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Preliminary Results 2012

Preliminary Results 2012 
LONDON, UNITED KINGDOM -- (Marketwire) -- 02/13/13 -- Anglo Pacific
Group PLC ('Anglo Pacific', the 'Group') (LSE:APF)(TSX:APY) is
pleased to announce preliminary results for the year ended December
31, 2012. This release together with the Chairman's Review and
accompanying financial statements are available on both the Group's
website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com.  


 
--  Final dividend increased by 4.5% to 5.75p per share (2011: 5.50p). Total
    dividends for the year increased by 4.6% to 10.2p per share (2011:
    9.75p) 
    
--  Royalty entitlements for the year of GBP 15.2 million (2011: GBP 35.0
    million (restated)) 
    
--  Operating profit of GBP 9.3 million (2011: GBP 31.8 million (restated)) 
    
--  Queensland Government raises royalty rates by 25% to 12.5% above A$100
    and 50% to 15% above A$150 sales price per tonne, which will directly
    benefit future sales from the Kestrel mine made on or after October 1,
    2012 
    
--  Total assets of GBP 353 million at December 31, 2012 (2011: GBP 371
    million (restated)) 
    
--  Continued growth of the Group's royalty portfolio during the year with
    the acquisition of two new royalty interests in iron ore and uranium and
    the recently announced gold royalty financing agreement with Hummingbird
    Resources Plc 
    
--  Strong balance sheet at December 31, 2012 with a cash position of GBP
    24.0 million (2011: GBP 32.2 million) 
    
--  El Valle-Boinas/Carles, gold and copper mine in Spain, building up to
    full production in 2013 
    
