Anglo Pacific Share Discussion Threads

[laurence llewelyn binliner] 07/11/2020 09:35

#meanreverter, I am not a fan of buybacks generally, a company should put its capital to work, grow the business and make a dividend return for shareholders, but when your model is doing exactly that by investing in other companies to make that return it starts to make a lot more sense to buy your own stock back, hold them treasury and not have to payout dividends on the qty bought back..

If a new royalty offers 6/7% and your own stock offers 9% at 100p that is not a difficult decision to make, wait for commodity prices to firm up, income to increase, then sell them back to the market at 200p as the tide turns and demand increases.. :o)

In a year where CV19 is presenting many difficulties for DD, site visits and sign offs to add new royalties, will we see a buyback round 2 or extension ..?

[meanreverter] 06/11/2020 21:55

Lord Gnome: If Julian Treger is to be trusted, Anglo Pacific will get a higher rate of return on its spare capital by investing in APF shares than by offering it to a mining company in exchange for a fresh royalty. This is indeed the case if the shares are significantly undervalued when gauged against the royalty stream to which they are presently entitled. If you trust Julian, then hold onto the shares; otherwise, sell them back to the company.

[lord gnome] 06/11/2020 20:14

Hopefully no more buybacks. If they have cash, FGS invest it in new royalty deals.

[buywell3] 06/11/2020 19:44

anyone expect another 5M of buybacks to be passed ?

Or will Mr Market now have its say

[laurence llewelyn binliner] 06/11/2020 15:35

#starastar, thanks, I thought it was strange but nothing is in the news tab here on ADVFN today, however a further 136,823 shares were bought, so we should close out the buyback today..

Hopefully some further news on royalty or streams are forthcoming soon.. :o)

[starastar] 06/11/2020 14:45

On the contrary, LLB: About £144k worth done yesterday, leaving just over £130k left, which is presumably in the process of being flushed through the system this afternoon.

[buywell3] 06/11/2020 08:48

5M in a special dividend not in buybacks might have been appreciated by shareholders more imo

was the authority for only 5M ?

Probably used up about now imo

[laurence llewelyn binliner] 06/11/2020 08:33

#Sporazene.. very nice, and the same level as their Q3 2019 too helping us with a stronger Q4 contributions to close the year out on.. :o)

I note no shares were bought yesterday in the buyback, perhaps we will close out with a bigger day today, or Monday/Tuesday...

[sporazene2] 06/11/2020 08:16

solid looking LIORC Q3 numbers released overnight.

[farmers son] 05/11/2020 12:45

shame there's no royalties for mining bitcoin

[farmers son] 05/11/2020 11:33

I get the positive spin they have attempted to build in to the update. Lots of uncertain language however. 'Could', 'might', 'some', 'consensus' etc.
The market isn't wrong. £1 is fair value as a lot needs to happen to build up those future income streams.

[laurence llewelyn binliner] 05/11/2020 08:21

A steady quarters income reported, with indications of a stronger Q4 to close the year out, and progress in the royalty pipeline towards future income streams..

Piaui nickel
Dugbe gold
Incoa calcium carbonate
Salamamca uranium
2 additional royalties work in progress in 2020

JT commentary on Piaui timed to sync as Kestel winds down and substitute the income stream...



A Q3 follow up interview could appear later today for a further refresh on where we are today..

[lord gnome] 05/11/2020 07:38

Yes The Deacon, invest money in new assets, not share buy-backs.

[the deacon] 05/11/2020 07:27

Yes, they need to get some significant deals over the line.

[oli12] 05/11/2020 07:17

Trading update pretty much as I expected - a challenging year - illustrates the over reliance on coal and the urgent need to diversify.

[laurence llewelyn binliner] 04/11/2020 16:53

#The Deacon, there is scope for an share price trend reversal with positive news flow, but what we are buying at this level is 8/9% dividend income with good CG potential.. :o)

[the deacon] 04/11/2020 16:22

Yes, I'm as bullish as the next man as far as APF's other royalties and pipeline are concerned, but I think those expecting a fantastic recovery this quarter are going to be left disappointed.

[laurence llewelyn binliner] 04/11/2020 16:00

#The Deacon, Kestrel is winding off slowly we know that.., but it is the progress made at all the other producing and developing royalties and where we are heading for income next which is more important going forward...

Commodity prices outside of coal are generally improving, copper/gold/silver are doing very well, we should see an IOC dividend in Q4, Dugbe gold is moving forward to a DFS, BKY uranium permit is pending..

I also want to see where we are on any new royalties to be added in 2020...

Very much looking forward to the update..

[the deacon] 04/11/2020 15:08

How is Q3 going to be stronger when kestrel output fell considerably vs Q2? Weaker coking coal prices too.

[laurence llewelyn binliner] 04/11/2020 14:39

Good planning IMO to do a GBP5M buyback now, reduce your qualifying dividend payout by c5M shares, when the shares are at half fair value and you already know the next quarterly update a few days later is going to be stronger.. :o)

[starastar] 04/11/2020 12:06

Well at least you can say they avoided overpaying for something in 2020! They must be swamped for choice at the minute... question is what to go for and how much (or how little) to pay. Guess we will find out more early next week.

[oli12] 04/11/2020 10:51

Thanks. Who would have thought / guessed that the only investment APF would make YTD would be a £5m purchase of its own shares. Difficult year, APF well placed to come through relatively unscathed.

[the deacon] 04/11/2020 09:26

Anticipating poor results from Kestrel based on the numbers from Adaro

[laurence llewelyn binliner] 04/11/2020 08:11

On current progress the buyback could finish on Friday this week, maybe Monday and the Q3 update Tuesday.. :o), we will see what we get..

I think we are in a closed period now while the buy back is underway, and probably not allowed to report as it will influence the share price and buyback, this is to our advantage when the positive update is released after the buy back is complete..

[rounder2] 04/11/2020 07:51

Ouch , got that one wrong ? Sorry ......Don't know where I got that from ... I'm going to have to go back now and check .