At this stage Anglo Pacific are not altering their dividend policy and will continue to pay an interim dividend of 1.75p per share on a quarterly basis, which sets a base level of 7p on an annualised basis. They will wait until Q1 2021 to determine the level of the final dividend taking into account market conditions at that time and the full year outturn for 2020.
Other financial highlights include:
43% decrease in portfolio contribution in H1 2020 to £19.1m (H1 2019: £33.3m) - primarily due to weaker coking coal prices and an associated reduction in the applicable royalty rate at Kestrel, together with the one-off charge of £1.0m (US$1.2m) at Maracás Menchen upon the termination of the Glencore offtake agreement
Basic loss per share of 6.22p (H1 2019: earnings of 16.76p)
Adjusted earnings per share of 5.85p (H1 2019: 12.13p)
The mines underlying the Group's major producing royalties, Kestrel, Narrabri, Mantos Blanco and Maracás Menchen, were fully operational during the period and remain largely unimpacted by COVID-19
During Q3 2020 they expect to see an end to COVID-19 shutdowns as Cigar Lake (McClean Lake mill) restarts, with EVBC having restarted already in Q2 2020
Volumes from Kestrel from within the Group's private royalty land in-line with that of H1 2019
Record production levels at Maracás Menchen during Q1 2020 following the successful completion of the expansion plan and triggering the final payment of US$1.5m (£1.2m) in deferred consideration
Termination of the Glencore offtake arrangement in April 2020 at Maracás Menchen should see lower deductions applied to the Group's royalty going forward
Net debt of £39.8m at 30 June 2020 (31 December 2019: £28.8) with access to ~US$55m, including the $30m accordion facility
4% decline in net assets to £217m (£226m at the beginning of the year) reflecting lower coal price forecasts
£5.7m additional investment in LIORC made during Q1 2020
Entered agreement enabling the Group to participate in Tranche II of the Incoa financing agreement up to US$20m
