LONDON (Alliance News) - Anglo Pacific Group PLC is to significantly increase its final annual dividend for 2018, the mining royalty company said on Wednesday.
Anglo Pacific will pay a 3.125 pence final dividend for the year, compared to 1.625p in the third quarter.
Combined with a total of 4.875p already paid in 2018, the new final payout would bring the year's total to 8p, from 7p in 2017.
Anglo Pacific's quarterly payout would return to 1.625p in 2019, and then Anglo Pacific will then make a late decision on the final dividend level for 2019 later in the year.
This comes after Anglo Pacific said in mid-January it could up its dividend on strong performance in its investment in the Kestrel mine in Australia. It promised its dividend would be "at least" 7p.
Chief Executive Julian Treger commented: "After a record year of income in 2018 we are pleased to recommend a 25% increase in the final dividend for 2018, bringing the total dividend for the year to 8p per share."
"In arriving at this number, we took into account a very strong set of results for 2018 along with the prospect of meaningful growth from Kestrel in 2019, as announced in our recent fourth quarter 2018 trading update," Treger continued.
"We are mindful of balancing our growth ambitions with rewarding our shareholders for their continued support and feel this level of dividend provides healthy dividend cover in excess of two times while allowing us to recycle income into growth opportunities. Growth remains the firm focus for 2019."
Shares were up 1.8% on Wednesday at a price of 165.99 pence each.