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 June 30, 2015 which are available on both the Group’s website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com.
- Interim dividend of 4.00p (2014 interim dividend: 4.45p), consistent with previously announced dividend policy of 8.00p per annum
- Total royalty income of £3.8m for the period, a 48% increase on the same period in 2014 (£2.6m)
- Further increases anticipated in H2 2015 and already ahead of 2014 full year royalty income of £3.5m
- Includes first royalty receipts from Narrabri and Maracás (£1.8m and £0.4m respectively)
- Operating profit doubled in the period to £0.6m (June 30, 2014: £0.3m)
- Loss after tax of £8.8m resulting in a basic loss per share of 5.81p (June 30, 2014: loss after tax of £23.0m and basic loss per share 20.84p respectively) mainly due to non-cash valuation and impairment provisions
- Adjusted profit after tax of £1.2m resulting in adjusted earnings per share of 0.77p (June 30, 2014: loss £0.8m and adjusted loss per share 0.77p respectively) – see note 5 for further details
- Net assets at June 30, 2015 of £171.0m resulting in net assets per share of 101p (December 31, 2014: £161.3m and 138p respectively)
- Cash of £4.0m, net cash of £1.2m (December 31, 2014: £8.8m cash with no borrowings) in addition to $25.5m (£16.2m) undrawn, and available, revolving credit facility
- Acquisition of the Narrabri royalty for £43.0m before costs along with successful, oversubscribed equity issue
- Narrabri exceeding production estimates in the first six months with full year ROM production guidance of 7.7mtpa of coal versus 6.5mtpa estimated at the time of acquisition
Julian Treger, Chief Executive Officer, commented:
“The first six months of 2015 have been encouraging. Income has increased significantly and royalty income in the first half of the year is now ahead of what we received for the whole of 2014. This increase is largely driven by new sources of income from Narrabri and Maracás, which further demonstrates the progress we are making on executing our strategy of adding to, and diversifying, our royalty income.
The outlook for the remainder of 2015 is equally encouraging, with Narrabri running significantly ahead of our production estimates at the time of acquisition and the latest Kestrel forecasts from Rio Tinto continuing to suggest 70-75% of production within our lands in H2 15. 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.”
Analyst presentation webcast and conference call:
There will be a webcast and conference call for analysts at 09:30 (BST) on August 26, 2015. The call will be hosted by Julian Treger (CEO) and Kevin Flynn (CFO) and accessed via the following dial in details: +44 20 3059 8125 and by quoting ‘Anglo Pacific Interim Results’ to gain access to the conference call.
The webcast can be accessed at anglopacificgroup.com and a replay will also be available on the website shortly afterwards.
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