August 18, 2014
Anglo Pacific Group PLC
Kestrel Update
Anglo Pacific Group PLC ("Anglo Pacific", the "Company") (LSE: APF, TSX: APY) is pleased to announce that it has entered into an agreement with Kestrel Coal Pty Ltd, a subsidiary of Rio Tinto Coal Australia, and its Kestrel Mine joint venturers, Queensland Coal Pty Limited and Mitsui Kestrel Coal Investment Pty Limited, relating to the provision of information in respect of the Kestrel coal mine in Queensland, Australia. Rio Tinto Coal Australia manages Kestrel Mine on behalf of the joint venture partners.
The information to which Anglo Pacific is entitled under the agreement includes, on a quarterly basis:
§ The invoiced payable tonnes (including the hard coking coal, soft coking coal and thermal coal splits), royalty payable and the split between the public royalty payable and the private royalty payable
§ The estimated private royalty payable for the next quarter and the forecast production tonnages, split on a public and private royalty basis, for the next 4 quarters
Anglo Pacific expects approximately 43% of production from Kestrel to be within our royalty lands for 2H 2014. We expect minimal royalty income from Kestrel during the period 1H 2015, but Anglo Pacific management expects a substantial recovery thereafter as Rio Tinto mines more coal within our royalty lands.
Commenting on the agreement, Julian Treger, Chief Executive Officer of Anglo Pacific, said:
"We are pleased to have reached agreement with Rio Tinto and Mitsui on these information rights which will provide us and our investors more visibility on expected growth in royalty income from this key asset over the next 24 months."
For further information:
Anglo Pacific Group PLC +44 (0) 20 3435 7400
Julian Treger - Chief Executive Officer
Mark Potter - Chief Investment Officer
Kevin Flynn - Chief Financial Officer
Website: www.anglopacificgroup.com
Bell Pottinger +44 (0) 20 3772 2500
Nick Lambert / Lorna Cobbett
Notes to Editors
About Anglo Pacific
Anglo Pacific is a global mining royalty company. The Company's strategy is to create the premier base metals and bulk materials listed royalty company, focusing on accelerating income growth through acquiring royalties on projects that are currently cash flow generating or are expected to be within the next 24 months. It is a continuing policy of the Company to pay a substantial portion of these royalties to shareholders as dividends.
Cautionary statement on forward-looking statements and related information
Certain information contained in this announcement, including any information as to future financial or operating performance and other statements that express management's expectation or estimates of future performance, constitute "forward looking statements". The words "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or negative versions thereof and other similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Further, forward-looking statements are not guarantees of future performance and involve risks and uncertainties which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements. Furthermore, this announcement contains information and statements that are based on certain estimates and forecasts that have been provided to the Group by Kestrel Coal Pty Ltd ("KCPL"), the accuracy of which KCPL does not warrant and on which readers may not rely. The material assumptions and risks relevant to the forward-looking statements in this announcement include, but are not limited to: stability of the global economy; stability of local government and legislative background; continuing of ongoing operations at the Kestrel Mine in a manner consistent with past practice; accuracy of public statements and disclosures (including feasibility studies and estimates of reserve, resource, production, grades, mine life, and cash cost) made by the owners and operators of the Kestrel Mine; accuracy of the information provided to the Group by KCPL; no material adverse change in the price of the commodities produced from the Kestrel Mine; no material adverse change in foreign exchange exposure; no adverse development in respect of the Kestrel Mine, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels; and maintenance of mining title. If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations. For additional information with respect to such risks and uncertainties, please refer to the "Principal Risks and Uncertainties" section of our most recent Annual Report and to the "Risk Factors" section of our most recent Annual Information Form available on www.sedar.com and the Group's website www.anglopacificgroup.com. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. The forward-looking statements contained in this announcement are made as of the date of this announcement only and the Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
