Proactiveinvestors USA & Canada Anglo Pacific Group PLC https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Anglo Pacific Group PLC RSS feed en Sun, 26 May 2019 23:24:14 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Anglo Pacific Group hits another record with Q1 2019 earnings numbers ]]> https://ca.proactiveinvestors.com/companies/stocktube/13099/anglo-pacific-group-hits-another-record-with-q1-2019-earnings-numbers-13099.html Thu, 25 Apr 2019 08:24:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/13099/anglo-pacific-group-hits-another-record-with-q1-2019-earnings-numbers-13099.html <![CDATA[News - Anglo Pacific in confident mood after another record quarter ]]> https://ca.proactiveinvestors.com/companies/news/219072/anglo-pacific-in-confident-mood-after-another-record-quarter-219072.html Anglo Pacific Group PLC (LON:APF) (TSX:APY) the mining royalty company, saw its shares rise on Thursday as it revealed it has continued to see meaningful revenue growth in 2019.

Royalty income rose 2% quarter-on-quarter (QoQ) to £14.3mln in the first quarter of 2019 and was more than double the £6.7mln in royalty income recorded in the same quarter of 2018. The improvement was driven by a 12% QoQ increase in the contribution from the Kestrel mine.

READ: Anglo Pacific's income climbs again thanks to vanadium and coking coal

“Income was once again driven by Kestrel, where strong sales volumes during the quarter resulted in a 15% increase in revenue. The volumes achieved during the first quarter indicate that the run rate being targeted by the new owners could be achieved,” said Julian Treger, the chief executive officer (CEO) of the company.

The group's royalty related revenue, which includes royalty income, dividends from the Labrador Iron Ore Royalty Corp (LIORC) and interest from the McClean Lake & Jogjakarta financing arrangements, rose to £16.5mln from £15.4mln in the previous quarter and £7.3mln in the same quarter of 2018.

Add in a few more bits & bobs, and Anglo Pacific's total portfolio contribution rose 7% QoQ to £17.5mln – a new quarterly record - from £16.4mln and 116% from £8.1mln in the first quarter of last year.

Meaningful revenue growth seen in 2019

“We continue to see meaningful revenue growth for the group in 2019, even when factoring in the expected impact of the planned longwall change-outs at Kestrel and Narrabri during 2019,” the company's CEO said.

“During the quarter, coking coal and iron ore pricing remained resilient, which resulted in Kestrel and LIORC being the two largest revenue contributors for the group, whilst we saw thermal coal and vanadium show declines,” Treger added.

“Despite a background of economic uncertainty, our portfolio continues to deliver significant growth. With an encouraging start to the year from Kestrel, especially given its ambitions, we remain confident of delivering organic growth during 2019 whilst seeking to make additional quality investments,” Treger said, adding that the company has “a significant war chest”.

In a note to clients, analysts at ‘house’ broker Peel Hunt said: “Looking across the separate parts of the portfolio the Kestrel royalty stands out as generating ~£1m more than we were expecting - a sign that the improved production volumes promised by the new owners are coming through (helped obviously by the ongoing resilience in coking coal prices).”

Peel Hunt reiterated a 213p price target on Anglo Pacific shares, which in afternoon trading were up 1.5% at 210p.

 -- Adds analyst comment, share price --

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Thu, 25 Apr 2019 07:47:00 -0400 https://ca.proactiveinvestors.com/companies/news/219072/anglo-pacific-in-confident-mood-after-another-record-quarter-219072.html
<![CDATA[News - Anglo Pacific Group shares rise as Peel Hunt maintains 'buy' rating and lifts target price ]]> https://ca.proactiveinvestors.com/companies/news/217756/anglo-pacific-group-shares-rise-as-peel-hunt-maintains--buy--rating-and-lifts-target-price-217756.html Anglo Pacific Group PLC (LON:APF) shares gained on Tuesday as Peel Hunt maintained a ‘buy’ rating and raised its target price to 213p from 205p after the mining royalty group posted solid 2018 results.

Last week, Anglo reported a 16% rise in total royalty income to £46.1mln for 2018, driven by a 13% rise to £32.6mln in the contribution from Australian coking coal mine Kestrel.

READ: Anglo Pacific's income climbs again thanks to vanadium and coking coal

Pre-tax profits rose to £44.5mln from £11.8mln, reflecting a £22mln positive swing in the value of Kestrel.

The new owners of Kestrel – a consortium of Australian mining financier EMR Capital and Indonesian coal producer Adaro Energy – are targeting a 40% increase in volumes in 2019.

“We assume Kestrel will reach a run rate of 6.7mln tonnes per annum by year end and assume the team will hit 5.9mln tonnes in 2019, still up 24% year-on-year in a very supportive price environment,” Peel Hunt said.

“This, in turn, has driven upgrades to our estimates.”

The broker raised its estimates for 2019 total income by 3% to £63.5mln and for earnings (EBITDA) by 4% to £55.7mln. For 2020, it lifted the total income and EBITDA forecasts by 7% and 9% respectively. 

Elsewhere, the contribution to Anglo’s 2018 results from vanadium group Maracas Menchen almost trebled to £5.9mln as prices for the battery metal and steel additive rocketed.

Due to better-than-expected income from Kestrel and Maracas, Peel Hunt now expects the build-up of a larger cash pile.

“The extra cash flow we believe the group will generate leads us to increase our 2019 estimates for dividend per share to 8.5p from 8.0p,” the broker said.  

Peel Hunt added: “We see deal capacity of over £110mln by mid-2020, suggesting management has capacity to make a significantly larger transaction than it has achieved to date.”

Shares in Anglo rose 1.5% to 169p in morning trading.

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Tue, 02 Apr 2019 11:28:00 -0400 https://ca.proactiveinvestors.com/companies/news/217756/anglo-pacific-group-shares-rise-as-peel-hunt-maintains--buy--rating-and-lifts-target-price-217756.html
<![CDATA[News - Anglo Pacific's income climbs again thanks to vanadium and coking coal ]]> https://ca.proactiveinvestors.com/companies/news/217317/anglo-pacific-s-income-climbs-again-thanks-to-vanadium-and-coking-coal-217317.html Mining royalty group Anglo Pacific Group PLC (LON:APF) saw a hefty uplift to revenues in 2018 from its investments in coking coal and vanadium.

