Anglo Pacific Share Discussion Threads

[the deacon] 31/8/2022 08:54

Agreed. My Millrock/Osisko example was merely an illustration of the depressed equity markets and a general unwillingness to raise capital at highly dilutive valuations

[laurence llewelyn binliner] 31/8/2022 08:51

#The Deacon, anything can happen for the next deal outside of Incoa/Piaui, the BRN BFS is due by end of September where their funding strategy will unfold, we will be a part of it, most likely scaling into them over time..

The feasibility study carried out by SNC-Lavalin was completed at the beginning of the Quarter and the study will be issued during Q3 2022 following final internal review..

During the second half of 2022 we look forward to issuing the FS for the PNP project and providing any relevant updates on further off-take discussions. This has already been a year full of milestones and we are excited by the potential this project continues to show

#TommyGriff, yes, dividend payday, the share price this morning could reflect some holders funds getting rolled back in again..

[tommygriff] 31/8/2022 08:46

Divi day ?

[the deacon] 31/8/2022 07:58

Here's an example of the sort of deal we'll see whilst equity markets are depressed. Cash for Millrock, and optionality for Osisko:"VANCOUVER, BRITISH COLUMBIA, August 29, 2022 – Millrock Resources Inc. (TSX-V: MRO, OTCQB: MLRKF) ("Millrock" or the "Company") reports that it has sold a portfolio of royalties on exploration projects in British Columbia, Canada, and Sonora State, Mexico to Osisko Gold Royalties Ltd ("Osisko"). Gross proceeds from the sale are $1.2 million. Millrock President & CEO, Gregory Beischer, commented: "Prevailing market challenges make an equity financing difficult and raising capital in this manner would be highly dilutive to shareholders. Sale of non-core assets is the best way to bolster Millrock's treasury for continued project generation activities, while we wait for assay results to roll out from two major Alaska gold drilling projects in which Millrock holds an interest."

[laurence llewelyn binliner] 30/8/2022 13:06

What a great share/model to shelter under for the GRR/NSR income..

10% cost inflation, but with business energy costs going through the roof, many miners are now running at break even as their AISC ratchets up higher and Dollar FX strength hampers commodity prices, their FCF dividend payout ratios are becoming neutralised..

7 pence offset to inflation on cash here is a start and we are well insulated and positioned now for the next leg up on EV metal demands..

[the deacon] 29/8/2022 17:15

As it stands yes, though MBL did say that the next deal (which sounded near term) should be cashflowing. How significant that level of cashflow will be is the question...

[cocopah] 29/8/2022 16:50

#TheDeacon … thanks for the share. Interesting how they credit MBL with the strategic change in direction! I think they will be right about the income for the next 2 years (after this year). Personally I am prepared for a drop in the share price over that period and will add accordingly during that time.🤷‍;♂️

[the deacon] 29/8/2022 08:49

https://www.thisismoney.co.uk/money/investing/article-11151985/MIDAS-SHARE-TIPS-UPDATE-Anglo-Pacific-mines-richer-profit-seam.htmlNot a particularly good article, but it's coverage nevertheless

[the deacon] 26/8/2022 09:52

Replay of yesterday's webcast:https://stream.brrmedia.co.uk/broadcast/62fb80a6b629a70556525a17

[the deacon] 26/8/2022 08:50

https://www.cityam.com/exclusive-mining-is-key-to-a-greener-future-argues-anglo-pacific-boss/

[laurence llewelyn binliner] 25/8/2022 13:59

#Cocopops, the next immediately accretive royalty could be anything, but now we have S32 as a partner / shareholder and investor, I would not be at all surprised if we could shoehorn ourselves into 1 of their currently active and paying ones as they are clearly open to divestments..

We can also scale ourselves into Piaui over time, it does not have to be straight in with a +USD70M full size investment, they will be lining up their funding package now, so we can ramp into that as well..

6 payments of USD9M over 18 months starting in October to S32 for a total of USD55M

We reduced our debt by USD70M in H1 stand alone, so deduct the USD18M for S32 and we could still reduce debt another c50M in H2-2022, which would see us scratch (20M debt/20M cash) or maybe net cash for year end at a push..

[cocopah] 25/8/2022 12:46

#LLB Here’s a thought … I wonder if the next investment might be in graphite. Some of the mine lives are very long and the projects are not time consuming to get to production or expensive, relatively speaking. Jurisdiction can be an issue though. 🤔🤔

[riskvsreward] 25/8/2022 12:41

Would like to see the new guy put some money where his mouth is though. The old boss used to have quite a bit in the skin but so far the new guy has put in nothing.

