StockMarketWire.com - Anglo Pacific Group's royalty income rose by 127% to £19.7m in 2016, mainly due to a significant increase in overall saleable tonnes from Kestrel.

The group said earnings also benefited from upward revisions to coal prices and the weakening of the pound post the EU referendum.

The group posted an after-tax profit of £26.4m (2015: loss of £22.6m) anb basic earnings per share of 15.60p (2015: loss of 14.06p).

Other highlights:

- 316% increase in adjusted earnings to £16.5m (2015: £4.0m) resulting in adjusted earnings per share of 9.76p (2015: 2.47p)

- 30% increase in net assets to £210.1m (December 31, 2015: £162.0m) resulting in net assets per share of 124.00p (December 31, 2015: 95.00p)

- Improved earnings translated into free cash flow generated in 2016 of £13.2m (2015: £4.7m) and net debt reduced to £1.0m at December 31, 2016

-Recommended final dividend of 3.00p per share resulting in a total dividend for 2016 of 6.00p (2015: 7.00p).

Chief executive Julian Treger said: "2017 should be a year of significant organic growth for Anglo Pacific as production at Kestrel moves increasingly into our royalty lands and we benefit from planned production increases at Narrabri.

"Coal prices remain much higher than in the previous year and this, we believe, has set a new base level for prices above those forecast this time last year.

"We have already received our first contribution of C$3m from the Denison financing arrangement, which was concluded in February 2017.

"Our focus continues to be on adding further royalties to the portfolio.

"We see a number of prospective opportunities in the mid-tier and development arena where the lack of recent M&A activity, combined with underinvestment in growth, should spur renewed interest in developing the next wave of projects that will be required to meet expected supply deficits in the future.

"The strong results reported today means that we will reconsider dividend levels at the time of the interims, when we have greater visibility as to coal price movements for the year and the outlook for the next few years."






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