Anglo Pacific Group PLC - Preliminary Results 2010

PRELIMINARY RESULTS FOR THE YEAR ENDED DECEMBER 31, 2010


LONDON, Feb. 23 /CNW/ -

Record Earnings and Assets

Anglo Pacific Group PLC ("Anglo Pacific Group" or "the Group") (LSE: APF) (TSX: APY), today announces preliminary results demonstrating a substantially expanded royalty portfolio and a further increase in its total assets to record levels. After realising substantial profits from the sale of non-core mining interests and receiving record royalty cash flows, the Board will again be recommending an increased final dividend.

Financial highlights

Royalties

  • Australian coal royalties independent valuation of £177.1 million (2009: £149.9 million)
  • Total value of other royalties £82.6 million (2009: £35.3 million)
  • Royalty income for the year of £30.1 million (2009: £20.3 million)

Assets

  • Total assets increased by 33% to a record £415.6 million (2009: £312.5 million)
  • Total quoted and unquoted strategic interests valued at £128.5 million (2009: £113.5 million)
  • Cash and receivables at the year end of £37.1 million (2009: £19.3 million)

Earnings

  • Profit before tax increased by 154% to £65.8 million (2009: £25.9 million)
  • Earnings per share increased by 173% to 51.99p (2009: 19.07p)
  • Realised profits for the year from non-core mining interests of £41.0 million (2009: £6.4 million)

Dividends

  • Final dividend increased by 9.7% to 5.10p per share (2009: 4.65p)
  • Total dividends for the year increased by 8.4% to 9.05p per share (2009: 8.35p)

Operational highlights

  • Continued diversification of the Group's royalties portfolio
  • Acquisition of two substantial iron ore royalties
  • Market demand for mining finance continued to be strong
  • Initial NI 43-101 and JORC compliant resource announced for the Panorama Coal Project in British Columbia, Canada
  • Increase in value of quoted and unquoted strategic interests
  • The Group's ordinary shares listed on the Toronto Stock Exchange (TSX) from July 9, 2010 under symbol APY

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

"I am pleased to report that, despite volatile equity markets and continuing economic uncertainties, the Group has continued to make good progress with its strategy of developing a leading portfolio of royalties.  During the year we have increased and diversified our portfolio further by acquiring three new royalties and an option to acquire an additional royalty. At the same time we have seen a significant increase in the royalties received from existing assets and have made progress in developing the private Canadian coal assets.

Anglo Pacific Group is now quoted on both the TSX and the LSE and the profile of the Group both in the industry and amongst investors continues to grow.  We look forward to expanding our shareholder base in North America over the coming year.  The Board remains confident it can continue with its strategy of acquiring new royalties to generate cash flows and is therefore pleased to be able to propose a 9.7% increase in the final dividend for shareholders."

A year in review

During the year continuing demand for raw materials from the emerging Asian economies has led to substantially higher commodity prices. The increase in economic activity has resulted in greater demand for key commodites, which produced firmer metallurgical coal, iron ore and uranium prices. This has been beneficial for the Group's royalty and mining interests in these sectors. Furthermore, due to the ongoing efforts to counter sluggish growth rates and an uncertain outlook for Western economies, concerns over inflation and currency stability have persisted during the year.  This led to stronger gold and precious metal markets where the Group has substantial exposure.

These price rises have been further accentuated by a number of natural disasters and production setbacks which have themselves produced buoyant conditions throughout the mining sector. Strong junior quoted mining markets have enabled the Group to dispose of a number of mature equity interests where opportunities for the acquisition of royalties were no longer possible. Together with strong coking coal royalty receipts this has produced record earnings for the Group.

The Group's strategy remains focused on securing new royalties by acquisition and through investment in its mining interests in order to generate strong cash flows and continue to pay dividends to its shareholders.  Anglo Pacific Group remains committed to a progressive dividend policy.

Results and dividends

The Group profit after tax increased by 173% to £56.3 million (2009: £20.6 million)

The Directors recommend a final dividend of 5.10p per share for the year ended December 31, 2010 which, with the interim dividend of 3.95p per share paid on January 12, 2011, will make total dividends for 2010 of 9.05p per share (2009: 8.35p).

