Anglo Pacific Share Discussion Threads

[piedro] 25/11/2013 09:08

StevieB,

I believe they are obliged to make a public announcement
a certain time before putting it on their website

I know that is certainly true for Canadian companies where the
time difference seems to be 20-30 minutes

[stevie blunder] 25/11/2013 09:01

Anybody found a new presentation as indicated in today's RNS? Only one I can find on the website is dated September. Am I being thick?

[quepassa] 20/11/2013 12:23

Anyone know if Julian Treger is now working as 100% full-time Chief Exec at APF ( as befits in my opinion a UK-listed company with a £240million market cap)or if he is still working at/devoting time to Audley Cap Ptnrs as well?

He is still listed as a founding partner at Audley Cap and shown as a contact on the funds they run. Although strangely his CV on that web-site makes no mention of his role and Directorship at APF from what I could see.


ALL IMO> DYOR.

QP

[haywards26] 11/11/2013 14:24

QP, what are your thoughts following the interim management statement? Are you still as positive after your recent investment. I was slightly surprised by some of the terminology used in the announcement.

It was disappointing to hear that the Kestrel income will be irregular until 2016. I would expect to see some funds raised shortly and nearer term royalty assets purchased.

[noslien] 08/11/2013 08:33

Latest management statement - it's still jam tomorrow. Let's hope the new team can pull some rabbits out of the hat.

[haydock] 01/11/2013 15:07

October 31, 2013

Horizonte Minerals Is Just About The Last Of The London-Listed Nickel Juniors Standing, And Continues To Punch Above Its Weight

By Alastair Ford


It's tough in the nickel sector right now. Prices are low, the metal has been in surplus for some time, and looks set to stay that way, and money for new projects is virtually non-existent.


Drilling at Araguaia
Drilling at Araguaia

As a consequence, UK-listed nickel companies are thinner on the ground than they once were: African Eagle has given up the ghost at Dutwa in Tanzania, Mwana is struggling to stay afloat at its Trojan mine in Zimbabwe, Regency Mines has put the Mambare project in Papua New Guinea on the backburner and Toledo has been gobbled up by DMCI Mining.



But it's not all doom and gloom. Some companies have been able to tough it out, although even they have had to cut their cloth accordingly.



One such is Horizonte Minerals, which has been making steady progress on its Araguaia project in the Carajas district of Brazil.



Although small, Horizonte has considerable heavyweight support behind it, specifically in the shape of 42.5 per cent shareholder Teck Resources.



As one of the eight largest mining companies in the world, Teck's involvement mitigates some of the more obvious concerns in the market about the huge costs that will be involved in the development of Araguaia.



But even so, Horizonte's chief executive Jeremy Martin is well aware that the capex requirement of US$1.4 billion, as set out in last year's preliminary economic assessment, gave plenty of investors pause.



"The market doesn't want to see big capex projects", he says. "It's really about opportunities that are throwing off money."



Accordingly, the pre-feasibility study which is now underway at Araguaia will investigate two separate options for the planned rotary kiln electric furnace (RKEF) processing plant.



The larger option would involve a twin line and would produce 2.7 million tonnes per year. The smaller option involves only a single line, and would produce at a rate of 900,000 tonnes per year.



The smaller option, says Jeremy, would be a higher grade operation and would involve mining only a third of the ore that the larger one would mine.



"But that still gives us a long mine life and it will make money much lower down the curve. It will make money down to US$13,000 nickel."



Given that the current price is US$14,500, there is clearly some room for manoeuvre, especially as there are grounds for optimism that the price will have strengthened by the time Araguaia gets into production.



"Nickel has been growing at five per cent on the demand side for the past few years", says Jeremy. "And going forward you can't point to that next generation of projects that will come on stream."



That leaves an opportunity for Araguaia to fill a looming gap, possibly in conjunction with a large Glencore project that lies to the north east.



"It's always been the argument that these two projects need to come together", says Jeremy, although there's no deal in the pipeline as yet.



Instead, there's a simple awareness that greenfields development isn't really what Glencore does, and that the Horizonte team have been diligent in their own advancement of Araguaia.



So for the time being, the company will press on with the two standalone scenarios, with a view to delivering the pre-feasibility study by the first quarter of next year. "It's all on track and on time", says Jeremy.



After that, the company will have to start thinking about raising new money in the market to move the project into the bankable phase. That fundraising won't be easy if the current market conditions persist into next year, but Jeremy isn't overly worried.



For one thing, there's still around £4.5 million in the bank. "That delivers the pre-feasibility study and takes us through to the end of next year", says Jeremy. Then there's the benign presence of Teck, which has followed its money in every single raise to date.



And finally, there's the valuation of Horizonte itself. In the power point presentation which Jeremy occasionally refers to as he talks Minesite through the story, there is an interesting slide which shows the relative valuations of other nickel juniors in terms of price paid per pound of nickel on acquisition.



Thus, when Vale acquired Onca Puma from Canico in 2005, it paid US$0.23 per pound of nickel in the ground. And that was when the nickel price was at a comparable US$14,500.



