Anglo Pacific (APF) saw operating profit rise marginally to £11.3m last year, but non-cash impairments amounting to £34.6m, together with another £22.3m in royalty revaluation charges, propelled the company towards a full-year earnings loss. Most of the write-downs related to junior-mining equities, but they were also linked to long-dated royalty deals where progress towards production is being hindered.
Though Anglo’s new chief executive Julian Treger confirmed that management’s focus is now on "securing near-term, cash-producing royalties", the company’s core asset remains the royalty linked to Rio Tinto's (RIO) Kestrel coal-mining complex. The asset produces the bulk of Anglo’s royalty income, so shareholders will be encouraged by completion of Rio's £1.2bn capital programme at the Kestrel South mine. Increased royalty revenues from Kestrel South are some way down the track, but near-term prospects have been buoyed by the November agreement with FlowStream Commodities for participation in its first five investments. The deal will also increase Anglo's exposure to oil and gas royalties.
| ANGLO PACIFIC (APF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 203p | MARKET VALUE: | £225m | |
| TOUCH: | 203-205p | 12-MONTH HIGH: | 293p | LOW: 160p |
| DIVIDEND YIELD: | 5.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 196p* | NET CASH: | £15.7m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 20.3 | 25.9 | 19.1 | 8.35 |
| 2010 | 30.1 | 65.8 | 52.0 | 9.05 |
| 2011 | 34.6 | 48.4 | 33.5 | 9.75 |
| 2012 (restated) | 15.2 | 18.0 | 10.7 | 10.2 |
| 2013 | 14.7 | -52.9 | -39.0 | 10.2 |
| % change | -3 | - | - | - |
Ex-div: 4 Jun Payment: 7 Aug *Includes intangible assets of £37.3m, or 34p a share | ||||