Royalties

During 2010 the Group acquired a number of new royalties including two major iron ore royalties and a smaller chrome royalty. In addition, the Group obtained an option to acquire a substantial nickel royalty.  Together with the Group's active management of its mining interests this has produced a further substantial rise in the value of the Group's total assets. The Group now owns a total of fifteen royalty interests of which three are currently in production.

The new royalties announced during the year were:

  • Iron Ore (Australia): On June 30, 2010 the Group completed the purchase of the DFD Rhodes Group 1.5% iron ore royalty, covering three exploration licences in the central Pilbara region of Western Australia, for a sum of A$23 million in cash. The Group is pleased to have acquired such a high quality royalty and anticipates that these iron ore deposits will be mined by BHP Billiton Limited in years to come as part of its planned expansion of iron ore output in the Pilbara region.
  • Iron Ore (Brazil): On December 3, 2010 the Group completed the purchase from Beadell Resources Limited of the 1% gross iron ore revenue royalty rights covering the Anglo American PLC operated Amapá Iron Ore System as well as Beadell Resources Limited's mining concessions and exploration tenements in the Amapá region of northern Brazil for a sum of A$31.25million in cash.  The Amapá project is currently in production.
  • Chromite (Albania): On December 20, 2010 the Group announced that it had completed the acquisition for C$3.1 million from Empire Mining Corporation of a 3% gross revenue royalty on the Bulqiza chromite project in Albania. These funds will enable Empire Mining Corporation to advance project exploration and development with the aim of moving towards production.
  • Nickel (Brazil): In May 2010 the Group agreed, subject to contract and due diligence, to pay to Horizonte Minerals PLC the sum of US$0.5 million in exchange for an option to acquire for US$12.5 million a 1.5% net smelter royalty on all revenue from the Araguaia nickel project in Brazil. Horizonte Minerals PLC acquired this nickel laterite project from Teck Resources Limited of Canada in exchange for a 50% equity stake in Horizonte Minerals PLC. The Group completed the purchase of this option on January 12, 2011.

These acquisitions have broadened and diversified the Group's portfolio of royalties, both by commodity and geographically.

Financial review

Group royalty revenue for the year ended December 31, 2010 was £30.1 million compared to £20.3 million for the previous year.  When this is combined with cash flows from royalty debentures during the year of £0.9 million (2009: £0.3 million) total royalty cash flow per share increased by 50% to 28.65p from 19.10p in 2009.

Realised gains on disposal of mining and exploration interests were £41.0 million (2009: £6.4 million).  These substantial gains were the result of the disposal in active junior mining markets of some of the Group's successful mining investments where the acquisition of royalties was unlikely.  Overall the Group's profit before tax for the year increased by 154% to £65.8 million (2009: £25.9 million) and Group earnings per share for the year increased by 173% to 51.99p (2009: 19.07p).

At December 31, 2010 the Group's Australian coal royalty interests have been independently valued at £177.1 million (2009: £149.9 million).  The Group's royalty instruments following fair value adjustments were valued at £28.1 million at December 31, 2010 (2009: £22.0 million). The change in valuation of the embedded derivatives associated with these royalty instruments of £0.8 million has been debited to Group profits (2009: £0.1 million credited).

The total cost of royalties treated as intangibles has increased to £42.1 million at December 31, 2010 (2009: £5.3 million).  As part of the annual impairment review a directors' valuation of these royalties has been undertaken using a discounted cash flow valuation model which uses forecast commodity prices and management's best estimate of an appropriate discount rate taking into account project-specific risk factors.  At December 31, 2010 the directors' valuation of these assets was £54.2 million (2009: £12.2 million).

  Coal royalties   Royalty
Instruments
  Royalty
Intangibles
  Royalty
Options
  Total

£'000   £'000   £'000   £'000   £'000
2010
 
 
 
 
Number 2   4   6   2   14
Cost 166   12,493   42,130   406   55,195
Valuation 177,130   28,061   54,155   406   259,752


 
 
 
   
2009
 
 
 
   
Number 2   4   2   2   10
Cost 145   12,493   5,326   1,168   19,132
Valuation 149,896   21,979   12,159   1,168   185,202

The Group's quoted and unquoted equity investments, including royalty options, were valued at £128.5 million at December 31, 2010 (2009: £113.5 million).  The private equity interests and royalty options remain accounted for at cost.

