Anglo Pacific Share Discussion Threads

[ruethewhirl] 31/3/2017 07:17

Christh - agree, I try not to pay too much attention to the analysts, but their price targets are 150+ across the board, feel that this is where the share price belongs in the short term.

[christh] 31/3/2017 06:04

It will climb to 150p soon.
A very good income stock for pension funds and other high income funds.
6p dividend currently per year and due to be revised for an increase back to 8p per year.
It will attract more investors who seek an income at a high yield.
A very good investment for your ISA.

[quepassa] 31/3/2017 05:59

Fully concur.
QP

[ruethewhirl] 31/3/2017 02:59

QP - I agree on the need for diversification, and it's been one of their stated aims for quite some time. I think the rest of the year we will see some acquisitions that will shift Anglo's portfolio away from coal in general.

It will be curious to see what effect the Queensland cyclone has on the coal price for the rest of the year and how that flows on for Anglo.

[bountyhunter] 30/3/2017 18:21

Cobalt demand could also increase dramatically due to it's use in rechargeable batteries.

[dozey3] 30/3/2017 15:56

In reply to bountyhunter: no, I have no info what APF are looking into, but I do have a small interest in EMH which has (allegedly) a huge undeveloped Lithium asset in Eastern Europe that needs developing pdq IMO. And - I would rather forego a royalty on the metal produced by the mine than have my equity diluted out of sight by risk averse big boys with deep pockets.

[quepassa] 30/3/2017 13:15

not quite right what you say......

here's a hint: Narrabri

just check and please post the answer as to what type of coal is mined there. You may be surprised.

APF have a significant royalty in Narrabri.


ALL IMO. DYOR.
QP

[ruethewhirl] 30/3/2017 12:53

QP - you're talking about Thermal coal, Anglo are in Met coal.

One word for you - steel. Not going away any time soon.

I do agree on points 1 through 3 above however.

[quepassa] 30/3/2017 12:43

Beijing recently shut down its last coal-fired power plant, following Premier Li Keqiang's promise to "make our skies blue again"

hXXp://shanghaiist.com/2017/03/20/beijing_closes_last_coal_plant.php


This is what China is doing. Now.

It points to the further decline of coal when the great nation of China is shutting coal plant in a desire to make Beijing the first (but not the last!) of Chinese cities to run entirely on "clean energy".

Coal usage is inexorably in decline.


APF needs to do three things urgently:

1. Diversify.
2. Diversify.
3. Diversify.



ALL IMO. DYOR.
QP

[bountyhunter] 30/3/2017 11:33

is that on the agenda Dozey3 (re lithium) ?
I'm a little out of touch although a quick read of today's RNS seems positive to me.

[dozey3] 30/3/2017 11:03

Afraid as a hostage to coal prices it is likely to remain unloved but a cyclic income stock - and who wants that? OTOH if it managed to acquire decent lithium royalties that would be a different matter.

[ruethewhirl] 30/3/2017 08:27

Look at that share price fly - not.

A better set of results you couldn't hope to see and yet anglo remains unloved.

[spectoacc] 30/3/2017 07:47

Read in a hurry, but this morning's full year results look good to me. The $3m in already from Denison of particular interest.

[quepassa] 29/3/2017 08:53

Cyclone Debbie.

/www.abc.net.au/news/2017-03-28/cyclone-debbie-coal-exports-queensland


QP

[ruethewhirl] 08/3/2017 20:47

No large scale cuts to Chinese met coal output.

Anglo share price will be hurting.

[rcturner2] 20/2/2017 07:58

APF are receiving 10% and that represents the market price for the risk/reward of the loan they are giving. Although we have low interest rates generally here in the UK, many businesses pay way over this depending on the nature of their business and the territories in which they operate.

[spectoacc] 20/2/2017 07:41

@gretel1921 - out of interest, SQN reported today - they're an IT focussed on asset-backed lending to businesses, ie they take a charge over the asset (& sometimes assets in excess) which they lend on. They've around £450m deployed, mainly in the UK.

"The average investment size is now just short of GBP7 million, with a weighted average term of 91.46 months. The weighted average projected yield on investments remains in excess of 9.5%."

If anything, that makes a 10% interest rate, on a commodities asset, in another country, seem too low rather than too high.

[gretel1921] 19/2/2017 13:55

New here.

Why would anybody pay 10% for a loan
in today's low interest environment
unless they are in up to their necks.

Thought of buying till the 10% was mentioned

[rcturner2] 18/2/2017 10:56

QP, they own a very significant % of BKY shares in addition to the royalty.

[stevie blunder] 18/2/2017 09:57

Bit of a two way pull on sentiment in the coal industry at the moment. Chinese policy might dictate which way things go. Here is an FT piece about China maybe reimposing output restrictions:


Whitehaven had good results yesterday:


The company said it received an average price of $US92 a tonne for thermal coal and $US104 a tonne for metallurgical coal during the December quarter, when prices had peaked.

The next real news I am looking for is an indication of Q2 coking coal price contracts, should be in the next few weeks. Maybe $150?

[quepassa] 18/2/2017 08:29

It depends what your definition of "good" exposure is. They are also not in production. APF is not receiving any royalty.

[rcturner2] 18/2/2017 08:06

APF does have good exposure to Uranium through Berkeley.

[quepassa] 18/2/2017 06:51

Can't blame you. - Have you seen the dramatic collapse in the price of coking coal?

Down from $300+ in November to c. $150 now. That's 50% down in two or three months. The following recent article illustrates the situation

hXXp://www.mining.com/coking-coal-resumes-sharp-decline/

It is interesting by contrast perhaps to look at the suddenly rising price of uranium which hit multi-year lows at the end of 2016.

The following uranium producers are rising fast on the back of uranium (U3o8) sharply increasing in price:

Cameco
Energy Fuels
Denison Mines


and are not perhaps without interest if you believe -like me- in the vastly improving prospects for uranium - as a clean renewable.

I was somewhat amused (and heartened) that APF have just concluded a royalty agreement with a subsidiary of Dension which I fortuitously invested in in early January.

If you don't want to invest directly in the TSX ( although no reason not to), and you are interested in uranium, have a look at Geiger Counter Limited which is a uranium investment trust which has risen some 50% in two months.

ALL IMO. DYOR.
QP

[ruethewhirl] 18/2/2017 05:20

Thinking of putting a bullet in my holdings. share price hasn't gone anywhere for almost 5 months.