Anglo Pacific Share Discussion Threads

[deanroberthunt] 04/2/2015 08:07

used to be agood stock this, seems to have losts its way

[rcturner2] 04/2/2015 08:06

This share is the home for the deluded.

[neilyb675] 04/2/2015 07:53

the Narrabri mine has scope to materially increase production over the short and medium term, with an estimated 22 years of mine life remaining at Narrabri North, and the potential to extend production in the future through the development of Narrabri South;

[quepassa] 04/2/2015 07:50

Bigger News.

Final Dividend to be reduced..

And amending the Divi Policy.



-So much for diversification, they are doubling up on more coal.

Borrowing $30 million from Barclays to part finance the Acquisition.

Not a good debt overhang for a hitherto debt-free Company. - Medium-term 3 year debt facility for a long-term asset. Refinancing risk.

ALL IMO. DYOR.
QP

[neilyb675] 04/2/2015 07:47

The Board is considering the recommendation of a final dividend for the year ended December 31, 2014 of 4p following the completion of the acquisition of the Narrabri royalty.



In the medium term, the Board is committed to a minimum annual total dividend of 8p subject to, amongst other things, the level of adjusted earnings, proceeds from the disposals of non-core assets and prospective investment opportunities.



In the longer term, and subject to the same factors, the Board intends to adopt a dividend policy paying dividends representing a minimum of 65% of adjusted earnings.

[neilyb675] 04/2/2015 07:42

Commenting on the Acquisition, Julian Treger, Chief Executive Officer of Anglo Pacific, said:



"The Narrabri royalty will immediately enhance our portfolio of producing royalties and diversify our royalty income. The Acquisition is also consistent with Anglo Pacific's strategy to acquire royalties on mining assets that are competitively positioned on the cost curve, cash or near-term cash producing and located in established mining jurisdictions and, in Whitehaven, the royalty has an operator with an established track record of operational expertise.



The Acquisition demonstrates the opportunities that the current market conditions provide and we will continue to look to enhance our royalty portfolio and further diversify our royalty income stream for the benefit of all our shareholders."

[neilyb675] 04/2/2015 07:39

Acquisition entitles the Company to royalty income from January 1, 2015, and is accretive to the key performance indicators of adjusted earnings per share and dividend cover in 2015

[neilyb675] 04/2/2015 07:39

BIG NEWS !!

[quepassa] 02/2/2015 12:23

Further weakness in share price this morning.

Recent Peabody Energy 31/12/14 results make interesting reading. As does this morning's copy of The FT about coal.

ALL IMO. DYOR.
QP

[gavapentin] 29/1/2015 15:17

Thanks QP

Any new reasons why? In your opinion.
Or the same old ones?

[quepassa] 29/1/2015 14:08

Share price looking very weak again.

ALL IMO. DYOR.
QP

[neilyb675] 27/1/2015 07:14

The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and therefore the royalty will continue to apply to the project.



Julian Treger, Chief Executive Officer, commented:



"We are encouraged by this development as we believe Isua remains a viable project in the longer term. We look forward to the progression of the Isua Project in the short to medium term under the ownership of General Nice who the Government of Greenland has assessed as being able to raise the necessary financing for the development of the exploitation licence, and we anticipate building a strong and mutually beneficial relationship between our companies."

[christh] 26/1/2015 09:16

Gold traded near a five-month high as anti-austerity party Syriza's victory in Greek elections raised prospects that the country will seek to renegotiate the terms of an international bailout.

[stevie blunder] 24/1/2015 17:40

Hi Jimbo55
You could be right, however the management have said they will do all they can to maintain the dividend. For instance:

"We are pleased to see an increase in forecast production from our royalty lands at Kestrel. This is positive news for our cash flow profile and further underpins the Board's commitment to maintain our dividend for the current year."



And as recently as November:

"The Board is committed to maintaining the absolute level of the dividend and increasing it when appropriate, subject, amongst other things, to market conditions, the level of royalty income and proceeds from the disposals of non-core mining and exploration interests"



It is true that the dividend will be uncovered for the FY 2014. It is also true that a maintained (edit: covered) dividend for 2015 depends on the exact level of production from Kesterl, the % on APF land and the price of Met and, to a lesser extent, thermal coal. It might be a tight squeeze, but if you run the numbers you will see that it is possible.

Clearly one shouldn't bet the farm on it, but I think that the dividend will likely be held.

I've been wrong before ;-)

[jimbo55] 24/1/2015 15:49

According to dividend metrics on Stock0pedia, there is no dividend cover for APF. It's currently calculated to be -3.17. That juicy dividend is almost certain to be cut in my view. Do not buy this stock for the yield. You are likely to get your fingers burned!

[sogoesit] 24/1/2015 13:12

Thanks Neilyb

[4spiel] 21/1/2015 19:42

The current dividend is very high at this share price it would not surprise me if it were shaved but if it were. Close to 6 per cent that would be ok - it's the future revenues that will matter particularly from Kestrel by 2016

[neilyb675] 21/1/2015 15:14

last year it was 20th Feb, expect very similar.

[sogoesit] 21/1/2015 15:04

Thinking of entering this for the juicy yield but disconcerted by the lack of cover.
It appears they are selling "non-core" assets to fund the current dividends; is that good timing in the current market?
May have to wait for more news before deciding on this one... anyone know when the results are due?

[neilyb675] 21/1/2015 14:54

the company has been re-focussing for some time and disposing of non-core assets....cash position is not bad, and will improve with more mining of Kestrel (ramping up).

The company relies on 3rd party info and as such this is out of their control, read the bottom of the RNS.

QuePass - do you hold any shares here ??

[quepassa] 21/1/2015 14:37

2014 has been a pretty dire year for royalty income which, on the basis it is maintained, doesn't come near covering the cost of the annual dividend. This means most likely in my opinion that in order to maintain any final dividend, apf will need to rely on proceeds of disposals of underlying assets. That's not good for the asset base of the Company or the NAV of the share.

Two page feature in the current issue of Shares magazine but they don't mention the topic of the massive write-downs in asset valuations which apf have suffered in recent years, which has hit the NAV per share so hard.

It will be interesting to see if there are or are not any further write-downs for 2014 over and above the ones already known for London Mining/Isua, given the parlous state of the commodities markets throughout last year.

ALL IMO. DYOR.
QP

[4spiel] 21/1/2015 12:07

Good report from the company today about the Kestrel royalty with Rio Tinto that is projected also to grow substantially. A much bombed out stock that should easily double

[neilyb675] 14/1/2015 08:46

RCTurner2
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