area' says Anglo Pacific CEO ]]> https://www.proactiveinvestors.com/companies/stocktube/6845/uranium-deal-about-expanding-our-portfolio-into-a-new-area-says-anglo-pacific-ceo-6845.html Thu, 02 Feb 2017 09:40:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6845/uranium-deal-about-expanding-our-portfolio-into-a-new-area-says-anglo-pacific-ceo-6845.html <![CDATA[Media files - Outlook for gold in 2017 'quite good' says Mining Capital's Alastair Ford ]]> https://www.proactiveinvestors.com/companies/stocktube/6765/outlook-for-gold-in-2017-quite-good-says-mining-capital-s-alastair-ford-6765.html Fri, 20 Jan 2017 11:44:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6765/outlook-for-gold-in-2017-quite-good-says-mining-capital-s-alastair-ford-6765.html <![CDATA[Media files - Anglo Pacific expecting 'significant growth' in 2017, says CEO Julian Treger ]]> https://www.proactiveinvestors.com/companies/stocktube/6754/anglo-pacific-expecting-significant-growth-in-2017-says-ceo-julian-treger-6754.html Wed, 18 Jan 2017 13:51:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6754/anglo-pacific-expecting-significant-growth-in-2017-says-ceo-julian-treger-6754.html <![CDATA[News - Anglo Pacific has best year since 2011 as coal price surges ]]> https://www.proactiveinvestors.com/companies/news/171800/anglo-pacific-has-best-year-since-2011-as-coal-price-surges-171800.html Anglo Pacific Group PLC (LON:APF TSX:APY) has reaped the full benefit of coal prices hitting a five-year high.

Royalty income in 2016 will be 140% higher and in a range of £20.5mln - £21.5mln (2015: £8.7m), the company said.

An increase in saleable tonnes at the Rio Tinto operated Kestrel mine in Australia also boosted the numbers.

It is the best annual income Anglo has seen since 2011.

The group has royalty concessions at two coal operations in Australia – Kestrel (coking) and Narrabri (thermal), which is run by Whitehaven Coal.

Julian Treger, chief executive, said fourth quarter income would be between £11.6mln-£12.6mln or approximately 147% and 299% higher than the preceding quarter and a year ago.

“Equally encouraging is our outlook for 2017, where we expect further growth in our income as 85-90% of Kestrel's saleable tonnes are expected to be derived from our private royalty area, a significant uplift from the 67% in 2016.

“Our royalty income is also expected to be strong in Q1 2017 following the settlement of coking coal contract prices at $285/t. “

With a weak pound also boosting sterling earnings, this should translate into further growth in royalty income for this year.

Debt is also low said Treger while dividend cover will be above 1.5 times earnings for 2016 though the coking coal price is tipped to level off during the course of the year, which may affect any decision on the dividend in 2017.

Anglo is also looking at other possible investment opportunities, said Treger.

Shares were 2% higher at 129.8p.

--- Original reports from the company had royalty income for 2016 240% higher year-on-year ---

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Wed, 18 Jan 2017 09:09:00 -0500 https://www.proactiveinvestors.com/companies/news/171800/anglo-pacific-has-best-year-since-2011-as-coal-price-surges-171800.html
<![CDATA[News - Anglo Pacific upgraded on coal price surge ]]> https://www.proactiveinvestors.com/companies/news/170730/anglo-pacific-upgraded-on-coal-price-surge-170730.html A City broker has upgraded its valuation of Anglo Pacific Group PLC (LON:APF TSX:APY) following the latest round of coal price agreements.

Peel Hunt has raised its target to 141p a share from 128p and retains its ‘add’ on the stock. 

It comes in the wake of Nippon Steel’s deals with Glencore and Teck Resources from which the miners secured quarter-on-quarter price rises in the order 43% for their coking coal.

This bodes well for Anglo, which earns a royalty from Rio Tinto for production from the Kestrel Mine in Queensland, Australia.

“Nippon is the largest Japanese steel maker, which means the fix with two of the largest seaborne suppliers will be for meaningful volumes and is therefore likely to be the benchmark for subsequent agreements for the first quarter [of 2017],” said analyst Michael Stoner.

While its net asset value-based price target is 141p, the Peel Hunt number cruncher reckons there is “the potential for a 204p valuation” if the dividend yield remains static at 4.9%.