The Group's work on the Trefi and Panorama coal projects in British Columbia, Canada continues to be included in the accounts at cost, and the cost of property acquisition, tenure maintenance and deferred exploration totalled £2.0 million at December 31, 2010 (2009: £1.6 million).

At December 31, 2010 the Group had cash of £28.3 million compared to £14.2 million at December 31, 2009, with no borrowings or hedging.  When combined with royalty and trade receivables, total cash and receivables at December 31, 2010 was £37.1 million (2009: £19.3 million).  The Group has limited capital expenditure requirements other than for the acquisition of additional royalties.  Management believe that the Group's current cash resources and future cash flows will be sufficient to cover the cost of general and administrative expenses, income taxes and dividend payments.  The Group remains debt free and its liquid resources are held in a spread of currencies and financial institutions.  The Group's mining interests and royalty revenues are mainly denominated in Australian and Canadian dollars.

The Group's total assets at December 31, 2010 were £415.6 million, a 33% increase from £312.5 million at December 31, 2009.  This does not include any increase in value over cost that may be attributable to the Group's royalty intangibles or the Panorama and Trefi coal projects.

These balance sheet valuations together with the Group's record earnings represent an outstanding outcome for the year.  Once again the Group's management of its balance sheet and its conservative approach to the evaluation of mining projects have produced strong results.

Equity interests

During the year the Group continued its strategy of taking equity stakes in strategic opportunities with the prospect of potential royalties.  This has allowed the Group to develop a detailed understanding of project risks and form working relationships with management.  Where royalties cease to be a financing option the Group will seek to dispose of the particular equity investment in a manner that is profitable to the Group, while minimising disruption to the investee company.  This approach has proven extremely successful over the last five years with the Group realising significant gains for shareholders while generating numerous royalty opportunities.  This remains an integral part of the Group's strategy.

Overseas listing

On July 9, 2010 the Group's ordinary shares were listed and posted for trading on the TSX under the symbol APY. In the last few months the Board has been exploring ways of expanding the Canadian share register and increasing its reach within the North American investing community. The TSX listing increases the profile of the Group in a market where royalty financing is well established and has a high profile with investors.

Board developments

On October 6, 2010 Mr John Theobald was appointed Chief Executive Officer of the Group replacing Mr Brian Wides who, on the same day, became Director of International Business Development.

Annual General Meeting

Investors are invited to attend the Annual General Meeting, which will be held at the Geological Society, Burlington House, Piccadilly, W1J 0BG, United Kingdom on Wednesday April 13, 2011 at 11.00 am.  As in previous years the Board will present a review of the results for the past year and comment on current business activities.

Scrip dividend alternative

Subject to approval at the Annual General Meeting, the Board proposes to pay the final dividend on July 6, 2011 to shareholders on the Group's share register at the close of business on May 6, 2011.  The shares will be quoted ex dividend on the London Stock Exchange (LSE) and the TSX on May 4, 2011.  As with previous dividends, depending on the share price at the time the Board will consider whether shareholders will be given the opportunity to elect to receive new shares instead of cash. Should this alternative be offered the price will be calculated on the basis of the average mid-market closing price of the ordinary shares for the five business days commencing May 4, 2011.  The last date for elections under such an alternative, if offered, will be June 17, 2011.

Outlook

Pricing mechanisms for most bulk commodities, including metallurgical coal, are moving from fixed annual contracts to more variable, shorter-term pricing arrangements.  During the year spot coking coal prices were approximately US$200 per tonne.

Due to the floods in Queensland in January 2011 output at both the Kestrel and Crinum mines was disrupted and spot coking coal prices moved above US$300 per tonne.  Neither mine was flooded but infrastructure road and rail links to and from the mines were affected.  In the short term therefore disruption of production will have an impact on Group cash flows although, when full production resumes, the Group expects to benefit from the higher prices achieved for both coking and thermal coal. Some production still continues from the private ground at Crinum.

With recent strong mining equity markets, the raising of mining finance from conventional lenders or equity issues has become more accessible for junior mining companies.  Despite this the Group continues to identify royalty opportunities.

With its cash resources, strong royalty revenues and pro-active management, the Group will continue to make the acquisition of new royalties its principal strategic focus.

Finally I would like to thank my Board colleagues and staff for their application and hard work in achieving these record results.

