LONDON, UNITED KINGDOM--(Marketwired - May 12, 2014) - Anglo Pacific Group PLC (TSX: APY) (LSE: APF)
Anglo Pacific Group PLC
Interim Management Statement
Anglo Pacific Group PLC ("Anglo Pacific", the "Company" or the "Group") (LSE: APF, TSX: APY) today releases its interim management statement for the period January 1, 2014 to May 11, 2014.
§ Continuing to pursue strategy of focusing on accelerating income growth through acquiring royalties in cash or near-term cash producing assets
§ Committed to maintaining and growing the current level of dividends
§ Actively bidding on a number of royalty opportunities; refined pipeline of targeted royalty acquisitions
§ Total royalty income of £2.3m in the first quarter of the year (Q1 2013: £4.6m excluding the £1.0m one off EVBC conversion receipt)
§ Cash balance remained at approximately £15m; opportunity to exit certain mining and exploration interests generated net proceeds of £3.1m in the first four months of 2014
Total royalty income earned from Kestrel in the first quarter was A$2.8m (Q1 2013: $4.2m). This lower income is due to a combination of reduced production of coal from within the Group's private royalty land and lower coking coal prices. Total production at the Kestrel mine was 869k tonnes in the first quarter, which was lower than the 983k tonnes in Q4 2013. The Group expects mining at Kestrel to move fully within the Group's private royalty land over the next two years.
Royalty receipts for Amapá resumed in the period following the incident at the Santana port in March 2013.
Receipts from the El Valle-Boinás/Carlés ("EVBC") gold mine in Spain were in line with expectations, £0.4m for Q1 2014. The Group notes the announcement on May 5, 2014 by the operator, TSX-listed Orvana Minerals Corp., which revises the original 2014 production guidance marginally downwards.
Following an announcement by Alliance Resources Limited on April 29, 2014, the Group now expects sales to commence at the Four Mile uranium project in July 2014 and royalty income should follow soon thereafter.
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