 At 9.30am, the shares were changing hands for 124p each. valuing the business at £211mln.

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Tue, 20 Dec 2016 09:36:00 -0500 https://www.proactiveinvestors.com/companies/news/170730/anglo-pacific-upgraded-on-coal-price-surge-170730.html
<![CDATA[Media files - 2017 has the potential to be a 'record year' for Anglo Pacific ]]> https://www.proactiveinvestors.com/companies/stocktube/6605/2017-has-the-potential-to-be-a-record-year-for-anglo-pacific-6605.html Tue, 13 Dec 2016 15:04:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6605/2017-has-the-potential-to-be-a-record-year-for-anglo-pacific-6605.html <![CDATA[News - Anglo Pacific set for triple boost as coking coal hits five year high ]]> https://www.proactiveinvestors.com/companies/news/170406/anglo-pacific-set-for-triple-boost-as-coking-coal-hits-five-year-high-170406.html Anglo Pacific Group PLC (LON:APF TSX APY) is set for a bumper year as coking coal hit its highest price for five years.

Anglo has royalty concessions at two coal operations in Australia – Kestrel (coking) operated by Rio Tinto PLC and Narrabri (thermal) by Whitehaven Coal.

Benchmark hard coking coal contracts for the first quarter of 2017 have settled at US$285 per tonne Anglo noted today or 43% more than the previous quarter.

It is the highest settlement price since the same period in 2011 and equal to the fourth highest on record in US dollar terms, Anglo added.

WATCH: Anglo Pacific chief Julian Treger speaks to Proactive's Andrew Scott

Key for Anglo, in addition to the price, is how much production from the mines comes from its concession areas and Julian Treger, chief executive, said this was looking promising as well. 

“Anglo Pacific has royalties over the sales of coking coal at the Kestrel mine in Australia where the majority of production is expected to be within the Group's private royalty land during the next twelve months.

"The recent hard coking contract price settlements are materially above the levels we have seen in the past years and significantly higher than our previous assumptions. This should markedly improve our income and dividend cover next year. 

“In addition, the weakness of the pound post Brexit should also improve our income figures in the first half of next year."

Shares rose 1% to 123.8p, and have more than doubled since the end of February.

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Tue, 13 Dec 2016 11:28:00 -0500 https://www.proactiveinvestors.com/companies/news/170406/anglo-pacific-set-for-triple-boost-as-coking-coal-hits-five-year-high-170406.html
<![CDATA[News - Anglo Pacific valuation upped to reflect booming coal price ]]> https://www.proactiveinvestors.com/companies/news/169406/anglo-pacific-valuation-upped-to-reflect-booming-coal-price-169406.html Anglo Pacific Group PLC (LON:APF) shares have the scope to advance a further 25% from their current price.

That at least is the opinion of BMO Capital, which increased its target price for the stock by 15% to 150p a share.

BMO’s Jessica Fung has made across-the-board upgrades to stocks in her coverage ‘universe’ to reflect the higher price assumptions for coal.

Fung expects metallurgical coal to hit US$250 a tonne in the first quarter of next year – 61% higher than her previous forecast – before subsiding towards US$130 as supply increases.

Is Kestrel flying?

Anglo Pacific is well established in the mineral, having drawn sizeable annual income for many years from a coal royalty that covers part of Rio Tinto’s Kestrel mine in Queensland.

This year the price of metallurgical coal has risen further than any other commodity in percentage terms; it has more than doubled according to data gathered by mining industry data specialists CRU.

CRU uses the Australian FOB price of US$108 at the time of writing in making its calculations, although some shipments as reported on Bloomberg and elsewhere in the media have traded at even higher spot rates.

King Coal back on his throne 

This is a remarkable turnaround from the multi-year lows hit back in February.

Back then, market sentiment was running in accordance with a well-established narrative: coal isn’t clean, international agreements are curtailing its use, and power stations are closing.

All true, up to a point. But not the whole story.

In an effort to tackle pollution, the Chinese government has ordered the closure of many coal mines. Others are on a limited production schedule. That, combined with recent heavy rains in the key mining province of Shanxi, have led to a supply shock. Supply has also come off in the Western World too.

