Anglo Pacific Share Discussion Threads

[pockstones] 02/3/2020 22:41

Dear Que,
the great talent you have is never to leta fact change your opinion
Keep it up all he best
Pockstones

[quepassa] 02/3/2020 19:32

they just cannot escape the black stuff......

oh dear!

anyone noticed how BRRMEDIA depict today's interview with the image of nothing less than a big LUMP OF COAL?


what a snafu....



hXXps://www.brrmedia.co.uk/


second irony of the day...




ALL IMO. DYOR.
QP

[the deacon] 02/3/2020 18:53

Another interview covering today's news. This time, interestingly, with Proactive Investors New York:https://youtu.be/QdwxR11jw6M

[the deacon] 02/3/2020 18:30

JT explaining the rationale behind today's deal:https://www.brrmedia.co.uk/broadcasts/5e4d5e542aec863039efd0ed/anglo-pacific-announcement-on-incoa

[quepassa] 02/3/2020 17:01

well let's hope the new DR minesite destined to open next year has more luck(and less delays) than the ill-fated uranium mine in Salamanca.

i guess the market was hoping to see the purchase of some live and producing royalties not a pre-announcement of a potential funding next year sometime in 2021 for when the infrastructure for the mine is hoped to be in place.

and after all the recent ballyhoo, hype and build-up about being at the front of investing in " the new wave of technologies around electrification, including renewable energy..." (see RNS 24/2/20), and they go and make an announcement for calcium carbonate which is a vital ingredient used in..... wall filler.....and toothpaste....

yeah, really high tech/new technology stuff that is....



the irony is truly astonishing.


ALL IMO. DYOR.
QP

[quepassa] 28/2/2020 13:28

Feel Free So to do.

[the deacon] 28/2/2020 13:17

FFS QP. Treger has already stated he won't be issuing any equity at depressed market prices. Your motives are clear for all to see. I've always been reluctant to filter people as I like a balanced discussion, but your efforts are bordering on spamming now.

[quepassa] 28/2/2020 12:11

the question is financing any acquisition.

yes, they have significantly increased their revolving credit/accordion banking facilities, potentially giving them a lot of fire-power at a good time to buy when things may be cheap.

smaller acquisitions can perhaps be financed through retained earnings.

larger acquisitions would likely and initially necessitate borrowing from the recently enlarged bank facilities.

any royalty (or equity) acquisition is by nature a long-term asset which, out of prudence, would normally thereafter require refinancing over the long-term by some other financial instrument with a take out of the shorter-term bank borrowings.

in the past they have often issued equity to finance royalties over the long-term.

the question is:-

1). would institutions currently have the appetite to buy equity given the ever diminishing institutional desire to be involved in any way with (thermal) coal however minimal that they be, and

2) is now a good time to issue equity (if at all possible under current adverse market conditions ) at these highly depressed levels?


making long-term royalty acquisitions by relying solely on shorter-term bank borrowings with no subsequent financing take-out would push up their gearing ratios and be a significantly riskier funding strategy and a significant funding mis-match.



ALL IMO. DYOR.
QP

[the deacon] 28/2/2020 11:37

Looking forward to seeing the larger scale deals that JT talked about in the Crux Investor interview. Altius Minerals on the lookout for base metal/energy metal deals, as well as Sandstorm potentially looking to increase non-precious metal royalties also. Key for APF is to make hay in this sort of market, and secure some deals that will grow and replace Kestrel over the next few years

[semper vigilans] 28/2/2020 10:51

Not if they can find a deal that is better value.

[chillpill] 28/2/2020 10:44

Isn’t the best use of capital right now a share buyback?

[the deacon] 27/2/2020 17:50

Another short interview with JThttps://www.brrmedia.co.uk/broadcasts/5e4d62792aec863039efd0f5/anglo-pacific-refinement-of-portfolio-investment-strategy#

[quepassa] 27/2/2020 05:13

1.Whitehaven Coal (majority owner/operator of Narrabri thermal coal mine) has seen its share price plummet again in last few days.

Having started the 2020 year around A$2.65, it has just gone under $2 and now hovers around $2.05.

It hit A$5.85 less than two years ago in June 2018. Down by almost two-thirds.

2. APF started the 2020 year around 190p and the share price closed yesterday at circa 139p, down more than 25% in less than two months.



ALL IMO. DYOR.
QP

[the deacon] 26/2/2020 20:21

New Interview from Proactive..https://youtu.be/Kjt14e_ir2I

[tommygriff] 24/2/2020 21:39

I wonder if Savannah resources are on Anglos radar. Change in strategy to cleaner metals, David archer is CEO of sav and ex Anglo director, sav have Europe's largest lithium resource that needs a partner or funder!!!

[cyfran101] 24/2/2020 21:28

I take your point that it may be a little lower . . . but 7 years ago coal was 80% odd and they have driven it down to the 50% I mentioned.

