Anglo Pacific Share Discussion Threads

[christh] 14/4/2011 21:27

Questions that were asked.

Is APF affected by the bad weather and flooding in Australia?

Reply
------
No, only one of the mines was shut for a few days because of the roads.
APF was not affected as it only receives royalties, it does not operate the mines.

Was APF affected by the nuclear explosion in Japan with the Uranium royalties?

Reply
--------
No, because the demand for Uranium is great and it will not scale down.
The use of the Uranium to generate cheap, clean electricity is so great as many countries are building nuclear power stations, from China to Brazil
India to Europe.
The world economies can not stay away from nuclear energy.

How long do the Crineum and Kestrel have before they have exchausted their coal?
Reply
------
One of them has 12 months and the other one 15 years.

Why has not APF raised money for new aquisitions?
Reply
-----
No need to as the company has a lot of cash ready to use it as and when a suitable royalty is found which meets the criteria such as price,viability,
a company with no debts (gearing),prospects and other factors.
The board is looking to invest in 2-3 royalies that meet those criteria.
No placing in TSX yet as there is no need.

What is situation with commodites and the coal that APF have invested?
Reply
------
The demand for commodities will increase as the Asian economy is growing.
The coal that APF is invested is coking coal used for iron ore.

Will APF consider moving to a lower taxation country than UK?
Reply
---------
No, because the tax was paid in Australia and no point moving out of UK and its shareholders.

Will the company consider buying back the shares from the market?
Reply
--------
Although the company has the option, the board prefers to use it to increase
the company assets i.e. invest in companies, royalties etc.


There are royalies which have not yet come into fruition and they are long term.
The most significant being the Railway deposit royalty is a high quality royalty, one of the best they signed.



These were some of the questions I remember.

[haydock] 14/4/2011 09:42

Apologies Christh, I had missed your first note.
Many thanks for the reports.
I have APF through every slice : like Blackpool Rock, so i can agree with your feelings from the AGM.
I would be pleased to hear if anything was said about the CDN coal?
This is the real hidden cash pile, the real reason the directors keep on buying shares. APF is a little like an iceberg.
The inti's will be happy with what they perceive they are buying into: but will not even know about the CDN coal when they buy in some cases!!

News articles, if you ever see any generally miss it.

[grigor] 14/4/2011 06:26

The Glencore IPO may attract more interest

[christh] 14/4/2011 06:24

Hay,
the dividend is consistent year upon year the same yield and will be increasing slightly.
They will not increase any higher than it becomes unsuntainable.
Otherwise there will be questions asked by the market.
I asked Mathew (FD) about Mantra and will not comment on it.
They are expecting a big profit but not engaged in figures.
As far as for a special dividend and they expect to invest in suitable royalties.
There are royalties which have not yet start to contribute so this is to be added to their future profits.
Management are oldie apart from the FD who is 34 but are very good and business minded.
They are trustworthy after all yhey have put their own money in the business by buying the shares.

Sleep easily and let the money grow with this company.

Pension funds will love this stock as the income is good and consistent.
The institutions have not yet invested as this just promoted to the FTSE 250.
Expect big Buy volumes from pension Funds,FTSE mid cap trackers and income/growth Funds.

My opinion is the share price should be close to 450p with the present assets.
Wait and see.

[haywards26] 13/4/2011 21:07

Hi Christh,

Did they mention anything further about the progressive dividend policy?

Also did they mention what their plans are in regards the likely proceeds from the Mantra equity sale?

[scottishfield] 13/4/2011 19:29

thank you christh

[christh] 13/4/2011 18:34

DIRECTOR BUYING TODAY
------------------------------
The Company wishes to announce that Chris Orchard, Chief Investment Officer, bought on April 13, 2011 5,206 shares in the Company at a price of 317.86p per share. Following this notification his revised beneficial interest in the Company is now 352,245 shares representing approximately 0.32% of the issued ordinary share capital

[christh] 13/4/2011 18:33

LATEST NEWS
--------------------------------------
Anglo Pacific Group PLC ('the Company', 'Anglo Pacific') (LSE: APF) (TSX: APY) is pleased to announce that at the Annual General Meeting the Company held on April 13, 2011 ordinary resolutions were passed to authorise scrip dividends, pay a final dividend of 5.10p per share and obtain authority to allot new shares from unissued share capital under section 551 of the Companies Act 2006. Special resolutions to authorise the allotment for cash of new equity shares or from treasury, to authorise the Company to make one or more market purchases of its own shares and to adopt new Articles of Association were also passed.

