viewAnglo Pacific Group PLC

Macquarie raises price target on Anglo Pacific as it becomes more bullish on coal

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

The coal market should provide plenty of fuel for Anglo's stock.

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.

Quick facts: Anglo Pacific Group PLC

Price: 137.6 GBX

Market: LSE
Market Cap: £2.44 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Anglo Pacific Group PLC named herein, including the promotion by the Company of Anglo Pacific Group PLC in any Content on the Site, the Company...


Full interview: Anglo Pacific Group reveals $20 million investment towards a...

Anglo Pacific Group PLC (LON:APF) (TSE:APY) CEO Julian Treger tells Proactive it has entered into a $20mln financing agreement with Incoa Performance Minerals LLC, to fund the construction of Incoa’s calcium carbonate mine in the Dominican Republic as well as a processing facility in Mobile,...

on 03/02/2020

2 min read