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ANGLO PACIFIC, Mining Investor And A Play On The Developing Chinese Economy. (APF)     

goldfinger - 18 Apr 2004 16:37

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.

draw_chart.php?epic=APF&type=1&size=2&pe

cheers GF.

goldfinger - 13 Jul 2004 15:22 - 37 of 221

NICE.

cheers GF.

ps, much rather have these slow burners than the quick up and probably down types in this market.

profitmaker - 13 Jul 2004 15:38 - 38 of 221

Is it just me and you,GF on this board? It would be great to hear the views of others on this stock.

goldfinger - 13 Jul 2004 16:29 - 39 of 221

PM, I just think its the markets in general, with volumes way down on normal at this time of year. This crab market hasnt helped in fact I make far more money in a bear market going long. Wish we would break out preferably up.

cheers GF.

apple - 14 Jul 2004 13:29 - 40 of 221

UP 5.3% so far today!

Could we call this a breakout?

profitmaker - 14 Jul 2004 14:31 - 41 of 221

Still no reason for this upsurge. My view is that something is around the corner i.e. an announcement of new reserves,revaluation of reserves or just good interims. Interim div would be great. This is a good yielder. Maybe the market is getting wind of what a good company APF is. Whatever it is, long may it continue. I'm sitting pretty with 36% gain but I think there is more to come.

goldfinger - 14 Jul 2004 23:34 - 42 of 221

Yup nice day for this one, but watch out the small caps took a right tonking today.


cheers GF.

profitmaker - 15 Jul 2004 11:00 - 43 of 221

Another couple of pence this morning. Still no reason for the strong price rise. Has the price of coking coal gone up dramatically? This may justify the rise. Anyway I'm holding on to my hat as we take off. Next stop 1.

goldfinger - 15 Jul 2004 12:38 - 44 of 221

Seemingly it has PM.

cheers GF.

DonlanJa - 21 Jul 2004 11:13 - 45 of 221

Hello All,
Have been watching this board for a while noew after buying in at 55p. Maybe the recent price rise can be attributed to the following:

"Rio [Tinto] said hard coking coal output from its Australian mines also increased significantly because of rising output from its new Hail Creek mine in Queensland, commissioned last year.

Total coking coal output for the second quarter rose 358 pct to 2.10 mln tons from the previous second quarter's 459,000 tons and making a rise of 300 pct half-on-half to 3.30 mln tons".


James

Andy - 21 Jul 2004 11:49 - 46 of 221

Goldfinger,

Any chance of an updating chart in the header please?

TIA,

Andy.

goldfinger - 21 Jul 2004 14:31 - 47 of 221

Will do Andy.

cheers GF.

goldfinger - 21 Jul 2004 14:41 - 48 of 221

Thats some increase James. I think coking coal will remain at price highs as long as oil does. Historicaly there is a price link.

Cant wait to find out how much these deposits are worth that were put into the accounts at negligible value.

cheers GF.

apple - 21 Jul 2004 14:43 - 49 of 221

Thanks DonlanJa.

Nice profit so far, hopefully there is more to come.

goldfinger - 26 Jul 2004 00:04 - 50 of 221

I see a competitor to this one as been tipped by CityWire and A Sunday rag today, ATH Resources on the fact that coal prices are going through the roof. I have no doubt that ATH will be marked up in the morning but it aint a patch on Anglo and Pacific.

If you are interested in ATH check out this one first, beleive me we the holders are on the better one by a mile.

cheers GF.

ps, make that 10 miles.

apple - 27 Jul 2004 13:20 - 51 of 221

Looking good today, I think the news is getting around.

GF, I hope you are right about this being an even better one!

Both look good.

I'm happy to be in APF but why do you say that it is even better?

goldfinger - 28 Jul 2004 02:46 - 52 of 221

Because Anglo sell their coal on the World markets, and the shelf life of AHT isnt that great at the moment. I checked AHT and all other coal miners out before going into Anglo and beleive me Anglo stood way above the rest.

cheers GF.

apple - 28 Jul 2004 10:29 - 53 of 221


GF, having read the risk factors in the ATH Prospectus fron seymourpierce.com I tend to agree.

What do you mean by "shelf life of AHT"?

goldfinger - 28 Jul 2004 14:58 - 54 of 221

Years of reserves left with current mines operating. Of course if they open new mines that will increase.

cheers GF.

apple - 28 Jul 2004 16:15 - 55 of 221

Thanks

goldfinger - 28 Jul 2004 23:18 - 56 of 221

Nice rise today and back on form after a few days where buys where greater than sells but it still went down, never mind this as been happening across the whole board.

cheers GF.
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