All resolutions were passed unanimously on a show of hands. There were no polls. The details of the proxy votes cast will be available on the Company's website.

[christh] 13/4/2011 18:32

Haydock,
I did and was very glad I did.
Very happy and very impressed with all the questions and replies that came out.

My recommendation is BUY and forget about it especially in an ISA.
Growth is unstoppable in this company.
Debt free and a cash pile ready to bounce in the next opportunity.


If there are any questions or anything you want answer post it in here and I will reply as more of the questions were broadly about the company, current market conditions, strategy of the company,suggestions etc.

[haydock] 13/4/2011 17:30

Have we ever had anybody attend the AGM?
I cannot recall any reports or questions in my time, at least not recently.

[kubio] 13/4/2011 16:34

christh - thanks for the update mate, bought some more today...

[christh] 13/4/2011 15:01

Just got home from the agm.
Keep buying.

Another 3 to 4 royalties coming this year but they have to meet the criteria for APF to buy in.
Royalties are coming through for recent buys such as the Anglo American.

By the way they have not place any shares in TSX yet as there is no need,
as the company has a lot of cash.

The institutions have not been buying APF in the FTSE250 tracker funds yet,
so you will know when you see the price going above 400p.
Very attractive for income funds.

[haydock] 13/4/2011 11:58

Horizonte.

April 2011 Interview with Jeremy Martin

[bountyhunter] 09/4/2011 08:37

about to bounce?

[haywards26] 08/4/2011 12:53

I wonder if the mantra proceeds will be used to buy equity stakes in other producers/explorers?

[christh] 08/4/2011 10:20

Next Wednesday,13 April is the AGM.
I will ask them about a possible special divi for the shareholders.

[christh] 08/4/2011 09:35

MANTRA RESOURCES: UPDATE ON ARMZ CASH OFFER FOR MANTRA

Press Release Source: Mantra Resources Limited
On Monday April 4, 2011, 1:09 am EDT

PERTH, Western Australia, April 4 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX:MRU, TSX:MRL) is pleased to provide the following update on the status of the revised all-cash offer from JSC Atomredmetzoloto ('ARMZ') to acquire all of the issued shares in Mantra by way of a Board recommended Scheme of Arrangement (the 'Scheme') under the Australian Corporations Act, which was announced on 22 March 2011.

If the Scheme becomes effective, Mantra shareholders will receive total cash payments of A$7.02 per share, comprising:


A$6.87 in cash for every Mantra share they own under the Scheme; and


An unfranked special dividend of A$0.15 for every Mantra share they own as at the Record Date under the Scheme.
Scheme Booklet filed with ASIC

An amended draft Scheme Booklet, including an Independent Expert's Report, was today lodged with the Australian Securities and Investments Commission ('ASIC'). Mantra intends to schedule a first hearing date with the Supreme Court of Western Australia ('Court') to coincide with the completion of ASIC's review of the Scheme Booklet.


The Company will provide a further update on the Scheme timetable once the first Court hearing date is confirmed.



APF has a share holding in Mantra resources which stand to make £30-32 million,
a very substantive profit will be made which is the new financial year.

A special divi, maybe?

[christh] 08/4/2011 08:40

Gold may hit $2,100 in 2014 says Standard Chartered

LONDON: Gold's "super cycle" could see prices averaging $2,100 an ounce by 2014 and even approaching $5,000 later in the decade, Standard Chartered said in a report on Thursday, as demand rises in burgeoning Asian economies .

Gold prices have risen from $265 an ounce in early 2001 to a record $1,461.90 an ounce this week, lifted in recent years by safe-haven buying linked to the credit crunch, dollar weakness, producer de-hedging and lower official sector sales.

In the decade to come, soaring demand in major consumers China and India , where incomes are rising, is likely to extend this further, the bank added.