[the deacon] 25/8/2022 12:25

Proactive Investors interview with Marc:https://youtu.be/Fo9XILybO-8

[bhoddhisattva] 25/8/2022 11:18

Good results I thought but I disagree about name change

Many cos change business over the years nd name has no relevance to current ones e.g., WPP!

It’s an expensive waste of time and distracts management etc from real tasks —- SOCO to Pharos was a classic example.

[the deacon] 25/8/2022 11:03

Was clear to me from today's webcast and the interview posted earlier that the aforementioned cashflowing royalty that's slated to come next is both very near term and of significant size.

[laurence llewelyn binliner] 25/8/2022 09:05

#Cocopops, optimism balanced with pragmatism, a sensible viewpoint.. :o)

Kestrel will drop off 50% by volume next year, no surprises here, but that could be largely offset by the new royalty tiers, so lets say we could see 75% of 2022 by income for 2023..

There are many variables and everything is price dependant of course, but we have set our stall out now and firmly positioned for the EV revolution and growth within that sector even if recession impacts on steel manufacture using the same metals..

Onward and upward, I too was hoping to see 200p but it will come into sight again sooner or later, if you look at the chart trend from end of 2020 we are very much on track..

Incoa tranche2 payment now expected H1-2023
BRN initiated finance discussions with APF as a part of their Piaui BFS progression
From the presentation QnA, keeping the dividend flat leaves us in a stronger position to pursue growth, which will reflect in the share price over time..

[cocopah] 25/8/2022 08:56

#LLB Glass half empty or pragmatist? There is no doubt that these are great results (which we already knew about) and I do like that the board are very open, decisive and transparent about future short-term income, company objectives, their rationale for the dividend policy etc … but it doesn’t mean that I have blind faith in all decisions. Remember when £2.00 share price dominated our discussions and before that a 9p dividend … all seems a way off now as does some of the ludicrous broker notes on share price targets. So now I see this trading slightly down in the range in the next few months with a solid but not spectacular dividend. No immediate catalyst to add for capital growth or income (the rationale behind investing) in the next 18 months atm IMHO. I do intend to hold though for the reasons you and the Deacon say.

[the deacon] 25/8/2022 08:34

New podcast. Here MBL on the latest dig deep podcast:https://omny.fm/shows/dig-deep-the-mining-podcast/reinforcing-our-position-as-the-leading-royalty-an

[laurence llewelyn binliner] 25/8/2022 08:20

Monster results this morning, #Cocopops your glass has been half empty for a while, look at the positives instead.. :o)

Net debt USD50M (end of July post S32)
Cash USD20M
Debt USD70M
Estimated FY2022 income of USD150-175M

Kestrel run off income will see the new royalty tiers and +VE through to 2026
Cobalt up again to USD51,500 per tonne and now +10% off the recent low
VB Cobalt ramp up to 2,600 tonnes per year (USD25M a year income at todays prices)
Piaui BFS inside 5 weeks from today (4.25% GRR income USD25M at todays prices)
Incoa next

[the deacon] 25/8/2022 08:07

Well I'll buck th trend here and say I'm very happy with the results. I understand the concerns about revenue drop off, but it's quite clear from today's numbers that from an investment standpoint the royalty and streaming model is hitting it out of the park vs miners who are struggling under inflationary pressures. On that basis, anyone looking at investment into future facing metals needs to seriously consider APF as the sensible choice. We are in an environment where operators are overstretched, suffering cost pressures and looking for ways to alleviate that burden. Rather than dilute we'll see increased deal flow for the royalty co's. Excellent news re Cameco within our news release today too. The name change makes sense. We're leaving the past behind, the future here is revenue from nickel, cobalt copper, vanadium, uranium and anything else that plays a crucial role in the electrification of the world going forward. I just hope it's not cheesy! Looking forward to the webcast at 9.30am.

[gateside] 25/8/2022 08:07

Agree though that the figures matter more than the name. Update looks good at first glance.Let's just hope they choose a good name and not something ridiculous like abrdn did!

[johnrxx99] 25/8/2022 08:00

Cocopah, snap!

[cocopah] 25/8/2022 07:45

#johnrxx99 I liked our name. Pity. but you know what corporate marketeers believe/think. More worried that the update clearly signals the good news is firmly in the rear view mirror for a while, without an accretive new deal. That and the recent dilution means investor reward for the new flat dividend policy will be a drop in the share price. Of course there are those who will say it presents a buying opportunity.