Anglo Pacific Share Discussion Threads

[starastar] 14/10/2021 07:49

Strikes me we have divested this at a loss to satisfy the ESG mob. Don't get me wrong, I'm not averse to new technologies in the right circumstance, but this looks like we have swapped a perpetuity (at a time of rising coal demand) for a phased repayment plan that crystallises a less-than-optimal outcome.

I do appreciate that it relieves caash pressures given dividend payments, and our need to fulfil banking covenants over the next months, but I do wish the slavish worship of decarbonisation would stop. At this rate we might deindustrialise the West, and that will just lead to mass poverty.

APF is one of my main long term holds - this doesn't change that equation for me, but decarbonisation is looking a lot like a mania to me.

[bountyhunter] 14/10/2021 07:48

A very positive move seeing a complete exit from thermal coal to focus on assets essential for decarbonisation.

[oapknob1] 14/10/2021 07:25

What do you think ?News Release14 October 2021Anglo Pacific Group PLCDivestment of Narrabri thermal coal royalty for consideration of up to $36 millionAnglo Pacific Group PLC ("Anglo Pacific" the "Company" or the "Group") (LSE: APF, TSX: APY) is pleased to announce its exit from thermal coal by entering into an agreement to sell its 1% gross revenue royalty over the Narrabri mine to the operator, Whitehaven Coal Limited ("Whitehaven") for consideration of up to $36 million.The consideration is structured as fixed payments totalling $21.6 million, along with contingent payments which could generate a further $ 14 million. The transaction is expected to close on 31 December 2021, with no material conditions precedent to closing. Anglo Pacific will continue to receive royalties from Narrabri until the end of the current calendar year.This transaction significantly improves the Group's carbon footprint with a remaining portfolio of assets now increasingly weighted towards cobalt, vanadium, copper and nickel - commodities which will be essential to decarbonise energy generation in the years ahead.

[masurenguy] 14/10/2021 07:23

Divestment of Narrabri thermal coal royalty for consideration of up to $36m.

Anglo Pacific Group is pleased to announce its exit from thermal coal by entering into an agreement to sell its 1% gross revenue royalty over the Narrabri mine to the operator, Whitehaven Coal Limited for consideration of up to $36m.

Anglo Pacific CEO, Julian Treger, commented:"I am delighted to announce that we have entered into an agreement to sell the Narrabri thermal coal royalty, which is aligned with our strategy and represents a further step in focusing on the investment in 21(st) century commodities supporting a more sustainable world. This transaction is consistent with our stated strategy of moving away from carbon-based energy exposure, as demonstrated by our investments in copper, nickel, vanadium, uranium and most recently the transformational $205mn Voisey's Bay cobalt stream acquired earlier this year. Whitehaven was selected as the preferred bidder following a competitive sales process, on the basis of an offer which we considered to provide maximum value to Anglo Pacific shareholders. We intend to deploy the proceeds from this transaction into further acquisitions, including to partially fund the upcoming $20m Incoa calcium carbonate financing which is likely to occur in H1 2022."

[madengland_] 13/10/2021 20:47

QP we all care about the planet, but ultimately capitalism and politics are the solution. Coal has legs and will outlive many of those manipulated folks lying on the motorway blocking traffic. Flop26 wont kill this equity, but this equity will change over time and holders should make good money supporting it

[madengland_] 13/10/2021 20:42

With all the current pressures I've renamed it Flop26. At least Bojos hair do will be in keeping

[gateside] 12/10/2021 23:02

Coal is going to be around for some time to comehTTps://www.theguardian.com/environment/2021/oct/12/china-coal-fired-plants-uk-cop26-climate-summit-global-phase-out

[the deacon] 12/10/2021 20:36

Yes I agree with you. There's a lot that needs to happen in order to make that a reality. Energy storage and associated infrastructure being a major aspect. Plenty of small scale examples of how it could work, and plenty more at a concept stage - but scaling that up takes a lot of time and a lot of money.

[sporazene2] 12/10/2021 19:40

Mass electrification of the motor car is pie in the sky Deacon, certainly in the short term The grids won't be able to cope and the scale of investment required to enable this is mind blowing even if the raw materials actually exist.

[the deacon] 12/10/2021 19:09

https://www.cnn.com/2021/10/08/business/energy-crisis-climate-fossil-fuels-renewables-cop26-cmd-intl/index.htmlThis energy crisis couldn't have come at a worse time for COP26. China ramping up coal production, Biden wanting OPEC to increase output etc etc. Don't get me wrong, I'm as keen as the next man to transition to a relatively cleaner environment, but I think it's now dawning on many that this isn't going to happen overnight. There'll be a lot of words at COP26, but I suspect very little in the way of concrete action. For the relatively little time that Kestrel has remaining as a portfolio contributor, I suspect it'll be very lucrative in providing that necessary cash that'll see APF pivot into the go-to ESG compliant resource sector investment vehicle.

[oapknob1] 12/10/2021 15:27

Sounds like a company evolving.53% of the Group's portfolio contribution is derived from non-coal revenue (H1 2020: 29%) Strategic review under way to consider options in relation to a possible divestment of the Narrabri thermal coal royalty, which would see the Group being thermal coal free

[oapknob1] 12/10/2021 15:18

Best sell up and move on then.

