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Anglo Pacific swoops to increase its stake in LIORC

"We will continue to opportunistically add to our position depending on the share price and our own liquidity, in the meantime we will allocate our cash towards shareholder returns, repaying our borrowings and making other royalty acquisitions."

Iron ore mine

Anglo Pacific Group PLC (LON:APF. TSE:APY) has increased its shareholding in Labrador Iron Ore Royalty Corp (LIORC) to 5.88%.

After its latest investment of around C$9.8mln – roughly £5.8mln – it has now invested a total of C$92.8mln (about £54.7mln) in LIORC.

The million or so LIORC shares Anglo Pacific has acquired this year will be eligible for the latest quarterly dividend of C$1 announced by LIORC, of which 75 cents was a special divi.

The additional investment was funded with cash-on-hand and a partial drawdown on the company's revolving credit facility.

The group retains access to about US$35mln under its current revolving credit facility.

“The global sell-off in the equity markets at the beginning of Q3 2019 provided an attractive entry point for Anglo Pacific to opportunistically add to its LIORC position as we considered that the underlying fundamentals of the royalty and iron ore product fitted within our return requirements at such price levels,” said Julian Treger, the chief executive officer of Anglo Pacific.

"In this respect, we have made what we believe to be conservative assumptions about the iron ore and pellet prices going forward. The acquisition is immediately cash generative and will be accretive to our earnings in FY 2019 and beyond," he added.

Shares in Anglo Pacific were up 2.1% to 197p.

Quick facts: Anglo Pacific Group PLC

Price: 187.5 GBX

LSE:APF
Market: LSE
Market Cap: £340.26 m
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Anglo Pacific Group makes major royalty deal with a bigger move into Canada

Anglo Pacific Group (TSE:APY) CEO Julian Treger joined Steve Darling from Proactive Investors Canada on Skype from London to talk about their recent royalty deal with the Labrador Iron Ore Royalty Corp. That gives Anglo a big play in Canada. Treger also talked about well the company is...

on 10/15/2018

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