Anglo Pacific Share Discussion Threads

[emeraldzebra] 10/6/2016 09:58

back on track is my feeling, and the worst over. 100p soonish.

[spectoacc] 10/6/2016 09:46

A sort-of-p/w-that's-not-really-but-maybe-is.

[emeraldzebra] 10/6/2016 09:45

sorry....now got the release.

[emeraldzebra] 10/6/2016 09:43

what has knocked them today ??

[christh] 10/6/2016 00:05

Bought a few in my ISA today.
Hopefully will be over 100p soon a return to higher dividend!!!!!

[neilyb675] 08/6/2016 15:10

ABERFORTH PARTNERS LLP, over the 10% threshold

[piedro] 07/6/2016 12:30

Selling the stuff is what counts ...

Asia drives demand for Australian coal

[quepassa] 03/6/2016 17:11

agreed we are not out of the woods but..........
it seems almost certain that the Fed is going to start raising $ rates soon and history shows that almost certainly other currencies will be forced to follow to protect themselves.

anyway, interest rates is another discussion.

QP

[emeraldzebra] 03/6/2016 13:37

all agreed....with the exception of the future for interest rates which i feel are going to have to stay VERY low for a very LONG time. We our nowhere close to being out of the woods yet. The fall - out from raising them overly much would damage property prices to an unacceptable extent, i would imagine.

[quepassa] 03/6/2016 12:40

You are right, interest rates are low. Very low.

But it's a question of the margin OVER the benchmark rate they have to pay.

I did once see it but cannot remember. I guess anywhere between 2-4% over benchmark.

It's just maths, If borrowing costs , let's say, are 3%, and overheads, staff costs contribute another 3%, they probably need to find an asset paying a minimum of 8-10%pa to make it worthwhile.

Also we are definitely on the edge a rising interest rate environment after a long period of low interest rates.

They also have a major funding/timing mismatch as they can generally mostly borrow shorter term whereas the assets are definitely long-term.

That's why it was so nice for them to be debt-free.

Well done on gearing yourself. That's a great way to make money, if you get it right.

It may also be that they have limited access to further funding given the nature of their investments and that their assets are already charged.


ALL IMO. DYOR.
QP

[emeraldzebra] 03/6/2016 12:20

QP- All noted but i thought were were in a LOW interest rate environment. ?? I accept your arguments if they stupidly agreed to be charged a fortune to borrow but i struggle to see a reason why they should be, if commodity prices are accepted to be close to or just about at - all time lows ! Perhaps we could reverse the discussion and ask - from a banks point -of - view - whether there has ever been a better time to LEND in the commodity markets ?! ---No boast but I have made good money - BORROWING at low rates, and investing the proceeds. And i am an idiot. !!

[spectoacc] 03/6/2016 12:08

Investors Chronicle Buy tip on APF today - admittedly usually a reason to sell, but reads well. Only got the mag so can't copy/paste.

[quepassa] 03/6/2016 11:59

RCT2.

We have a real humdinger of a debate going on on Berkeley Energia on the BKY thread.

No prizes for guessing who is one of their major shareholders.


ALL IMO. DYOR.
QP

[rcturner2] 03/6/2016 10:23

Borrowing money is only sensible if the return on that money exceeds the cost of borrowing. That is the same for all businesses.

The impact of default also has to be considered.

[quepassa] 03/6/2016 10:14

these guys haven't covered their annual dividend payment for yonks. they've just cut their dividend. debt has gone up.

borrowing money costs! It's called interest and they can ill-afford additional financial burdens of having to service more debt.

it would be very interesting to know precisely what their financial covenants are in terms of gearing ratios, minimum tnw, etc etc and I believe that they have already encumbered by way of charge (if my memory serves me correctly) their assets as collateral for their existing revolver.

yeah agreed that you should be able to buy some nice things now.

so, ask yourself why they haven't.

they can't keep on going back to the equity trough. more share issuance means more divis to pay.

it seems to me that they are hunkering down.

shame that they appear to have little cash-to-splash 'coz now is indeed a great time to buy cheap assets and royalties.

ALL IMO. DYOR.
QP

[emeraldzebra] 03/6/2016 09:56

Que passa....sure....but not a bad time to borrow ?? low - interest rates and all that. If it's not sensible to borrow now..........er...........when the f++k is ??? Just a thought..

[piedro] 31/5/2016 08:29

Confirmation of what has previously been predicted ...

Australian coal exports to Thailand four times higher
Minerals Council of Australia
New figures show that the demand for high-quality Australian coal continues to grow throughout South East Asia with exports to Thailand four times higher in April 2016 compared to April 2015. ... ...

[neilyb675] 25/5/2016 08:22

Following positive developments at Berkeley Energia Limited ("Berkeley"), the Group's equity stake is valued at £10.3m (as of May 23, 2016) and the implied value of the Group's royalty, based on Berkeley's recently announced deal, is approximately $10m higher than the value carried on our balance sheet

[quepassa] 25/5/2016 08:04

Just look at the significant increase in borrowings at APF.

Debt-free to debt-burdened.

Not good.

ALL IMO. DYOR.
QP

[clausentum] 21/5/2016 09:37

From the Spectator:

Anglo Pacific

(73.5p; £127m)
I’m encouraged to think that the worst is over for the mining sector. This certainly looks the case for the only mining royalty company quoted in London. Its two major coking and thermal coal producing assets in Australia have come on stream, hence royalty income rose significantly last year despite low commodity prices. Other royalty streams in iron ore, uranium and vanadium are about to contribute. Other than uranium, all commodities have recovered from their lows, supporting Anglo’s profit optimism for 2016 and 2017. The balance sheet is reasonably strong and a dividend of at least 6p per share would offer an acceptable 8 per cent yield while we await better times.

[spectoacc] 11/5/2016 07:20

Another small fillip this morning:

"Anglo Pacific Group PLC
Royalty Update: Salamanca
Anglo Pacific Group PLC ("Anglo Pacific" or the "Company") (LSE: APF, TSX: APY) is pleased to announce that Berkeley Energia Limited ("Berkeley") has entered into a US$10 million financing package with Resource Capital Funds, a significant Berkeley shareholder. The financing comprises the issue of US$5 million of Berkeley ordinary shares at a premium to the 10-day and 30-day VWAP, and US$5 million for a 0.375% net smelter return ("NSR") royalty over the Salamanca project.
In December 2009, Anglo Pacific acquired a 1% NSR royalty applicable to production from Berkeley's Spanish and Portuguese assets for A$4.1 million which continues to be its carrying value. Anglo Pacific holds 30.3 million Berkeley ordinary shares.
Julian Treger, Chief Executive Officer of Anglo Pacific, commented:
"We are encouraged by this financing event, which implies a US$13 million valuation of Anglo Pacific's existing 1% NSR royalty, a multiple of our asset value, and also minimises shareholder dilution. We look forward to Berkeley undertaking initial infrastructure development, and ultimately to first production at Salamanca."

[spectoacc] 10/5/2016 16:44

Thanks @Neilyb675