Anglo Pacific a mining investor is a company I have held for about three weeks now and I have only just got around to posting about its excelent forward potential.
What I was really looking for was a play on coking coal as China just cant get enough of the stuff to build up its industrial infrastructure, and the World spot prices have risen drammaticaly which will lead to increased end profits for coal mining companies and coal mining investment companies.

I looked at a few options and this one easily came out on top not only that but it has other mining interests in its portfolio as you will see.

From last results year ending 31st DEC 2003.

HIGHLIGHTS

• Proposed Final Dividend of 1.3p per share (2002:- 0.65p)

• Total Dividends for the year increase by 49% to 2.6p (2002:-1.75p)

• Australian Coal Royalty Independent Valuation increases by 54% to 44.3
million

• Cash and Strategic Investments increases by 64% to 11.2 million

• Earnings of 3.7p per share (2002:- 4.09p) due to reduced coal royalties
on account of mining more on Crown Land than Private Ground

• Much stronger Royalty Flows from Private Ground expected in 2004

• Encouraging outlook for Coking Coal prices and Production Rates due to
Chinese, Indian and Far East demand

• Increased holding in substantial Canadian Coal Deposits in British
Columbia which are currently included in the accounts at negligible value

• Canadian Coal Bed Methane opportunity in British Columbia

• 40 million of Unused Tax Losses

Chairmens Comments.

Our coal royalty interests are independently valued at 44.3 million as of
December 2003 which is 15.6 million more than the valuation at 31st December
2002.

During the year your Company has participated in financings for a number of
strategic mining opportunities. Our mining operational interests and quoted
stakes in gold, diamond and PGM projects were valued at 31st December 2003 at
9.6 million. This included an unrealised profit over book value of 3.5 million
in addition to the realised gains referred to earlier. The Company also had cash
of 1.6 million at 31st December 2003.

The Mining Investments.

COAL ENERGY INTERESTS

COAL ROYALTIES

In Australia, coal royalty receipts from the Kestrel and Crinum mines, operated
by Rio Tinto and BHP Billiton respectively, were 3,376,000 (2002: 5,802,000).
The Company has increased its holding in its Canadian coal deposits in British
Columbia to 65% of the Groundhog and Peace River projects. The outlook for the
potential joint venture development of these resources has further improved due
to the increasing demand for coal products from China, Japan and the Far East as
well as North American domestic demand. The Groundhog and Peace River projects
are reflected in the accounts at negligible value.

COAL BED METHANE

The Company owns a circa 15% interest in the Merritt coal and coal bed methane
project in British Columbia. With coal bed gas prices having risen sharply
during 2003 joint venture discussions continue with potential partners to
progress this project.

GOLD AND PLATINUM GROUP METALS

At 31st December 2003 the Company had investments at a market value of 9.6
million in gold, diamond and platinum projects based mostly in North America and
Australia.

The Company's strategy continues to be to acquire projects that expect to yield
dividend and royalty cashflow as well as substantial share appreciation in the
next few years. The two largest strategic mining stakes of the Company are in
Kirkland Lake Gold and Platinum Australia .

• Kirkland Lake Gold is now producing gold at its Macassa mine in Northern
Ontario . Its higher market rating has resulted in a substantial capital
gain for the Company on its holding. Kirkland Lake Gold is still
discovering gold at grades in excess of 16 grams per ton and sometimes at
much higher grades and hopes to further increase gold production in 2004.
Other strategic holdings include Aquiline Resources, Starfield Resources and
Muscox Minerals.

TALC

The Board continues to look for a joint venture funding partner for the
Company's Shetland talc interests. The company intends to jointly mine this
deposit with a view to establishing a royalty flow in due course.

OUTLOOK

The outlook for coking coal prices remains extremely encouraging and, with
production at the two mines in Australia expected to be at record levels and
mostly on the private ground, the Board expects much stronger coal royalties
this year. Furthermore current spot prices are well ahead of this year's fixed
contract prices which themselves are over 25% up on the previous year.

With the weakness of the US dollar and the current demand for metals and energy
fuels worldwide driven by Chinese, Indian and Far Eastern demand, the Board is
optimistic about the opportunities for its gold, diamond, base metal and PGM
interests, as well as for the substantial coal and coal gas projects that the
Company has in Canada.

Website www.anglopacificgroup.com

I think this company is a medium to long term investment and if you are interested please DYOR and you are responsible for your buying and selling timing actions.



cheers GF.

Better late than never. Bought this morning at 86.5p.

....hopefully not a bad timed purchase !!!

Excelent interim results, what a sound company this is. Profit taking going on now like after the last results, but just look at the very brigh outlook statement. Coal prices to remain stable and on the up into 2005. I think after a day or two we will resume northwards.

Heres the results............................

Anglo Pacific Group PLC
03 September 2004



3 September 2004



Anglo Pacific Group PLC
Interim Results for the six months ended 30th June 2004


Anglo Pacific Group is pleased to announce a strong performance for the six
months ended 30th June 2004.


