Anglo Pacific Group PLC (“Anglo Pacific”, the “Company” or the “Group”) (LSE: APF, TSX: APY), the London and Toronto listed royalty company, provides the following update in relation to its Kestrel royalty.
The Company has received notification from Rio Tinto of the invoiced payable tonnes for Q2 2016 which, along with the amounts already received in Q1 2016, means that sales from the Group’s private royalty lands in H1 2016 will be in the range of 35-40%. This represents a significant increase on the previously guided range of 20-25%. The Group’s guidance for 2016 remains unchanged at 60-65%, although the latest information suggests that this could be at the upper end of this range.
The latest information also includes the forecast for Q2 2017 for the first time, which is in line with our expectations. We continue to guide that over 90% of production will be within the Group’s private royalty lands by the end of 2017. This, along with both the recent weakening of the pound against the Australian dollar and an increase in the coking coal benchmark contract price so far in 2016, should have a positive impact on the Group’s reported royalty income.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
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