P.M. Boycott
Chairman

February 23, 2011

Cautionary statement on forward-looking statements and related information

Certain information contained in this press release, including any information as to future financial or operating performance and other statements that express management's expectation or estimates of future performance, constitute "forward looking statements".  The words "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", or negative versions thereof and other similar expressions identify forward-looking statements.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.  Further, forward-looking statements are not guarantees of future performance and involve risks and uncertainties which could cause actual results to differ materially from those anticipated, estimated or intended in the forward-looking statements.  The material assumptions and risks relevant to the forward-looking statements in this press release include, but are not limited to: stability of the global economy; stability of local government and legislative background; continuing of ongoing operations of the properties underlying the Group's portfolio of royalties in a manner consistent with past practice; accuracy of public statements and disclosures (including feasibility studies and estimates of reserve, resource, production, grades, mine life, and cash cost) made by the owners or operators of such underlying properties; no material adverse change in the price of the commodities underlying the Group's portfolio of royalties and investments; no material adverse change in foreign exchange exposure; no adverse development in respect of any significant property in which the Group holds a royalty or other interest, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels; and maintenance of mining title.  If any such risks actually occur, they could materially adversely affect the Group's business, financial condition or results of operations.  For additional information with respect to such risks and uncertainties, please refer to the "Risk Factors" section of our most recent Annual Information Form available on www.sedar.com and the Group's website www.anglopacificgroup.com.  Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.  The forward-looking statements contained in this press release are made as of the date of this press release only and the Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Anglo Pacific Group PLC

Preliminary Results 2010

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2010


 
 
 
 
2010
£'000
 
 
2009
£'000
         
Royalty income   30,133   20,334
Gain on sale of mining and exploration interests   41,025   6,367
Finance income   1,170   796
Other operating income   33   13
Total income   72,361   27,510
         
Share of profit of associates   265   515
Other (losses)/gains - net   (3,416)   614
Amortisation   (85)   -
Administrative expenses   (3,276)   (2,756)
Profit before tax   65,849   25,883
         
Income tax expense   (9,566)   (5,252)
Profit attributable to equity holders   56,283   20,631
         
Total and continuing earnings per share        
Basic earnings per share   51.99p   19.07p
         
Diluted earnings per share   51.99p   19.07p

Anglo Pacific Group PLC

Preliminary Results 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2010


 
 
 
 
2010
£'000
 
 
2009
£'000
         
Profit for the year   56,283   20,631
Other comprehensive income:        
Net gain on revaluation to coal royalties   355   42,916
Net gain on revaluation of available for sale investments   48,227   63,737
Net exchange gain on translation of foreign operations   28,874   15,585
Share of other comprehensive income of associates   (40)   (65)
Deferred tax   (14,652)   (21,770)
Net income recognised directly in equity   119,047   121,034
         
Transferred (from)/to income statement disposal of available for sale investments   (26,651)   322
Total transferred from equity   (26,651)   322
         
Total comprehensive income for the year   92,396   121,356

Anglo Pacific Group PLC

Preliminary Results 2010

CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2010


 
 
 
 
2010
£'000
 
 
2009
£'000
 
 
           
Non-current assets          
Property plant and equipment   2,144   1,742  
Coal royalties   177,130   149,896  
Royalty instruments   28,061   21,979  
Intangibles   42,741   6,095  
Mining and exploration interests   128,479   109,695  
Investments in associates   -   3,771  
    378,555   293,178  
           
Current assets          
Trade and other receivables   8,813   5,082  
Cash at bank   28,258   14,195  
    37,071   19,277  
           
Total assets   415,626   312,455  
           
           
Non-current liabilities          
Deferred tax   63,838   47,883  
    63,838   47,883  
           
Current liabilities          
Taxation   5,351   4,146  
Trade and other payables   549   390  
    5,900   4,536  
           
Total liabilities   69,738   52,419  
           
Capital and reserves attributable to shareholders          
Share capital   2,175   2,149  
Share premium   24,207   20,718  
Coal royalty revaluation reserve   88,883   88,582  
Investment revaluation reserve   51,780   36,850  
Share based payment reserve   65   78  
Foreign currency translation reserve   39,686   18,804  
Special reserve   632   632  
Investment in own shares   (1,295)   -  
Retained earnings   139,755   92,223  
    345,888   260,036  
           