"We find that there is a powerful relationship between income per head in Asian emerging markets and the gold price, which suggests further significant upside for gold," it said in the report. "Also, our FX team is forecasting further (dollar) weakness against the Chinese yuan and Indian rupee."

This would make dollar-priced gold cheaper for holders of those currencies.

"Our base-case forecast is that prices rally to peak at an average $2,107 an ounce in 2014, although our statistical modelling also suggests a possible 'super-bull' scenario of gold prices rallying up to $4,869 an ounce in nominal terms by 2020."

It said it did not expect a rise in headline U.S. interest rates, currently at historically low levels, to derail gold's rally until real rates start rising in several years' time. Increased primary gold production may have a negative effect, however.

"We expect a steady acceleration in mine supply growth in the years ahead, which should overwhelm demand growth beyond 2014," it said in the report. "Nevertheless, we expect an extended period of high gold prices."

[christh] 08/4/2011 08:09

Oil and Metals
Friday, 8 April, 2011

Spot gold hits a new record high at $1,466.40 a troy ounce, up $8 since Thursday's New York close, while silver is testing the $40 level as Asia buys, after selling into strength in the previous sessions this week. London Metal Exchange three-month copper is at $9,720/ton, up $51 with 1,385 lots done so far.
Commodities Summary Previous Change

Oil $123.53

Gold $1465.38

Silver $39.97

[christh] 07/4/2011 06:24

Gold sets its sights on $1,500 while silver just short of $40

as currency flactuations in the world and some economies default everyone is moving into precious metals.

Gold is set to hit $1500 an ounce while silver $40 an ounce.

APF share price is heavily discounted, well below the NAV.

APF in line for treble profits this year and higher dividend.
The directors recently bought at 349p and others at 330p.
Expected that they will lift the dividend to about 12-13p this year.

[christh] 06/4/2011 22:57

APF is getting more royalties from the higher prices of commodities such as Gold,silver,iron ore and mostly coking Coal.
Coking coal is in high demand as the factories in China,Japan,India and other emerging economies are churning out the processing of the raw materials in their furnaces.
The profits will double/treble this years profits as more royalties will now
be received.
Nickel,Zinc and other investments will start contributing to higher profits.

A reminder for the newbies " this company has no debts" and constantly
increases the divi to the shareholders, year upon year.

You will qualify for the dividend if you buy (until the 4 May).

Many brokers are recommending "BUY" on the basis of strong growth,
Gold expected to be $1600 by the end of the year.

[christh] 06/4/2011 22:40

Xstrata 'keen to grow' in coking coal, says Nomura's Cliff
Michael Bennet From: The Australian April 06, 2011 3:41PM

MINING giant Xstrata is keen to increase its exposure to coking coal and is open to acquisitions, say analysts.

After attending day one of Xstrata's site tour to Australia and New Caledonia for analysts, Nomura's Paul Cliff said Xstrata Coal chief executive Peter Freyberg recognised that its growth had been heavily skewed towards thermal coal and was "keen to grow" in coking coal, which is used in steel-making.

"Management is keen to grow in coking coal and is open to exploring acquisitions in the space," said Mr Cliff.

Separately, Mr Cliff didn't confirm a Dow Jones report last week about Xstrata securing record Japanese fiscal-year coal price settlements of $US130 with Japanese power utility Chugoku. But he said, if confirmed, the settlement would represent an extremely strong outcome for Xstrata.

[drewz] 06/4/2011 17:33

Tatie, many thanks for that.

Swings and roundabouts causing some short-term uncertainty, hence the last few weeks of profit locking-in.

Medium term, no problem. Onwards and upwards.

[tatie] 06/4/2011 14:22

From the Preliminary Results 23/02/2011
'Due to the floods in Queensland in January 2011 output at both the Kestrel and Crinum mines was disrupted and spot coking coal prices moved above US$300 per tonne. Neither mine was flooded but infrastructure road and rail links to and from the mines were affected. In the short term therefore disruption of production will have an impact on Group cash flows although, when full production resumes, the Group expects to benefit from the higher prices achieved for both coking and thermal coal. Some production still continues from the private ground at Crinum.'