--  Production at Kestrel expected to recover in 2013 

 
Brian Wides, Acting Chairman of Anglo Pacific, commented: 
"Despite production problems and delays at Kestrel during 2012, the
Group achieved a solid performance over the year when the world
economy stalled and commodity prices were weak. The increase in the
independent valuation of our coking coal royalties illustrates that
the rise in the Queensland coal royalty rates announced in September
2012 has more than offset any impact of weaker commodity prices.  
"During the year, we acquired two new royalty interests and announced
a gold royalty financing agreement with Hummingbird Resources Plc in
the final quarter. The Group now owns a total 
of 22 royalty
interests. 
"We have been particularly encouraged by the progress across a number
of the Group's development royalties, which we believe will bring
forward future royalty cash flows. The Group's balance sheet remains
ungeared with a strong and resilient asset backing. 
"The Board is therefore pleased to propose a 4.5% increase in the
final dividend and remains committed to offering long term returns to
our shareholders." 
Results Presentation and Audio Webcast: 
An analyst presentation on the Group's preliminary results will take
place at 9.30am February 13, 2013, at Pelham Bell Pottinger, 330 High
Holborn, London, WC1V 7QD. In addition, there will be an audio
webcast available on the Group's website, at
www.anglopacificgroup.com, with a replay available shortly
afterwards. 
Notes to editors: 
Anglo Pacific Group PLC is a global natural resources royalties
company. Anglo Pacific's strategy is to expand its mineral royalty
interests in long-life mining assets. Anglo Pacific achieves this
through both direct acquisition of existing royalties and the
creation of new royalty agreements. It is a continuing policy of
Anglo Pacific to pay a substantial proportion of these royalties to
shareholders as dividends. 
Royalties explained: 
A royalty is an entitlement to an agreed percentage of a project's
sales revenue, without any liability for production costs or capital
expenditure. This is the key benefit of owning a royalty. 
In the mining industry, most royalties endure for the life of the
resource and are paid on a regular basis. Historically there have
been different terms for royalties including Gross Revenue or Net
Smelter Return ("GRR" or "NSR") royalties, which are both based on
the sales value of the actual mineral. Our model is based around GRR
or NSR royalties as we believe they provide the best and clearest
returns. 
Acquiring existing royalties  
In this case we buy existing royalty agreements, such as those owned
by exploration companies who may have retained a residual royalty in
a mine they helped discover. Royalty companies rarely sell their
royalties, once acquired. 
Creating new royalties  
Our new royalty agreements tend to come from providing financing for
mining operations, usually to help progress a mine into production. 
Chairman's Review 
2012 was an exceptionally difficult year for the financial world in
general and the mining industry in particular. China was seen to be
growing at a slower pace than anticipated and Europe's continuing
debt crisis appeared overwhelming. The uncertainty over the US
election and regime change in China together with the fiscal cliff
stalemate in the USA further reduced international business
confidence. These factors severely impacted commodity prices
throughout the year. In particular steel oversupply and destocking in
China had a severe effect on iron ore and coking coal prices, the
latter falling by some 50%. 
Royalties from the Kestrel coking coal mine in Australia were also
impacted early in the year by a number of special factors including
disruption of production due to a longwall changeover as well as
adverse weather conditions. In the last quarter, production was also
affected by commissioning delays of the new coal processing plant. 
Elsewhere, the Amapa iron ore mine in Brazil produced a steady flow
of royalties albeit at lower prices whilst the Group received its
first full year of royalties from the El Valle-Boinas/Carles gold
mine in Spain at buoyant gold prices. 
During the year there was a further decline in the junior mining
sector due to reduced commodity prices, the scarcity of financing for
new mining projects and the impact of severe cost and capital
expenditure inflation across the mining industry. This produced
opportunities for the acquisition of new royalties, enabling the
Group to further diversify its royalty portfolio with three new
projects in gold, uranium and iron ore. 
Despite weaker mining markets the Group continued to realise gains
from its strategic mining interests. The Group's balance sheet
remained ungeared with a resilient asset backing. The Group offers a
stable hedge against weaker currencies as well as against inflation
due to its royalty income being directly linked to the sales prices
of the commodities it finances. 
The Group's strategy remains focused on acquiring new royalties by
providing mining finance and through its associated strategic mining
investments. The Group is fully committed to generating consistent
cash flows and dividends for shareholders.  
Outlook 
The outlook for the world economy appears to have improved since the
year end with an increase in Chinese output and infrastructure
spending and continuing signs of recovery in the US economy. Japan,
India and South Korea appear similarly committed to a growth
strategy. This confidence has produced better mining markets and a
more optimistic outlook for metal prices and in particular iron ore.  
As Rio Tinto continue to progress with the Kestrel expansion project,
we remain confident of a recovery in production from Kestrel in 2013.
This together with, the substantial increase in royalty rates
announced by the Queensland Government in September last year from
10% to 12.5% above A$100 an
d 10% to 15% for coal prices realised
above A$150 dollars per tonne should impact positively on royalty
receipts from Kestrel in 2013. 
The progress made during the year at a number of the Group's
development royalties has been positive and should bring forward
future royalty cash flows. The Group's revenue is directly linked to
the top line of its royalty mining operations, whilst avoiding
exposure to the current inflationary escalation in mining costs. The
Group itself has no operating mines of its own.  
The Group will continue to make the acquisition of new royalties its
principal strategic focus, as it maintains its belief that the long
term urbanisation of the developing world should still drive demand
for those commodities covered by its royalties. 
Royalty review 
Producing royalties 
Kestrel Coking Coal, Queensland, Australia  
In Australia, coking coal receipts from the Kestrel mine operated by
Rio Tinto Limited were GBP 10.9 million (2011: GBP 26.1 million