All of which has given renewed vigour to companies with exposure to coal, like Anglo Pacific.

“It’s becoming clear that there will be some winners in coal,” said Julian Treger, Anglo Pacific’s chief executive in a recent interview.

Been there, seen it, done it...bought the t-shirt

He’s in a better position to judge than most. As a fund manager at Audley Capital during the mining boom he came to know the mining markets extremely well and his subsequent move to Anglo Pacific in 2013 was therefore of significant interest in the market.

He doubled down on coal with the acquisition in early 2015 of a 1% gross revenue royalty on the Narrabri mine in New South Wales.

Narrabri doesn’t have met coal, but it does have a significant PCI component to it. PCI, or pulverised coal injection, is half-way between met coal and thermal coal in terms of quality, and is priced accordingly.

And the thermal component at Narrabri has been increasing in value too, since thermal coal is up by more than 30% this year to close to US$70 per tonne.

All of which means that Anglo Pacific’s income is likely to be significantly impacted.

Re-rating a possibility

At Kestrel the royalty rate, prescribed by Queensland Mineral Resource Regulations, provides for a three tiered fixed percentage, increasing if the price per tonne of coal is over A$150

Since the current spot US dollar metallurgical price translates to well over A$200 per tonne, the company would appear to be comfortably within that range.

A crucial staging post on that journey will be the contract price that Rio Tinto settles on at Kestrel for the coming sales period, which is likely to be decided in the next couple of weeks.

Once that news is out and the numbers are confirmed, a re-rating of Anglo Pacific’s share price seems a real possibility.

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Wed, 23 Nov 2016 12:19:00 -0500 https://www.proactiveinvestors.com/companies/news/169406/anglo-pacific-valuation-upped-to-reflect-booming-coal-price-169406.html
<![CDATA[Media files - Anglo Pacific Group Plc 'well placed to ride out relaxing of China mining restrictions' ]]> https://www.proactiveinvestors.com/companies/stocktube/6418/anglo-pacific-group-plc-well-placed-to-ride-out-relaxing-of-china-mining-restrictions--6418.html Fri, 18 Nov 2016 10:30:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/6418/anglo-pacific-group-plc-well-placed-to-ride-out-relaxing-of-china-mining-restrictions--6418.html <![CDATA[Media files - 'The best is yet to come', says Anglo Pacific Group plc's Julian Treger ]]> https://www.proactiveinvestors.com/companies/stocktube/6308/-the-best-is-yet-to-come-says-anglo-pacific-group-plc-s-julian-treger-6308.html Wed, 02 Nov 2016 04:18:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/6308/-the-best-is-yet-to-come-says-anglo-pacific-group-plc-s-julian-treger-6308.html <![CDATA[News - Macquarie raises price target on Anglo Pacific as it becomes more bullish on coal ]]> https://www.proactiveinvestors.com/companies/news/168218/macquarie-raises-price-target-on-anglo-pacific-as-it-becomes-more-bullish-on-coal-168218.html The broker Macquarie is predicting mining investment firm Anglo Pacific Group PLC (LON:APF) will be one of the major beneficiaries from a resilient coal market.

Macquarie has increased its 2017 forecasts for metallurgical coal by 24% and thermal coal by 11%, despite describing prices as ‘stubbornly high’.

“While coal prices are expected to decline, they are likely to remain relatively resilient into the first quarter [of next year] given low inventory levels and seasonally strong demand,” Macquarie said.

“This should lead to continued strong earnings momentum for those stocks with meaningful coal exposure as the gap between consensus coal forecasts and spot in the near term is still significant (25-30%).”

Among the diversified miners, Anglo has the greatest coal exposure with 40% of the group’s EBITDA expected to be generated from this source. The company draws a significant annual royalty from the Kestrel Mine in Queensland, Australia.

Macquarie rates Anglo outperform with a £2 price target, up 50p on its previous valuation.

