The company, listed on the London Stock Exchange and dual listed on the ASX, derives the majority of its income from royalties.
The royalty entitlement arises under Queensland Government law and is in perpetuity on coal mined under private subterranean rights. The royalty, owned by Gordon Resources (50%) and three other major institutions, is paid at a rate of seven percent on the gross sales value of all coal exported less some minor charges.
Anglo Pacific Group reported cash received during the three months ended June 30 amounted to A$929,606 from the Rio Tinto operated Kestrel mine, compared to $182,009 for the previous quarter.
The royalty received from the BHP Billiton Crinum mine for the quarter was $1,133,593 compared to $1,600,810 during the previous quarter. Output was lower due to the changeover of longwall equipment and delays due to minor roof faults.
The company said its royalties for the remainder of 2004 are expected to increase as production continues to move to its private ground from Crown Land.
The Company remains optimistic about the prospects for steaming and coking coal prices for the next six months and into 2005 when both the Kestrel and Crinum royalties should benefit substantially from higher world prices.