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.

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.

Had a look at the maths on the Cambrian Mining deal GF. By my calculations (and these come with a health warning), a 6.4% stake in CBM at a then SP of 58p would have cost approx 1 mil. As of today, with CBM at 90p the stake would be worth 1.7 mill. This, based on APF's current market cap of 76 mill should mean a share price increase of 1p.

We had an increase of over 3p today which basically tells us 2 things IMHO. Firstly that the increase on fundamental terms is over the top. Secondly the market in mining/commodities (in case you did not know)is in a bull run. Having said that of course the CBM purchase could of course be a coup in the long term. I'm having slight visions of tech bull runs revisited!

>> GF

You are investing in bricks and mortar? Sounds like a bit of a contrarian play!

rgrds
gk

Hi Gk, very good points and here is my reply. Firstly on Anglo Pacific, I dont think you have factored in the increasing price of coking coal which the Australian Broker houses reckon will move from the present $50+ US dollars at present to $80 dollars per tonne in 2005. Obviously you can see that Anglo as a big percentage of their portfolio in coal and this is in fact already forcast to rise this year when the company moves from Crown Royalties to private ones.
Their increased exposure to Cambrian as upped the stakes aswell.

On the other point which is a personal one I was merely pointing out that I had lost time on the board as I have been involved in a private syndicate buying up old canal side Textile Mills, which we turn around into luxury flats that we both sell and rent off at the side of fantastic landscaped waterside features.

Sell date will probably be late 2007 so we have plenty of time for any cyclical turnarounds.

cheers GF. PS, please get in touch if I have missed points.

GF

Love the sound of your building project. I was in housing myself, built about 25 units a year plus barn conversions. But too much stress and a dodge ticker put paid to that, do miss it though.

Did well on monday and looking at these: BUR,SEY,BISI,SIA,CBM,APF,DNX,MRS.
Do you see any real no no's.

MS

Hi mickey, no not really in that list but I would add Soco onto it. You just might miss out on a real star. Hope you do well, its looking a good day so far.

cheers GF.

GF

Many thanks.

MS

mickeyskint - of your list Sterling Energy is the star. Real 5-bagger potential from current position.

07/10/04 08:32 UK smallcap opening - Anglo Pacific drops on placing of 4.4 mln shares AFX

>> GF

Have you any thoughts/heard any wispers about STAR. It could be one, from what I have heard.

(Apologies for the divertion to other APF holders).

rgrds
gk

WOW how did you hear about that gallick?????????????????. That was supposed be quiet. Gas storage which is at a premium at the moment in price as there is very little on these shores compared to the amount we need.

If you look at the chart is is to put it bluntly crap, but what say in 3 months from now.

We could be both onto a good un.

Please let me know how you go on this one if you dont mind.

Cheers GF.

..GF
I saw it tipped by the Invesco Perpetual smaller cos fund manager in Moneyweek. Agreed it has no form/chart but it would make a change if I got into one of these shares before they have already blasted off! I might wait for an initial upward move before getting on board.
Hang on a second, how did you hear about it?!

rgrds
gk

From one of my brokers Hargreave Hale, a nifty little shifty phone call to put me in the picture.

I didnt buy then , but I have since and hope to add more.

cheers GF.

I put a small amount into STAR because north sea gas is in decline & the Zebrugge to Bacton import pipeline may not be able to cope with peak demand.

So I started looking around for companies in the gas storeage business & I found STAR.

I bought them expecting them to gradually rise but they haven't moved so far.

The Humbly Grove storeage project is on budget and on schedule to start commercial operations in October 2005

The next storeage project is in Lincolnshire.

They are also pumping oil from small UK wells so the current OIL price is great for profits.

I don't buy many AIM shares but this one is an exception.

I suppose I may as well start a thread on STAR.

APF UP yet again!

Yep, good stuff.

cheers GF.

Are we going to see the next leg higher soon? It would be criminal if APF were not able to make hay while the Chinese sun was shining...

Fingers crossed Im hoping so.

cheers GF.