Interim results for the six months ended 30 June 2018 - Anglo Pacific Group

Anglo Pacific Group PLC (“Anglo Pacific”, the “Company”, the “Group”) (LSE: APF) (TSX: APY) is pleased to announce interim results for the six months ended 30 June 2018 which are available on both the Group’s website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com.

H1 income analysis   2018       2017       2016
    £’000   % Mvt   £’000   % Mvt   £’000
Kestrel   14,225   12.9%   12,604   796.6%   1,406
Maracas   2,125   170.7%   785   12.0%   701
Narrabri   1,456   (22.6%)   1,880   17.0%   1,607
EVBC 1         815   54.1%   529
Denison – interest   1,079   12.5%   959      
LIORC dividend   141            
Four Mile   51             256
Revenue   19,077   12.0%   17,043   278.8%   4,499
EVBC – royalty receipts   1,003   23.1%        
Denison – principal   741   150.3%   296      
Total portfolio income   20,821   20.1%   17,339   285.4%   4,499
1   EVBC income as previously reported under IAS 32
2   EVBC income upon transition to IFRS 9 (see definition of adjusted earnings on page 3)
  • Revenue in H1 2018 of £19.1m, a 12% increase from £17.0m in H1 2017
  • Including EVBC and Denison principal, total income generated from the portfolio of £20.8m, a 20% increase compared to £17.3m in H1 2017
  • Record royalty income of £2.1m from Maracás Menchen, already in excess of the £2.0m earned for FY 2017
  • 15% increase in adjusted earnings per share to 8.56p from 7.44p in H1 2017; basic earnings per share increasing to 7.24p from a loss of 1.46p in H1 2017 (refer note 6)
  • Cash generated from operating activities of £14.6m (H1 2017: £16.8m) with free cash flow generated in H1 2018 of £17.9m (H1 2017: £18.9 – which included £1.8m in relation to back dated income from the Denison financing arrangement)
  • Net cash of £5.2m at June 30, 2018 (YE 2017: £8.1m) – after investing £13.9m and dividends of £7.2m
  • Net assets of £217.1m (YE 2017: £218.9m) translating into net assets per share of 120p (YE 2017: 121p)
  • Acquisition of a 0.5% NSR over the Canariaco project in Peru owned by Candente Copper Corp for £0.8m

Other highlights

  • Purchase of Kestrel by EMR and Adaro completed on 1 August 2018, with the new operator targeting doubling of production in the near-term
  • £37.0m (US$50.0m) acquisition of a 4.25% shareholding in Labrador Iron Ore Royalty Corporation (“LIORC”), as announced on 16 August 2018, providing exposure to the 7% GRR Labrador Iron Ore royalty

Julian Treger, Chief Executive Officer, commented:
“Anglo Pacific has enjoyed a very successful start to 2018 with our overall income continuing to grow (+20% in H1 2018) principally due to higher commodity prices. We have invested US$51.0m in growth opportunities which complement and diversify our existing portfolio. In the short-term the sale of Kestrel suggests that volumes could double in the coming years as the new owners look to maximise their return.
We have entered the second half of 2018 in a very strong position, with significant liquidity available to us, and we continue to actively pursue and appraise other royalty opportunities to add to the two acquisitions we have completed so far this year.”
Analyst presentation
There will be an analyst presentation via conference call at 9:30am (BST) on 23 August 2018. The presentation will be hosted by Julian Treger (CEO), Kevin Flynn (CFO).
Dial in details for the call are as follows:

Location you are dialling in from Number you should dial
United Kingdom (toll free) 0800 358 9473
United Kingdom (Local) +44 (0) 333 300 0804
All other locations please refer to the link below

Participant Access Code: 58239674#
The webcast cast presentation can be followed at the following URL:
For a full copy of this release please click here