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Fri, 28 Oct 2016 14:29:00 -0400 https://www.proactiveinvestors.com/companies/news/168218/macquarie-raises-price-target-on-anglo-pacific-as-it-becomes-more-bullish-on-coal-168218.html
<![CDATA[Media files - Anglo Pacific chief has high hopes 2017 ]]> https://www.proactiveinvestors.com/companies/stocktube/6197/anglo-pacific-chief-has-high-hopes-2017-6197.html Mon, 17 Oct 2016 13:35:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/6197/anglo-pacific-chief-has-high-hopes-2017-6197.html <![CDATA[News - Anglo Pacific boosts first half royalty income, expects second half improvement ]]> https://www.proactiveinvestors.com/companies/news/129718/anglo-pacific-boosts-first-half-royalty-income-expects-second-half-improvement-129718.html As ever, it was the operational specifics at the Kestrel coal mine in Queensland that were key to results from Anglo Pacific Group plc (LON:APF).

The coal market isn’t overwhelmingly buoyant at the moment, although it is showing signs of improvement.

But pricing isn't the primary factor that affects Anglo Pacific's income from Kestrel, which is derived from a royalty covering a part of the overall operation. Instead, income has tended to rise and fall more in relation to how much Rio Tinto is mining on Anglo Pacific's part of Kestrel in any given period.

At all events, Julian Treger, Anglo Pacific’s chief executive, is confident that coal is a good sector to be in. In spite of some headwinds in terms of perception in the Western world, the company notes an improved outlook both for coking coal and thermal coal in the third quarter of this year.

Treger’s long been clear that demand for coal will continue to hold up, and even rise, in the Middle East and Asia.

To that end he added a new coal royalty to the company’s portfolio last year, and so far his strategy looks to be paying off.

First off, there’s been a significant move in Anglo Pacific’s share price, which has near-on doubled since February this year to the current 96p.

But that share price strength doesn’t come in isolation. The company’s financial numbers continue to improve too, as recent results for the six months to June show.

During the first half of this year, Anglo Pacific’s overall royalty income increased by six per cent to £4.1 mln. More of Anglo Pacific’s portion of Kestrel was mined in the first half of this year than in the corresponding period last year, and the company expects an even better performance from Kestrel in the second half.

What’s more, Anglo Pacific said that mining at Kestrel is now likely to take place mainly on ground over which it holds the royalty, meaning that going forward revenues should be both bigger and more consistent.

All told, in the six months to June, Anglo Pacific generated free cash flow of £3.6 mln, more than double the £1.7 mln generated in the first half of 2015, although accounting revaluations of the Kestrel asset did mean that the company booked a loss overall.

Elsewhere in the portfolio, the increase in the value of the company’s holding in Berkeley Energia was particularly noteworthy, up from a valuation of £7.2 mln as at the end of December 2015, to a valuation of £11.3 mln at the time the June accounts were filed, to a current valuation of £13.5 mln.

The interim dividend was set at 3p. 

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Thu, 25 Aug 2016 13:25:00 -0400 https://www.proactiveinvestors.com/companies/news/129718/anglo-pacific-boosts-first-half-royalty-income-expects-second-half-improvement-129718.html
<![CDATA[Media files - Anglo Pacific boss hails “solid” first half ]]> https://www.proactiveinvestors.com/companies/stocktube/5444/anglo-pacific-boss-hails-solid-first-half-5444.html Thu, 25 Aug 2016 07:30:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/5444/anglo-pacific-boss-hails-solid-first-half-5444.html <![CDATA[News - Anglo Pacific receives Kestrel royalty boost ]]> https://www.proactiveinvestors.com/companies/news/128423/anglo-pacific-receives-kestrel-royalty-boost-128423.html Anglo Pacific Group plc’s (LON:APF) share price got a lift as it reversed its estimate for royalty income from the Kestrel coal field in Australia.

Anglo‘s income comes from royalties from mining assets, one of which is the Kestrel coal mine in Australia.

Kestrel, in Queensland, is operated by mining giant Rio Tinto PLC (LON:RIO), but Anglo owns 50% of tracts of land at the site that entitle it to coal royalty receipts depending on how much mining takes place on its land.

Rio has now told Anglo how much that was in the second quarter of 2016.

And, along with the first quarter, means coal sales from royalty land in the first half will be in the region of 35-40%.

That compares with a lowered estimate of 20-25% made just a few weeks ago.

Overall, Anglo still expects 60-65% of Rio’s production at Kestrel this year to come from its chunk of royalty land but the outcome may now be at the top of this range.

Also, Rio has forecast that 90% of 2017 production will be on Anglo’s royalty land.

