TIDMAPF
RNS Number : 1199N
Anglo Pacific Group PLC
14 May 2015
News Release
May 14, 2015
Anglo Pacific Group PLC
Interim Management Statement
Anglo Pacific Group PLC ("Anglo Pacific", the "Company" or the
"Group") (LSE: APF, TSX: APY), the London and Toronto listed
royalty company, issues the following interim management statement
for the period January 1, 2014 to May 13, 2015. Unless otherwise
stated, all unaudited financial information is for the quarter
ended March 31, 2015.
Highlights
-- Anglo Pacific made significant progress in delivering on its
stated strategy in the first quarter
-- Acquisition of the Narrabri royalty for US$65.0 million along
with the associated, successful equity raise and obtaining a new
US$30.0 million revolving credit facility
-- Maiden royalty revenue earned for Narrabri and Maracás during
Q1 2015
-- Royalty income of GBP2.3 million in Q1 2015 (Q4 2014: GBP0.5
million, FY 2014: GBP3.5 million)
-- GBP1.7 million in cash generated from disposal of non-core
assets
-- Appointment of Patrick Meier as independent non-executive
director effective April 30, 2015
Royalty income
A significant part of the Group's strategy is to reduce
dependence on Kestrel royalty income. We were pleased to see this
happening in the first quarter as demonstrated by the first royalty
income being earned from the Group's two most recent royalty
acquisitions, Narrabri and Maracás, taking the number of producing
royalties in the portfolio to six. Combined with the Group's
existing producing royalties, overall royalty income in the first
quarter was GBP2.3 million compared with GBP0.5 million in the
previous quarter and GBP3.5 million in 2014 as a whole. We remain
confident that royalty income for 2015 will be significantly higher
than in 2014.
As previously communicated, an important agreement was reached
with Rio Tinto in 2014 to provide the Group with greater visibility
over the next twelve months of the projected tonnage within the
Group's private royalty land at the Kestrel mine. The Group is
increasingly confident in information provided from the mine to
forecast our future royalty revenues: the actual tonnage on which
our Q1 2015 royalty was based was in line with that previously
forecasted by Rio Tinto during 2014. The guidance we are now
receiving suggests that production and our share of that production
is increasing above Rio Tinto's previous forecasts and that our
expectation of production within our land rising to approximately
90% by 2017 is well on track.
Financial position
The disposal of non-core assets continued in the first quarter
of 2015, albeit at a slower pace, with GBP1.7 million in cash
generated from certain equity disposals. The market value of the
remaining equity portfolio at March 31, 2015 was GBP6.8 million.
The Group had GBP6.5 million in cash at March 31, 2015 with US$6.0
million drawn on its revolving credit facility, leaving $24.0
million undrawn.
Dividend
Following approval at the 2015 AGM, the final dividend for the
financial year ended December 31, 2014 of 4.00p per share will be
paid on August 7, 2015 to shareholders on the Group's share
register at the close of business on June 26, 2015. The shares will
be quoted ex-dividend on the London Stock Exchange on June 25, 2015
and the Toronto Stock Exchange on June 24, 2015.
In the medium term, the Board is committed to a minimum annual
total dividend of 8.00p per share subject to, amongst other things,
the level of adjusted earnings, proceeds from the disposals of
non-core assets and prospective investment opportunities. In the
longer term, the Board intends to adopt a dividend policy paying
dividends representing a minimum of 65% of adjusted earnings.
Julian Treger, Chief Executive Officer of the Company,
commented:
"The first quarter of 2015 has been encouraging for Anglo
Pacific with the first royalty income earned from our two recent
acquisitions, Narrabri and Maracás. We are also pleased with the
underlying production in Q1 2015 at Narrabri, which is ahead of our
expectations. In addition, we are increasingly confident about the
recovery of royalty income from Kestrel, supported by the level of
information now received from Rio Tinto."
For further information:
Anglo Pacific Group PLC +44 (0) 20 3435 7400
Julian Treger - Chief Executive
Officer
Kevin Flynn - Chief Financial
Officer and Company Secretary
Website: www.anglopacificgroup.com
BMO Capital Markets Limited +44 (0) 20 7664 8020
Jeffrey Couch / Neil Haycock /
Tom Rider
Macquarie Capital (Europe) Limited +44 (0) 20 3037 2000
Raj Khatri / Nicholas Harland / Ariel
Tepperman
Peel Hunt LLP +44 (0) 20 7418 8900
Matthew Armitt / Ross Allister
Bell Pottinger +44 (0) 20 3772 2500
Nick Lambert / Lorna Cobbett
Notes to Editors
About Anglo Pacific
Anglo Pacific Group PLC is a global natural resources royalty
company. The Company's strategy is to develop a leading
international diversified royalty company with a portfolio centred
on base metals and bulk materials, focusing on accelerating income
growth through acquiring royalties on projects that are currently
cash flow generating or are expected to be within the next 24
months. It is a continuing policy of the Company to pay a
substantial portion of these royalties to shareholders as
dividends.
Cautionary statement on forward-looking statements and related
information
Certain information contained in this announcement, including
any information as to future financial or operating performance and
other statements that express management's expectation or estimates
of future performance, constitute "forward looking statements". The
words "expects", "anticipates", "plans", "believes", "estimates",
"seeks", "intends", "targets", "projects", "forecasts", or negative
versions thereof and other similar expressions identify
forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Further, forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties which could cause actual results to differ materially
from those anticipated, estimated or intended in the
forward-looking statements. Furthermore, this announcement contains
information and statements that are based on certain estimates and
forecasts that have been provided to the Group by Kestrel Coal Pty
Ltd ("KCPL"), the accuracy of which KCPL does not warrant and on
which readers may not rely. The material assumptions and risks
relevant to the forward-looking statements in this announcement
include, but are not limited to: stability of the global economy;
stability of local government and legislative background;
continuing of ongoing operations at the properties underlying the
Group's portfolio of royalties in a manner consistent with past
practice; accuracy of public statements and disclosures (including
feasibility studies and estimates of reserve, resource, production,
grades, mine life, and cash cost) made by the owners and operators
of such underlying properties; accuracy of the information provided
to the Group by the owners and operators of such underlying
properties; no material adverse change in the price of the
commodities produced from the properties underlying the Group's
portfolio of royalties and investments; no material adverse change
in foreign exchange exposure; no adverse development in respect of
any property in which the Group holds a royalty or other interest,
including but not limited to unusual or unexpected geological
formations and natural disasters; successful completion of new
development projects; planned expansions or additional projects
being within the timelines anticipated and at anticipated
production levels; and maintenance of mining title. If any such
risks actually occur, they could materially adversely affect the
Group's business, financial condition or results of operations. For
additional information with respect to such risks and
uncertainties, please refer to the "Principal Risks and
Uncertainties" section of our most recent Annual Report and to the
"Risk Factors" section of our most recent Annual Information Form
available on www.sedar.com and the Group's website
www.anglopacificgroup.com. Readers are cautioned to consider these
and other factors, uncertainties and potential events carefully and
not to put undue reliance on forward-looking statements. The
forward-looking statements contained in this announcement are made
as of the date of this announcement only and the Group undertakes
no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
Third party information
As a royalty holder, the Group often has limited, if any, access
to non-public scientific and technical information in respect of
the properties underlying its portfolio of royalties, or such
information is subject to confidentiality provisions. As such, in
preparing this announcement, the Group has largely relied upon the
public disclosures of the owners and operators of the properties
underlying its portfolio of royalties, as available at the date of
this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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