14th Oct 2014 08:21
LONDON (Alliance News) - Anglo Pacific Group PLC Tuesday said it expects first-half royalty income from Kestrel, its main producing royalty, to be "significantly higher" than previously assumed based on a recent update from Rio Tinto PLC, under an agreement previously reported in August.
In a statement, Anglo Pacific said it had previously expected minimal royalty income from Kestrel, in Queensland, Australia, for the first half of 2015, but now expects about 22% of production from Kestrel in that period to be within its royalty lands.
"We are pleased to see an increase in forecast production from our royalty lands at Kestrel. This is positive news for our cash flow profile and further underpins the board's commitment to maintain our dividend for the current year," Chief Executive Julian Treger said in a statement.
Anglo Pacific's core asset is its 50% ownership of mining and mineral rights which entitle it to coal royalty receipts from the Kestrel and Crinum mines in Queensland, Australia. The mines are operated by Rio Tinto Coal Australia and BM Alliance Coal Operations Pty Ltd, the latter of which is a 50:50 joint venture between BHP Billiton and Mitsubishi.
In August, Anglo Pacific said it had entered into an agreement to gain information on the Kestrel coal mine. The deal was agreed with Kestrel Coal Pty Ltd, a subsidiary of Rio Tinto PLC's wholly owned Rio Tinto Coal Australia, and the company's Kestrel Mine joint venture partners, Queensland Coal Pty and Mitsui Kestrel Coal Investment Pty.
At the time, Anglo Pacific expected minimal royalty income from Kestrel during the first half of 2015 and about 43% of production from Kestrel to be within its royalty lands for the second-half of the year.
Anglo Pacific Group shares were Tuesday quoted up 14% at 128.91 pence.
By Samuel Agini; [email protected]; @samuelagini
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