Mr. Julian Treger reports
ANGLO PACIFIC GROUP PLC KESTREL ROYALTY UPDATE
Anglo Pacific Group PLC has provided the following update in relation to its Kestrel royalty.
The company has received notification from Rio Tinto of the invoiced payable tonnes for Q2 2016, which along with the amounts already received in Q1 2016, means that sales from the group's private royalty lands in the first half of 2016 will be in the range of 35 to 40 per cent. This represents a significant increase on the previously guided range of 20 to 25 per cent. The group's guidance for 2016 remains unchanged at 60 to 65 per cent, although the latest information suggests that this could be at the upper end of this range.
The latest information also includes the forecast for Q2 2017 for the first time, which is in line with the group's expectations. The group continues to guide that over 90 per cent of production will be within the group's private royalty lands by the end of 2017. This, along with both the recent weakening of the pound against the Australian dollar and an increase in the coking coal benchmark contract price so far in 2016, should have a positive impact on the group's reported royalty income.
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