[madengland_] 12/10/2021 14:16

INSG now forecasts nickel deficit in 2021Image: Unsplash.com/Markus SpiskeCommodities > Base-metals 12 October 2021 CommentsShareStaff ReporterBack in April, the group had forecast a surplus of 45,000 tonnes for 2021, after estimating primary nickel usage of 2.673 million tonnes against a global production forecast of 2.718Mt.Following its October meetings, the INSG has slightly trimmed its production forecast to 2.639Mt and estimated usage to increase to 2.773Mt, implying a deficit of 134,000t.It pointed to an acceleration of the COVID-19 vaccination roll-out, a progressive recovery of main economic indicators worldwide, growth in stainless steel production and a continued positive impact on usage from the EV industry through the use of nickel sulphate in batteries.The INSG expected new nickel pig iron projects and high pressure acid leaching projects being developed in Indonesia and elsewhere to increase global mine output.It expected the market to swing to a surplus of 76,000t in 2022, due to forecast output of 3.12Mt against usage of 3.044Mt.However the group noted - as it had in April - that there was a degree of uncertainty in the figures, particularly regarding Chinese and Indonesian production, and it had not accounted for possible disruptions.China now represented 60% of nickel demand, compared with 5.5% in 2000 and 39% in 2010, it said.The INSG said more than 60 government and industry representatives from member countries, observers and several international organizations had participated in the meetings on October 1 and 4

[dartboard1] 12/10/2021 14:01

Haven't we had this discussion before. Getting a bit stale.

[quepassa] 12/10/2021 13:36

Even as coal hits highs, COP26 weighs. Heavily.

Coal is increasingly of pariah status amongst the institutional investing communities.

It appears to me that there is an inverse relationship between income derived from coal and share price performance.

The higher the coal income as a proportion of total revenues, the more the share is shunned by institutions.

Great uncertainty abounds with coal investments. Refinancing risk, regulatory risk, political risk, ESG risk.

ALL IMO. DYOR.
QP

[laurence llewelyn binliner] 11/10/2021 13:04

Kestrel Q4 income is set up for a ripper of a quarter..

Our 50% of the royalty component / AUD 12.25 per tonne, 5.8M tonnes a year sales (Q4 of 1.45M) resulting in Q4 potential of AUD 17.75M / USD13M income...?

Our Kestrel Q3 income should not be far behind, so H2 is going to be very good, and we are another week closer to results time and buyers at 140p today ... :o)

[andydaf] 10/10/2021 18:46

LLB i think you,ve summed the present situation up precisely.For a uk goverment to have left its energy supply at the mercy of the french,norwegians and putin could well be described as careless.If we are not lucky we will have a full blown energy crisis and we all know what usually follows them.APF are well diversified and revenue is in USD,its not hard to envisage a scenario where sterling comes under intense pressure as it may well be the first european country to turn its lights out.As always good luck to all with their investments during these turbulant times.

[laurence llewelyn binliner] 10/10/2021 15:30

The stampede for green energy and the de-carbonising of power station electricity supply has plunged countries and economies into natural gas dependency as nuclear/wind/solar are not yet able to plug the gaps to a sufficient level,

EDF/China are 5 years away from Hinkley point adding any power to the grid, so we are now over a barrel on both counts, a very poorly thought through power strategy in respect to timing which is in turn playing into the hands of Russia/Gazprom who are now able to hold the UK and our European ex partners to ransom on supply, driving gas prices through the roof as they now throttle back supply to force decisions onto new Norstream2 contracts..

Coal is not going to be fully substituted for decades, if ever in India/China and any other developing country..

Another week closer to our 3rd quarter, with Q4 now looking like it could outpace Q3 based on current prices, so we might yet see 150-175p for Xmas.. :o)

[dogberry202000] 10/10/2021 15:07

What about getting Que Passa to help out with the energy crisis by distributing his wind? He seems to have an endless supply.

[madengland_] 10/10/2021 11:56

Quality rant Andy. Don't get me started on Boris finger wagging telling the human race it's time we grew up. Sanctimonious buffoon. Be nice to have our own energy strategy that does not rely on Putin's gas and Chinese nuclear reactors.

[andydaf] 10/10/2021 09:31

Que passa,obviously most people who post on here are lucky enough to have some spare cash and will be able to heat our homes this winter.As you are aware a lot of wind and solar projects are only profitable due to subsidy.As the winter comes and fuel prices rise do you believe its correct for the very poorest in society to subsidise rich investors in these projects?guess its all down to morals

[andydaf] 10/10/2021 08:43

Que passa every time you post here the share price rises.I am aware of your green stance and most would agree we would like to leave the planet in a better state than it is today.However coal will be needed in the green transition how else will we make the wind turbines solar panels etc.The shift to green energy will take decades.In the meantime would it not be better for us all to do our bit.Cop26 is it really necesary for all these world leaders to fly to glasgow?i suggest a zoom meeting would save a whole lot of emissions.Your green warrior boris has just jetted off to spain i wonder if the jet was euro 6.Is it sustainable to be importing food from half way around the world or would it not be better to grow it here.Should we not find a way of recycling electric car battries before we rush headlong into allowing them here and end up with toxic spent batteries everywhere.The green movement is full of hyprocrisy.They moan about fossil fuels but jump on the first jet to benidorm.They need to change their i phone every two years,they expect foods from all around the world,they live 30miles from where they work and expect to commute.Elon Musk sums it all up,produces electric cars and in his spare time launches rockets.Last time i checked these rockets are not even euro6 either.In connclusion coals an easy target for some of the biggest hypocites in society.As always GLA in your investments whether they be a coal royalty or the transfer of money from the very poorest in society to the richest via green energy subsidies.

[quepassa] 07/10/2021 09:37

That's the problem.

They don't.