15th May 2018 12:00
LONDON (Alliance News) - Anglo Pacific Group PLC said Tuesday cash flow declined slightly year-on-year in the first quarter of 2018, due to a production shortfall in Australia, but firm commodity prices and steady production ahead mean its outlook for the year is unchanged.
The royalty company focused on the mining of natural resources said total cash flow generated fell to GBP13.3 million in the quarter that ended March 31 from GBP13.4 in the same period a year before.
The company said the recent result was essentially in line with the previous year.
Anglo Pacific royalty portfolio contributed a total of GBP7.9 million in the first quarter of 2018, down from GBP8.2 million in the same period last year.
At the end of the first quarter on March 31, cash in the company was GBP18.7 million.
Production shortfalls at both Kestrel and Narrabri in Australia during the quarter caused a 6% reduction in like-for-like royalty income, which is expected to be made up during the rest of the year, Anglo Pacific said.
The lower volumes were offset by the strength of commodity prices, particularly of vanadium which increased 130% year-on-year.
The company's sales volumes estimates for 2018 remain unchanged, as Rio Tinto PLC and Whitehaven Coal Ltd, to which Anglo Pacific is exposed, maintained their full-year production targets.
Julian Treger, chief executive officer said: "We continue to generate significant cash from our portfolio, have immediate access to USD65 million and are currently in the process of upsizing our bank facility.
"The focus for the year is firmly on growth, and we continue to work very hard on exploring, evaluating and appraising new opportunities."
Anglo Pacific shares were trading lower 1.1% at 160.80 pence.
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