Anglo Pacific Share Discussion Threads

[jackster] 30/4/2011 14:41

Just wished I had some cash to buy some more of these. Perfect share for sticking in your ISA. Well run company, nice spread of royalties and assets, no debt, decent income, lots of director buys, just been promoted to FTSE 250 so on funds radar and a decent divi.

[christh] 29/4/2011 09:50

johnrxx99,

It seems you have missed out the (GRR) Royalty on the Amapa Iron Ore system
operated by Anglo American plc.


Would you mind,please, adding that in your listing above.

thanks!

[christh] 29/4/2011 09:11

Gold and silver hit fresh highs
Gold and precious metals

.Gold and silver prices surged to fresh all-time highs yesterday as the dollar plummeted to a three-year low
.GFMS sees gold price topping $1 600/oz by year-end owing to Middle East protests and US, European macroeconomic uncertainties
.Gold One International agreed to buy Rand Uranium from Harmony Gold Mining and other investors for $250 million
.OceanaGold saw quarterly net profit jump to $14.8 million on the back of strong gold prices
.Northern Gold Mining of Toronto reports bonanza grade gold from its Garrison gold property near Kirkland Lake
.Agnico-Eagle Mines increased first-quarter net income by 103% helped by surging bullion prices
.Peru's largest precious metals miner Buenaventura reported first quarter net income of $218.3 million, up 40%
.Salazar Resources has intersected high grade gold mineralisation and found copper, silver and zinc in Ecuador
.Catalpa Resources has reported a slight decline in gold production for the quarter ended March
.JSE-listed Aquarius Platinum recorded a 9% increase in profit of $25.3 million for the third quarter ended March


Just to point out with direction APF profits will be heading this year!
APF has 8% of the royalties in Gold and also 24% in Gold mine exploration.




ASSETS £415.6 million

Total Mining and Exploration interests 128.4 million

Cash in the bank £37.0 million

Debt 0

[christh] 29/4/2011 09:07

GOLD SURGES FURTHER
Apr 29, 2011

GOLD and silver prices surged to fresh all-time highs yesterday as the dollar plummeted to a three-year low against a basket of currencies and turmoil continued in the Middle East.
Silver rose to $49.51 an ounce, beating a previous high that has stood since 1980, while gold reached $1,538.35 an ounce. Both dipped back. Oil prices also rose strongly, rising more than $1 a barrel to hit $126.66 in the one-month futures market.

The dollar came under pressure after central bank chairman Ben Bernanke hinted it will be some time before interest rates are hiked.

[vosene] 28/4/2011 18:13

I am back in this stock today after a while away chasing other opportunties.

11 years of stock market investment and I've never seen a better share than this one. A big multibagger over the last decade with a yield sometimes good enough for a high yield portfolio, low running costs, cash in hand, spread of commodities, projects in the safer areas of the world. There is nothing else like it - long live APF!

[bountyhunter] 28/4/2011 17:19

Directors still buying...

April 28, 2011

Anglo Pacific Group PLC

Director's Share Dealings

Anglo Pacific Group PLC ("the Company") (LSE: APF) (TSX: APY) announces that Anthony Yadgaroff, Non-executive Director, bought today 2,714 shares in the Company at a price of 315.3p per share. Following this notification his revised beneficial interest in the Company is now 166,812 shares representing approximately 0.15% of the issued ordinary share capital.

[bountyhunter] 28/4/2011 16:44

also EPS growth rate 170.78%
current PE ratio just 6.1, and a reasonable divi as well

this is off most peoples radar though hence the undervaluation imho (until the ftse 250/350 trackers pile in)

[christh] 28/4/2011 16:29

haydock - 28 Apr'11 - 14:52 - 5253 of 5253

Very good assesment.
I agree with you.
The additional Panorama projects as well as the Trefi have increased in value
and the royalty are higher.

Thanks!
Well done for highlighting that.

The share price undervalues the company by 20%.
The share price should be around 380p!

A growth and income stock that delivers every time.

[haydock] 28/4/2011 14:52

Now the real key to the true value of APF is on page 10 of the report.
We already know that the share can be purchased for at least a 20% discount.
However the relevant statemnt is that the assets of £415.do not include any increase in the value of any of the royalty intangibles & of the Panorama & Trefi coal fields in Canada.
Valued this year after work @ £2m

2.Panorama North..... 108 million tons
3.Panorama South..... 218 million tons
The resources are very large but the area is remote and requires major investment for access.
Trefi
The Trefi project comprises seven coal exploration licences cocering 4,600 acres in northeast British Columbia in the heart of the productive and well developed Peace River coal field. Resources from The British Columbia Ministry of Energy and Mines are 121.5 million tons of low to medium very bituminous coal. The local infrastructure is excellent.

