Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAPF.L Regulatory News (APF)

  • There is currently no data for APF

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Q1 2019 Trading Update

25 Apr 2019 07:00

RNS Number : 0151X
Anglo Pacific Group PLC
25 April 2019
 

 

News Release

 

25 April 2019

 

Anglo Pacific Group PLC

Q1 2019 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 1 January 2019 to 23 April 2019. Unless otherwise stated, all unaudited financial information is for the quarter ended 31 March 2019.

 

Highlights

 

Q1 2019

£m

 

QOQ %

Q4 2018

£m

Q1 2018

£m

Kestrel

11.8

12%

10.5

5.0

Maracás Menchen

1.1

(52%)

2.3

0.8

Narrabri

1.4

17%

1.2

0.8

Four Mile

-

-

0.1

Royalty income

14.3

2%

14.0

6.7

LIORC dividends

1.7

89%

0.9

-

Interest - McClean Lake & Jogjakarta

0.5

0.5

0.6

Royalty related revenue

16.5

7%

15.4

7.3

EVBC

0.6

20%

0.5

0.5

Principal repayment - McClean Lake

0.4

(20%)

0.5

0.3

Total portfolio contribution

17.5

7%

16.4

8.1

 

§ Total portfolio contribution of £17.5m, a 7% increase on Q4 2018 (£16.4m) and a 116% increase on Q1 2018 (£8.1m) - a new quarterly record for the Group

 

§ 20% increase in sales volumes from Kestrel in Q1 2019 (compared to Q4 2018), indicating that the run rate being targeted by the new owners could be achieved

 

§ LIORC was the second largest source of revenue for the Group at £1.7m (Q4 2018: £0.9m), reflecting the continued strong performance in iron ore prices, high pellet premia being achieved along with the distribution of previously retained cash, and while also implying a high running yield on the £38.5m cost of investment

 

§ 33% increase in volumes at Narrabri compared to Q4 2018, representing the strongest sales quarter since Q4 2017

 

§ Revenue from Maracás Menchen was 53% lower than Q4 2018 due to a combination of the planned maintenance shutdown of the plant during the quarter along with the well documented reduction in the vanadium price (down ~30% on the levels achieved in Q4 2018)

 

§ Another consistent quarter from EVBC and Denison

 

§ Borrowings repaid in full, with ~US$100m of liquidity available to finance growth

 

Julian Treger, Chief Executive Officer of the Company, commented:

"It is very pleasing to report a record quarterly contribution from the portfolio, with an 7% increase in the total contribution from our portfolio to £17.5m compared to Q4 2018, which itself was the highest revenue quarter in 2018. Compared to the corresponding quarter in 2018, the contribution was almost £10m higher.

 

We continue to see meaningful revenue growth for the Group in 2019, even when factoring in the expected impact of the planned longwall changeouts at Kestrel and Narrabri during 2019.

 

Income was once again driven by Kestrel, where strong sales volumes during the quarter resulted in a 15% increase in revenue. The volumes achieved during the first quarter indicate that the run rate being targeted by the new owners could be achieved.

 

During the quarter, coking coal and iron ore pricing remained resilient, which resulted in Kestrel and LIORC being the two largest revenue contributors for the Group, whilst we saw thermal coal and vanadium show declines.

 

Despite a background of economic uncertainty, our portfolio continues to deliver significant growth. With an encouraging start to the year from Kestrel, especially given its ambitions, we remain confident of delivering organic growth during 2019 whilst seeking to make additional quality investments.

 

Although we have not executed on any acquisitions during the first quarter of the year, we continue to appraise opportunities and maintain a disciplined approach. With a significant war chest, we remain in a strong position to add to our portfolio during the year."

 

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

Berenberg

+44 (0) 20 3207 7800

Matthew Armitt / Detlir Elezi

BMO Capital Markets Limited

+44 (0) 20 7664 8020

Jeffrey Couch / Tom Rider / Neil Elliot

Peel Hunt LLP

+44 (0) 20 7418 8900

Ross Allister / James Bavister / David McKeown

Camarco

+44 (0) 20 3757 4997

Gordon Poole / Owen Roberts / James Crothers

 

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 statements in this announcement, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Group's expectations and views of future events. Forward-looking statements (which include the phrase 'forward-looking information' within the meaning of Canadian securities legislation) are provided for the purposes of assisting the reader in understanding the Group's financial position and results of operations as at and for the periods ended on certain dates, and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such forward-looking statements may not be appropriate for other purposes than outlined in this announcement. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, cash flow, requirement for and terms of additional financing, performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of the Group including the outlook for the markets and economies in which the Group operates, costs and timing of making new investments, mineral reserve and resources estimates, estimates of future production, production costs and revenue, future demand for and prices of precious and base metals and other commodities, for the current fiscal year and subsequent periods.

 

Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'plans', 'believes', 'estimates', 'seeks', 'intends', 'targets', 'projects', 'forecasts', or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may', 'will', 'should', 'would' and 'could'. Forward-looking statements are based upon certain material factors that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by the Group in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. The material factors and assumptions upon which such forward-looking statements are based include: the stability of the global economy; stability of local governments and legislative background; the relative stability of interest rates, the equity and debt markets continuing to provide access to capital; the continuing of ongoing operations of the properties underlying the Group's portfolio of royalties and investments in a manner consistent with past practice; the accuracy of public statements and disclosures (including feasibility studies, 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.