Total royalty income rose 16% to £46.1mln, driven by a 13% rise to £32.6mln in the contribution from Australian coking coal mine Kestrel.

Vanadium group Maracas Menchen did even better with its contribution almost trebling to £5.9mln as prices for the battery metal and steel additive rocketed.

There was also the first contribution of £1.9mln from Anglo’s new Labrador Iron Ore investment.

Operating profits rose 21% to £37.1mln and as a result of the strong performance, Anglo Pacific raised its final dividend by 25% to make 8p for the year, an overall 14% annual increase.

Diversifying

Julian Treger, chief executive, said the plan for 2019 is to use its cash to diversify, especially as the new owner of Kestrel is relying heavily on its portion of the royalty.

While that will mean a 40% volume uplift this year from Kestrel, it will also exhaust its reserves quicker and bring forward the point when mining switches off the land under its royalty.

“As such, the imperative is now firmly on reinvesting this cash flow to replace Kestrel's income in the medium-term, and this is our firm focus for the year ahead,” said Treger.

Anglo has £78mln to invest using its own balance sheet before the benefit of the substantially higher volumes expected at Kestrel.

“We reported record income in 2018 and, absent significant volatility in commodity prices, we expect 2019 to show further organic growth from the portfolio,” he added.

Broker Peel Hunt maintained its price target at 205p, adding that at this point in the commodity price cycle, its focus is on reinvestment in the portfolio rather than aggressive dividend growth.

“With a US$100mln warchest, management’s deal capacity is growing steadily with its cash generation.

“On our current estimates, we expect a £34m cash surplus during 2019. This is yet to reflect the full ramp up of the Kestrel royalty, which the new owners are targeting.”

Pre-tax profits in 2018 rose to £44.5mln (£11.8mln) which reflected a £22mln positive swing in the value of Kestrel.

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Wed, 27 Mar 2019 09:30:00 -0400 https://ca.proactiveinvestors.com/companies/news/217317/anglo-pacific-s-income-climbs-again-thanks-to-vanadium-and-coking-coal-217317.html
<![CDATA[Media files - Anglo Pacific Group notches up another record year of royalty revenue ]]> https://ca.proactiveinvestors.com/companies/stocktube/12743/anglo-pacific-group-notches-up-another-record-year-of-royalty-revenue-12743.html Wed, 27 Mar 2019 08:08:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/12743/anglo-pacific-group-notches-up-another-record-year-of-royalty-revenue-12743.html <![CDATA[News - Anglo Pacific Group set to reap rewards from Kestrel mine ramp-up ]]> https://ca.proactiveinvestors.com/companies/news/216966/anglo-pacific-group-set-to-reap-rewards-from-kestrel-mine-ramp-up-216966.html Anglo Pacific Group PLC (LON:AOT) (TSE:APY) is a London and Toronto-listed company that gathers royalties through investments in mining and exploration assets.

The group has built its presence in the mining royalty space on the back of its coal royalty at the Kestrel mine in Australia but in the past few years, it has branched out into new areas and invested in new commodities to diversify its portfolio.

Its royalty portfolio is primarily in Australia, North and South America, and Europe.

Royalty portfolio:

The Kestrel mine is Anglo’s biggest income contributor but the company’s portfolio also includes a royalty held over the Maracas Menchen vanadium mine in Brazil and another over the Pilbara iron ore mine in Australia.

Others include the El Valle-Boinas/Carles gold, silver and copper mine in Spain, the Amapa & Tucano iron ore mine in Brazil, the Ring of Fire cobalt mine in Canada, the Narrabi coal mine in Australia and the Dugbe mine in Liberia.

Inflection points: The operator of the Kestrel mine, Adaro Energy, has implemented changes at the project that are expected to increase production in 2019 by 40% year-on-year. Andaro expects any increase in production to be well absorbed by the market due to the high demand for Kestrel's premium quality coal. Anglo Pacific directors have recommended a 25% increase in its final quarterly dividend for 2018 to 3.125p, to be approved at its annual general meeting on 13 May 2019. That takes the total pay-out for 2018 to 8.0p, around a 14% increase on the 7p per share paid in 2017. The group has US$90mln to invest in new opportunities after a strong finish to 2018. Income from the portfolio jumped 15% to a record £48mln-50mln in 2018, led by contributions from the Kestrel and Maracás Menchen mines. Blue Sky:

Peel Hunt has a ‘buy’ recommendation and target price of 213p each on Anglo Pacific shares.

The broker said the expected 40% increase in coal production from Kestrel in 2019 would take the total output to 5.9mln tonnes for the year.  

This led Peel Hunt to raise its estimates for 2019 total income by 3% to £63.5mln and for earnings (EBITDA) by 4% to £55.7mln. 

Due to better-than-expected income from Kestrel and Maracas last year, Peel Hunt now expects the build-up of a larger cash pile.

“The extra cash flow we believe the group will generate leads us to increase our 2019 estimates for dividend per share to 8.5p from 8.0p,” the broker said.

Peel Hunt added: “We see deal capacity of over £110mln by mid-2020, suggesting management has capacity to make a significantly larger transaction than it has achieved to date.”

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Thu, 21 Mar 2019 07:19:00 -0400 https://ca.proactiveinvestors.com/companies/news/216966/anglo-pacific-group-set-to-reap-rewards-from-kestrel-mine-ramp-up-216966.html
<![CDATA[Media files - Anglo Pacific notes Kestrel expected to increase production by 40% ]]> https://ca.proactiveinvestors.com/companies/stocktube/12206/anglo-pacific-notes-kestrel-expected-to-increase-production-by-40-12206.html Wed, 13 Feb 2019 14:07:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12206/anglo-pacific-notes-kestrel-expected-to-increase-production-by-40-12206.html <![CDATA[News - Anglo Pacific notes Kestrel coal mine expected to increase production by 40% year-on-year in 2019 ]]> https://ca.proactiveinvestors.com/companies/news/214559/anglo-pacific-notes-kestrel-coal-mine-expected-to-increase-production-by-40-year-on-year-in-2019-214559.html 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."

