Anglo Pacific Share Discussion Threads

[sogoesit] 02/9/2019 14:54

Stevie:
I am not 100% sure but I took the "input to smelter", i.e. cash, costs as the costs ($1.87/lb) and deducted those from the current market price.
$1.87 is relatively high against ANTO ($1.19) and SCCO and makes this look, at current prices, a poor deal. If your definition is correct and I am wrong the deal looks better (as one might expect?).

Certainly a move up to 52.4kt throughput and better pricing ($3+/lb?) in the future will change the picture.
At $3/lb using 52.4 kt using my definition gives $2 million revenue.

The terms of the current RCF are LIBOR plus 300bps.

[stevie blunder] 02/9/2019 14:24

If I have understood the terms of the Royalty correctly the the cash costs don't come into it, NSR only allows refining and transporting costs to be deducted (according to Wiki)

So I think the figures are more like this:

43,000 tonnes copper @ 5600$/tonne x 1.525% = 3.672$ Million Which is 7.3% of $50.25 M investment.

That should rise proportionately if production rises as expected to 52,000 tonnes and there will hopefully be some upside in the copper price. So with a bit of luck the royalty might be yielding 10% on acquisition cost in a few years.

I don't know what coupon we are paying on the debt.

[sogoesit] 02/9/2019 09:16

Waking up to copper here... ;-) and taking a look at re-entry after exiting at 185p a while back.

Edit: Looks like about $1million per annum revenue with cash costs at $1.87 current prices and volumes.
(And I get a bonus VoNC! ;-) )

[the deacon] 02/9/2019 07:53

Lol buywell, you simply don't have a clue.

[the deacon] 02/9/2019 07:52

https://www.brrmedia.co.uk/broadcasts/5d5d061a85f23e7c1eda6b2a/anglo-pacific-project-tarantinoJT on today's news

[buywell3] 02/9/2019 07:50

Lack of Water in Santiago IMO is why the present owner wanted OUT

This deal IMO has the potential to SINK APF




dyor ----- I do

[buywell3] 02/9/2019 07:43

You could not be more wrong IMO

What happens if the next Chilean Government decide to do what the people want

Chile has a history of nationalizing copper mining assets

[the deacon] 02/9/2019 07:37

An excellent move to diversify into copper. Very pleased with today's news. The right postcode for copper too.

[buywell3] 02/9/2019 07:19

The other view is


Majority of Chileans, 83% support nationalizing copper

[christh] 02/9/2019 07:16

It will be in the brokers upgrades today...300p in the future as the growth continues
The royalties will be higher as the production increases and also the dividend next
year.
The diversity of its income will safeguard the robustness of its business and likely to see another acquisition soon.

[dgellissnr] 02/9/2019 07:07

Its good to get into copper

[phillkay] 30/8/2019 13:17

Thanks christh

[rcturner2] 29/8/2019 16:09

QP is right on one thing, which is that the world is changing. There is a growing move away from fossil fuels and into green technology. However what that means for companies that deal in fossil fuels and for related businesses (such as APF) is far from simple. Some will gain from the change, some will lose big time. The skill is to know whether something is still a good investment or not.

[sam 4224] 29/8/2019 15:21

Great posts chaps. Yawn QP.

[quepassa] 29/8/2019 08:46

Looking forward to seeing and hearing Greta Thunberg's impact in the media now that she has reached the USA, especially with the institutional investment communities.

all imo. dyor.
qp

[christh] 28/8/2019 04:57

Going to 250p and maybe 300p as market conditions allow
Just bear it for the time being, this is a star investment.
Good dividend, strong growth

I have them in my ISA and paid over 340p, years back.
I do not worry as the dividend gets paid in.

[phillkay] 27/8/2019 21:48

(as in, support would kick-in before then)

[phillkay] 27/8/2019 21:47

I was surprised that there wasn't more of an uplift on/post results - I fell prey to the broker hiking the spread first thing and now am playing catch up. Is there a reason why it's not really moving much given the results, or is it just simply the time of year and people taking profit/resistance? Appreciate previous posts btw - apologies if the answers are already highlighted. Thinking of setting a stop at 175p (about right for support do you think?) from 195p buy - expensive I know, but I let my emotions get the better of me on results day and didn't realise/forgot that the 15p increase in buy was the broker, not the share rising :(

[christh] 24/8/2019 05:56

Investors Chronicle tips APF as a "BUY " this week.

Anglo Pacific NAV soars with Kestrel
Analysts at Peel Hunt expect adjusted earnings of 25.2p per share this year, and 24.3p in 2020.



IC View
The broker also suggests that following the balance sheet revaluation, Anglo’s implied trading range is 187p to 271p (based on the shares’ price-to-NAV multiple range since January). While they wait, investors can look forward to a rise in the dividend, and every-growing liquidity. We stick with last year’s call (140p, 12 Jul 2018) - buy.

Last IC View: Buy, 165p, 27 Mar 2019

[christh] 23/8/2019 07:15

The decline is seasonal
The biggest consumer is China, then US and other countries.
Demand is great, non ending despite all the noise about environment pressure.

[edmondj] 23/8/2019 06:06

“If India’s thermal coal imports decline, there could be substantial implications for seaborne markets.”

These uncertainties were largely out of the control of Australian miners and policymakers.

[ok,yah] 22/8/2019 11:07

Nice summary on proactive investors [...]

[the deacon] 22/8/2019 09:54

KF on today's interimshttps://youtu.be/LJy9MluhR88