|Anglo Pacific Group
||EPS - Basic
||Market Cap (m)
Anglo Pacific Share Discussion Threads
Showing 8876 to 8897 of 8900 messages
|APF are receiving 10% and that represents the market price for the risk/reward of the loan they are giving. Although we have low interest rates generally here in the UK, many businesses pay way over this depending on the nature of their business and the territories in which they operate.|
|@gretel1921 - out of interest, SQN reported today - they're an IT focussed on asset-backed lending to businesses, ie they take a charge over the asset (& sometimes assets in excess) which they lend on. They've around £450m deployed, mainly in the UK.
"The average investment size is now just short of GBP7 million, with a weighted average term of 91.46 months. The weighted average projected yield on investments remains in excess of 9.5%."
If anything, that makes a 10% interest rate, on a commodities asset, in another country, seem too low rather than too high.|
Why would anybody pay 10% for a loan
in today's low interest environment
unless they are in up to their necks.
Thought of buying till the 10% was mentioned|
|QP, they own a very significant % of BKY shares in addition to the royalty.|
|Bit of a two way pull on sentiment in the coal industry at the moment. Chinese policy might dictate which way things go. Here is an FT piece about China maybe reimposing output restrictions:
Whitehaven had good results yesterday:
The company said it received an average price of $US92 a tonne for thermal coal and $US104 a tonne for metallurgical coal during the December quarter, when prices had peaked.
The next real news I am looking for is an indication of Q2 coking coal price contracts, should be in the next few weeks. Maybe $150?|
|It depends what your definition of "good" exposure is. They are also not in production. APF is not receiving any royalty.|
|APF does have good exposure to Uranium through Berkeley.|
|Can't blame you. - Have you seen the dramatic collapse in the price of coking coal?
Down from $300+ in November to c. $150 now. That's 50% down in two or three months. The following recent article illustrates the situation
It is interesting by contrast perhaps to look at the suddenly rising price of uranium which hit multi-year lows at the end of 2016.
The following uranium producers are rising fast on the back of uranium (U3o8) sharply increasing in price:
and are not perhaps without interest if you believe -like me- in the vastly improving prospects for uranium - as a clean renewable.
I was somewhat amused (and heartened) that APF have just concluded a royalty agreement with a subsidiary of Dension which I fortuitously invested in in early January.
If you don't want to invest directly in the TSX ( although no reason not to), and you are interested in uranium, have a look at Geiger Counter Limited which is a uranium investment trust which has risen some 50% in two months.
ALL IMO. DYOR.
|Thinking of putting a bullet in my holdings. share price hasn't gone anywhere for almost 5 months.|
|Macquirie report on Apf very expansive and informative.They like the Denison deal and give APF an outperform and are raising the TP to £2.10 Well worth a read|
|A buying opportunity today!|
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APF down 2.4% today.
|Perfectly happy with the way they did it thanks.|
|As a holder, I'm perfectly happy with how they played it. They picked a couple of duffers along the way, which didn't help, but you can almost guarantee that if they'd done as you suggest, they'd have done it several years too soon, squandered the money, and needed a rescue rights to resolve the resulting debt.|
|Good article on Japanese imports of coal from Australia. After Fukoshima they are building new coal burning power plants at a pace.All sounds good for APF.
|Excellent analysis, could be a catalyst to finally break us convincingly through 130.|
|regarding the loan yes "$40.8 million (GBP24.8 million) thirteen-year loan with an interest rate of 10 per cent. per annum payable to Anglo Pacific" can't be bad for APF;
I guess the initial drop this morning was down to uncertainty re the placing price which turned out to be 125p|
|I got that slightly wrong, pretax rises by £1.9 M and THEN the extra dividend of 700k comes off. I think the dilution to existing shareholders stays the same.|
|125p placing price, I'll take that. Cursing not taking the 123.85p quote I had this morning when they were 121/125!|
|I also think the placing is going well and that the market is warming to the deal, hence the price action. :-)|
|bounty, whilst the agreement back-dates milling proceeds to 07-16, APF don't get anything until total throughput exceeds 215mlbs which is about 9 - 12 years away. Mine life is only expected to be 12 years so the value of the royalty is largely dependent upon upside to the mine life / annual throughput. It is the loan itself which is the value creator here and I agree with Stevie's numbers.|
|Diversifies out of coking coal at least|