TIDMAPF
RNS Number : 5362M
Anglo Pacific Group PLC
31 July 2017
News Release
July 31, 2017
Anglo Pacific Group PLC
Notice of 2017 Interim Results and Q2 2017 Trading Update
Anglo Pacific Group PLC ("Anglo Pacific", the "Company" or the
"Group") (LSE: APF, TSX: APY), the London and Toronto listed
royalty company, is pleased to announce that its interim results
for the six months ended June 30, 2017 will be released on August
23, 2017.
Anglo Pacific also issues the following trading update for the
period April 1, 2017 to July 31, 2017. Unless otherwise stated, all
unaudited financial information is for the quarter ended June 30,
2017.
H1 2017 Highlights
-- Free cash flow of GBP18.5-19.0m generated in H1 2017 (H1
2016: GBP4.7m) which includes the GBP3.1-3.4m received as part of
the Denison financing arrangement (GBP1.7m of which related to H2
2016)
-- 290% increase in royalty income to GBP15.9-16.3m in H1 2017
compared to the equivalent 2016 period (H1 2016: GBP4.1m; FY 2016:
GBP19.7m)
-- Increase in royalty income mostly attributable to 88% of
sales from Kestrel within the Group's private royalty land compared
to 38% in H1 2016, along with a 10% increase in total sales
volumes
-- Significant milestone achieved at Kestrel in Q2 2017 with a
royalty paid on 95% of sales which we expect to remain around these
levels for the foreseeable future
-- Fair value decline of GBP10.5-11.5m in relation to Kestrel,
largely as a result of resource depletion
-- Net debt of GBP0.8m at June 30, 2017 (December 31, 2016:
GBP1.0m) including repayment, within six months, of the C$12.75m
drawn as part of the Denison finance arrangement
-- Cash generated in July resulted in the Group returning to a
net cash position
-- New dividend schedule with intention to pay quarterly
instalments in even tranches, although the fourth quarter dividend
may be adjusted to reflect the actual level of income earned during
the year
Julian Treger, Chief Executive Officer of the Company,
commented:
"We are encouraged by the level of royalty income received in
the first half of the year, and expect this trend to continue into
the second half now that we anticipate being paid a royalty on
almost all sales by Rio Tinto at Kestrel. Royalty income for 2017
is already 80% of that reported for 2016 as a whole.
However on the flip side of such strong revenue from Kestrel is
that it will impact on the valuation of the asset through resource
depletion.
"The level of cash generated during the first six months is also
pleasing, and is already ahead of that generated in 2016 as a
whole. This will allow us to repay in full the amount of borrowings
drawn as part of our Denison transaction. With spot coking coal
prices running higher than we had anticipated so far in Q3 2017, we
will review the absolute level of the final dividend as part of our
Q4 2017 trading update and will communicate this to the market in
February 2018.
"With the full availability of our US$30m revolving credit
facility, a recent strengthening of the spot coking coal price,
further weakening of the pound against our income currencies and a
comfortably covered dividend expected in 2017, we are in a healthy
financial position with good liquidity to pursue further royalty
acquisitions and provide meaningful returns to our
shareholders."
There will be an analyst presentation on the Company's interim
results at 9:30am (BST) on August 23, 2017 at the offices of
Redleaf Communications. To register your attendance or for further
information, please contact Redleaf Communications on +44 (0) 20
7382 4746 or by emailing anglopacific@redleafpr.com.
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 / Jenny Wyllie
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
/ Chris Burrows
Redleaf Communications +44 (0) 20 7382 4769
Charlie Geller / Elisabeth Cowell/
Elise Palmer
Notes to Editors
About Anglo Pacific
Anglo Pacific Group PLC is a global natural resources royalty
and streaming company. The Company's strategy is to develop a
leading international diversified royalty and streaming 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, as well as investment in earlier
stage royalties. 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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