“This, along with both the recent weakening of the pound against the Australian dollar and an increase in the coking coal benchmark contract price so far in 2016, should have a positive impact on the Group's reported royalty income," Anglo said.

Share rose 8% to 94p.

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Wed, 20 Jul 2016 15:59:00 -0400 https://www.proactiveinvestors.com/companies/news/128423/anglo-pacific-receives-kestrel-royalty-boost-128423.html
<![CDATA[News - Anglo Pacific - A yield play with capital growth potential ]]> https://www.proactiveinvestors.com/companies/news/126565/anglo-pacific-a-yield-play-with-capital-growth-potential-126565.html Julian Treger is the former activist investor who used to send the City’s laggards scurrying for cover.

The retailer Liberty, jeweller Signet and glass maker Pilkington were all at one time in his cross-hairs.

For the past few years, his focus has been on Anglo Pacific Group plc (LON:APF, TSX:APY), the mining royalty company of which he is CEO.

In the last 12 months the stock has fallen around 30% and is trading at a significant discount to its net asset value but the shares have enjoyed a decent run more recently.

In the year to date they are up 25% and the recent trading update revealed a business reaping the benefits from some wise investments.

The dividend yield, which at 8% today is far, far superior to the income one might generate by stashing one’s cash in a high interest account.

Okay, the cover is a little thin at 0.8 times, but it is improving. And based on the mood music from Anglo, it is unlikely it will cut its dividend after rebasing it twice previously.

The argument Treger and his team would make is the dividend isn’t the problem, but the share price, which five years ago was nudging above 340p (today it is 75p). 

So, what’s the problem? Well, in that time the commodity sector has fallen out of favour.

But part of it, the company reckons, is a lack of understanding of royalty plays where companies such as Anglo help fund projects in return for a regular income stream.

Perception is also an issue. Two of Anglo’s major royalties come from coal, which is seen as a dirty, unfashionable commodity that doesn’t have the sex appeal of, say, precious metals.

In Kestrel and Narrabri, in Australia, Anglo would argue, it has tapped into two top quality assets with significant, with growth potential.

At the same time it has eschewed risk to target politically stable jurisdictions as it has struck deals in Canada, Spain and Brazil as well as Australia.

A recent announcement from Berkeley Energia (LON:BKM), the uranium explorer listed here in London, suggests Anglo has been really cautious in the valuation of its assets.

Anglo bought shares in Berkeley, along with a net smelter royalty for the Salamanca Project in 2009, for US$3mln (A$4.1mln) and there it has remained on the balance sheet (for seven years) with no upward revision.

Yet a deal struck by Berkeley recently with another firm suggests Anglo’s investment is probably worth closer to US$13.1mln.

So, Anglo is conservative in the way it logs its holdings. Okay, it is unlikely we’d see that sort of uplift across the entire portfolio, but there is clearly hidden value.

Park this and just concentrate on Anglo’s net asset value, which is currently 95p, 20p higher than the current share price. Royalty plays of Anglo’s type tend to trade at a decent premium to NAV on other exchanges.

The latest update from Anglo revealed the company to be in rude health, although investors were told its performance would be back-end loaded.

The driver was and continues to be Kestrel, run by Rio Tinto although the Narrabri acquisition has bolstered this.

Here’s how Kestrel investment works: Anglo owns a parcel of the property in Queensland, as does Rio. So, the more of Anglo’s land that’s mined the more money the LSE-listed group stands to make.

In the first half 30-35% of its land was used, with that figure expected to rise to 85-90% in the second half and 90% in 2017.

Not surprisingly, the number crunchers are predicting a sharp rise in revenues and profits from Anglo.

Analysts at the small-cap specialist finnCap reckon revenues will jump to £11.1mln this year (from £8.7mln), advancing to £16.6mln for 2017 and then on to £24.6mln.

That would give adjusted pre-tax profits of £4.6mln for 2016, rising to £9.8mln then £17.8mln.

Anglo is being touted in some quarters as a yield compression play, which is a very City way of saying this income stock has the potential to fly.

If nothing else, it looks like an interesting way to ride the so far tentative revival of the mining sector. 