Total equity and liabilities   415,626   312,455  

Anglo Pacific Group PLC

Preliminary Results 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE TWO YEARS ENDED DECEMBER 31, 2010


    Share
capital
Share
premium
Coal
royalty
revaluation
reserve
Investment
revaluation
reserve
Share based
payment
reserve
Foreign
currency
translation
reserve
Special
reserve
Investment in
Own Shares
Retained
earnings
Total
equity
    £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
                       
Balance at January 1, 2009   2,123 18,604 58,430 (22,149) 78 7,230 632 - 80,894 145,842
Profit for the year   - - - - - - - - 20,631 20,631
Other comprehensive income:                      
Coal Royalties:                      
     Royalties valuation movement taken to equity   - - 42,916 - - 13,633 - - - 56,549
     Deferred tax on valuation   - - (12,764) - - (4,007) - - - (16,771)
Available-for-sale investments:                      
     Valuation movement taken to equity   - - - 63,791 - 8 - - - 63,799
     Deferred tax on valuation   - - - (5,060) - 61 - - - (4,999)
     Transferred to income statement on disposal   - - - 322 - - - - - 322
     Reclassification as investment in associate   - - - (54) - - - - - (54)
Share of comprehensive income of associates   - - - - - (65) - - - (65)
Foreign currency translation   - - - - - 1,944 - - - 1,944
Other comprehensive income   - - 30,152 58,999 - 11,574 - - - 100,725
Total comprehensive income   - - 30,152 58,999 - 11,574 - - 20,631 121,356
Dividends paid   - - - - - - - - (7,312) (7,312)
Scrip Dividend   24 1,966 - - - - - - (1,990) -
Issue of share capital under share-based payment   2 148 - - - - - - - 150
Transactions with owners   26 2,114 - - - - - - (9,302) (7,162)
Balance at December 31, 2009   2,149 20,718 88,582 36,850 78 18,804 632 - 92,223 260,036

    Share
capital
Share
premium
Coal
royalty
revaluation
reserve
Investment
revaluation
reserve
Share based
payment
reserve
Foreign
currency
translation
reserve
Special
reserve
Investment in
Own Shares
Retained
earnings
Total
equity
    £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
                       
Balance at January 1, 2010   2,149 20,718 88,582 36,850 78 18,804 632 - 92,223 260,036
Profit for the period   - - - - - - - - 56,283 56,283
Other comprehensive income:                      
Coal Royalties:                      
     Royalties valuation movement taken to equity   - - 355 - - 26,879 - - - 27,234
     Deferred tax on valuation   - - (54) - - (7,928) - - - (7,982)
Available-for-sale investments:                      
     Valuation movement taken to equity   - - - 48,227 - 524 - - - 48,751
     Deferred tax on valuation   - - - (6,646) - (24) - - - (6,670)
     Transferred to income statement on disposal   - - - (26,651) - - - - - (26,651)
     Reclassification as investment in associate   - - - - - - - - - -
Share of comprehensive income of associates   - - - - - (40) - - - (40)
Foreign currency translation   - - - - - 1,471 - - - 1,471
Other comprehensive income   - - 301 14,930 - 20,882 - - - 36,113
Total comprehensive income   - - 301 14,930 - 20,882 - - 56,283 92,396
Dividends paid   - - - - - - - - (6,725) (6,725)
Scrip Dividend   14 2,025 - - - - - - (2,039) -
Issue of share capital under share-based payment   12 1,464 - - (13) - - (1,295) 13 181
Transactions with owners   26 3,489 - - (13) - - (1,295) (8,751) (6,544)
Balance at December 31, 2010   2,175 24,207 88,883 51,780 65 39,686 632 (1,295) 139,755 345,888

Anglo Pacific Group PLC

Preliminary Results 2010

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2010


 
 
 
 
