Anglo Pacific (APF) posted a net loss of £8.8m at the half-year mark, compared with a £23m deficit a year ago. This represents a modest step forward for the mining group following the collapse of its revenue base in 2014. Anglo Pacific isn't immune to the ongoing industry upheaval, as evidenced by another substantial write-down on its interest in the Kestrel coal mining complex in Queensland. At £9.1m, however, the revaluation was half last year's - which is the main reason why the first-half losses narrowed.
The group generates royalty income from a number of long-life mining interests, including a newly acquired stake in the Narrabri coal mine in New South Wales, which is operated by Whitehaven Coal. An initial contribution from the Narrabri stake contributed towards a substantial increase in royalty income over the corresponding period in 2014. Meanwhile, the latest Kestrel forecasts from operator Rio Tinto suggest that 70-75 per cent of second-half production will take place inside those areas that attract royalty payments for Anglo Pacific. The result should be higher royalty income for 2015.
Although US dollar strength has been weighing on commodity prices, Anglo Pacific's chief executive, Julian Treger, points out that it has also been driving down production costs - which are typically paid out in local currencies - across the group's mining portfolio.
Prior to these figures, Peel Hunt gave adjusted EPS of 3.7p for the full year, against a loss of 2.5p in 2014.
| ANGLO PACIFIC GROUP (APF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 82.5p | MARKET VALUE: | £140m | |
| TOUCH: | 82.5-84.5p | 12-MONTH HIGH: | 172p | LOW: 74p |
| DIVIDEND YIELD: | 9.7% | PE RATIO: | na | |
| NET ASSET VALUE: | 101p* | NET CASH: | £1.4m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 2.6 | -20.9 | -20.8 | 4.45 |
| 2015 | 3.8 | -11.4 | -5.8 | 4.00 |
| % change | +48 | - | - | -10 |
Ex-div: 26 Nov Payment: 4 Feb *Includes intangible assets of £73.7m, or 43p a share | ||||