Highlights:



Profit before tax up 55% to 2,700,000 (2003: 1,738,000)
Profit after tax up 67% to 2,076,000 (2003: 1,245,000)
Earnings per share up 66% to 2.36p (2003: 1.42p)
Cash of 1.5 million, no borrowings, and unused bank facilities of 300K
Interim dividend for the year ending 31st December 2004 to be announced in
November 2004

Commenting on the interim results, Peter Boycott, Chairman of Anglo Pacific,
said:

'I am pleased to be able to report another set of encouraging results for the
first six months of 2004 and further progress in the development of Anglo
Pacific and its asset base.

With the increasing demand for energy products from China, India and the Far
East, the outlook for coking and steaming coal prices looks to remain buoyant.
Developing our coal energy interests in Canada and elsewhere will remain a major
focus for the Group.

The Board maintains its strategy to pay a proportion of its increasing coal
royalty cash flow as dividends to shareholders, whilst endeavouring to make full
use of its substantial tax losses.'


Enquiries:

Brian Wides / Peter Boycott Anglo Pacific Group PLC 020 7409 1111
Stephen Scott / James Harris Scott Harris 020 7618 6433





Anglo Pacific Group PLC
Interim Report for the six months ended 30th June 2004


CHAIRMAN'S REVIEW

The first six months of 2004 has seen a distinct shift in sentiment away from
gold and precious metals towards base metals and in particular coal energy and
oil. Whilst the price of gold has remained stable, and still mostly reflects
dollar weakness, the prices of base metals and energy fuels have risen sharply
due to ever growing Chinese and other Far Eastern demand as well as
uncertainties over oil supplies caused by Middle East political unrest.

In the period under review the Company has maintained its gold and precious
metal investments albeit at a reduced level and has actively striven to increase
its exposure to base metals as well as coal and coal energy. This has been
achieved by taking profits on some of its quoted investments and expanding its
private coal interests in North America and elsewhere. Our half-yearly results
reflect this.


RESULTS

Following increased coal royalty receipts and substantial realised capital gains
I am pleased to report that Group profits before tax for the six months ended
30th June 2004 increased to 2,700,000 compared to 1,738,000 for the same
period last year. Profits after tax were 2,076,000 compared to 1,245,000 with
earnings per share for the half year of 2.36p compared to 1.42p.

Our coal royalty interests are now valued at 47.1 million as at 30th June 2004,
an increase of circa 2.8 million over the valuation at 31st December 2003.

Our mining operational interests and quoted stakes in gold, PGM and base metal
projects were valued at 30th June 2004 at circa 7.3 million after having
realised profits of 0.72 million over the period. Cash at 30th June 2004 was
1.5 million with no borrowings and unused bank facilities of 300K.

On 6th August 2004 a final dividend of 1.3p per share for the year ended 31st
December 2003 was paid. Shareholders owning circa 53% of our issued share
capital opted to take further shares in the Company under the scrip dividend
alternative. The Directors also opted to take shares rather than cash in respect
of substantially all their shareholdings thus increasing their investment in the
Company.

The Company will announce its interim dividend for the year ending 31st December
2004 in November 2004, when a scrip dividend alternative will again be available
to shareholders.


cheers GF.

Some interesting speculation here..................

DAILY EXPRESS
*Suggestions that Havelock Europa (HVE.L) is trading ahead of expectations.
*Rumours that Chaco Resources (CHP.L) is close to a deal.

Who's Dealing:
*Non-Exec takes maiden stake in Mitie Group (MTO.L).

Share Whisper:
*Talk that Anglo Pacific (APF.L) could be involved in financing a lucrative mining venture.

cheers Gf.

GF you missed a bit from the express.

That mining venture could add nearly 15% to its net asset value, according to gossips.

WOW, thats excelent apple. I hope we get the news soon.

cheers Gf

No news on the mining venture yet then. Patience will pay in the long term.

cheers Gf.

Should be write ups in Shares and Investors Chronicle on the results this week.

cheers GF

Share price only fell about 2% when the figs came out. Given market perversity IMHO this is a result. 2% is inconsequential when you expect profit-takers to be around. Hopefully normal service to be resumed.

>> GF have you heard the story being pedalled (maybe it's true) about a potential 10 year commodity boom (ie we are at the start of it). Have no idea how "experts" work that one out!! There is the China/India story, but do you buy the long term view ?

rgrds
gk

Yes especially with India and dont forget even though growth rates in China have dropped from 10% plus, a 7% to 8 % is still a magnificent growth rate per annum.

cheers GF.

Looks like we may get an up day here after the lul after the results.

cheers GF.