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Wed, 13 Feb 2019 13:43:00 -0500 https://ca.proactiveinvestors.com/companies/news/214559/anglo-pacific-notes-kestrel-coal-mine-expected-to-increase-production-by-40-year-on-year-in-2019-214559.html
<![CDATA[Media files - Anglo Pacific Group recommends 25% increase to final 2018 dividend ]]> https://ca.proactiveinvestors.com/companies/stocktube/12123/anglo-pacific-group-recommends-25-increase-to-final-2018-dividend-12123.html Wed, 06 Feb 2019 13:06:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/12123/anglo-pacific-group-recommends-25-increase-to-final-2018-dividend-12123.html <![CDATA[News - Anglo Pacific Group recommending 25% increase in its final quarterly dividend for 2018 to 3.125p ]]> https://ca.proactiveinvestors.com/companies/news/214084/anglo-pacific-group-recommending-25-increase-in-its-final-quarterly-dividend-for-2018-to-3125p-214084.html Anglo Pacific Group PLC (LON:APF) (TSX:APY) has said its directors are recommending a 25% increase in its final quarterly dividend for 2018 to 3.125p, to be approved at its Annual General Meeting on 13 May 2019.

The dual London and Toronto-listed royalty company said this would result in a total dividend for the year of 8p per share, around a 14% increase on the 7p per share paid in 2017.

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

It also said a quarterly base dividend level of 1.625p is to be retained for 2019, with the final dividend to be decided when announcing the fourth quarter 2019 dividend.

Julian Treger, Anglo Pacific’s chief executive officer, commented: "In arriving at this number, we took into account a very strong set of results for 2018 along with the prospect of meaningful growth from Kestrel in 2019, as announced in our recent Q4 2018 trading update.”

He added: “We are mindful of balancing our growth ambitions with rewarding our shareholders for their continued support and feel that this level of dividend provides healthy dividend cover in excess of 2 times while allowing us to recycle income into growth opportunities. Growth remains the firm focus for 2019."

In a note to clients, analysts at Peel Hunt pointed out that the 8p total pay-out for 2018 was above their estimate for a total of 7.5p.

They added: “We believe our current 2019 DPS estimate of 8p now looks conservative, particularly given management's confidence that its main Kestrel royalty looks set to deliver record volumes during this year.”

Peel Hunt reiterated a ‘buy’ rating and 205p share price target on Anglo Pacific shares, which in early afternoon on Wednesday were trading at 168p, up 3.1% on Tuesday’s close.

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Wed, 06 Feb 2019 12:38:00 -0500 https://ca.proactiveinvestors.com/companies/news/214084/anglo-pacific-group-recommending-25-increase-in-its-final-quarterly-dividend-for-2018-to-3125p-214084.html
<![CDATA[Media files - Anglo Pacific Group sees record year of portfolio income in 2018 ]]> https://ca.proactiveinvestors.com/companies/stocktube/11916/anglo-pacific-group-sees-record-year-of-portfolio-income-in-2018-11916.html Mon, 21 Jan 2019 09:03:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/11916/anglo-pacific-group-sees-record-year-of-portfolio-income-in-2018-11916.html <![CDATA[News - Anglo Pacific has US$90mln to spend after strong end to 2018 ]]> https://ca.proactiveinvestors.com/companies/news/212947/anglo-pacific-has-us90mln-to-spend-after-strong-end-to-2018-212947.html Royalty specialist Anglo-Pacific Group PLC (LON:APF) shares rose on Monday after the firm revealed it has a war chest of US$90mln to invest in new opportunities after a strong end to 2018.

Income from its portfolio of mining interests jumped 15% to a record £48mln-50mln in 2018, said the group.

WATCH: Anglo Pacific Group sees record year of portfolio income in 2018

There were sharply higher contributions from Australian coal producer Kestrel and vanadium miner Maracás Menchen, which increased its royalty by 180% as the price of the steel additive soared.

Kestrel’s operator has also indicated the possibility of a ‘material uplift’ in production in 2019, which would be comfortably in advance of 10% above the current broker consensus of 5.15mt.

Julian Treger, Anglo’s chief executive, said 2018 was a record for income from the portfolio and was upbeat for the year ahead.

“We end the year in a very positive position, with the expectation of returning to a net cash position at the end of January 2019 and up to $90m of liquidity available in order to finance acquisitions.

“With the cost of capital in the mining sector increasing over the past six months, we are now seeing more investment opportunities to deploy capital and add to the £38m of acquisitions we made in 2018.”

Positive implications for dividends

Anglo forecast an unchanged dividend of 7p for 2018 but should the suggested significant increase in Kestrel volumes happen. this would boost revenues substantially with positive implications for dividends, it said.

In a note to clients, analysts at Peel Hunt noted: “Management comments that in 2019 it is expecting Kestrel volumes of at least 10% ahead of the current analyst consensus of 5.2Mt, implying volumes of over 5.7Mt for 2019.

“Within our 2019 estimates is an estimate of 5.6Mt. This suggests there may be further upside to our numbers, let alone consensus estimates as the new owners look to push the mine and coal plant harder.”

Pell Hunt reiterated a ‘buy’ rating and 205p price target on Anglo Pacific shares, which in afternoon trading were 5.2% higher at 152.50p.  

 -- Adds analyst comment, share price --

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Mon, 21 Jan 2019 08:11:00 -0500 https://ca.proactiveinvestors.com/companies/news/212947/anglo-pacific-has-us90mln-to-spend-after-strong-end-to-2018-212947.html
<![CDATA[Media files - Anglo Pacific ‘more of a growth story than market had expected’ ]]> https://ca.proactiveinvestors.com/companies/stocktube/11367/anglo-pacific-more-of-a-growth-story-than-market-had-expected-11367.html Thu, 29 Nov 2018 11:40:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/11367/anglo-pacific-more-of-a-growth-story-than-market-had-expected-11367.html <![CDATA[News - Anglo Pacific set for potential increase in royalty income as vanadium profits jump at the Maracás Menchen mine ]]> https://ca.proactiveinvestors.com/companies/news/209209/anglo-pacific-set-for-potential-increase-in-royalty-income-as-vanadium-profits-jump-at-the-maracs-menchen-mine-209209.html Anglo Pacific Group PLC (LON:APF)(TSE:APY) should receive a significant boost in royalty income in the wake of strong third-quarter results from Largo Resources (TSE:LGO).