2010
£'000
 
 
2009
£'000
         
Cash flows from operating activities        
Profit before taxation   65,849   25,883
Adjustments for:        
Interest received   (1,170)   (796)
Unrealised foreign currency loss   980   1,562
Depreciation of property, plant and equipment   19   12
Amortisation of Intangibles - royalties   85   -
Gain on disposal of mining and exploration interests   (41,025)   (6,367)
Loss/(Gain) on revaluation of assets held at fair value through profit or loss   810   (130)
Royalty instrument provision   4,194   -
Loss on writedown of assets   -   410
Share of associates profit   (265)   (515)
Gain on derecognition of associate   (539)   -
Share based payments   185   150
    29,123   20,209
(Increase)/Decrease in trade and other receivables excluding amounts due from subsidiary companies   (3,731)   6,493
Increase/(Decrease) in trade and other payables   159   (459)
Receipts from royalty instruments   881   -
Cash generated from operations   26,432   26,243
Income taxes paid   (7,058)   (4,727)
Net cash flows from operating activities   19,374   21,516
         
Cash flows from investing activities        
Proceeds on disposal of mining and exploration interests   85,664   25,391
Purchases of mining and exploration interests   (47,665)   (29,195)
Purchases of royalty interests   (36,804)   (12,245)
Purchases of property, plant and equipment   (329)   (80)
Exploration and evaluation expenditure   (19)   (513)
Interest received   525   796
Acquisition of associates   -   (1,331)
Net cash flows from investing activities   1,372   (17,177)
         
Cash flows from financing activities        
Dividends paid   (6,683)   (7,280)
Net cash flows from financing activities   (6,683)   (7,280)
         
Net increase/(decrease) in cash and cash equivalents   14,063   (2,941)
         
Cash and cash equivalents at beginning of period   14,195   17,136
         
Cash and cash equivalents at end of period   28,258   14,195

Anglo Pacific Group PLC

Preliminary Results 2010

NOTES


  1. Earnings per ordinary share is calculated on the Group's profit after tax of £56,283,000 (2009: £20,631,000) and the weighted average number of shares in issue during the year of 108,257,718 (2009:  108,189,719).

    The diluted earnings per ordinary share is calculated on the Group's profit after tax of £56,283,000 (2009: £20,631,000) and 108,266,666 shares (2009: 108,209,561).  The dilutive effect is due to options outstanding under the Company Share Option Plan at the year end.

  2. The Group's management considers royalty cash flow per share to be a useful measure of the performance of the Group's assets.  Changes in equity market conditions lead to annual fluctuations in gains on sale of mining and exploration interests, and while these gains can be significantly value accretive for shareholders, the Group's management focus remains on increasing the Group's cash flows from royalties.  In addition, the classification of the Group's royalty instruments as repayable debentures results in cash flows which are classified as repayments until the principal and interest are repaid.  As a result, the combination of royalty income and cash received from the debenture repayments during the year form the numerator for this metric.  Both of these components are calculated before tax.

    Royalty cash flow per share is calculated on the Group's royalty cash flow of £31,014,000 (2009: £20,669,000) and the weighted average number of shares in issue during the year of 108,257,718 (2009:  108,189,719).

    The diluted royalty cash flow per share is calculated on the Group's royalty cash flow of £31,014,000 (2009: £20,669,000) and 108,266,666 shares (2009: 108,209,561).  The dilutive effect is due to options outstanding under the Company Share Option Plan at the year end.

Status of financial information

This preliminary announcement does not constitute the Group's full financial statements for 2010.  This report is based on accounts which are in the process of being audited and will be approved by the Board and subsequently filed with the Registrar of Companies.  Accordingly, the financial information for 2010 is unaudited and does not have the status of statutory accounts within the meaning of Section 435 of the Companies Act 2006.

Financial information for the year to December 31, 2009 has been extracted from the full financial statements prepared under the historical cost convention, as modified by the revaluation of coal royalties, available-for-sale financial assets, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, as filed with the Registrar of Companies.  The Auditors' report on the full financial statements for the year to December 31, 2009 was unqualified and did not contain statements under section 237(2) of the United Kingdom Companies Act 1985 (regarding adequacy of accounting records and returns), or under 237(3) (regarding provision of necessary information and explanations).

SOURCE Anglo Pacific Group PLC

For further information:

For further information and enquiries:

Anglo Pacific Group PLC 
Peter Boycott, Chairman
John Theobald, Chief Executive Officer
Matthew Tack, Finance Director
  +44 (0) 20 7318 6360


Liberum Capital 
Chris Bowman
Chris Kololian
  +44 (0) 20 3100 2000

Scott Harris 
Stephen Scott
James O'Shaughnessy
  +44 (0) 20 7653 0030

Website:    www.anglopacificgroup.com

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