 

Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. No statement in this communication is intended to be, nor should it be construed as, a profit forecast or a profit estimate. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate; that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of material factors, many of which are beyond the Group's control, affect the operations, performance and results of the Group, its businesses, royalties and investments, and could cause actual results to differ materially from those suggested any forward-looking information. Such risks and uncertainties include, but are not limited to current global financial conditions, investment portfolio and associated risk, adverse development risk, financial viability and operational effectiveness of owners and operators of the relevant properties underlying the Group's portfolio of royalties and investments, royalties and investments subject to other rights, and contractual terms not being honoured, together with those risks identified in the 'Principal Risks and Uncertainties' section of our most recent Annual Report, which is available on our website. If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations. Readers are cautioned that the list of factors noticed in the 'Principal Risks and Uncertainties' section of our most recent Annual Report is not exhaustive of the factors that may affect the Group's forward-looking statements. Readers are also cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

 

This announcement also contains forward-looking information contained and derived from publicly available information regarding properties and mining operations owned by third parties. The Group's management relies upon this forward-looking information in its estimates, projections, plans, and analysis. Although the forward-looking statements contained in this announcement are based upon what the Group believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements made in this announcement relate only to events or information as of the date on which the statements are made and, except as specifically required by applicable laws, listing rules and other regulations, 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 and streaming company, 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 and investments, 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 and investments, as available at the date of this announcement. This announcement contains information and statement relating to the Kestrel mine 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.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTUSOWRKWASUAR
Date   Source Headline
5th Oct 20227:00 amRNSChange of name to Ecora Resources
27th Sep 20227:00 amRNSDirector Share Dealings in Company
27th Sep 20227:00 amRNSQ2 2022 Dividend record date correction
23rd Sep 202211:06 amRNSWest Musgrave Final Investment Decision
6th Sep 20227:00 amRNSDirector Share Dealings in Company
25th Aug 20227:00 amRNSHalf year results for the 6 months ended 30/06/22
17th Aug 202211:10 amRNSNotice of Results
28th Jul 20227:00 amRNSHalf Year 2022 Trading Update
25th Jul 202212:22 pmRNSTR-1: notification of major holdings
19th Jul 20221:15 pmRNSCompletion of Acquisition
18th Jul 20223:12 pmRNSApplication for admission of Consideration Shares
18th Jul 202212:33 pmRNSTR-1: Notification of major holdings
13th Jul 202212:04 pmRNSLive Investor Presentation
12th Jul 20227:13 amRNSUS$185m royalty portfolio acquisition from South32
4th Jul 20227:00 amRNSFirst production announced by Brazilian Nickel PLC
21st Jun 20223:06 pmRNSIncrease to Coal Royalty Rate in Queensland
12th May 20226:18 pmRNSResults of 2022 AGM and Dividend Timetable
27th Apr 20223:35 pmRNSLive Investor Presentation
27th Apr 20227:00 amRNSQ1 2022 Trading Update
19th Apr 20227:00 amRNSFavourable Four Mile Legal Dispute Ruling
12th Apr 20228:52 amRNSTR-1: Standard form for notification
11th Apr 20227:00 amRNSNotice of 2022 Annual General Meeting
4th Apr 20227:00 amRNSDirector Share Dealings in Company
30th Mar 20227:00 amRNSFinal Results
28th Feb 20227:00 amRNSDirector Share Dealings in Company
16th Feb 20227:00 amRNSQ3'21 Dividend Payment Delayed to 17 February 2022
16th Feb 20227:00 amRNSDirector Share Dealings in Company
31st Jan 20227:00 amRNSAppointment of Marc Bishop Lafleche as CEO
27th Jan 20227:00 amRNSQ4 21 Trading Update
7th Jan 20227:00 amRNSDirector Share Dealings in Company
31st Dec 20217:00 amRNSCompletion of Narrabri thermal coal royalty sale
24th Dec 20217:00 amRNSDirector Share Dealings in Company
22nd Dec 20217:00 amRNSDirector Share Dealings in Company
20th Dec 20217:00 amRNSDirector Share Dealings in Company
8th Dec 202110:09 amRNSInvestor Presentation
14th Oct 20217:00 amRNSDivestment of Narrabri thermal coal royalty
26th Aug 20217:00 amRNSClarification of Dividend Timetable
25th Aug 20217:01 amRNSChief Executive Officer Transition
25th Aug 20217:00 amRNSInterim results for 6 months ended 30 June 2021
23rd Aug 20217:00 amRNSBoard Changes
28th Jul 20217:00 amRNSHalf Year 2021 Trading Update
14th Jul 20217:00 amRNSDirector Share Dealings in Company
7th Jul 20217:00 amRNSDirector Share Dealings in Company
30th Jun 20217:00 amRNSDirector Share Dealings in Company
29th Jun 20217:00 amRNSDirector Share Dealings in Company
7th Jun 202112:06 pmRNSDirector/PDMR Dealing
26th May 202112:38 pmRNSResults of 2021 Annual General Meeting
6th May 20217:00 amRNSQ1 2021 Trading Update
23rd Apr 20217:00 amRNSDirector/PDMR Dealing
21st Apr 20217:00 amRNSDividend Timetable and Notice of 2021 AGM

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.