Anglo Pacific Group PLC reported royalty income of £1.9 million in Q1 2016, down from £2.3 million in the previous year. However, the company expects the majority of its royalty income, similar to 2015, will be received in H2 2016.
According to CEO, Julian Treger, “We continue to expect royalty income for 2016 as a whole to be significantly higher than the £8.7m earned in 2015”.
The company’s primary producing royalties are on the Kestrel underground coal mine, in Queensland, Australia, operated by Rio Tinto; and on the Narrabri coal mine, in New South Wales, Australia, operated by Whitehaven Coal, and which the company acquired in March 2015. Guidance from Kestrel is that 30-35% of production is expected within the Anglo Pacific land in H1 2016 and 85-90% in H2 2016.
During the quarter to end March 2016, the company received the first royalty payments of £0.2 million from the Four Mile uranium project, in Australia.
As at 31 March, 2016, Anglo Pacific held cash and equivalents of £3.7 million and had borrowings of £9.3 million.
Anglo Pacific Q1 royalty income £1.9 million; full year expected to exceed last year’s £8.7 million: APF