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Wed, 01 Jun 2016 08:20:00 -0400 https://www.proactiveinvestors.com/companies/news/126565/anglo-pacific-a-yield-play-with-capital-growth-potential-126565.html
<![CDATA[Media files - Anglo Pacific chief confident of a “much stronger” second half ]]> https://www.proactiveinvestors.com/companies/stocktube/5075/anglo-pacific-chief-confident-of-a-much-stronger-second-half-5075.html Wed, 25 May 2016 13:45:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/5075/anglo-pacific-chief-confident-of-a-much-stronger-second-half-5075.html <![CDATA[News - Anglo Pacific Group PLC emerges as global royalty firm ]]> https://www.proactiveinvestors.com/companies/news/124092/anglo-pacific-group-plc-emerges-as-global-royalty-firm-124092.html Shares in royalty specialist Anglo Pacific Group PLC (LON:APF) have soared by more than 25% over the past week, as a strong set of financial results serendipitously rode positive market sentiment towards commodities.

This strength is not something that has come as a complete surprise to Julian Treger, the former fund manager who took the helm at Anglo Pacific around two and a half years ago and who is now steering the company towards what he sees as considerable opportunity.

It’s underpinned by the strong performance in the company’s royalty portfolio and specifically from the new Narrabri royalty on a coal mine in New South Wales, Australia.

This mine is owned and operated by Whitehaven (ASX:WHC), a well-established coal producer with operations right across Australia, and a company that clearly knows its business. Narrabri produced 8.3 mln tonnes of coal in calendar year 2015, well ahead of the design capacity of 6 mln tonnes and comfortably ahead of the assumptions made by Treger and his team at Anglo Pac when they priced the acquisition of the royalty back in March 2015.

“When we bought the royalty we assumed production would be 6.5 mln tonnes,” says Treger. “But now it could rise to as much as 11 mln tonnes per year by 2018. And that certainly flies in the face of peoples’ scepticism about coal demand.”

Indeed, that last point is one of the main reasons naysayers on Anglo Pacific can get a hearing: coal, is the commodity of the 19th and 20th centuries, according to the prevailing narrative – there is no future for it in the 21st century.

Up to a point, this is true. In the Western World, the popularity of coal has taken a dip. But in South East Asia, where most of Anglo Pacific’s coal royalty revenue is generated, the thinking is different.

For one thing, the coal produced at Narrabri and at Kestrel, the Rio Tinto mine over which Anglo Pacific holds a royalty, is of the cleaner variety.

And it’s with that in mind that Treger suggests the global coal market should be regarded from a perspective outside of the western media mindset.

“In South-East Asia there’s a general acceptance that coal is a very useful source of power,” he says.

And he speculates that in due course coal prices should turn and rise once more as markets begin to recognise this. Even in the West, he says, it’s possible that there may be a change of heart.

Treger’s bet big on coal, bringing in Narrabri as a new royalty to add to the existing mainstay of the company, Kestrel.

But there are other strings to the Anglo Pacific bow now, and it seems likely that from here on in the company will diversify away from coal.

Indeed, part of the rationale behind the company’s investment in a royalty on the Salamanca uranium license held by Berkeley Energia (LON:BKY), is that it can act as a hedge against the coal.

Salamanca is now at the financing stage, so there is a little way to go yet before Anglo Pacific sees any income from this project, but it’s backed by some experienced players in the uranium industry who between them built up Mantra Resources into a billion dollar company.

If anyone can get the financial support to put Salamanca into production, they can. And when they do, Anglo Pacific will be looking at a significant value uplift.

“We still carry that investment at the value we paid for it in 2011,” explains Treger, although royalty valuations can be nebulous.

The value of the Kestrel royalty was written down in 2015, causing Anglo Pacific to slip into losses, on paper. On the other hand, Treger is also confident that given the recent performance at Narrabri, that royalty is now worth substantially more than the US$65 mln price that it initially paid.

“My sense is that the write-downs will have stopped now,” he says. “There should be more write-ups now,” although auditors are often more cautious about actually signing off on non-cash value uplifts.

Even so, the outlook is certainly improving. Treger talks of doing further deals that range in value from US$10 mln to US$1bn, although obviously anything at the top end would involve partners and Anglo Pacific playing more of an asset manager role.

