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.
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.
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."