Anglo Pacific Share Discussion Threads

[quepassa] 08/12/2015 11:06

"more likely bought out @ 30p IMO"

" this'll be single digit by the time this rout is over"



two posters countenancing specific share price horizons to the downside.


ALL IMO. DYOR.
QP

[bench2] 08/12/2015 10:52

It's survival time the CEO needs to get real .... re base the dividend , so covered 2x , or better still suspend the div , and plough cash flow into new royalty deals at cheap prices . The share price is telling you the div is not safe . They were whistling dixie on their last insider purchases . Just as we lived through a commodity supercycle on the upside , we now have the reverse .

[piedro] 08/12/2015 10:26

gavapentin,
instead of "bought out" read taken over - at that price it would be a 'steal' - IMO .... with or without the talc

[gavapentin] 08/12/2015 10:07

P...are you out then?

[piedro] 08/12/2015 10:01

drh,
more likely bought out @ 30p IMO

[deanroberthunt] 08/12/2015 09:26

this'll be single digit by the time this rout is over

[rcturner2] 08/12/2015 09:16

I wonder if the penny ever drops with people like Neil and Chris?

[quepassa] 08/12/2015 09:10

As predicted in the market, mining giant Anglo American suspends dividends.


What is more worrying is that mining giant Anglo American also expects ( according to ft.com)impairments of up to $4.7bn "largely due to weaker prices and asset closures".

The share price of APF is what it is.

ALL IMO. DYOR.
QP

[quepassa] 07/12/2015 11:02

Mining giant, Anglo American expected to cut its dividend this week.

This follows on from Glencore who suspended their dividend in September.






It is also interesting to compare the yields of two other royalty streaming companies, Franco-Nevada and Silver Wheaton (albeit different commodities) to the yield on APF.

APF's 12% prospective yield continues in my opinion to look awkward.


ALL IMO> DYOR.
QP

[bam bam rubble] 03/12/2015 21:15

AP isn't just coal - it holds Berkeley Energy

Don't forget Shetland Talc

[christh] 03/12/2015 20:43

Anglo Pacific Group PLC
CEO Julian Treger talks about the benefits of royalty financing at Mines and Money London

“On the back of our positive Q3 trading update, on Thursday (3 December, 2015) I took part in a panel discussion at Mines and Money in London, focussing on alternative financing models for mining companies in the context of the current commodity price environment.

At the forefront of this discussion was the royalty model which forms the basis of Anglo Pacific’s business. Our approach is a simple but effective one. We invest in mining royalties, which give us the right to a certain percentage of revenue from a mine in return for an upfront payment. We are in many ways unique in what we do – there are many royalty and streaming companies focused on precious metals, but Anglo Pacific has a unique position and business model on the London Stock Exchange, as we focus on bulk commodities, base metals, and energy related commodities.

We have enjoyed considerable success so far, most recently with our acquisition of a coal royalty over Whitehaven’s Narrabri asset in Australia earlier this year , and we are looking to build upon this momentum in 2016. Anglo Pacific reviews hundreds of opportunities a year, and in the current climate we are specifically targeting base metal royalties including copper and zinc. As shadow financiers to a sector facing challenging headwinds, the commodities downturn actually benefits us, as increased pressure on mining companies’ finances leads them to seek alternative sources of capital.

We typically aim to invest between $25 million and $1 billion in royalty opportunities, albeit the higher number would be in partnership with co-investors, and look for a return on our investment which provides attractive levels of value to our shareholders. We don’t believe the market is going to improve any time soon, and expect that the pressure on miners’ balance sheets will increase in 2016, leading to a number of potential financing opportunities.

Consequently, taking the deliberate decision to bide our time will benefit Anglo Pacific as the characteristics of a royalty deal will become increasingly attractive to miners. Why do we believe this? Royalties have a number of clear benefits over other forms of capital. In the current market, where equity is hard to raise at attractive prices, debt is often even harder to come by and precious metal by-product streaming deals may prove finite, royalty companies such as ours are able to provide miners with an attractive alternative: an immediate cash injection in the form of off-balance sheet royalty financing. This is a compelling argument and one that we believe will become stronger as financing options for companies are reduced.

From an investor perspective royalties are also attractive. They provide exposure to commodities without some of the associated downsides (such as managing the asset and cost overruns), as our income is based on the mine’s revenue rather than profit, whilst also providing potential upside opportunity in the longer term. As long as the mine is producing , we will be entitled to a royalty on it, even if the production profile changes over time.

I am a passionate believer of the royalty model and all the differentiating factors relative to more common sources of capital and believe that Anglo Pacific is uniquely placed to take advantage of the current market environment – including the opportunity to acquire royalties of non-precious commodities from leading counterparties, and in the end creating significant value for our shareholders.”

JULIAN TREGER, CEO OF ANGLO PACIFIC GROUP

[deanroberthunt] 03/12/2015 12:25

this is like selling 100% british beef burgers at a Vegan convention.