Largo is the owner and operator of the Maracas-Menchen vanadium mine, over which Anglo Pacific holds a 2% net smelter return royalty (NSR).

READ: Soaring vanadium price a boon to Anglo Pacific Group, as second largest royalty stream continues to grow

Most tellingly, revenue from Maracás Menchen increased by 148% when set against the corresponding quarter a year ago. The backdrop to that is vanadium price that continues to go from strength to strength. Vanadium has been the best performing metal by some stretch on the markets for a while now, comfortably outstripping cobalt and lithium, both of which have lost a significant amount of their lustre in recent months.

Vanadium though is in short supply, and demand continues to skyrocket as its use in electricity storage grows. At the moment the metal is trading at a 13-year high, with no sign of any reversal of the upward trend.

The consequent effects on Largo have been marked.

Still favoured

When Anglo Pacific first bought the Maracás Menchen royalty, Largo’s market capitalisation stood at around C$276mln. Now it’s well over C$2.2bn, and still continuing to find favour with punters as the go-to Canadian vanadium play.

Precisely what these bullish vanadium conditions mean for the valuation of Anglo Pacific’s royalty at Maracás Menchen remains an open question, but it can’t be anything other than positive.

After all, the Largo numbers speak for themselves. Quarter-on-quarter, Largo’s cash balance has increased by 64% to C$127mln, net income is up from just under C$14mln in the three months to September 2017 to more than C$91mln in the quarter just gone, while earnings per share have jumped from C$0.03 to C$0.14.

From an Anglo Pacific point of view, it’s certainly nice to have a piece of this action, especially considering that it doesn’t have to shoulder any of the operational risks. As it stands, the Maracás Menchen royalty already represents the second largest source of royalty income for Anglo Pacific, going by the most recent quarterlies, at 12%. 

More to come?

Largo has a good record recently for reaching or exceeding nameplate production at Maracás Menchen and has just secured permission from the relevant authorities to boost output from 800 tonnes of vanadium pentoxide per month to 1,000 tonnes per month.

With all that in mind, it seems clear that the royalty income due to Anglo Pacific is in for a significant boost both in the immediate term, following the stellar results, and in the longer term as price strength continues and expansion plans get underway.

It will be interesting to see what comments chief executive Julian Treger makes about it at the next set of results.

 

 

 

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Wed, 14 Nov 2018 15:24:00 -0500 https://ca.proactiveinvestors.com/companies/news/209209/anglo-pacific-set-for-potential-increase-in-royalty-income-as-vanadium-profits-jump-at-the-maracs-menchen-mine-209209.html
<![CDATA[Media files - Higher vanadium and coal prices again boost Anglo Pacific Group ]]> https://ca.proactiveinvestors.com/companies/stocktube/11054/higher-vanadium-and-coal-prices-again-boost-anglo-pacific-group-11054.html Wed, 31 Oct 2018 08:36:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/11054/higher-vanadium-and-coal-prices-again-boost-anglo-pacific-group-11054.html <![CDATA[News - Anglo Pacific expects another record year as vanadium buoys royalty income ]]> https://ca.proactiveinvestors.com/companies/news/208208/anglo-pacific-expects-another-record-year-as-vanadium-buoys-royalty-income-208208.html Higher vanadium and coal prices again boosted mining royalty specialist Anglo Pacific Group PLC (LON:APF).

Income rose 27% to £12.1mln in the three months to September for a nine-month total of £32.9mln (£28.9m).

WATCH: Higher vanadium and coal prices again boost Anglo Pacific Group

Brazil-based vanadium producer Maracás Menchen was the best performer, lifting its contribution by 146% to £1.4mln as the price of the steel additive soared.

Australian coking coal asset Kestrel improved by 26% as coal prices increased, while a special dividend meant a £0.9mln contribution from the recent acquisition of Labrador Iron.

Weak spots were Narribri, Anglo’s other coal royalty in Australia which was affected by mining changes though forecast production for the year remains unchanged.

The value of Anglo’s holding in Spanish uranium project developer Berkeley Energia (LON:BKY) has also reduced by £4mln to £3mln due to permitting concerns.

Overall, Anglo said the outlook continues to improve for the group's commodities, ‘which should result in a record contribution from its royalty portfolio for the second year in a row’.

Total dividends for 2018 will be at least 7p.

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Wed, 31 Oct 2018 08:18:00 -0400 https://ca.proactiveinvestors.com/companies/news/208208/anglo-pacific-expects-another-record-year-as-vanadium-buoys-royalty-income-208208.html
<![CDATA[Media files - Anglo Pacific Group makes major royalty deal with a bigger move into Canada ]]> https://ca.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://ca.proactiveinvestors.com/companies/stocktube/10840/anglo-pacific-group-makes-major-royalty-deal-with-a-bigger-move-into-canada-10840.html <![CDATA[News - Soaring vanadium price a boon to Anglo Pacific Group, as second largest royalty stream continues to grow ]]> https://ca.proactiveinvestors.com/companies/news/205864/soaring-vanadium-price-a-boon-to-anglo-pacific-group-as-second-largest-royalty-stream-continues-to-grow-205864.html What’s been the standout commodity in terms of price performance over the past three years?

Gold? – not likely, given the Fed’s new enthusiasm for raising rates and the consequent strength in the dollar. Copper? – a definite contender, given it’s 25% rise since January 2016, but that performance has been somewhat marred recently by bearish sentiment around President Trump’s ongoing tariff wars. Coal, then? A surprising outlier, with an overall rise of 132% across the last three years, both for the higher quality metallurgical coal and the lower quality thermal variety.

WATCH: Anglo Pacific anticipating ‘significant volume growth’ ahead for portfolio

But the actual answer is Vanadium Pentoxide, the price of which has soared an astonishing 632% since the beginning of 2016.

And what do all these commodities have in common? The answer: with the single exception of gold, they are key components in the royalty portfolio of Anglo Pacific Group PLC (LON:APF)( TSE:APY).

Anglo Pacific has built its presence in the mining royalty space on the back of its coal royalty at the Kestrel mine in Australia. But in the past few years, under the stewardship of chief executive Julian Treger, the company has shown itself willing to branch out into new areas, and to invest in new commodities to diversify its portfolio.

