28th Jan 2016 11:24
LONDON (Alliance News) - Mining royalties company Anglo Pacific Group PLC on Thursday said its mining royalty income for the fourth quarter of 2015 is set to rise significantly, helped by a strong performance at the Narrabri mine in Australia.
The company said it royalty income for the quarter to the end of December will be between GBP2.7 million and GBP3.0 million, a sharp increase on the GBP400,000 it made a year earlier. For the full year, royalty income will be between GBP8.5 million and GBP8.8 million, again well ahead of the GBP3.5 million it made a year earlier.
Production in the second half from the Kestrel mine, also in Australia, was higher than Anglo Pacific's expectations, as was production from the Narrabri mine.
The company will, however, cut its final dividend payment for the year to 3.0 pence per share, from 4.0p, due to lower income expectations in the coming year due to the decline in coking and thermal coal prices.
"Like everyone in the sector, we have been affected by the commodity environment and weakening coal prices have reduced our revenue. This decline, combined with a lower commodity price outlook, has led the board to reconsider our dividend policy. Despite this, we remain committed to paying attractive dividends and maximising shareholder value," said Julian Treger, Anglo Pacific's chief executive.
"We continue to believe these challenging times for the mining sector will provide opportunities for Anglo Pacific to identify attractive new royalties that will enhance the lifespan and diversity of our portfolio," Treger added.
Anglo Pacific shares were up 6.7% to 56.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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