10th Dec 2015 15:29
LONDON (Alliance News) - Anglo Pacific Group PLC on Thursday said it expects to see higher production and lower costs at its Narrabri royalty in New South Wales, Australia.
The news comes after the operator of the Narrabri mine, Whitehaven Coal Ltd, received the approval to extend longwall panel width and increase annual run of mine production by almost 40%.
"These initiatives should lead to significantly higher production volumes from 2017 onwards, exceeding our expectations at the time of the royalty acquisition. We are also encouraged by the unit cost reductions expected at the Narrabri Mine," Anglo Pacific Chief Executive Julian Treger said in a statement.
"This action by Whitehaven suggests confidence in increased demand for Narrabri's high quality cleaner coal product in the future," Treger added.
Anglo Pacific acquired the 1% gross revenue royalty on March 11.
Shares in Anglo Pacific were up 9.8% at 59.00 pence on Thursday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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