It’s an approach that has paid off for investors in Anglo Pacific in recent months, with the shares at close to three-year highs supported by a chunky dividend. The actual three year high of 166.5p was hit early in May 2018, and the shares have traded up around those levels since then. The current price is 151p, a far cry from the 52.50p low hit in January 2016.

Of course, it’s not all about vanadium, since the wider mining and commodity markets have been on the whole stronger since 2016 across the board.

But having a major position in vanadium does help.

READ: Anglo-Pacific adds more firepower for acquisitions with new loan facility

In Anglo Pacific’s case, the vanadium exposure comes from a 2% net smelter royalty held over the Maracás Menchen mine in Brazil, owned and operated by Largo Resources (TSE:LGO).

Perhaps not surprisingly, given the high vanadium price, Largo turned in a very good operational performance in the first half of 2018, producing 4,672 tonnes of vanadium pentoxide, an increase of 10% on the comparable period a year earlier.

That was in spite of a production fall in the first quarter, which was more than compensated for by increased output and improved recoveries in the second. Largo is now targeting an increase in its monthly production from 800 tonnes to 1,000 tonnes, likely to start in the middle of next year.

Thus, in the six months to June 2018, Maracás Menchen delivered income of £2.1mln into Anglo Pacific’s coffers, a significant 170% increase on the £785,000 delivered in the corresponding period in 2017.

That makes vanadium from Maracás Menchen currently the second most important income stream for Anglo Pacific after income from the Kestrel coking coal mine in Queensland, Australia.

That position may be usurped next year when the new investment in Labrador Iron Ore Royalty Corp (TSE:LIF) begins to come into its own. But even then, with vanadium prices still on the rise, the Maracás Menchen asset will continue to be among Anglo Pacific’s most prized assets.

Most of the pricing risk in vanadium remains on the upside, as Chinese demand continues to be high and investors position themselves for the increasing use of the commodity in next-generation batteries and new energy storage technologies.

Anglo Pacific isn’t the only company benefitting from the high vanadium price. Bushveld Minerals LTD (LON:BMN) owns a controlling interest in a vanadium mine in South Africa.

Its shares are also at a three-year high.

 

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Thu, 27 Sep 2018 11:58:00 -0400 https://ca.proactiveinvestors.com/companies/news/205864/soaring-vanadium-price-a-boon-to-anglo-pacific-group-as-second-largest-royalty-stream-continues-to-grow-205864.html
<![CDATA[News - Anglo-Pacific adds more firepower for acquisitions with new loan facility ]]> https://ca.proactiveinvestors.com/companies/news/205520/anglo-pacific-adds-more-firepower-for-acquisitions-with-new-loan-facility-205520.html Mining royalty specialist Anglo-Pacific Group PLC (LON:APF) has doubled its loan facility to US$60mln to give it more liquidity as it looks for acquisitions.

Already this year, Anglo Pacific has acquired copper and iron ore royalty streams to add to its existing coal, vanadium and uranium interests, but is keen to add more.

Kevin Flynn, chief financial officer, said the facility reflected the strength of Anglo-Pacific's balance sheet and the levels of cash currently being generated.

WATCH: Anglo Pacific anticipating ‘significant volume growth’ ahead for portfolio

“With our current projections of returning to a net cash position by the end of the year, we will soon have about US$90mln of liquidity available.

“Not only does this reduce our dependence on raising equity to finance growth, it guarantees certainty of financing in royalty and stream negotiations."

The revolving facility runs for three years at a cost of LIBOR plus 2.75%.

Accordion feature with the facility

Peel Hunt added that the increased debt facility had been expected and also comes with a US$30m accordion or expansion feature that can be used for acquisitions.

The interest rate is slightly lower than the current facility.

"Having acquired a stake in Labrador Iron Ore and Royalty Corp in mid year this refinancing ensures that it has the funding capacity to make a further material royalty acquisition before year end."

The broker has assumed a US$50m royalty acquisition in coming to its 200p price target.

"The US$50m budget is roughly half the acquisition capacity we see over the next 12-18 months.

"At the current share price we see the shares trading at a 5.6% 2018 dividend yield, rising to 5.8% in 2019. This excludes any potential dividend uplift from further acquisitions."

Shares rose 1% to 154p.

 

-- adds broker comment-- 

 

 

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Mon, 24 Sep 2018 09:06:00 -0400 https://ca.proactiveinvestors.com/companies/news/205520/anglo-pacific-adds-more-firepower-for-acquisitions-with-new-loan-facility-205520.html
<![CDATA[Media files - Anglo Pacific anticipating ‘significant volume growth’ ahead for portfolio ]]> https://ca.proactiveinvestors.com/companies/stocktube/10217/anglo-pacific-anticipating-significant-volume-growth-ahead-for-portfolio-10217.html Thu, 23 Aug 2018 09:45:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10217/anglo-pacific-anticipating-significant-volume-growth-ahead-for-portfolio-10217.html <![CDATA[News - Anglo Pacific reports income growth in first half as Maracás mine posts record income ]]> https://ca.proactiveinvestors.com/companies/news/203452/anglo-pacific-reports-income-growth-in-first-half-as-maracs-mine-posts-record-income-203452.html Anglo Pacific Group PLC (LON:APF) has reported increased earnings in the first half of its financial year, boosted by a record showing from its Maracás Menchen mine in Brazil.

The mining group reported adjusted earnings for the period of £15.4mln, up 19.2% from the same period last year, while revenues climbed 12% to £19mln.

WATCH: Anglo Pacific anticipating ‘significant volume growth’ ahead for portfolio

The firm also reported a 20.1% increase in its total portfolio income to £20.8mln, with a record royalty income of £2.1mln from the Menchen mine.

Anglo also saw income growth from the Kestrel and Denison projects, which rose 12.9% to £14.2mln and 12.5% to £1.07mln respectively. The only decline is earnings was from the Narrabi project, where incomes fell 22.6% to £1.4mln.

In its outlook, the company said documentation for a new larger borrowing facility was “well advanced” and that it would soon have more financial flexibility to “fund further growth”.

Anglo added that it looked forward to the second half with “cautious confidence” given the outlook for commodity prices, “particularly for premium products”, but that there was also the potential for a significant increase in production at Kestrel in the coming years.

