Anglo Pacific Group PLC Q1 2016 Trading Update (1808Z)
May 25 2016 - 2:00AM
UK Regulatory
TIDMAPF
RNS Number : 1808Z
Anglo Pacific Group PLC
25 May 2016
News Release
May 25, 2016
Anglo Pacific Group PLC
Q1 2016 Trading Update
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 trading update for the period
January 1, 2016 to May 23, 2016. Unless otherwise stated, all
unaudited financial information is for the quarter ended March 31,
2016.
Highlights
-- Royalty income of GBP1.9m in Q1 2016 (Q1 2015:
GBP2.3m, Q4 2015: GBP3.0m) in line with the Group's
expectations that the majority of royalty income,
similar to 2015, will be received in H2 2016
-- Guidance from Kestrel remains unchanged with
30-35% of production expected within the Group's
land in H1 2016 and 85-90% in H2 2016
-- Recovery in both the outlook and price of coking
coal and vanadium pentoxide
-- First receipts from the Four Mile royalty of
GBP0.2m
-- Cash and cash equivalents of GBP3.7m as at March
31, 2016 (December 31, 2015: GBP5.7m)
-- Borrowings of GBP9.3m as at March 31, 2016 (December
31, 2015: GBP7.3m)
-- Following positive developments at Berkeley Energia
Limited ("Berkeley"), the Group's equity stake
is valued at GBP10.3m (as of May 23, 2016) and
the implied value of the Group's royalty, based
on Berkeley's recently announced deal, is approximately
$10m higher than the value carried on our balance
sheet
Julian Treger, Chief Executive Officer of the Company,
commented:
"Similar to 2015, we expect the majority of our royalty income
to be earned in the second half of 2016. We continue to expect
royalty income for 2016 as a whole to be significantly higher than
the GBP8.7m earned in 2015, a year which marked the beginning of a
turnaround for the Group in terms of production returning to the
Group's royalty land at Kestrel and a full year of income for the
Narrabri royalty.
We are pleased to finally see the price of coking coal show some
signs of recovery. We believe that the price risk relating to
coking coal should be to the upside.
We were encouraged to see the first receipts from our Four Mile
uranium royalty in the period. Uranium is a commodity we continue
to believe in and are pleased to see the recent positive
developments at Berkeley which not only has increased the value of
our equity holding but also implies that the market value of our
royalty is approximately $10m higher than the carrying value in our
balance sheet based on an identical royalty which they announced
earlier this month."
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 / David Bass / Richard
Crowley
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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