Anglo Pacific Share Discussion Threads

[christh] 26/4/2011 14:25

Base Metals
Name Price Change Percent Units Last Update
Aluminium 2718.0 +22.25 +0.83% USD/tn Market Close / Apr 20
Copper 9555.25 +237.50 +2.55% USD/tn Market Close / Apr 20
Lead 2646.0 +44.00 +1.69% USD/tn Market Close / Apr 20
Nickel 26380.0 +1087.00 +4.30% USD/tn Market Close / Apr 20
Tin 32598.0 +238.00 +0.74% USD/tn Market Close / Apr 20
Zinc 2337.1 +27.10 +1.17% USD/tn Market Close / Apr 20

Precious Metals
Name Price Change Percent Units Last Update
Gold 1501.59 +8.2 +0.55% USD/oz Market Close / Apr 20
Palladium 760.72 +30.22 +4.14% USD/oz Market Close / Apr 20
Platinum 1800.74 +30.24 +1.71% USD/oz Market Close / Apr 20
Silver 45.21 +1.41 +3.22%

[rathkum] 26/4/2011 11:52

Looking at the chart pattern doesn't inspire confidence

[gavapentin] 26/4/2011 11:18

topped up

foolish not to

[anotherardbeg] 25/4/2011 19:54

Thanks Ian. Enjoy your 10 year old!

[ianbrewster] 25/4/2011 16:45

anotherardbeg - I believe that the 'CDN' you are asking about is just an abbreviation for Canadian and is in relation to the companies directly held coal interests that may be worth a great deal, but that are currently excluded from most comments on APF's value.

PS like the handle - I think that I still have come in the cupboard..

[rochdae] 24/4/2011 15:30

Perhaps slight weakness due to the mining problems in Australia. Major operators confirming problems throughout 2011. Of course, the price of coal should compensate and, as pointed out, APF has multiple interests.

Still, might be an factor in the flat share price ... given exceptionally good results and strong markets.

[anotherardbeg] 24/4/2011 13:55

New here.
What's the relevance of "CDN"? I thought they were being bought out by Gram, a Chinese company.

[shavian] 24/4/2011 08:28

Great thread boys. Thank you Chris, Hay et al for such excellent research. Happy Easter all. Roll on the divvies!

[christh] 21/4/2011 13:27

At $2000 per ounce the assets of APF will be around £400-£500 million.
The strength of commodities will climb even higher as the currencies fluctuate especially with the Euro and the eurozone in deep trouble with countries defaulting their debt.
US debt also mounting and frightening investors and traders alike.

So the only place that is safe is commodities - Gold,Silver,Platinum,Coal, Uranium, Zinc,Iron etc.

That's where APF stands out from the reston both growth and income.

[christh] 21/4/2011 07:17

GOLD ROYALTIES
---------------
1.The Company owns a 2.5% NSR, escalating to 3% for gold prices in excess of
US $1,100 per ounce on the El Valle and Carles gold and copper mines located in Asturias, Spain.
The mines will be producing an average of 105,000 ounces of gold per year
commencing spring 2011.
The mines are operated by Orvana Minerals Asturias Corp.

2.The Company owns a 2.5% NSR in the Engenho gold mine in Brazil.
Received £400k in 2010 (£300k in 2009) from this project.
The mines are operated by Mundo Minerals Limited.

3.The Company owns a 2.5% NSR, escalating to 2.75% for gold price in excess of US $1,250 per ounce on the Midway-Mckenzie Break project in Quebec,Canada.

4.The Company also owns an option to buy a 2% NSR on Creso Exploration Inc Duggan gold property in Ontario,Canada.

THESE ARE FROM THE Directors report in their Annual report and Accounts 2010, page 9.

Apart from these established royalties they have other options to buy other royalties.

Also they hold equity in gold stocks listed in global exchanges

CHINA GOLDMINES(LSE),
HERENCIA RESOURCES(LSE),
COLUMBUS GOLD CORP(TSX),
GOLDMINCO CORP(TSX),
Royalco Resources Limited(ASX),
Atna Resources Ltd(TSX),
Mundo Minerals Limited(ASX)
Maudore Minerals Ltd(TSX),
Indo Mines Limited(ASX)

The holding varies from 3% to 31%.More details pages 11-12 on ANNUAL INFORMATION Report


HENCE MY CONCLUSION THAT THE COMPANY IS HEAVILY UNDERVALUED.
THE REAL PRICE SHOULD BE 450p.

[christh] 20/4/2011 21:27

Gold breached $1,500 an ounce for the first time on Wednesday and is expected to hit $2,000 by the end of next year as a perfect storm of concerns about inflation, debt, the US dollar and unrest in the Middle East pushes up precious metals.

APF has royalties and holds shares in gold stocks.
See the header for the holdings (top of the page).

[scottishfield] 20/4/2011 15:26

Bought 25% more today & will try to free up more money for further topups. The share price is far too low, given all that's happening. GL all, and thanks for the posts.

[ian davenport] 20/4/2011 11:57

Christh - good to hear , I'll try to make it next year as i find APF a very interesting company, and am sure looking the board direct in the eyes would be a good idea - i am slowly working though the major shareholdings i have

[christh] 20/4/2011 09:09

Hay,
you couldn't have put it any better.
This company has invested in commodities via royalties and is not managing mines or buying and selling commodities.
It only invests in safe stable countries such as Australia and Canada.
The dividend grows by an average of 8% of the previous year.

At its current levels is far too cheap as it has fallen from 367p which is
quite a heavy discount.