[quepassa] 03/12/2015 11:30

Do Berkeley have any firm funding in place to develop their newly-found Salamanca uranium reserves? Or is it a case of mineral deposits without the firm money as yet to develop them? - Getting that financing is not necessarily a simple thing to do in this market.






ALL IMO> DYOR.
QP

[rcturner2] 03/12/2015 11:17

Rampair, the Berkeley assets are very small compared to the coal assets, they will not likely make any difference to the share price. This is almost entirely a coal play.

[rampair] 03/12/2015 11:13

Appreciate that Coal is going through a rough patch, but AP isn't just Coal - it's holding in Berkeley Energia
is popular at present, & Uranium, is one of the things set to gain if coal loses, plus it has a 1% royalty stream
on Berkeley.

The world cannot just rely on Windmills, it's all very well for electorates to want something, but it's not always practical. The call on Uranium supplies from all those hundreds of new reactors proposed worldwide
will help in this regard.( our share price too)

APF's business model looks to have both sides covered, don't bet your house - but a few tucked away
doesn't seem so daft.

All IMHO,
Rampair.

[jeffian] 03/12/2015 10:53

Big money? About half his annual non-exec's fee!

[christh] 03/12/2015 10:40

Anglo Pacific Group PLC
Directors' Share Dealings

Anglo Pacific Group PLC (the “Company”;) (LSE: APF, TSX: APY) announces that it received notification on December 1, 2015 of the following transactions by Mr. Patrick Meier and connected persons of Mr. Robert Stan, Non-executive Directors of the Company.

On December 1, 2015, Spruce Bluff Resources Limited, a connected person of Mr. Stan, acquired 25,000 ordinary shares of 2 pence each in the Company (“Shares”;) at a price of £0.65 per Share. Further, on December 2, 2015, Mr. Meier acquired 27,800 Shares at a price of £0.64 per Share. The transactions took place on the London Stock Exchange.

Following this notification, the total beneficial holding of Shares by Mr. Stan and his connected persons is now 98,540 Shares and the total beneficial holding of Shares by Mr. Meier and his connected persons is now 120,000, representing 0.06% and 0.07% of the issued ordinary share capital of the Company respectively.

This notification is intended to satisfy the Company’s obligations under Disclosure and Transparency Rule 3.1.4R.


MORE DIRECTORS BUYING SHARES......wow big money going in.

[quepassa] 02/12/2015 18:00

Not long now til the dam bursts and the share price goes below 60p in my opinion.

With COP 21 calling for 100% decarbonisation by 2050 and the MDB's readying large billions of dollars on renewables funding and schemes, the days of coal are getting more and more threatened.


The Narrabri royalty purchase is in my opinion already proving a bit of a nightmare for investors who stumped up 80p to help buy it and have already seen almost 22.5% of their capital lost in some ten months or so. - That's not good.

Reality is a mirror walking down the street. It frightens people when they start looking into it.

ALL IMO. DYOR.
QP

[christh] 02/12/2015 07:23

From the Times today

2,500 new coal plants will thwart any Paris pledges: More than 2,400 coal-fired power stations are under construction or being planned around the world, a study has revealed two weeks after Britain pledged to stop burning coal.

[quepassa] 02/12/2015 06:41

The share price looks very weak in my opinion.

At close it was just 62p bid, down by more than 2.5% again yesterday.

In my opinion, it looks to me like the share price graph may perhaps be headed for the 50's and the downwards grind looks resolute in my view.

The prospective yield on an offer price of 62.25p is now some 12.8% based on a prospective 8p dividend. - Even at this very high prospective yield, there seems in my view to be little market support for the share.

Clearly COP 21 can only be having a negative impact on sentiment related to the fossil fuel industries.


ALL IMO. DYOR.
QP

[quepassa] 01/12/2015 09:01

In my guess only, based on the recent NSW rejection of the application by Anglo-American on the Drayton coal mine extension, it may or may not generally speaking be taken as a foregone conclusion at this juncture that any application for any mining license extension will sail through and/or receive ready approval.

One may or may not also need to have regard for timing on such matters in the wake of COP 21, due to political and media and anti-CO2 sensitivities.


ALL IMO. DYOR.
QP

[rcturner2] 30/11/2015 14:20

christh 9 Jan'15 - 09:59 - 6870 of 7787 1 1

The RNS reaffirms the company trade statement about Kestrel mining by RIO which was announced last year (2014).
The 70% - 75% mining royalty expected from RIO will see the share price move,
and the profits along with dividends rise.
The bad news were factored in the price hence the drop from 200p+ to 100p.

Now we should expect a share price rise to 180p-200p and by the end of the year around 240p.


RCTurner2 9 Jan'15 - 10:04 - 6871 of 7787 1 1 edit

chris - you are completely deluded

[buywell3] 29/11/2015 22:02

Can any of posters here remember APF Directors selling shares at circa 100p ?

[ferries5] 29/11/2015 21:35

New video on miningcapital.com with Julian Treger