With the additional finance they have gathered they are in a better place to invest but I do not believe at present they will reduce the coal (coking & thermal) to less than 15% for quite some time.

Kestrel has been a massive investment but will dominate the shares for some time to come.

[laurence llewelyn binliner] 24/2/2020 17:21

With 2 royalties expected to be announced this quarter, they will further reduce our percentage in revenue terms exposure to coal, and it is March next week already .. :o)

FY2019 results / final dividend news in 4 weeks..

[cyfran101] 24/2/2020 17:01

Odd paragraph!

"The Company's sole thermal coal asset, Narrabri, which was acquired at the beginning of 2015, represented only 7% of our revenue in 2019, a significant reduction on the 37% contribution at the time of acquisition. We expect this to reduce further as we continue to add further royalties to our portfolio."


COMMODITY EXPOSURE – 30/06/2019 (as per website)
39%
Coking Coal
21%
Iron ore
12%
Thermal Coal

Coking coal with Kestrel is still a massive commitment at present. Thermal coal with Narrabri was never at 37% ??!?

Coal in general is our main area still at 50% ish at present.

[haywards26] 24/2/2020 13:54

Maybe QP will buy shares now!! ;)

[chillpill] 24/2/2020 07:41

This was clearly driven by some of the ESG sensitive institutional investors like Blackrock and Schroders.

I imagine they will probably be buyers after this.

[piwood] 24/2/2020 07:39

News Release
24 February 2020
Anglo Pacific Group PLC
Refinement of Portfolio Investment Strategy
-- Increased focus on commodities that support a more sustainable world
-- No further investment in thermal coal assets
-- Establishment of a Sustainability Committee

[the deacon] 24/2/2020 07:34

Good to see a company putting the importance of ESG at the centre of everything they're doing.

[quepassa] 23/2/2020 21:31

BUT SHARE PRICES ARE THE YARD-STICK, THE COMPARATOR, THEY SHOW THE WAY AND INDICATE CLEARLY SECTOR SENTIMENT. YOU CANNOT IGNORE THEM.

RE YOUR COMMENT "SHARE PRICES.... IRRELEVANT TO APF".

I DON'T THINK SO.....APF HAVE AN EQUITY STAKE IN BERKELEY ENERGIA.


MAYBE YOU RECALL THE WORDS ABOUT THEIR STAKE IN BERKELEY ENERGIA IN THEIR 31st. OCTOBER 2018 RNS TRADING UPDATE:-

"The value of the Group's equity stake in Berkeley Energia decreased to GBP3m In October 2018 (from GBP7m at 30 June 2018) following speculation that it is experiencing difficulty in obtaining the final two permits required to commence construction - this deficit has been largely offset by the valuation uplift on the Group's LIORC investment, which has increased considerably in value since the initial investment during Q3 2018. Berkeley Energia has confirmed that it continues active discussions with all stakeholders, in order to resolve the current impasse."



The Berkeley share price in October 2018 was around 35p. To-day it has collapsed to just 10p.

So APF's stake has on the face of it reduced in value to less than £1m from a peak £7m.

That's not good.


SORRY TO DISAGREE but in the case of BKY, the share price IS MOST CERTAINLY NOT IRRELEVANT to APF. Nor to you as an APF shareholder.

And as an aside it would be interesting to know whether they have provisioned the value of their LIORC investment in the Salamanca mine given the effective moth-balling of the site due to labyrinthine Iberian politics on nuclear.


ALL IMO. DYOR.
QP

[quepassa] 23/2/2020 21:29

Sector sentiment surrounding coal and non-ESG Compliant investments is and will remain dire, irrespective of whether companies involved in these sectors are performing financially well.

The reason professional money managers want and need ESG compliance NOW is that many of their investors DEMAND it and unless these fund managers are ESG compliant, many of their investors will withdraw funds. That's bad news for them and their fees. So they dump and shun certain sectors like coal.

Yes of course there is a major difference between coking and thermal coal. But it's not true what you say. The market is only just beginning to draw a distinction between steam-making coal and steel-making coal.

Still the majority of investors just see the word "coal" and run away. They just lump it together and think it's all the same dirty polluting stuff.

ALL IMO. DYOR.
QP

[quepassa] 23/2/2020 21:28

On uranium, funny but when I listened to the interview yesterday my recollection was that APF mentioned specifically that some investors did NOT consider uranium as ESG compliant due to the somewhat negative environmental reputation U3o8 has and that they were therefore not perhaps so keen to increase uranium investments. Quite contrary to what you again erroneously say.

Let's not perhaps talk about their uranium investment in Berkeley Energia. Nor perhaps about the politics and demonstrations against the Salamanca mine by The Greens and in particular Stop Uranio in Spain.

By the way, have you seen the share price of Berkeley Energia?

It is 10p. Yes 10p.

It's down from almost 70p in 2017 to 10p now. That's DOWN by 85%. Even more than Whitehaven.


Funny old world innit.

all imo. dyor.
qp