Anglo Pacific Net Loss Narrows on Higher Royalty Income
August 26 2015 - 04:05AM
Dow Jones News
By Alex MacDonald
LONDON--Anglo Pacific Group PLC (APF.LN) Wednesday reported a
narrowed first-half net loss, reflecting higher income from mining
royalties and said it expects to receive even more royalties in the
second half as it continues to benefit from its investment in the
Narrabri and Maracas mines.
Total royalty income rose 48% to GBP3.8 million ($6 million) in
the first half, eclipsing the GBP3.5 million in royalties received
in all of 2014. The company said it benefited from first royalty
receipts at the Australian Narrabri coal mine investment and
Brazilian Maracas Vanadium mine investment.
This contributed to an increase in operating profit to GBP0.6
million in the first half compared with GBP0.3 million in the same
period a year before, helping narrow the company's net loss to
GBP8.8 million from GBP23 million in the period.
The bottom line was still weighed down by a series of
royalty-related impairments during the period, albeit less than the
year before, and loss from the sale of mining and exploration
interests.
Looking ahead, the company's Chief Executive Julian Treger said
the remainder of 2015 is encouraging, with Narrabri running
significantly ahead of its production estimates and Rio Tinto PLC
(RIO) planning to meet 70% to 75% of its second half coal
production target from its Australian Kestrel mine with coal
extracted from Anglo Pacific's land.
"Both outcomes should allow us to report much higher royalty
income for 2015 as a whole, despite the fall in commodity prices
experienced in the year to date," said Mr. Treger.
The company declared an interim dividend of four pence a share,
down from 4.45 pence a share last year, but in line with its annual
dividend policy of eight pence share. The company had net cash of
GBP1.2 million as of the end of June.
-Write to Alex MacDonald at alex.macdonald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 26, 2015 03:50 ET (07:50 GMT)
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