7th Apr 2020 16:42
(Alliance News) - Anglo Pacific Group PLC on Tuesday reported a rise in its final dividend for 2019, even as profit declined on higher costs and a loss on the revaluation of coal royalties.
For the year, pretax profit dropped to GBP37.6 million from GBP44.5 million the year before.
This was mainly due to higher operating expenses at GBP7.1 million from GBP6.0 million, and a revaluation of coal royalties from its core Kestrel mine investment to a loss of GBP9.2 million from a gain of GBP10.1 million.
Kestrel is an underground coal mine in Queensland, Australia, operated by EMR Capital and PT Adaro Energy.
However, royalty-related revenue increased by 21% to GBP55.7 million from GBP46.1 million the prior year, driven by a strong performance from Kestresl, the Narrabri coal mine in New South Wales and a contribution from Mantos Blancos copper project in Chile.
On the back of strong income growth, Anglo Pacific will pay a final dividend of 4.125 pence per share, bringing the total payout to 9p, up 13% from 8p in 2018.
"Anglo Pacific enjoyed a very successful 2019, with a record level of investment and portfolio contribution. We are pleased to recommend a full year dividend for the year of 9p, consistent with our previous statement that it would not be less than this level despite the ongoing and ever evolving market turmoil," said Chief Executive Officer Julian Treger.
"The most material mines from which we generate the majority of our revenue remain in production and are able to ship and sell. We have seen some instances of Covid-19 related shutdowns at EVBC and McClean Lake which are currently expected to last for between two to four weeks. We would expect to see production volume growth in the year ahead absent any further shutdowns," Treger added.
Shares in Anglo Pacific closed 19% higher at 135.40 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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