Anglo Pacific Group PLC (“Anglo Pacific”, the “Company” or the “Group”) (LSE: APF, TSX: APY), the London and Toronto listed royalty company, notes Adaro Energy’s (“Adaro”) Q4 2018 Activity Report released on 11 February 2019, supports the statements made in our recent trading update regarding expected material production increases at Kestrel in 2019.
In the announcement Adaro confirms that the operator, Kestrel Coal Resources Pty Ltd, has embarked on a change programme aimed at driving efficiency improvements throughout Kestrel’s operations. Adaro has announced that the implemented changes are expected to increase coal production in 2019 by 40% at Kestrel compared to 2018 and that it anticipates any increase in production to be well absorbed by the market due to high demand for Kestrel’s premium quality coal.
Anglo Pacific does not operate the mine and therefore cannot guarantee these forecast increases will eventuate. However, if this increase in Kestrel production is achieved, it will, subject to prevailing coal prices, lead to a significant increase in income from Kestrel this year for Anglo Pacific.
Julian Treger, Chief Executive Officer of the Company, commented:
“While we are cognisant that this is a forecast, it is extremely encouraging news for Anglo Pacific’s largest income contributor and for the Group’s overall income expectations for 2019, as previously stated in our Q4 2018 trading update.“
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