Anglo Pacific increases dividend

IN A 2012 end-of-year preliminary announcement, Anglo Pacific has reported increasing its final dividend by 4.5% to 5.75 GB pence (US8.92c) per share. This increase comes despite a fall in annual operating profits.

Staff Reporter

The company’s operating profits dropped 70% from £ 31.8 million in 2011 to £ 9.3 million in 2012.

Anglo Pacific acting chairman Brian Wides said there had been production problems and delays at its Australian Kestrel operation during 2012 due to a longwall changeover and adverse weather conditions, but the group had achieved a solid performance over a year when the world economy stalled and commodity prices were weak.

"The increase in the independent valuation of our coking coal royalties illustrates that the rise in the Queensland coal royalty rates announced in September 2012 has more than offset any impact of weaker commodity prices,” he said.

The Queensland government raised royalty rates 12.5% above $A100 ($US103.50) and 15% above $A150 sales price per tonne. The company believes it will directly benefit future sales from the Kestrel mine.

"During the year, we acquired two new royalty interests and announced a gold royalty financing agreement with Hummingbird Resources Plc in the final quarter,” Wides said.

"The group now owns a total of 22 royalty interests.

"We have been particularly encouraged by the progress across a number of the group's development royalties, which we believe will bring forward future royalty cash flows. The group's balance sheet remains ungeared with a strong and resilient asset backing.

"The board is therefore pleased to propose a 4.5% increase in the final dividend and remains committed to offering long-term returns to our shareholders."

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