Proactive Investors - Run By Investors For Investors

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."

View full APY profile View Profile

Anglo Pacific Group PLC Timeline

Related Articles

mineral sands
June 27 2019
Dundas currently has a resource estimate of 117mln tonnes at 6.1% ilmenite in-situ.
Drilling work at Cinovec
April 29 2019
Here we take a deep dive into the mechanics of European Metals Holdings PLC (LON:EMH) (ASX:EMH), which in the Cinovec project has a tiger by the tail
coal
April 02 2019
Peel Hunt has a ‘buy’ recommendation and target price of 205p each on Anglo Pacific shares
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use