Julian Treger, chief executive of Anglo Pacific, said the US$51mln the group had invested in two acquisitions in the period would ”complement and diversify [the] existing portfolio”, adding that volumes at Kestrel “could double in the coming years” following a change in ownership of the project.

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Thu, 23 Aug 2018 07:59:00 -0400 https://ca.proactiveinvestors.com/companies/news/203452/anglo-pacific-reports-income-growth-in-first-half-as-maracs-mine-posts-record-income-203452.html
<![CDATA[News - Anglo Pacific acquires stake in Labrador Iron Ore Royalty Corp ]]> https://ca.proactiveinvestors.com/companies/news/203038/anglo-pacific-acquires-stake-in-labrador-iron-ore-royalty-corp-203038.html Anglo Pacific Group PLC (LON:APF, TSX:APY) has acquired a 4.25% stake in Labrador Iron Ore Royalty Corp (TSX:LIF) (LIORC) for an investment cost of C$65.5mln.

The miner said LIORC, which holds a market cap of around C$1.5bn, is structured as a passive flow-through entity for a 7% gross revenue royalty (GRR) and a C$0.10 per tonne commission on all iron ore products sold by the Iron Ore Company of Canada (IOC).

WATCH: Anglo Pacific to make three more acquisitions before year-end as revenues surge

IOC, operated by FTSE 100 miner Rio Tinto (LON:RIO), is one of the largest producers of iron ore in Canada, and among the top five global producers of iron ore pellets, in addition to selling iron ore concentrate products.

Anglo Pacific said the investment would provide it with exposure to the “premium end of the iron ore concentrate and high margin pellet markets, on terms which are immediately accretive”, adding that LIORC has a historical 2017 dividend yield of around 11%.

Julian Treger, chief executive of Anglo Pacific, said that the company was expecting to receive between C$4.7mln-C$5.7mln of royalty-related revenue during the 2019 calendar year via LIORC dividends.

Treger also said that going forward, the company expected a drive by the Chinese government to reduce pollution from its steel industry to result in “sustained demand for high grade iron ore concentrates with low alumina and silica contents, and an increase in pellets usage within the typical Chinese blast furnace load mix”.

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Thu, 16 Aug 2018 08:47:00 -0400 https://ca.proactiveinvestors.com/companies/news/203038/anglo-pacific-acquires-stake-in-labrador-iron-ore-royalty-corp-203038.html
<![CDATA[Media files - Anglo Pacific Group increases its iron ore exposure with Canada investment ]]> https://ca.proactiveinvestors.com/companies/stocktube/10147/anglo-pacific-group-increases-its-iron-ore-exposure-with-canada-investment-10147.html Thu, 16 Aug 2018 08:23:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10147/anglo-pacific-group-increases-its-iron-ore-exposure-with-canada-investment-10147.html <![CDATA[Media files - Anglo Pacific to make three more acquisitions before year-end as revenues surge ]]> https://ca.proactiveinvestors.com/companies/stocktube/9960/anglo-pacific-to-make-three-more-acquisitions-before-year-end-as-revenues-surge-9960.html Thu, 26 Jul 2018 10:14:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/9960/anglo-pacific-to-make-three-more-acquisitions-before-year-end-as-revenues-surge-9960.html <![CDATA[News - Anglo Pacific's revenues charged by vanadium price surge ]]> https://ca.proactiveinvestors.com/companies/news/201628/anglo-pacific-s-revenues-charged-by-vanadium-price-surge-201628.html Higher coal and vanadium prices have lifted interim revenues at mining royalty specialist Anglo-Pacific PLC (LON:APF).

Royalty income will be in a range of £17.5mln to £18mln in the half year to June, a 10% increase year-on-year after a very strong second quarter.

WATCH: ANGLO PACIFIC ENCOURAGED AS NEW KESTREL OWNER REPORTEDLY SET TO EXPAND PRODUCTION

Kestrel, a coal mine in Australia, will again produce the bulk of this revenue.

Royalty income from the mine is 15% higher than a year ago in a range of £14mln - £14.5mln driven by higher coal prices and production.

Volumes at Kestrel more than doubled in the second quarter compared to the first and will continue at this level for the remainder of the year.

Anglo has also seen a sharp increase in the royalty from the Maracás Menchen vanadium mine in Brazil, which will contribute a record £2.0mln - £2.5mln or already more than the whole of 2017.

Julian Treger, Anglo Pacific’s chief executive, said he is now confident the full year will see ‘further organic growth in our income and cash generation’. 

Kestrel is set to change hands soon but Treger sees this as a bonus for Anglo.

The buyers, Adaro and EMR, recently announced that they intend to double output over the coming years.

“Given that virtually all mining is expected to be within our private royalty area over this period, there is the potential to see a corresponding doubling of our royalty income (depending on commodity prices), which would be a significant and material windfall for the company and its stakeholders.”

Anglo also has exposure to uranium through Berkeley Energia, where production is expected to start shortly, and recently acquired an interest in the Cañariaco copper project in Peru.

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Thu, 26 Jul 2018 09:02:00 -0400 https://ca.proactiveinvestors.com/companies/news/201628/anglo-pacific-s-revenues-charged-by-vanadium-price-surge-201628.html
<![CDATA[Media files - Anglo Pacific encouraged as new Kestrel owner reportedly set to expand production ]]> https://ca.proactiveinvestors.com/companies/stocktube/9801/anglo-pacific-encouraged-as-new-kestrel-owner-reportedly-set-to-expand-production-9801.html Mon, 09 Jul 2018 15:55:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/9801/anglo-pacific-encouraged-as-new-kestrel-owner-reportedly-set-to-expand-production-9801.html <![CDATA[News - Anglo Pacific Group boosted by coal price as broker upgrades ]]> https://ca.proactiveinvestors.com/companies/news/198700/anglo-pacific-group-boosted-by-coal-price-as-broker-upgrades-198700.html King coal appears to be back in the ascendancy and the rising price of the commodity was behind an upgrade for Anglo Pacific Group PLC (LON:APF), the mining royalty specialist.

Peel Hunt has bumped its valuation to 190p from 181p for shares in the business as it said it expected a ‘fade’ in the price of the black stuff to occur next year rather than this.

