Anglo Pacific Share Discussion Threads

[haydock] 27/6/2014 10:25

Suggest they will as you say take on some level of gearing, & why not ?

O.K just to pay the dividend, but they could do so much more going forward, as they clearly have deals in mind that will cost £££

[quepassa] 27/6/2014 09:43

It looks like the share may soon be retesting 1 and 5 year lows.

The current price is round about same price now as in Summer 2009. - That's not good.

Price now (bid) in low 170's and looks to me from the graph that share price will fall further and move into the 160p range or lower in fairly short order.

It seems clear to me that the new management team, in my opinion only, has not restored market confidence in the share.

Personally, I just don't see how they can continue with the current dividend policy and at the same time make significant new investments in Royalties without indebting the Company. Looks to me like something somewhere needs to give.

ALL IMO. DYOR.
QP

[haydock] 26/6/2014 11:35

26 June 2014
ALLIANCE RESOURCES LTD
FOUR MILE URANIUM MINE OPENING



Four Mile
Uranium. Australia. Operator: JV - Quasar Resources Pty Ltd - Alliance Resources Limited. 1% NSR acquired in 2009 for A$6m [33]. The Four Mile deposit was discovered in 2005 and was the largest uranium discovery in Australia for 25 years. The mineral resource estimate is 71Mlb contained U3O8 at a rich grade of 0.33%. The JV partners are targetting production of 3.0Mlb per annum and are envisaging a 15+ year life of mine [34]. Mine Approval was granted by the Australian government in July 2009. The JV partners have been in dispute over differing development plans and various litigation procedures are underway. On the 10th February 2012 Alliance announced that the litigation concerning the Native Title Mining Agreement has been discontinued after the terms of a settlement between the parties were satisfied [35]. Other matters of dispute between the partners are currently still outstanding.

[haydock] 25/6/2014 14:31

hxxp://www.miningmaven.com/companies/aim-mining/horizonte-minerals/horizonte-minerals-update-interview-with-ceo-jeremy-martin1-20140624396/

[haydock] 25/6/2014 11:45

Horizonte awarded local support.

[christh] 18/6/2014 11:20

UK Dividends Calendar
Wednesday, June 18

Ex-dividend today

Anglo Pacific Group Ex-dividend date 2013

[christh] 16/6/2014 22:29

Today's Closing Update
16th Jun 2014

Gold rose to the highest level in almost three weeks in New York as intensifying unrest from Iraq to Ukraine spurred demand for a haven. Silver reached a one month high.

GOLD 1275.90 +1.80 +0.14%

[christh] 14/6/2014 11:58

So Vanadium is the new commodity.
More useful than gold!

Vanadium batteries will be the new trend rather than the old Lithium.

And Vanadium steel alloys for strong tools.

APF very wise move!

[montyville2] 12/6/2014 20:57

Haydock you are welcome...I have been invested previously but have never been to an AGM...and with the new management team I was very keen to see the white of their eyes.

They seemed very keen to distance themselves from the previous management and I hope will be more open in future. I will look again at them in 3-6 months and see if they are able to put some good royalty deals in place.

[haydock] 12/6/2014 10:12

Montyville2

Many thanks for your hard work, over the years we have had very little insight into these events.
APF may change, but has always been a very conservative & secretive company.

[montyville2] 12/6/2014 06:44

Haywards26 just looked these assets up on the company website and I note they are 100% owned properties. Definitely no mention of them. I guess now is not a good time to sell given the price of coal. There was a question about the book value of the assets which last year was 331p per share and now 195p per share from memory. The Finance Officer did comment that this figure was conservative and was based on generally lower commodity prices. The Canadian assets will obviously be part of that valuation.

[haywards26] 11/6/2014 22:31

They have been much talked about on this thread as having significant value versus their balance sheet value. They perhaps could be disposed of and the funds used for additional investments.

[montyville2] 11/6/2014 21:42

Haywards26 no special mention of the Canadian coal assets that I recall...are they longer term production? The focus was very much on the here and now and near future...

[haywards26] 11/6/2014 21:00

Thanks for posting Montyville.

Was there any mention of the Canadian coal assets at the agm?

[fizzypop] 11/6/2014 14:56

Better opportunities elsewhere so sold my 3000 shares for a 16% loss

[montyville2] 11/6/2014 13:33

Just back from the AGM this morning....

Although not currently invested I went as I have held the shares in the past and wanted to run my eye over the new management team...

