logo-loader
viewAnglo Pacific Group PLC

Anglo Pacific notes Kestrel coal mine expected to increase production by 40% year-on-year in 2019

The group said Adaro Energy anticipates any increase in production to be well absorbed by the market due to high demand for Kestrel's premium quality coal

Coal
Julian Treger, Anglo Pacific’s CEO commented: "While we are cognisant that this is a forecast, it is extremely encouraging news for Anglo Pacific's largest income contributor"

Anglo Pacific Group PLC (LON:APF) (TSX:APY) noted that Adaro Energy has said that implemented changes at the Kestrel coal mine in central Queensland, Australia are expected to increase production in 2019 by 40% compared to 2018.

The London and Toronto-listed royalty company also pointed out that Adaro anticipates any increase in production to be well absorbed by the market due to the high demand for Kestrel's premium quality coal.

WATCH: Anglo Pacific notes Kestrel expected to increase production by 40%

It said that Adaro Energy's fourth-quarter 2018 Activity Report, released on 11 February 2019, supports the view made in Anglo Pacific’s recent trading update regarding expected material production increases at Kestrel in 2019.

In its announcement, Adaro also confirmed that the mine’s operator, Kestrel Coal Resources Pty Ltd, has embarked on a change programme aimed at driving efficiency improvements throughout Kestrel's operations.

READ: Anglo Pacific has US$90mln to spend after strong end to 2018

Anglo Pacific said as it does not operate the mine, it cannot guarantee these forecast increases will eventuate, however, if the increase in production is achieved, it will, subject to prevailing coal prices, lead to a significant increase in income from Kestrel this year for the company.

Julian Treger, Anglo Pacific’s chief executive officer commented: "While we are cognisant that this is a forecast, it is extremely encouraging news for Anglo Pacific's largest income contributor and for the Group's overall income expectations for 2019, as previously stated in our Q4 2018 trading update."

Quick facts: Anglo Pacific Group PLC

Price: 160.5 GBX

LSE:APF
Market: LSE
Market Cap: £291.72 m
Follow

Add related topics to MyProactive

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

NO INVESTMENT ADVICE

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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

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