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Anglo Pacific says full year dividend will be at least 9p, following another record year of royalty revenues

Tough financing conditions in the mining sector create opportunities for Anglo Pacific

Anglo Pacific Group PLC -

Revenues generated by the royalty portfolio held by Anglo Pacific Group PLC (LON:APF) (TSE:APY) hit £57.6mln in 2019, a 20% increase on the revenue generated in 2018, and another record.

Five years earlier the portfolio generated just £3.4mln.

Significant volume increases at the Kestrel coal mine in Australia were central to the performance.

Anglo Pacific also received a dividend of C$4.00 per share from the Labrador Iron Ore Company that it holds, its second-largest source of revenue.

The company also received a maiden royalty of around £1mln from the Mantos copper project. On the downside, weakness in the vanadium price resulted in lower revenue from Maracás Menchen

Net debt at the end of 2019 stood at £28.9mln, following £62.5mln of investment and £14.4mln of dividend payments.

The total dividend for 2019 will be at least 9p, of which 4.875p has already been paid or declared.

"We are pleased to report yet another record year of income for Anglo Pacific, the second year in a row in which we have done so,” said Anglo Pacific’s chief executive Julian Treger.

“Including the cash received from the Denison financing arrangement, total portfolio contribution for the year is expected to be between £57mln and £59mln, which represents growth of around 20% on the £49.3mln generated in 2018. The strong levels of cash generated in 2019 enabled us to use our balance sheet to acquire £62.5mln (US$75mln) in income generating royalties. In the same period, we paid out £14.4mln (US$18.5mln) in dividends. Our balance sheet remains in a very strong position,” he added.

 

Quick facts: Anglo Pacific Group PLC

Price: 150 GBX

LSE:APF
Market: LSE
Market Cap: £272.21 m
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Anglo Pacific hits new record as diversification strategy pays off

The Anglo Pacific Group (LON:APF) trading update is out on the back of a strong Q4 in 2019. CEO Julian Treger speaks to Proactive London about what's driven the numbers and how the continuing diversification of its investment portfolio together with working in different geographies has been...

on 20/1/20

2 min read