Anglo Pacific Share Discussion Threads

[rcturner2] 06/2/2015 10:25

Chris, I said you were deluded after the Jan statement and it has shed 20% since then. You think after a placing of 40% new shares it will double in 6 months? You and Neil Brown are a very bad advert for holding this share, as neither of you have a clue.

[neilyb675] 06/2/2015 10:22

great reaction to the oversubscribed placing

[christh] 06/2/2015 09:51

RCTurner2 6 Feb'15 - 09:46 - 6933 of 6933

Commodity Prices vary and are seasonal.
It does not mean because the price of coal is £x now will be £x in 3 months time.
If the price moves then most likely the production will increase.

One main point you are missing!
Kestrel will be in full production in the next quarter 2015 and ongoing until 2017.

Target price 200p by 2017.

Meanwhile by August will be 150p in my opinion.

[rcturner2] 06/2/2015 09:46

I think everyone knows that commodities are cyclical, the question is where are we in the cycle?

There is the secondary question as to why you would want to play the commodity cycle through APF?

[christh] 06/2/2015 09:43

Commenting on the Equity Placing, Julian Treger, Chief Executive Officer of Anglo Pacific, said:
“We are delighted to have raised £39.5 million gross proceeds through the successful placing today, which is subject to shareholder approval. The placing will facilitate the proposed acquisition of the Narrabri royalty.
This royalty will further diversify our royalty cash flow, as it is in production, and will immediately enhance our royalty portfolio and assist the Company to deliver a progressive dividend policy that creates long-term sustainable value for shareholders.
We are grateful to both our existing, and new, shareholders for their strong support enabling us to raise the top end of the amount we looked to achieve. The rest of the Board and I look forward to delivering growth and value to all our shareholders“.


The aggregate number of New Ordinary Shares available for subscription pursuant to the Open Offer is 22,625,000 New Ordinary Shares. Qualifying Shareholders will be able to subscribe for Open Offer Shares up until 11:00 a.m. on February 25, 2015.

[christh] 06/2/2015 09:38

RCTurner2 6 Feb'15 - 09:29 - 6930 of 6930

why?
the mine is producing good quality coal and remember commodities are cyclical.
Cheapest form of energy to power Power Generators in China and other Asian countries.

The directors have subscribed to this open offer!

Remember this is not a Rights issue and if you do not apply for new shares you will get nothing!

[rcturner2] 06/2/2015 09:29

It will be under the 80p price before long. Just throwing good money after bad.

[stevie blunder] 06/2/2015 09:26

One new share for every 0.1944 shares you already own.
EDIT: Obviously I got that the wrong way round, thanks to Retiringtype.

so hypothetically if I had , say, 14756 shares ( to pick a number at random) I would be entitled to apply for 14756 x .1944 = 2868.56, obviously rounded down to 2868 at 80p

Which would obviously worth doing if the share price is above 80p at the closing date. Nice reaction this morning so far.

[christh] 06/2/2015 09:20

DJ Anglo Pacific Raises $60 Million Via Oversubscribed Equity Issue
By Alex MacDonald

LONDON--Anglo Pacific Group PLC (APF.LN) said Friday it raised GBP39.5 million ($60.2 million) in an equity issue on Wednesday that was oversubscribed, and will use the proceeds to fund the purchase of a royalty in an Australian coal mine.

The mining royalty investment firm said it placed 49.38 million shares at 80 pence each, representing a discount of 3.9% to Anglo Pacific's closing middle market share price of 83.25 pence on Feb 3. The share issue represented 42.4% of the company's share capital base prior to the equity placing.

The company will use the proceeds to fund the cash component of its 1% revenue royalty purchase on the Narrabri coal mine in New South Wales, Australia. Anglo Pacific agreed to pay $60 million in cash and $5 million in Anglo Pacific shares to a private company for the royalty. Julian Treger, Anglo Pacific's chief executive, believes the investment firm could earn as much as $300 million from the royalty.

Subscribe to WSJ:
February 06, 2015 02:37 ET (07:37 GMT)

[christh] 06/2/2015 09:08

whats the deal for shareholders then

1 share at 0.1944 (19p?)

[gavapentin] 05/2/2015 10:12

First royalty payments already paid then?

[quepassa] 05/2/2015 10:11

The stated strategy was to diversify not to further concentrate assets.

Was it not?

ALL IMO. DYOR.
QP

[neilyb675] 05/2/2015 09:41

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

[topvest] 05/2/2015 09:27

They had to do a deal and this looks OK. Not too dilutive. Buying at near the bottom hopefully will be a wise move over the medium term.

[quepassa] 05/2/2015 09:20

Dilution, debt and further concentration of assets.

What about all the strategic diversification of assets they mentioned?
If you add together Kestrel and the new mine as a percentage of their assets, isn't that far too many eggs in one basket? And the outlook for coal continues in my view to look pretty negative.

Just how many times have they reconfirmed that they were committed to their dividend policy?

Yesterday they reduced the dividend.

ALL IMO. DYOR.
QP

[piedro] 05/2/2015 09:14

'they seemed to be able to pay for it easily enough'

- it's not been paid for yet
- and you are expected to contribute

[bolador] 05/2/2015 08:41

They are buying a coal royalty (the mine is producing very high quality coal) at the low end of the cycle. I do not suppose that these royalties come on the market very often.
Its a big deal for APF but they seemed to be able to pay for it easily enough.

[topvest] 04/2/2015 21:24

Looks like the placing is at 80-85p I suspect.

[gavapentin] 04/2/2015 15:36

Just bloody hope coal prices move upwards!
I would have preferred a different commodity.

[sogoesit] 04/2/2015 13:14

Thanks RCT, will take a look.

[rcturner2] 04/2/2015 09:12

The thing is APF is not some widespread commodity play, at the moment it is two huge coal licenses in Australia. So quite risky.

If you want a diversified play with a good yield look at at BlackRock World Mining Trust (BRWM).

[sogoesit] 04/2/2015 09:06

This one's on my watch list... final dividend will be down some 30% from last year but, on the other hand, they target 8p overall giving a 10% forecast yield on the share price today.
There now seems to be some concentration in risk but commodities look, in the short term, to be bottoming out.
Just wondering if 10% yield is enough for the risk... so wait and see is the order of the day.

[neilyb675] 04/2/2015 08:51

find out OO price on Friday then

[topvest] 04/2/2015 08:49

Well they are buying at near the bottom of the cycle at least.