“Coal prices have been higher than expected over the past few months, due partly to logistics issues in a range of countries,” said analyst Peter Mallin-Jones in a note to clients.

“Demand has also been strong in Chinese steel output, and notably Chinese coal burn in power generation.

“This has driven an increase to our coal price estimates, lifting Anglo Pacific’s revenues and cash flows.”

Valuation underlines Anglo’s potential

So, why does this matter to Anglo? Well, it has exposure to the sector via royalty streams from the Kestrel and Narrabri mines in Australia, which were singled out by the Peel Hunt number cruncher.

The revised target price, meanwhile, was based on the average of the updated net asset value (187p) and the dividend yield valuation of Anglo (194p).

The shares, down a penny, were changing hands for 153.5p, or around 24% below the Peel Hunt target.

Gold and uranium too

Anglo isn’t just fuelled by coal. It receives royalties from a gold project in Spain, a vanadium operation in Brazil, as well as receiving uranium income from the US and Australia.

There’s also a royalty on the Berkeley Energia (LON:BKY) uranium mine in Spain, due to come on stream next year.

That’s already a good spread in terms of commodity and jurisdiction, but chief executive Julian Treger said recently he is keen to broaden the company’s exposure to industrial metals.

“We want to grow in copper, nickel and zinc,” he says. “But it will be specific to opportunity.”

As to the more fashionable commodities like lithium and cobalt, it seems likely that Anglo will leave those alone for the moment. Treger reckons cobalt is a bit “overblown” and is not convinced of the long-term dynamics for lithium either.

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Tue, 12 Jun 2018 12:05:00 -0400 https://ca.proactiveinvestors.com/companies/news/198700/anglo-pacific-group-boosted-by-coal-price-as-broker-upgrades-198700.html
<![CDATA[News - Anglo Pacific Group to acquire a net smelter return royalty in Peruvian copper project ]]> https://ca.proactiveinvestors.com/companies/news/198556/anglo-pacific-group-to-acquire-a-net-smelter-return-royalty-in-peruvian-copper-project-198556.html Anglo Pacific Group plc (LON:APF, TSX:APY) is to acquire an existing 0.5% net smelter return royalty over the Cañariaco copper project from Entrée Resources.

The Cañariaco project in Peru is wholly-owned by Candente Copper (TSE:DNT).

READ: Anglo Pacific continues to generate lots of cash from its mining royalty portfolio​

Anglo Pacific will provide Entrée with US$1mln in Anglo Pacific shares in return for the royalty.

The acquisition is in line with the company's strategy to invest smaller amounts in development stage opportunities that have the potential for higher returns along with significant growth potential.

"The Cañariaco Royalty reflects the company's increased focus on commodities which we believe will be vital in the delivery of new technology and innovation. This copper royalty supplements our Maracás Menchen vanadium royalty and our recently announced Piauí nickel-cobalt royalty, providing the company with considerable exposure, and upside, to base materials which have a huge part to play in the energy storage and electric vehicle revolution,” said Julian Treger, the chief executive officer of Anglo Pacific Group.

"It is predicted that in the coming years declining copper grades at existing operations and the lack of recent investment into copper production capacity will lead to a supply deficit based on industrial demand sources alone. The incremental copper demand, driven by electric vehicle sales growth forecasts, creates conditions for an even tighter supply environment,” Treger said.

"We believe new copper supply will be required, and with a NI 43-101 compliant measured and indicated resources of over 7.5 billion pounds of contained copper, the Cañariaco project ranks as one of the largest independently owned, undeveloped copper projects. The project's additional exploration upside, low-cost potential and location in an established mining jurisdiction indicates a positive prospect for development during the next decade,” he continued.

"Longer-term, the Cañariaco project has the potential to provide economic benefits in the form of direct, full time, life of mine employment for approximately 600 people, as well as 2,000 people during construction, and in addition the potential to create indirect life of mine indirect employment for an additional 2,400 people over a 20 year mine-life," Treger suggested.

Shares in Anglo Pacific were up 2% at 153p towards the end of trading.

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Fri, 08 Jun 2018 15:37:00 -0400 https://ca.proactiveinvestors.com/companies/news/198556/anglo-pacific-group-to-acquire-a-net-smelter-return-royalty-in-peruvian-copper-project-198556.html
<![CDATA[Media files - Anglo Pacific acquires royalty on Cañariaco Copper Project in Peru ]]> https://ca.proactiveinvestors.com/companies/stocktube/9526/anglo-pacific-acquires-royalty-on-caariaco-copper-project-in-peru-9526.html Fri, 08 Jun 2018 15:27:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/9526/anglo-pacific-acquires-royalty-on-caariaco-copper-project-in-peru-9526.html <![CDATA[Media files - Higher commodity prices sees Anglo Pacific get off to a solid start in 2018 ]]> https://ca.proactiveinvestors.com/companies/stocktube/9293/higher-commodity-prices-sees-anglo-pacific-get-off-to-a-solid-start-in-2018-9293.html Tue, 15 May 2018 09:54:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/9293/higher-commodity-prices-sees-anglo-pacific-get-off-to-a-solid-start-in-2018-9293.html <![CDATA[News - Anglo Pacific continues to generate lots of cash from its mining royalty portfolio ]]> https://ca.proactiveinvestors.com/companies/news/196989/anglo-pacific-continues-to-generate-lots-of-cash-from-its-mining-royalty-portfolio-196989.html Higher commodity prices helped royalty company Anglo Pacific Group plc (LON:APF) get off to a solid start in 2018.

Royalty income from the Kestrel coal mine and other projects totalled £7.9mln in the opening three months of the year, in line with the £8.2mln generated in the same period of 2017, which was a record year for the group.

Strong cash generation

The slight drop-off in income was down to production shortfalls at Rio Tinto PLC’s (LON:RIO) Kestrel mine and Whitehaven’s Narrabri project, although volumes at those two mines are expected to pick up over the year.

The lower volumes were partially offset by the continued recovery of commodity prices; in particular vanadium, which has more than doubled over the past year.

Higher prices look set to be a key feature moving forward as well, with the second quarter consensus for coking coal now 50% higher than what was predicted this time last year.

During the quarter, Anglo generated free cash flow of £13.3mln (Q1 2017: £13.4mln) leaving it with £18.7mln in the bank come the end of March (Dec 31: £8.1mln).