(restated)) on approximately 2.7million tonnes of hard coking and
thermal coal (2011: 3.8 million tonnes). Royalty income was impacted
in the first half of 2012 by a longwall changeover and lower
productivity during the ramp up and in the second half of 2012 by a
major coal preparation plant shutdown as part of Kestrel's mine
expansion project. Benchmark hard coking coal quarterly contract
prices fell from $235 fob in Q1 2012 to $170 fob in Q4 2012. 
During the second quarter of 2012 the Group was informed by Rio Tinto
that an audit by the Queensland Office of State Revenue had
identified a misallocation of royalty revenue relating to areas
reserved by the State of Queensland for roads. This resulted in an
overpayment of royalties to the Group of GBP 4.6 million (A$7.1
million) for the period September 2006 to December 2011, together
with an associated interest charge of GBP 1.4 million (A$2.2
million). The misallocation of royalty revenues and associated
interest charge has been reflected in the restated balance sheet at
December 31, 2011, the impact of which is described in note 1.  
In the 2012-2013 Queensland State Budget, the Queensland Government
announced an increase in the royalty rates for coal sold, disposed of
or used on or after October 1, 2012, which will also apply to the
Group's Kestrel royalty. The effective royalty rate for a particular
period depends on the average price per tonne of coal for the return
period and is calculated on a tiered system. Where the average price
per tonne is over A$100 and up to and including A$150, the royalty
rate has risen from 10% to 12.5%, with an additional band of 15%
where the average price is over A$150 per tonne. The first A$100 will
continue to attract a royalty rate of 7%. 
2013 will see the benefit of the increased royalty rates being
applied to Kestrel sales. 
Amapa Iron Ore, Brazil (1% GRR)  
In Brazil, royalty receipts from the Anglo American Plc operated
Amapa Iron Ore System ("Amapa") were GBP 2.2 million (2011: GBP 2.7
million) from circa 5.2 million tonnes of pellet and sinter feed
sales. On January 4, 2013 Zamin Ferrous announced they had signed a
binding agreement for the purchase of Amapa from Anglo American Plc
(70%) and Cliffs Natural Resources Inc. (30%).  
El Valle-Boinas/Carles Gold and Copper, Spain (2.5% NSR rising to 3%
above $1,100 per ounce)  
In Spain, receipts related to the royalty on the El
Valle-Boinas/Carles ("EVBC") mine operated by Orvana Minerals Corp
("Orvana") were GBP 1.9 million (2011: GBP 0.3 million). The mine
continues to build up to full production with a new 420 metre deep
shaft commissioned during 2012. On January 4, 2013 Orvana announced a
fiscal 2013 (year-end September, 2013) projected production for EVBC
of 63,000 ounces of gold, 200,000 ounces of silver and 6 million
pounds of copper.  
Development royalties 
The Group has a significant portfolio of pre-production royalties.
During the year there were several positive announcements which
encourage the Directors to believe that there is considerable upside
to be unlocked.  
Four Mile Uranium, South Australia (1% NSR)  
On October 24, 2012, Alliance Resources Ltd announced the Four Mile
Project start-up with in-situ recovery (ISR) mining operations
commencing at Four Mile East in Q2 2013 and at Four Mile West in Q4
2013. Production guidance for 2013 and Q1 2014 is 2.128Mlb of uranium
oxide and sales of 1.306Mlb with first sales expected in Q3 2013. For
additional information please see www.allianceresources.com.au. 
Ring of Fire Chromite, Canada (1% NSR)  
On May 20, 2012, Cliffs Natural Resources Inc. announced that the
Ring of Fire project would be advanced to the feasibility stage. The
project is expected to produce up to 2.3 million tonnes of chromite
concentrate per annum and is scheduled to start production in 2016.
Additional information can be found at
www.cliffsnaturalresources.com. 
Jogjakarta Iron Project, Indonesia (Variable NSR)  
Indo Mines Ltd ("Indo") announced on October 25, 2012 that the
Indonesian Ministry of Energy and Mineral Resources issued a decree
confirming approval of the application for the commencement of the
construction phase of the Jogjakarta Iron Project within the Contract
of Works area. Indo had previously announced the AMDAL Environmental
Impact Assessment approval on February 1, 2012. The project will
follow a staged implementation to achieve 2 million tonnes of iron
concentrate production per annum before moving downstream into the
manufacture of pig iron. Anglo Pacific holds a 2% NSR royalty which
changes to a 1% NSR royalty once the principal is paid and the pig
iron price is greater than $700 per tonne or remains at 2% if the pig
iron price is less than $700 per tonne. For further information
please see www.indomines.com.au. 
Isua Iron Ore, Greenland (1% NSR)  
On January 24, 2013, London Mining Plc announced that they had
completed the Department of Minerals and Petroleum's permitting
process requirements for the proposed 15 million tonnes per year Isua
iron ore project in Greenland. London Mining Plc also announced they
expected all required approvals to be completed in 2013. For further
information on the project please see www.londonmining.co.uk. 
Tucano Iron Ore, Brazil (1% GRR)  
On January 24, 2013, Beadell Resources Ltd ("Beadell") announced that
the magnetic separation plant is due to produce first concentrate in
April 2013. Beadell previously announced on August 24, 2012 an "Iron
Ore Concentrate Off-take Agreement" with Anglo Ferrous Amapa
Mineracao Ltda with an indicated production level of 500,000 tonnes
per annum of approx. 65% Fe concentrate. For further information
please see www.beadellresources.com.au. 
Araguaia Nickel, Brazil (Variable NSR)  
Horizonte Minerals Plc ("Horizonte") announced on the August 22, 2012
that its NI 43-101 compliant Preliminary Economic Assessment ("PEA")
showed strong economics based on a low strip ratio, excellent
infrastructure, large mineral resource with two viable alternatives
for processing. The PEA recommended moving to pre-feasibility which
Horizonte expected to begin in Q4 2012. Anglo Pacific holds an option
on a sliding scale 1.1% to 1.5% NSR royalty to be exercised for
US$12.5million by the earlier of 120 days from the completion of a
pre-feasibility study or January 10, 2017. Further information can be
found at www.horizontemin
erals.com and www.sedar.com. 
In addition, the Group completed the previously announced Mount Ida
royalty agreement and acquired an option on a uranium project in the
United States.  
The Group announced in December the signing of a royalty financing
agreement with Hummingbird Resources Plc to acquire a 2% NSR royalty
on its Dugbe 1 gold project in Liberia. 
Together with other development royalties, these latest acquisitions
further strengthen the Group's royalty portfolio and should deliver
future value and growth. 
Review of results 
Income statement 