Feature Story
Date: September 09, 2004

Anglo Pacific Now Has To Get Real Value For Its Unlisted Investments In Canada

It is never the easiest of tasks to dissect the results from Anglo Pacific Group and the interim results to end June show the pattern has not changed. Profits before tax were up from 1.74 million to 2.7 million, but 718,000 of this increase was accounted for by the sale of fixed assets. Peter Boycott, the chairman, says that With the increasing demand for energy products from China, India and the Far East, the outlook for coking and steaming coal prices looks to remain buoyant. Developing our coal energy interests in Canada and elsewhere will remain a major focus for the group. The coal royalties from two mines in Queensland, Australia, are the engine room for the company but they only increased by 510,000 so presumably the full impact of high coal prices is yet to come.

The other problem of which investors have to be aware is that the royalty interests do not necessarily provide a steady and rising stream of income. They arise when the two producers are mining from the private rather than the Crown areas of the mines and are paid in arrears. Last year mining at the Kestrel mine operated by Rio Tinto and the Crinum mine of BHP Billiton took place predominantly in the Queensland Governments area of the coal deposits. This year it was expected to switch back again, but there is not too much evidence of this as yet. The directors are maintaining their strategy of paying out between 40 and 60 per cent of net royalties after 30 per cent Australian tax as dividend, but will not make up their minds about the interim until November. Provided the mining takes place in the private areas and sales of coal get full benefit from higher prices, investors could be in for a treat. At the beginning of August a final dividend was paid for the year to end December 2003 which makes clear just how much in arrears the word arrears implies.

The company lays great store by the value of these coal royalty interests which rose from 44.3 million to 47.1 million in the half year. Anglo Pacific also has a 65 per cent interest in the 665 million tonne Groundhog coal deposit as well as owning the 121.5 million tonne Trefi deposit in the well established Peace River coal field. Both of these are in British Columbia and work is continuing on them encouraged by the much increased activity in that part of Canada during the last six months with projects going ahead at Perry Creek, Burnt River and Willow Creek amongst others. With higher world prices for metallurgical, thermal and domestic coal, Groundhog and Peace River have now become valuable assets which are still carried in the books at negligible cost. Discussions on developing them with joint venture partners continue, but it has to be admitted that Groundhog is in a pretty remote area.

In addition the company has a 15 per cent interest in the Merritt coal bed methane project. Coal bed methane is an emerging industry in Canada and the US is well ahead of it in the development of natural gas resources. Merritts resources consist of 31 billion cubic feet of coal bed methane and 218 million tonnes of bituminous grade coal. This interest is in process of being reversed into a Canadian quoted vehicle where funds will be raised locally to take the projects forward. The background for developing Merritt remains positive as the move will put real value on the stake at a time when the directors have seen a distinct shift in sentiment towards coal energy and oil in the first half of 2004.

In the period under review Anglo Pacific therefore took some profits on its gold and precious metal investments as indicated by the sale of fixed assets and has increased its exposure to base metals as well as coal and coal energy. Few details are given, but certainly the investment in Kirkland Lake Gold was reduced. The company still has a holding of nearly 20 per cent in Platinum Australia , however, which has recently announced projects in South Africa. These involve the process technology developed at the Panton project in Australia which produces a PGM concentrate of a grade high enough to go direct to refiners, cutting out smelting. As a result the technology could produce good revenue returns without the requirement for substantial inward investment. It is somewhat ironic, nevertheless, that a company which has tended to shun South Africa finds itself transported there, like it or not, as it would be difficult to liquidate this holding without crystalising a significant loss.

The company has a number of stakes in other quoted mining companies which are concentrated in North America, Canada and Australia. These include a stake of nearly 20 per cent in Canadian listed Alto Ventures for which the interest in the Oxford Lake gold property was swapped. Together with the coal and coal energy projects in Canada these were valued at the end of June at around 7.45 million net of the realised profits. Cash amounted to 1.5 million with no borrowings and unused bank facilities of 300,000. Anglo Pacific is therefore in a strong financial position and still has 29 million of tax losses to be carried forward against capital gains. For its next trick it has to come up with a deal, or deals, which will put real value into its Canadian unlisted interests.


cheers GF.

Starting to look stronger now after results last week.

cheers Gf.

Down so far today, it looks like Ransomes Dock Ltd has reduced their holdings.

Its a bad day alround apple. Just took one look at my watch list now and the majority of small caps are down after last nights poor session in the US.

Its a day for doing the garden.

cheers GF.

Showing signs of life.

Yup its been a wait after the results.

cheers Gf.

Interesting stake taken in Laramide - being a Uranium play. With fears about where energy is going to come from given the oil price rise, nuclear must be back on the agenda in a lot of countries (including the UK). There is not much uranium in the world, so IMHO there is really only one way the price can go.

rgrds
gk

Thanks for that Gallik, missed it, in the last few days been a bit busy investing in bricks and mortar.

cheers Gf.

Taken a stake in Cambrian Mining an excelent move. A couple of good investments made by management over the last few days. Is up aswell. Nice steady eddie of a riser this.

cheers GF.