DYOR

[christh] 28/4/2011 12:38

page 8 of the report activities of the company
-----------------------------------------------
68% Coal royalties
16% Iron ore royalties
7% Uranium royalties
8% Gold royalties
1% other royalties-Chromite,Nickel,NSR in Ontario
Private coal intersts £2 million.

Other Mining and exploration intersts
Coal 7%
copper 12%
Gold 24%
Iron ore 12%
Zinc 5%
Uranium 25%
Platinum 8%
other 7% (rare earth etc.)

[christh] 28/4/2011 11:52

the annual report & accounts 2010 online.
A pleasure to read

[haydock] 28/4/2011 11:19

3doogle - 27 Apr'11 - 19:22 - 2335 of 2340


Taken from iii courtesy of Fabian ( hope he doesn't mind )

HZM is in Shares Magazine this week for having won Deal of the Year at the 2011 Stock Market Wire awards!

Jeremy Martin is quoted in the article "We knew that the acquisition of Teck Resources Araguaia nickel project in Brazil was a great deal, however to have won 'Deal of the Year' was a surprise, and one we were delighted with. It really has been a transformational time for the Company – a deal which has seen the value of Horizonte increase significantly both on an asset and corporate level as we emerge as a leading exploration and development company in Brazil.

3d

[christh] 28/4/2011 10:12

The high gold price is pushing up shares in precious metals miners such as Petropavlovsk, African Barrick and Fresnillo.

Also APF profit increases too as the investments and royalties in gold will quadruple 2011 profits.
The sale and demand for gold in Asian countries has been inceased substantially due to curency ,inflation,debt and othe economic factors.

[christh] 27/4/2011 15:38

The constituents of the FTSE UK index series, incorporating the FTSE 100, FTSE 250, and FTSE SmallCap are reviewed quarterly, by FTSE's Europe, Middle East and Africa committee. The reviews are conducted to ensure that each index remains an accurate and up to date reflection of the market it measures.

The reviews take place on the Wednesday after the first Friday of the month in March, June, September and December, and the values used to make the changes to the indexes are taken at the close of business the night before the review (Tuesday).

The review dates for 2011 are as follows: Wednesday 9 March, Wednesday 8 June, Wednesday 7 September and Wednesday 7 December.

So buying FTSE 250 trackers in APF could be anytime as it has joined the index.

[christh] 27/4/2011 13:44

RNS Number : 5489F
Anglo Pacific Group PLC
27 April 2011
News Release
April 27, 2011

Anglo Pacific Group PLC final dividend for the year ended December 31, 2010

Anglo Pacific Group PLC ('the Company', 'Anglo Pacific') (LSE: APF) (TSX: APY) announces today, that, in light of the current share price, the Board has resolved not to offer shareholders a scrip dividend alternative in respect of the final dividend for the year ended December 31, 2010.
The final dividend of 5.10p per ordinary share for the year ended December 31, 2010 will be paid in cash on July 6, 2011 to shareholders on the share register at the close of business on May 6, 2011.

For further information:
Anglo Pacific Group PLC [phone]
Peter Boycott, Chairman
Matthew Tack, Finance Director

[bountyhunter] 27/4/2011 11:07

cheers Chris, should be offset to some extent by ftse250 trackers buying in, maybe that is yet to come; [ edit - snap!]

yes decent yield of around 3% with excellent divi cover of 5.74

[christh] 27/4/2011 11:05

I forgot to add the FTSE 250 - FTSE 350 fund managers will move on along with pension funds to BUY the shares as the shares qualify both as growth and income investment.

Therefore what prices you see now will be a distant reminder and will have regrets why you never bought.
Just remember it was 367p and in its way to 400p so do not miss out at this price!

[christh] 27/4/2011 10:29

The FD has said at the agm is that the Small compny Funds owing to LSE regulations must only include in their funds "small companies" otherwise they
risk fines.
Since APF has risen to FTSE250 is now in a new league and this is the only valid reason for being sold.
No problems with anything in the company.
In fact the price of gold which APF has significant investments has risen to above $1500 and also demand for coal...and the strong $AUD constitute a very
strong and healthy company.
Also the 5.1p dividend per share (x-divi 4 May) paid in June is a good yield.

[bountyhunter] 27/4/2011 10:06

has this been shorted of late?

...the recent share price weakness makes little sense to me in light of record commodity prices and numerous director purchases at higher levels.

I'm just going to sit and wait with my investment here; the strong fundamentals should win out in the end, imho.

