21st Jan 2015 08:34
LONDON (Alliance News) - Anglo Pacific Group PLC saw its shares rise on Wednesday morning as it said it expects royalties from the Kestrel mine in Australia to increase substantially in 2015.
Anglo said its gross royalty income for 2014 from the Kestrel mine, operated by FTSE 100-listed miner Rio Tinto PLC, to be around GBP1.7 million. Total gross royalty income for the company for the year is expected to be between GBP3.2 million and GBP3.6 million.
The company said it expects its royalty income from Kestrel to increase substantially in 2015 on the expectation that Kestrel's production rate will ramp up to 5.7 million tonnes of coal per year in the next 12 to 18 months. For 2014, its production rate was 2.7 million tonnes.
Anglo expects Rio Tinto to mine over 90% of coal within Anglo's royalty lands by 2017.
Shares in the company were up 3.9% to 87.00 pence on Wednesday morning, one of the best performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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