WATCH: Higher commodity prices sees Anglo Pacific get off to a solid start in 2018

“We continue to generate significant cash from our portfolio, have immediate access to circa US$65mln and are currently in the process of upsizing our bank facility,” said chief executive Julian Treger.

“The focus for the year is firmly on growth and we continue to work very hard on exploring, evaluating and appraising new opportunities.”

He added: “The announced sale of Kestrel during the quarter was around 50% higher than what the market had anticipated in 2017, suggesting a potential upside to our royalty. This should benefit Anglo Pacific as the beneficiary of the vast majority of royalty payments over the next 8-10 years.”

Anglo shares were down 0.9% to 161p shortly after the opening bell in London.

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Tue, 15 May 2018 08:16:00 -0400 https://ca.proactiveinvestors.com/companies/news/196989/anglo-pacific-continues-to-generate-lots-of-cash-from-its-mining-royalty-portfolio-196989.html
<![CDATA[Media files - Anglo Pacific CEO says Kestrel royalty brings increased confidence in growth from organic sources ]]> https://ca.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://ca.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’s bumper royalty revenue means it’s now trading on a cash flow multiple of just seven times ]]> https://ca.proactiveinvestors.com/companies/news/194369/anglo-pacifics-bumper-royalty-revenue-means-its-now-trading-on-a-cash-flow-multiple-of-just-seven-times-194369.html Anglo Pacific Group plc (LON:APF) turned in a bumper set of full year results at the end of March, as the recovery in the mining sector began to hit its stride and the company’s judicious acquisition strategy starts to pay off in a serious way.

Royalty income from the Kestrel coal mine and other projects hit a record level of £37.4mln, an increase of 90% over the £19.7mln received last year.

In part, of course, that increase is a straightforward consequence of the greater number of active royalties that are now in the portfolio, and a greater measure of the company’s performance can be seen in the almost tripling of the free cash flow per share from 7.93p to 23.2p.

Accordingly, Anglo Pacific’s shares are trading on a cash flow multiple of around 6.5 or seven times, which is low for a royalty company and a result partly because in London there’s a paucity of peers to which the company can be compared.

And, with a 72% increase in adjusted earnings booked at 16.82p, up from the 9.76p delivered in the previous year, the dividend is now covered by almost 2.5 times.

All of which provides a very solid foundation for Anglo Pacific to build upon in the coming months and years.

Chief executive Julian Treger is confident the company will be able to up the number of deals it can do in a given calendar year, now that the mining market looks to have recovered its poise to some extent after long years of bearish sentiment, but even if there is more optimism around in mining, capital is still extremely scarce. And that’s where the real opportunity for Anglo Pacific comes in.

The company ended the year with cash on hand of £8.1mln, a figure that’s set to grow quarter-on-quarter as the royalty income continues to roll in. There’s also U$15mln available through what Treger describes as “non-core” equity holdings, and an unused credit facility of US$40mln.

However, Treger hopes to raise that facility to US$90mln before too long. All told, with a strong financial base and significant war chest, Anglo Pacific looks well set up to secure further royalties from companies looking for constructive ways to raise capital without diluting their own shareholders.

“The backdrop is very favourable,” says Treger.

“There continues to be a shortage of capital in the mining sector, and there’s a lot of demand.”

It’s helpful - to Anglo Pacific at least – that this time round the mining cycle isn’t co-ordinated.

“Some commodities are more fully valued than others,” says Treger.

Accordingly, Anglo Pacific will continue to take a selective approach.

Currently it holds cash generating royalties over coal projects in Australia, a gold project in Spain, a vanadium project in Brazil, as well as uranium royalties in the US and Australia. There’s also a royalty on the Berkeley Energia (LON:BKY) uranium mine in Spain, due to come on stream next year.

That’s already a good spread in terms of commodity and jurisdiction, but Treger is keen to broaden the company’s exposure to industrial metals.

“We want to grow in copper, nickel and zinc,” he says. “But it will be specific to opportunity.”

As to the more fashionable commodities like lithium and cobalt, it seems likely that Anglo Pacific will leave those alone for the moment. Treger reckons cobalt is a bit “overblown” and is not convinced of the long-term dynamics for lithium either.

But that aside, the company is open to opportunities and comfortable with the way it sits in the current market.

“I think that subject to hiccups we’re now in a market which has co-ordinated global growth, and that should be beneficial to industrial minerals,” says Treger.

“Having said that the rise of indexisation will lead to a paucity of capital for mining ventures, and money from the generalist funds is going into the larger capitalised companies. The small companies and even specialised funds are continuing to see outflows.”

And that sort of environment is one in which Anglo Pacific should thrive.

“There’s a lot of demand for financing and not much supply,” adds Treger. “So we hope to up the number of transactions we complete this year.”

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Fri, 06 Apr 2018 09:01:00 -0400 https://ca.proactiveinvestors.com/companies/news/194369/anglo-pacifics-bumper-royalty-revenue-means-its-now-trading-on-a-cash-flow-multiple-of-just-seven-times-194369.html
<![CDATA[News - Anglo Pacific on look out for more deals as royalty income soars ]]> https://ca.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://ca.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 2017 with royalty income of £37.4 mln ]]> https://ca.proactiveinvestors.com/companies/stocktube/8961/anglo-pacific-enjoys-record-2017-with-royalty-income-of-374-mln-8961.html Wed, 28 Mar 2018 08:32:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/8961/anglo-pacific-enjoys-record-2017-with-royalty-income-of-374-mln-8961.html <![CDATA[Media files - Anglo Pacific enjoys record year with strengthening coal and vanadium prices ]]> https://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.proactiveinvestors.com/companies/stocktube/8080/anglo-pacific-widens-portfolio-with-nickel-cobalt-acquisition-8080.html Thu, 14 Sep 2017 08:15:00 -0400 https://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.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://ca.proactiveinvestors.com/companies/stocktube/7857/zak-mir-anglo-pacific-group-looking-at-150p-7857.html Mon, 31 Jul 2017 10:47:00 -0400 https://ca.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://ca.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://ca.proactiveinvestors.com/companies/news/181693/anglo-pacific-group-reveals-steep-rise-in-royalty-income-181693.html