TIDMAPF
RNS Number : 2348N
Anglo Pacific Group PLC
28 January 2016
News Release
January 28, 2016
Anglo Pacific Group PLC
Q4 2015 Trading Update
Anglo Pacific Group PLC ("Anglo Pacific", the "Company" or the
"Group") (LSE: APF, TSX: APY), the London and Toronto listed
royalty company, announces the following trading update for the
period October 1, 2015 to December 31, 2015, ahead of the release
of its full year results on March 23, 2016. Unless otherwise
stated, all unaudited financial information is for the quarter
ended December 31, 2015.
Highlights
-- Royalty income for Q4 2015 in the range of GBP2.7 - GBP3.0m
(Q4 2014: GBP0.4m)
-- Royalty income for 2015 in the region of GBP8.5 - GBP8.8m
(2014: GBP3.5m)
-- H2 2015 and full year Kestrel coal production within Anglo
Pacific's royalty area of 84% (above guidance of 70-75%) and 49%
respectively
-- Updated tonnage sales forecasts from Rio Tinto, in accordance
with Anglo Pacific's Kestrel information rights, confirm previous
guidance of 60-65% of Kestrel coal production will be within the
Group's royalty area during 2016 (H1 2016: 30-35% and H2 2016:
85-90%)
-- The Narrabri mine's production continues to outperform the
Group's expectations, setting an annual production record of 8.3 Mt
run-of-mine coal for the calendar year 2015, well in excess of the
original design capacity of 6 Mtpa
-- Laramide Resources C$5m loan receivable repaid to Anglo
Pacific on December 31, 2015 upon maturity
-- Unaudited cash and cash equivalents of GBP5.7m as at December
31, 2015 (September 30, 2015: GBP3.6m)
-- Unaudited net debt at December 31, 2015 of GBP1.8m (September
30, 2015: GBP5.2m)
-- Coking coal price weakness likely to result in a Q4 2015
pre-tax reduction in the carrying value of the Group's Kestrel
royalty in the range of A$28 - A$33m, with a corresponding
reduction in the associated deferred tax liability
-- Operating costs, excluding share based payments, will be less
than GBP4.0m, a significant reduction on the GBP4.9m equivalent in
2014
-- Final dividend for 2015 to be reduced to 3p, from the
previous level of 4p per half year, bringing the total dividend for
the year ended December 31, 2015 to 7p per share
-- The Company's revised dividend reflects lower income
expectations due to an approximate decline in coking and thermal
coal prices during 2015 of between 15% and 25%
-- It is a continuing policy of the Company to pay a substantial
proportion of its royalties to shareholders as dividends, with a
long term target dividend of 65% of adjusted earnings
Julian Treger, Chief Executive Officer of the Company,
commented:
"We are very pleased with the underlying performance of the
Group's royalties and expect further income growth from our
royalties in 2016.
Like everyone in the sector, we have been affected by the
commodity environment and weakening coal prices have reduced our
revenue. This decline, combined with a lower commodity price
outlook, has led the Board to reconsider our dividend policy.
Despite this, we remain committed to paying attractive dividends
and maximising shareholder value.
We continue to believe these challenging times for the mining
sector will provide opportunities for Anglo Pacific to identify
attractive new royalties that will enhance the lifespan and
diversity of our portfolio."
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 on 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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