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Publication of 2016 Annual Report and Accounts - Anglo Pacific Group

Anglo Pacific Group PLC (‘Anglo Pacific’, the ‘Company’ or the ‘Group’) (LSE: APF) (TSX: APY) is pleased to announce the publication of its 2016 Annual Report and Accounts, which are available on both the Group’s website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com. The following is a summary of the highlights for the period along with an extract of certain commentary and financial information from the audited financial statements. This announcement should be read in conjunction with the full audited 2016 Annual Report and Accounts.
Royalty Income Highlights

Figures in £m CY 2016 CY2015 CY2014
Kestrel 13.1 3.6 1.7
Narrabri North 4.2 3.2 n/a
EVBC 1.3 1.3 1.6
Maracás Menchen 0.8 0.6 n/a
Royalty income (like-for-like) 19.4 8.7 3.3
Four Mile 0.3
Amapá 0.2
Total royalty income 19.7 8.7 3.5

 
Financial Highlights

  • 127% increase in royalty income to £19.7m (2015: £8.7m), mainly due to a significant increase in overall saleable tonnes from Kestrel
  • Earnings also benefitted from upward revisions to coal prices and the weakening of the pound post the EU Referendum vote – with to a significant increase in profit after tax to £26.4m (2015: loss of £22.6m) resulting in basic earnings per share of 15.60p (2015: loss of 14.06p)
  • 316% increase in adjusted earnings1 to £16.5m (2015: £4.0m) resulting in adjusted earnings per share of 9.76p (2015: 2.47p)
  • 30% increase in net assets to £210.1m (December 31, 2015: £162.0m) resulting in net assets per share of 124.00p (December 31, 2015: 95.00p)
  • Improved earnings translated into free cash flow2 generated in 2016 of £13.2m (2015: £4.7m) and net debt reduced to £1.0m at December 31, 2016
  • Recommended final dividend of 3.00p per share resulting in a total dividend for 2016 of 6.00p (2015: 7.00p).
  • Significant increase in dividend cover, based on adjusted earnings, of 1.6x (2015: 0.4x) – dividend levels will be reviewed by the Board as part of the 2017 interim reporting in August 2017

Operational Highlights

  • Record levels of sales volumes achieved at Kestrel, Narrabri and Maracas during 2016
  • Overall production from Kestrel of 4.9mt in 2016, with 67% of all sales from Kestrel within the Group’s private royalty land. This is expected to increase to 90% by the end of 2017
  • Fourth highest ever quarterly coal royalty received in Q4 2016 from Kestrel in Australian dollar terms
  • Significant improvement in coking and thermal coal prices since Q3 16 – which we believe creates a higher base going forward
  • Recent permitting approvals and successful widening of longwall infrastructure by Whitehaven Coal should result in even higher production levels at Narrabri in the near term

Post Period Highlights

    • C$43.5m Denison financing and streaming agreement entered into in February 2017, along with a successful, oversubscribed, equity raise of £13m. The Group has already received C$3m from toll milling revenues in relation to H2 2016
    • The refinancing of the Group’s $30m borrowing facility, in conjunction with the Denison transaction, provides more flexible and potentially greater financing options moving forward
    • Announcement of the appointment of Patrick Meier as incoming Chairman following the 2017 AGM, succeeding Mike Blyth who will remain on the Board as a non-executive director

For a full copy of this release please click here
 

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