Some years later, in 2011, following a considerable clear out in the market, Solway Group paid US$0.09 per pound of nickel for the Fenix project in Guatemala.



On Horizonte's current £25 million market capitalisation, the 100 million tonnes-plus that the company has defined as a global resource at Araguaia is worth less than US$0.01 per pound of nickel.



There is a clear disparity here, and Jeremy notes that one of Horizonte's peers, Anfield Nickel, which is developing a similar type of project but is some months ahead, enjoys a resource valuation of around US$0.07 per pound.



"What's more", says Jeremy, "in RKEF our project has a proven process route. Leaching projects only produce an intermediate product".



So the race is on to move Araguaia up the value curve. "The mid-term goal is to move up to that US$0.10 range", says Jeremy.



If he can do that, then the corresponding share price strength ought to make raising money a good deal easier, whatever the market conditions.

[piedro] 31/10/2013 14:09

And the moral of the story?

Puts color to a market rumor that I heard a couple of
months back ... 'BlackRock World Mining Trust was
looking over in Anglo Pacific.'

Takeup, takeover or competition

What a fix!! - Hence Julian Treger

AIMHO

[haywards26] 31/10/2013 13:21

Another interesting article - APF seem to be making the press and getting their name out a lot more since the recent bod changes.

[piedro] 30/10/2013 15:16

Good news and bad?

re: Broker forecasts for year ending 12/2013
Dividend forecast decreased
Profit forecast increased

DYOR

[haydock] 30/10/2013 14:09

You have to remember Q.P that this new CEO restructures companies.
He has not sat on his hands even in the first week.
Deals are clearly on the table, to be probed & the more probing the merrier.

However the full implications of such deals as this may not become apparent for some time, as we are in at the ground floor.

The hall marks of a new broom are clearly visible, & after 2 mining company delays today, the speed of the changes will be most welcome.

Q.P. you seem to be filtered by ADVFN ?

[haywards26] 30/10/2013 13:12

Hi QP,

It would of course be very useful to know the financial details of the Flowstream investment. I would imagine this should become public information in the annual accounts. The deal involved giving APF both an equity stake in Flowstream which opened up further potential O&G royalty investments, utilising the O&G skills/contacts of the Flowstream team.

I see it as a positive move as it is diversifcation for APF. The article I posted last night gives me more confidence in the future returns we as shareholders should receive from our APF investment with the new management team on board.

[wirralowl] 30/10/2013 10:39

Thanks for the article Haywards.

Funnily enough I sold out of APF earlier in the year, precisely because I felt the previous management were chasing increasingly speculative investments, where the returns would be years down the line (if indeed they were ever to materialise!) and I feared for the sustainability of the dividend.

So like you, its music to my ears to hear JT actively looking for near-term income producing assets and talking about increasing dividend payments again soon. Consequently I bought back my original stake yesterday, even though the price was 10% higher than the price I sold at in the Spring and will double up if it gets back to £2.

[christh] 30/10/2013 09:37

Strategic Co-Investment Agreement

LONDON--(Marketwired - Oct 25, 2013) -

TSX: APY

PRESS RELEASE

Anglo Pacific and FlowStream Announce Strategic Co-Investment Agreement

LONDON, UK and ST. HELIER, JERSEY, 25th OCTOBER 2013

Anglo Pacific Group PLC ("Anglo Pacific") (LSE: APF) (TSX: APY) and
FlowStream Commodities Ltd ("FlowStream") announce that they have
entered into a Strategic Co-Investment Agreement (the "Agreement").

The Agreement provides for Anglo Pacific being offered up to a 10%
co-investment interest in a defined number of streaming and royalty
projects in the oil and gas sector that FlowStream invests in from 25th
October 2013, with an option to increase above 10% on both parties'
agreement. Anglo Pacific will benefit from FlowStream's oil & gas
opportunity sourcing and technical due diligence capabilities.

FlowStream will benefit from Anglo Pacific's proven expertise and
experience in the royalties market garnered from years of being
successfully active in mining royalties. In addition FlowStream has
secured Anglo Pacific as one of its founding shareholders, alongside
KKR and Global Gate Capital SA.

Julian Treger, Chief Executive Officer of Anglo Pacific, commented:"The
Agreement with FlowStream will provide Anglo Pacific with an
excellent opportunity to leverage their depth of knowledge and
expertise in oil & gas, and gain further exposure to the energy
sector."

Brian Wides, Chairman of Anglo Pacific, commented: "We are delighted to
be partnering with FlowStream and look forward to working together on
their business development pipeline. We feel that the combination of
our co-investment rights and our investment into FlowStream's equity
will create an invaluable opportunity for Anglo Pacific."

Jan Laubjerg, Chief Executive Officer of FlowStream, commented: "We are
delighted to be partnering with Europe's most experienced royalties
company as we launch our oil & gas focused streaming efforts. Having
Anglo Pacific alongside us accelerates our ability to execute on our
own vision of being a premier, global oil & gas streaming and royalties
company."