[christh] 27/4/2011 09:36

With oil prices remaining high, it is worth being aware of their influence on coal prices and the companies benefiting from this. Coal tends to track oil due to its role as a substitute, also reflecting changing industry demand with economic cycles. It is a vital input for the steel industry, an industry very much influenced by growth rates of developing countries.

India and China have strong long-term momentum and supply constraints are
keeping oil and coal prices well bid. For the time being at least, oil and coal-related shares are proving more comfortable to hold than consumer or financial.

Most investors' sense of gaining exposure to coal is via large diversified mining groups such as BHP Billiton (BLT.L) or Xstrata (XTA.L), Anglo American(AAL.L)with the smaller resources companies regarded as inherently speculative. Yet Anglo Pacific Group (APF.L) in the FTSE 250 index is an interesting example of a conservatively managed firm with a proven track record. Over the last decade, under a new management, it has utilised royalties from Australian coal mining interests to acquire further royalties and a spread of investments, besides paying useful dividends. Via a proactive style, over the last eight years the management has achieved a compound rate of return on its investments, which has helped to drive Anglo Pacific shares from about 40p to 367p, currently capitalising the group at £342.66 milion.


Assets in low political risk areas

The group also has some exposure to uranium, gold and platinum group metals also diamonds, is un-hedged and debt free, hence well positioned to gain from strong commodity prices without the gearing that typically causes trouble for smaller firms. Anglo Pacific's assets are mainly in countries of low political risk such as Australia and Canada, with management generally avoiding developing countries where resources nationalism has become a problem.

All told, it is a shrewd approach to managing financial risk and reward that coincides with the executive chairman and finance director each holding about £6 million worth of shares hence their interests are aligned with outside investors. Furthermore, the directors continue to take up their dividend entitlements via a scrip issue of shares, a vote of confidence in long-term capital growth.

In terms of portfolio spread, Anglo Pacific has some £millions (equivalent) invested in 19 or more different companies in the UK, Australia and Canada, Europe with a further 30 'incubator' investments(More yet in pipeline). Management is wary not to share much detail about its smaller stakes, but this is in their commercial interests and Anglo Pacific is not a complex group to understand like the larger miners.

The 2010 results were strong indeed. Due to strength in coal prices, the Australian-based coal royalty interests rose in value; cash and strategic investments; and pre-tax profit.The bulk of this, was via capital gains from mature mining interests, the rest in royalties.

The shares are backed by a 4% yield a 10p per share total dividend.

Anglo Pacific overlooked by brokers?

So, are the shares worth buying?
Ultimately, this depends on whether you concur with the directors' confidence, that "recent increases in underlying coking coal prices will be maintained for some time". They have created probably the best stockmarket vehicle for risk-adjusted returns from the mining sector, conservatively managed with robust cash flows, yet small enough and with various dynamic 'incubator' stakes to offer useful upside.
Prices in commodities are not showing any decline as the flactuations in
currency and debt in the US seem to be the only investment to grow.
Gold and silver heading the lead for base metals $1506 and $45 per ounce respectively.
Other metals also iron ore ,copper,nickel, zinc and many others are all in high demand.

The Share price is now low and undervalues the company by 30% as the price dropped from 367p to 310p.

Recomendation STRONG BUY
Specifically regarding tax-free PEPs and ISAs, Anglo Pacific is well worth considering to protect income and capital gains, also because the shares' downside looks limited relative to speculative smaller miners where you ought to ensure ability to utilise capital losses (tax losses not applying to tax shelters).

In itself, the company is well worth following as an ongoing success story in the relevance of traditional 'merchant banking' skills to modern business, when so many financial operators nowadays end up compromising them in pursuit of quick gains.

[christh] 27/4/2011 09:00

Gold $1506.50 per ounce 27 Apr 02:53 NY

[christh] 26/4/2011 14:43

Have you noticed the srength of AUD?
AUD/USD +0.0 1.0754 at 19:25

the sensitivity of the currency is illustrated on page 41 of the recent annual report.
If the AUD strengthes against the GBP then the APF equity increases.

So with the AUD APF is in very strong profit position

[christh] 26/4/2011 14:32

Gold and silver were gaining yesterday after reports China's central bank is planning to set up a variety of new funds that will make use of the country's massive foreign-exchange reserves, including special-purpose investment funds and a foreign-exchange stabilisation fund dedicated to forex interventions. A forex stabilisation fund is generally composed of gold, forex and domestic currency, a report said.

The most actively traded June gold contract rose $US5.30, or 0.4 per cent, to settle at a record $US1509.10 a troy ounce on the Comex division of the New York Mercantile Exchange. The thinly traded nearby April contract gained $US5.40, or 0.4 per cent, to settle at $US1508.60.

GOLD $1508.60 per ounce.

APF is standing to quadruple its profits this year.