Anglo Pacific Share Discussion Threads

[neilyb675] 06/3/2015 08:45

On 6 March 2015 Rio Tinto announced to the Australian Securities Exchange (ASX) the increase to Hail Creek Coal Reserves, in compliance with Chapter 5 of the ASX Listing Rules and the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012.

[neilyb675] 06/3/2015 07:28

Further to the announcement on February 4, 2015, Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY) announces that it has agreed to delay completion of the purchase of the royalty interest in the Narrabri coal project, in order to allow additional time for certain conditions precedent to be satisfied. The Company anticipates completion to occur next week and has accordingly agreed to extend the long stop date for completion to March 13, 2015.

[quepassa] 05/3/2015 11:22

Question please.

How did they perform on what they wrote to you in the letter a short while ago:- "You should note we have committed to maintaining " the dividend?


ALL IMO. DYOR.
QP

[christh] 05/3/2015 11:04

5.rio-tinto-could-cut-1000-jobs

Because of job duplication!

[christh] 05/3/2015 11:03

Dear Mr xxxxxxx

Thank you for your concerns.

We are aware of these issues and are confident of our ability to address these challenges. As significant shareholders we are motivated to ensure the success of the business and will deliver the potential we see in the business model in the periods ahead.

The kestrel royalty will in any event recover in late 2015 and then more significantly in 2016 - and you and other shareholders will receive a high yield in the interim.

You should note we have committed to maintaining and increasing the dividend when appropriate so, in the absence of unforeseen events, your fears of a collapsing dividend should not become reality.



Kind regards.

Rachel Dare, for and on behalf of Julian Treger, CEO.

[quepassa] 05/3/2015 10:18

The fatal mistake in investing.

Falling in love with a share.




Some snippets from the last few posts:-

1.Rio Tinto last week said it was letting its energy division chief go and would place coal mining within its copper division, a move some analysts suggested could signal an intention to get out of coal.

2.Coal miners have been hard hit by a global supply glut that has more than cut thermal prices in half since 2011.


3.Peabody Energy (NYSE: BTU - news) in January lowered its quarterly dividend by 97 percent to 0.25 cents per share. (YES 97 PERCENT)

4.Glencore (Xetra: A1JAGV - news) is curtailing production of thermal coal in Australia and South Africa in hopes of addressing the glut.

5.rio-tinto-could-cut-1000-jobs


The opening/expansion/lease extension of two new mines in NSW and
Warkworth are mentioned. As if the coal industry needs more coal and mines which will further add to over-availability of coal.



Why are the annual results delayed? Anyone know the release date please.


ALL IMO. DYOR.
QP

[neilyb675] 05/3/2015 10:03

christh - excellent post, thank you.

[neilyb675] 05/3/2015 10:02

Kings Chapel International Ltd over 3% now !

Follow the money.

[christh] 05/3/2015 09:48

Neilyb675,
I have been with this company for its infancy since it was around 30p.
I have been attending agms and I am known to the directors.
I always love this company as it was clear cut business no involvenment in mines, only royalties.

The dividend has been growing through the years at 15% year upon year and it will resume as and when the additional and new royalties will come in.
At the moment APF is operating in a supressed commodities market and all the
commodity stocks suffer because of the commodity oversupply and subsequently
prices have dropped.
The commodity stocks are cyclical stocks and prices will rise eventually
to the highs we had before and maybe higher.
Reason for the price drop is political since the west is putting pressure on Russia and also the OPEC is trying to kill gas fracking.

APF will go back to 300p+ in a few years time.The dividend is a good yield too.

In my opinion now is the time to BUY at these prices as you will never see them again.

[neilyb675] 05/3/2015 08:54

christh

thanks to you for adding some sensible posts to the board.

I take it you are a fellow investor here ?? (like myself and unlike QP, RCT)

[christh] 05/3/2015 08:44

Rio Tinto could cut 1000 jobs
Matt Chambers - The Australian 17 hours ago

“Our coal and uranium assets remain a part of our world-class portfolio,” Mr Walsh said.

hxxp://www.businessspectator.com.au/news/2015/3/5/resources-and-energy/rio-tinto-could-cut-1000-jobs

Also
Rio Tinto wins planning nod for controversial Warkworth coal mine
Date March 5, 2015 - 5:09PM

hxxp://www.smh.com.au/environment/rio-tinto-wins-planning-nod-for-controversial-warkworth-coal-mine-20150305-13vonn.html

[rcturner2] 03/3/2015 10:54

You can tell a lot about a share from the intelligence of the holders.

[quepassa] 03/3/2015 09:22

Bleak, bleak, bleak article about Rio's coal interests in today's highly regarded Lex column in the FT.

Some snippets:-

" Fossil fuels win few prizes for popularity, but coal stands out as particularly unloved"

" ...increasingly unprofitable for miners to produce"

" Rio Tinto ... has been scratching its head over what to do with its coal business and has come up with a particularly inelegant solution"

" Lumping coal in with copper suggests that the former is no longer a priority for Rio"

" More disposals could be on the way"

" By hiding what is left of coal in the copper division, Rio may be hoping to deflect attention from the business while it quietly looks for buyers".