Ben Iversen, Chief Financial Officer of FlowStream, commented: "Anglo
Pacific's support of FlowStream as both an investor in our company as
well as a potential co-investor in our projects represents an important
mark of validation of our young company. We are delighted that they
will bring their expertise and experience in the natural resources
royalties sector to bear to support FlowStream's growth going forward."

[piedro] 30/10/2013 09:33

Haywards26 thank you for the article

- have posted over at APY
- and added a comment.

[haywards26] 30/10/2013 09:16

Looking at royalty investments that will increase APF's dividend payout within 18-24 months is basically saying that they are looking for either currently producing or near term royalty investments. Not speculative high risk/long term investments. This ticks my box :)

[rcturner2] 30/10/2013 09:13

I'll be a big buyer at 200p.

[haydock] 30/10/2013 09:13

"Shareholders have the right to expect delivery from the management," he said. "If we don't do so, they're within their rights to ask for changes."

A clear change of management style here.
APF has always been a very closed company, never known them give interviews to Bloomberg !
A change of in the company direction, but a very public vote of confidence in the share price if he follows up stated investments.

[haywards26] 29/10/2013 21:08

Interesting article

Link -

Key points

*Looking at further royalty opportunities.
*Looking to increase dividend payout in next 18-24 months.
*Looking to increase his own shareholding in APF.


Audley's Treger Targets Coal Mines for Anglo Pacific Royalties

By Thomas Biesheuvel - Oct 29, 2013 10:03 AM GMT.

Julian Treger, co-founder of activist investor Audley Capital Advisors LLP, will mimic North America's biggest royalty companies by focusing on bulk commodities after taking over at Anglo Pacific Group (APF) Plc.

Treger, appointed chief executive officer of Anglo Pacific last week, is seeking to increase the company's royalties in coking coal and look to add positions in copper, iron ore, zinc and uranium, he said in a telephone interview. He may also look at oil and gas.

Royalty companies hold rights that entitle them to a percentage of a mine's sales in return for help paying for the project. Anglo Pacific has royalties in coal mines in Australia operated by BHP Billiton Ltd. (BHP) and Rio Tinto Group. Opportunities in precious metals are limited in a market dominated by Canada's Silver Wheaton Corp (SLW), the world's largest precious-metals finance company, and gold-investor Franco-Nevada Corp. (FNV), Treger said.

"Franco-Nevada and Silver Wheaton have done an excellent job in scaling their businesses," Treger said. "It's difficult for us to compete with them. There is a big gap in the market with respect to bulk commodities and non-precious commodities where we think we could become the go-to player."

The company will avoid long-term speculative mine development and focus on investments that allow it to increase dividend payments in the next 18 to 24 months, he said. Treger, who has an interest in 1.1 percent of Anglo Pacific shares, said he intends to increase his stake further and possibly have Audley invest too.

Treger, who has twice attempted to compel change at Walter Energy Inc. (WLT), a coal producer, to reduce debt and corporate expenses to boost profit, said he's prepared to deal with activist shareholders as CEO.

"Shareholders have the right to expect delivery from the management," he said. "If we don't do so, they're within their rights to ask for changes."

[haywards26] 29/10/2013 20:57

If the share price falls back to the 200 or below level I shall be topping up :) *fingers crossed*

[haywards26] 25/10/2013 21:20

Interesting snippet. Another royalty progressing :)

Investec says London Mining (LON:LOND) securing a new exploitation licence for the Isua project in Greenland was a positive result that will have surprised those who thought that the authorities would be tardy.

In a note, analyst Hunter Hillcoat said: "It removes the risk that LOND would have to repay the $30m Anglo Pacific royalty-agreement by the end of 2013, as a licence by then was a necessary pre-requisite.

"While receipt of the licence is positive step in the process of seeking strategic partners, our analysis does not attribute much value to Isua, with Marampa the key project and value driver for the company."

[haydock] 25/10/2013 16:54

I know I was a lot ott last night, but this lad won't hang about.

[haywards26] 25/10/2013 15:54

It starts now :)

Diversification into the O&G sector. Sounds like a good move.

[haydock] 24/10/2013 21:04

Having had the time to listen to some of the conversation with Mr.Tregor re Walter, read his c.v. & noted:

Julian Treger, incoming Chief Executive Officer, commented: "This is an opportunity to create a leading international mining royalty investment company with a focus on yield and return, and comes at an opportune time given the expected recovery in commodity prices over the medium and long-term. The existing portfolio provides a solid asset base on which to grow royalty and dividend income to the benefit of Anglo Pacific shareholders

I can see why this is now in the view of the mkt. an exciting company.

Making him CEO could be tantamount to giving John Churchill control of the Br. Army.

A man who has served his time & knows the way to restructure a company, & what a box of toys he has been given.

He must be salivating at the thought of that CDN. coal alone, the cash & royalty situation,all debt free & in perfect running order.

Exciting times indeed.
Cometh the hour cometh the man.