StockMarketWire.com - Anglo Pacific enjoyed a strong second half of 2016 and royalty income for the year to the end of December rose by around 140% to £20.5-£21.5m.

This was mainly driven by the significant increase in saleable tonnes at Kestrel being derived from the group's private royalty lands.

Royalty income for Q4 was in the range of £11.6m- £12.6mm (Q3 2016: £4.8m, Q4 2015: £3.0m).

The group said 88% and 67% of Kestrel's saleable tonnes in H2 2016 and FY 2016 respectively derived from the group's private royalty lands.

Chief executive Julian Treger said: "Anglo Pacific enjoyed a strong second half of 2016, principally due to the significant increase in saleable tonnes from Kestrel being derived from the group's private royalty lands and another strong and consistent production quarter from Narrabri.

"The group expects to report income of £11.6m - £12.6m in the fourth quarter alone, which is approximately 147% and 299% higher than both the immediately preceding quarter and the same quarter in the previous year respectively.

"Combined with the £8.9m earned to the end of Q3 2016, this should result in overall royalty income for 2016 of £20.5 - £21.5m.

"Such an outcome would represent the highest level of annual income reported by the Group since 2011.

"Equally encouraging is our outlook for 2017, where we expect further growth in our income as 85-90% of Kestrel's saleable tonnes are expected to be derived from our private royalty area, a significant uplift from the 67% in 2016.

"Our royalty income is also expected to be strong in Q1 2017 following the settlement of coking coal contract prices at $285/t.

"The combination of increased saleable tonnes and higher prices, along with the potential for the pound to remain weak in the near term, should translate into further growth in royalty income for this year."


At 3:46pm: [LON:APF] Anglo Pacific Group PLC share price was +2.75p at 130.25p



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