Doesn't reflect well on the sector in my view.

One can but wonder to oneself how the enormous Kestrel South mine may or may not be affected. However, the apparent uncertainty over Rio's commitment or otherwise to coal does not in my view add comfort.

Full article worth reading. Page 14. Lex.

ALL IMO. DYOR.
QP

[neilyb675] 03/3/2015 07:39

cycles is the word you are looking for..............

[jimbo55] 02/3/2015 21:55

Neil,

Despite what the board says, it pays to be sceptical in this space. We are not in a resources bull market where everything flies at the end of the day...

The following does not bode well for coal or iron ore in the short term:

hxxp://www.shareprophets.com/views/10882/report-from-pdac-the-world-s-largest-mining-conference

See the last paragraph in the above article.

Cheers.

Jimbo

[quepassa] 02/3/2015 21:41

Feel free to believe whatever you like. I really don't care.

Look at the share price graph again. It doesn't lie.

ALL IMO. DYOR.
QP

[neilyb675] 02/3/2015 14:50

Jimbo

The company issued an RNS explaining the dividend policy:

"The Board's priorities are to deliver a progressive dividend policy at a level which is affordable and appropriate as well as funding the Company's royalty investment opportunities and maintaining a strong balance sheet.

The Board is considering the recommendation of a final dividend for the year ended December 31, 2014 of 4p following the completion of the acquisition of the Narrabri royalty.

In the medium term, the Board is committed to a minimum annual total dividend of 8p subject to, amongst other things, the level of adjusted earnings, proceeds from the disposals of non-core assets and prospective investment opportunities.

In the longer term, and subject to the same factors, the Board intends to adopt a dividend policy paying dividends representing a minimum of 65% of adjusted earnings."

There are lots of variables within that statement, but that is part of the risk/challenge in being a shareholder or stock picker (whatever you want to call it).

QP seems incessant in posting negatively on APF. I do believe he got badly burnt here and I understand his bitterness if that is the case, but perhaps he should not play the shares game if this is the effect it has on him.

ATB

[jimbo55] 02/3/2015 12:46

Neilyb675,

It could be that QuePassa is trying to warn you about the dangers of trying to catch a falling knife in a sector that with all due respect, judging by your comments, you do not seem to understand.

I'm an ex-holder who got out with a 40% loss at prices far in excess of the current shareprice (if I hadn't taken my eye off the ball last summer I could have made it less than 30%, but that's a different story). My main reasons for selling were a lack of dividend cover (always worth checking as this is a red flag with high yielding shares)and weakness in the Chinese economy. Based on what I'm reading, they have more than enough steel for the foreseeable future and a major credit bubble of which they're trying to engineer a gentle deflation - will they succeed I wonder...?

Worth mentioning that any continued US Dollar Strength poses a risk for all commodities - particularly those in a state of current oversupply such as Iron Ore and Coal. For different reasons I am bullish on Gold and Uranium but they're both a different story and the former may not have seen the bottom yet.

Anyway, anybody thinking of buying APF for the divi at current prices seriously needs their head examining. Check the dividend cover; it's screaming that it's at risk!

Cheers.

Jimbo

[neilyb675] 02/3/2015 11:28

you seem very concerned ??

are you a worried holder, or just here for the fun of it all ??

[quepassa] 02/3/2015 11:22

I am sure you know best. Better than BHP, Glencore and Rio who are considering spinning off major coal assets.

Why are they doing that?

The same FT article says Rio paid US$ 3.7bn for a Mozambican project at height of boom which they sold for $50million last year.

Bit of hit to valuations there.

But you still don't fully grasp the challenges ahead at the vast Kestrel South mine, do you?

ALL IMO. DYOR.
QP

[neilyb675] 02/3/2015 10:51

divestments means someone picks up the assets, which are operated STILL on Anglo owned lands.....so STILL royalty payments incurred....

COAL is still massively required resource, THAT is not gonna change no matter who the operators is.

[quepassa] 02/3/2015 10:46

FT Weekend page 15 article about Rio.

Full article makes very interesting reading, especially as APF's largest asset is operated primarily by Rio.

Some snippets:-

" Rio Tinto has broken up its energy division in a cost-cutting move that analysts predicted could lead to a sale of its barely profitable coal assets"

"... an analyst at Jefferies said Rio's coal reorganisation could be a first step in a longer-term exit from coal"

All about cutting costs, and other operators such as Glencore reducing production to align output with demand, BHP spinning off assets into a separately listed company, and general possibilities of divestment of coal-related interests by the majors.

Not happy reading.

Rio is a hard-nosed , global quality mining operator. Keen to cut costs as is apparent from the FT article.

ALL IMO> DYOR.
QP

[paddyfool] 27/2/2015 14:49

on and up...We will see £1 soon!