20th Feb 2014 08:53
LONDON (Alliance News) - Anglo Pacific Group PLC Thursday said it swung to a pretax loss in its full-year 2013 after significant impairments to its mining assets.
The natural resources company posted a pretax loss of GBP52.9 million for the twelve months, compared with a pretax profit of GBP18.0 million the previous year.
Anglo Pacific said its royalty-related income fell slightly to GBP14.7 million from GBP15.2 million, but its operating profit increased to GBP11.3 million from GBP11.2 million on lower amortisation of royalties and operating expenses.
However, the company was hit by a set of significant impairment charges including a GBP26.3 million charge on mining and exploration interests and a GBP13.6 million loss on the revaluation of its coal royalties.
The company said it made impairments to the Ring of Fire asset in Canada and Mount Ida asset in Australia after its operators put the sites on care and maintenance, while the operator of the Bulqiza chromite deposit in Albania has moved focus towards copper projects in Turkey, altering the timing of expected cash flows, impacting on the value of its royalty.
Anglo Pacific recommended a final dividend of 5.75 pence, maintaining its total dividend for 2013 of 10.2 pence.
The company brought in new Chief Executive Officer Julian Treger and new Chief Investment Officer Mark Potter in October 2013, the new management team reiterated its focus on acquiring near-term, cash producing royalties.
The management said it enters 2014 with cautious optimism and is currently assessing a number of suitable opportunities for the company's development plans.
Anglo Pacific shares were up 0.5% to 206.52 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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