But at a more basic level, the outlook on Anglo Pac’s royalties is also improving. The amount of mining that occurs across the company’s Kestrel ground is set to increase, according to guidance given by the operator Rio Tinto (LON:RIO).

And in total the company now has five producing royalties to its name: the two coal royalties, a uranium royalty at the Four Mile mine in Australia, vanadium at the Marac á s Menchen mine in Brazil, and gold at the EVBC mine in Spain.

“Anglo Pacific is well placed to take advantage of opportunities in the royalty and streaming space, to further strengthen our portfolio and return to shareholders,” says Treger.

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Thu, 24 Mar 2016 15:34:00 -0400 https://www.proactiveinvestors.com/companies/news/124092/anglo-pacific-group-plc-emerges-as-global-royalty-firm-124092.html
<![CDATA[Media files - Anglo Pacific Group PLC attracting major mining companies, says CEO ]]> https://www.proactiveinvestors.com/companies/stocktube/4817/anglo-pacific-group-plc-attracting-major-mining-companies-says-ceo-4817.html Thu, 24 Mar 2016 09:17:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/4817/anglo-pacific-group-plc-attracting-major-mining-companies-says-ceo-4817.html <![CDATA[News - Anglo Pacific Group hails Narrabri mine developments ]]> https://www.proactiveinvestors.com/companies/news/120323/anglo-pacific-group-hails-narrabri-mine-developments-120323.html Shares in mining royalty specialist Anglo Pacific (LON:APF TSX:APY) climbed higher after positive developments at the Narrabri mine in which it has a royalty interest.

The operator of the mine, Whitehaven Coal, revealed that the New South Wales Government's Department of Planning and Environment has granted approval to increase annual production from 8 Mtpa (million tonnes per annum) to 11 Mtpa and to install a 400 metre wide long-wall face at the Narrabri Mine.

The 400 metre wide long-wall face is expected to initially increase run of mine coal production by an estimated 750,000 tpa. The first 400 metre wide long-wall panel is expected to come into production in the first half of calendar year 2017, Whitehaven said.

The effect of this has been to reduce the expected free on board (FOB) costs at Narrabri by around A$3 a tonne; Narrabri's unit cost in fiscal 2015 was A$52 a tonne, well below the current thermal coal market price.

Anglo Pacific has a 1% gross revenue royalty on March 11, 2015 and is entitled to royalty income over 100% of sales from the Narrabri Mine from January 1, 2015.

"We are pleased that Whitehaven has received the approval to extend long-wall panel width and increase annual ROM production by almost 40%. These initiatives should lead to significantly higher production volumes from 2017 onwards, exceeding our expectations at the time of the royalty acquisition,” said Julian Treger, chief executive officer of Anglo Pacific.

“We are also encouraged by the unit cost reductions expected at the Narrabri Mine,” he added.

“This action by Whitehaven suggests confidence in increased demand for Narrabri's high quality cleaner coal product in the future,” Treger said.

Shares in Anglo Pacific Group closed at 56.5p in London, up 5.1% on the day.

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Thu, 10 Dec 2015 16:49:00 -0500 https://www.proactiveinvestors.com/companies/news/120323/anglo-pacific-group-hails-narrabri-mine-developments-120323.html
<![CDATA[News - UPDATE - Anglo Pacific royalty income boosted by Aussie coal mine ]]> https://www.proactiveinvestors.com/companies/news/119733/update-anglo-pacific-royalty-income-boosted-by-aussie-coal-mine-119733.html -- adds broker comment --

Mining royalty specialist Anglo Pacific (LON:APF TSX:APY) increased its income in its latest quarter helped by coal mine Narribi's contribution.

Royalty related income rose to £1.9mln in the three months to September, up from £0.5mln a year ago and in spite of the slide in the price of coal and other commodities.

Anglo has royalty agreements with the Narribri and Kestrel coal mines in Australia.

Both are on track to hit production targets this year, said Anglo, even though the third quarter saw major long wall overhaul work at each of the mines.

Anglo Pacific noted reports that Rio Tinto, Kestrel’s owner, intends to close the mine unless it is granted a licence extension, but believes this is part of the normal permitting process for an extension to cover the full extent of the mine plan.

The extension plan also would not affect its royalty as it is largely outside of its area of interest.