New CEO Julian Treger gave a short presentation at the start - nothing really new as expected but commented that over-reliance on Kestrel royalty (67% of income) needed to be addressed. Stressed that they are looking at near term cash flow generating opportunities to address this. Highlighted the recent Marac royalty, where near term production, in Brazil (a relatively stable part of the world), low cost operation (less affected by drop in commodity price), 30 year mine life, cash flow generating almost immediately - is the type of deal they are looking to do. Currently assessing a number of royalty siutations that fit this bill!

In the Q&A questions I highlighted as follows:

Kestrel Mine - has been in a lull period, expect this to reverse end year/next year, low coking price is dampening RIO's appetite to mine. Kestrel North has been exhausted, RIO has invested $2bn on Kestrel South which has an estimated 9 year mine life. Not exactly clear on this but APF own some of the land at Kestrel and this generates a much higher rolyalty (7% against normal 1% level) - need more clarity on this to from proper judgement

Amapa - Shipping has recommenced after shut down following fatality last year, royalties therefore ongoing as the company is selling the built up stockpile of iron ore - like RIO at Kestrel I do not think the operator is mining new ore due to the low price so we are constricted by the level of stockpile

The existing credit facilities will be used to purchase new rolyalties. They are looking at Oil and Gas opportunities with Flowstream who they are in JV with (although these tend to be £100m+) as well as their own 100% opportunities.

Admitted that the previous management made a poor investment decision with London Mining. London is over-leveraged and difficult to see way forward. There is a repayment option in 2017 but will London be bancrupt by then?


I left the meeting pondering whether to get back in or not, especially given the 5.75p final dividend was approved at the AGM. I think the share price is being held up by the company's stated policy to maintain and grow dividends. However the income is virtually dependent on Kestrel royalty coming back to previous levels and this is not likely until next year if I read between the lines of what was said. The situation at Amapa doesnt breed much confidence either. I think the new management will turn it round with their new stratgey but it will take time.

Therefore I am not tempted to buy at this stage. I think the share price may fall post Xd and I will watch to see what revenue enhancing royalty deals they make over the coming months...

If anyone was at the AGM and have diffent views I would be pleased to hear them, especially if I have mis-represented something that was said by the management team.

[christh] 10/6/2014 08:23

Anyone attending the AGM tomorrow?

[christh] 06/6/2014 15:09

QuePassa 6 Jun'14 - 09:58 - 6614 of 6614

So you are not buying?
Hooray!

So, you are moving to other stocks!!!!!

Thanks to APF you are moving....................

Once you move then the price will advance.

[christh] 06/6/2014 15:08

QuePassa 6 Jun'14 - 09:58 - 6614 of 6614
It's obvious they will downgrade APF as they are no longer the official company broker.

News Release

January 15, 2014

ANGLO PACIFIC GROUP PLC

Notice of Appointment of Joint Corporate Broker

Anglo Pacific Group PLC (LSE: APF) (TSX: APY) is pleased to announce that it
has appointed BMO Capital Markets Limited to work alongside Liberum Capital as
Joint Corporate Broker with immediate effect.

hxxp://www.selftrade.co.uk/news/anglo-pacific-group--notice-of-appointment-of-joint-broker-bd57014b6aa3548a952f44180c2b4feb

[christh] 06/6/2014 15:05

Anglo Pacific raises £10m

2nd June 2014, 15:27

Anglo Pacific Group has raised approximately £10m, gross, through a placing of 5,544,371 new ordinary shares at 180p apiece.

[quepassa] 06/6/2014 09:58

FinnCap put out a broker update today.


Reiterate Hold with a Price Target of 184p.




This Price Target has been downgraded from 216p on 12th May 2014.

And before that on 20th Feb 2014 FinnCap put out a Reiterate Buy recco with a Price Target of 279p ( downgraded a week later to 216p Hold).

They clearly don't see an upside to the current share price

Interestingly FinnCap have now gone from a BUY recco in Feb this year with aTarget of 279p to a Hold with Target of 184p.

Personally I think that 184p is optimistic.

And FinnCap's February BUY recco with a Target 279p doesn't perhaps instil much faith in their forecasting.


ALL IMO. DYOR.
QP

[haydock] 06/6/2014 08:33

The coal problem is exactly why the bod, is looking to move to other areas, wait for the developments promised in o/gas.

[rcturner2] 05/6/2014 10:59

Commodity prices and the associated supply and demand tend to move very slowly though. It takes years to build up excess capacity through sinking mines and so on and by the same token when there is excess supply it takes years for production to be cut as there is too much at stake (see the article above where coal is being mined and sold at a loss as that is still cheaper than not mining because of the transport contracts already taken).