The reason for the fall is the small company Fund trackers selling because
Anglo Pacific has risen to FTSE 250 index.
The small company Fund trackers are not permitted to hold stocks in the FTSE 250.

However now expect buyers of the FTSE 250 to BUY Anglo Pacific stock
considering is a strong growth and income stock!
This is ideal for Pension Funds as it provides a good income for their
investors.

X-divi is the 4 May

[haydock] 20/4/2011 08:25

Always viewed APF as an investment trust: you would not get a discount of 25% on BLWM, today or any day for the last few years, property funds perhaps, but you are effectively buying assets at a quarter off !!!

[christh] 19/4/2011 22:33

Ian,
I did not get an invite to the agm as my shares are held in a nominee account and I am entitled to the script divi.
I asked the FD if it was allright to attend the agm and said no problem.
I went and met all sorts of shareholders, very pleasant, orderly meeting and enjoyed my tea/buiscuits laid out.
I hope you attend next year.

by the way the x-divi is on 4 May.

The share price is well below the NAV.
The valuation of all the assets is greater than what the share price represents.

The right price should be 450p.

[haydock] 19/4/2011 15:41

Easy, just ask your broker in advance, not a problem.

[ian davenport] 19/4/2011 14:28

Christh - at the Rio agm the company were asked "protest questions " about all sorts of things - mines they only have a relationship with similar to the way APF does, mines they sold 8 years ago and why they're not influencing the national government of that country - even about the pollution caused by a mine owned by a rival - its all good entertainment but not very helpful the for the serious shareholder - i am just glad that APF are allowed to get on with the serious job at hand - making money for us shareholders - the only downside of investing via a Sipp is you don't get an invite to the AGM, i think i probably could if i persisted but reading reports like your are all i need from it.

Thanks again for the info

[christh] 18/4/2011 22:55

Peter Thompson (fund manager from Taylor Young) has been building up a position
in AIM listed Horizonte Minerals.
Commenting on the reason behind the decision,Thomson:"We want to find niche
businesses like this that are going to develop key resources over the next three to five years".

Anglo Pacific Group, a global natural resources royalties company has been building a stake, which now amounts to some 11%.

Meanwhile, Teck Resources, a Canadian diversified company, owns around 44% of Horizonte's share capital.

source: EVENING STANDARD, Traders Talk column, 18 April 2011

[christh] 15/4/2011 20:52

Ian,
APF always have a very orderly agm, very serious about the shareholders.
All the directors will come and speak to the shareholders (not many turn up),
and very keen to listen.
The directors are shareholders themselves as they have invested their own money
themselves
You can ask any question you like provided that its not company confidential, like what and where they will invest next.

APF is the only royalty company in UK.
The company is not affected by politics or economics of a country.It does not get involved in the running of the mine.
All they do are being paid a money from the operators of the mines.
The operators of the mine are big Blue chip companies like BHP Billiton, Rio Tinto, Anglo American and others.

The reason for the fall is the small company funds got rid of the shares because of the stringest rules of the fund.
Should they have kept them they will be breaking LSE regulations.

APF is not a minow anymore but a mid cap company with a capitalisation approaching £300mln.
The FTSE 250 fund managers are yet to invest so the prices we see now will be history in a few weeks/months.
Toronto has not being exploited yet as it has not any publicity, marketting, placing etc.So this is yet to come.

One good friend whom I can not thank enough for tipping me APF in the 2000, has said to me it could be taken over.
Puzzled I asked him.
By who?
A pension Fund!
Why would a pension fund be interested to buy a company like APF?
Simple reason....the income,good dividends!
It will keep the pension fund managers happy as the yield is good and is growing every year and also the capital is growing too!
A compounded dividend will surely be a substantial income for any investor.
An investor with 20,000 will have an income of £2000 at the current dividend price.

So I am keeping hold of the shares for the next 10 years.
This is my nest egg.

Thanks!

[haydock] 15/4/2011 19:33

Not really hiding it from us:it is clear at the top of the page.
No they continue to progress it, & they have plans, it's just that most people don't even know about it when they write up the company & the value compared to the valuation on the balence sheet means that it is an asset that will show an incredible return sometime : somehow.

They have plans & they do make progress, but they never put it up in lights & it really is central to the future.
It will not just be a rainy day, when they move on the cdn coal, there will be floods of cash, either in a lump or in cartloads on a regular basis.

It is the biggest thing on the balence sheet,& if you ever see a write up on the company, you would never know it.

[gavapentin] 15/4/2011 18:49

Hay - have you asked the company about the CDN coal? While you say they are hiding it, why are they? To release on a rainy day?

[ian davenport] 15/4/2011 12:46

Chris - thanks for a great report from the AGM - also added on this dip - in my SIPP so i can let the dividends roll in for the next 15-20 years
Having just been to the Rio agm - do APF get any "protest questions" or are they all serious, interested in the future of the business? i guess maybe APF are small enough to be under the protesters' radar

[haydock] 15/4/2011 08:39

christh

Many thanks for all that work.
However it's as i thought they are able to keep the CDN coal hidden from view, they love to be as discreet as possible.
If you go again next year or have any contact thats the line to ask about.

[christh] 14/4/2011 22:11

A reminder.....

The dividend is 5.10p.
The x-divi date is 6 May.

which is payable in July 6

if you buy now and keep until after the x-divi date you are entitled to
the divi.
the yearly divi was inreased by 8.4% to 9.05p (last year's divi 8.35p).