Kestrel’s production should recover during this quarter as rates continue to improve towards nameplate long wall capacity of around 6Mtpa.

At Narribri, owner Whitehaven Coal has also applied to increase the production limit to higher than Anglo calculated when it acquired the royalty in March.

Elsewhere, an updated study at Berkeley Energy’s Salamanca uranium project in Spain has indicated a value substantially ahead of its book value of A$4mln.

Anglo has a 1% net smelter royalty over the project and 16.75% stake in Berkeley.

For the first nine months royalty income totalled £5.7mln (£3.0mln). Net assets at the end of the period were £161.4mln  (£171mln).

Julian Treger, chief executive, said: "The increase in the group's royalty income is largely due to the royalty income received from the Narrabri royalty, acquired in the first half of the year, and has been achieved in a period where commodity prices have remained under significant pressure. 

"With long wall change-outs successfully completed at both Kestrel and Narrabri, we are expecting a strong finish to 2015."

Anglo Pacific has also now moved to a standard listing on London’s Main Market from a premium listing previously.

Broker SP Angel added that consensus numbers are revenues of £10mlm for the full year, which is premised on a stronger final quarter.

An 8p dividend looks high, it added, based on projected net income but is covered by cash on the balance sheet and arguably most of the falls in the commodities are priced in now.

Shares rose 1% to 65p.

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Thu, 26 Nov 2015 07:50:00 -0500 https://www.proactiveinvestors.com/companies/news/119733/update-anglo-pacific-royalty-income-boosted-by-aussie-coal-mine-119733.html
<![CDATA[News - Anglo Pacific boosted by Berkeley Energy success at Salamanca ]]> https://www.proactiveinvestors.com/companies/news/117109/anglo-pacific-boosted-by-berkeley-energy-success-at-salamanca-117109.html Anglo Pacific Group (LON:APF), the natural resources royalty group, has welcomed the positive findings of a pre-feasibility study at Berkeley Energy’s Salamanca uranium project in Spain.

Following what Berkeley describes as “outstanding results” the project is being accelerated through to development, and talks with financiers are underway with a view to site works starting in mid-2016.

It is good news for Anglo Pacific, which has a 1% net smelter royalty on all production from Berkeley’s assets in Spain and Portugal and is a 16.75% shareholder in the mining company.

Anglo Pacific highlighted that the decision to progress Salamanca has come much earlier than it had anticipated, and it also noted that as a result of the mine’s better economics it now expects the royalty to be more valuable.

It would be worth “well in advance” of the current A$4mln carrying value, the company said.

Julian Treger, Anglo Pacific chief executive, said: "We believe that the Salamanca Project is rapidly becoming one of the world's best undeveloped, near production uranium assets, and we are delighted to be involved in this very exciting story through both our royalty and equity interests which we expect to increase in value as the mine approaches production."

Berkeley yesterday revealed the findings of an updated pre-feasibility study to include the Zona 7 deposit.

The inclusion of Zona 7 increased the mine life from eleven to eighteen years and reduced operating costs to US$15.60 per pound from US$24.60, he said, making it one of the lowest cost producers anywhere.

Up-front capital expenditure for the first phase of production has also been reduced to US$81.4mln from US$95.1mln due to Zona 7’s lower costs and the weak euro against the dollar.

The study was based the extraction of 69.6mln tonnes of ore at an average grade of 396 ppm (parts per million) U3O8 (uranium) to produce 51.6mln pounds of U3O8.

Over a mine life of 17.5 years that averages 3mln pounds of uranium per year and 4.3mln at steady state production.

Total capital costs to develop and commence production for the three deposits are estimated at just over US$200mln, a US$30mln increase, while ongoing production costs are forecast at US$17.5/lb of uranium.

Salamanca has a resource of 89.5mln pounds purely based on measured and indicated minerals and leaving out inferred resources.

"These outstanding results very much support the board's decision to rapidly push ahead with the development of the project,” said Paul Atherley, Berkeley managing director.

“With the major approvals in place and discussions with potential financiers underway we are expecting to commence site works in mid-2016."

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Thu, 05 Nov 2015 08:03:00 -0500 https://www.proactiveinvestors.com/companies/news/117109/anglo-pacific-boosted-by-berkeley-energy-success-at-salamanca-117109.html