 
----------------------------------------------
                                      Restated
Royalty entitlements GBP '000    2012     2011
----------------------------------------------
                                              
Kestrel                        10,921   26,083
Crinum                            117    5,902
Amapa                           2,229    2,694
----------------------------------------------
Royalty income                 13,267   34,679
----------------------------------------------
El Valle-Boinas/Carles (i)      1,890      275
----------------------------------------------
Royalty entitlements           15,157   34,954
----------------------------------------------
                                              
(i) El Valle-Boinas/Carles is a debenture instrument whereby initial royalty
receipts are repayments of principal and therefore do not appear as royalty 
income in the income statement.                                             

 
Royalty income was GBP 13.3 million for the year ended December 31,
2012, down from GBP 34.7 million in 2011. The 2011 numbers have been
restated as a result of the previously announced misallocation of
royalty revenue at the Group's Kestrel royalty which came to light
after an audit by the Queensland Office of State Revenue. This
restatement is discussed further in note one, but resulted in a
reduction in the reported Kestrel income in 2011 of GBP 0.4 million. 
As discussed in the royalty review, there were several adverse
production occurrences at Kestrel in the year, resulting in unusually
low levels of income. Overall income has also been adversely impacted
by continued downward pressure on the coking coal price throughout
2012. Production at Crinum had largely left the Group's private
royalty ground in the first half of 2011, and no future royalty
receipts are now expected. El Valle-Boinas/Carles continued its ramp
up to full production in the year, though as this royalty was
structured as a debenture originally, royalty receipts are treated as
repayments of principal, until such time as the outstanding balance
has been repaid. From 2013 onwards, these royalty receipts will be
included in the income statement. 
Operating expenses increased by GBP 0.2 million in the year, largely
as a result of an increase in professional fees associated with
managing our existing royalty portfolio and exploring new royalty
opportunities. This increase in professional fees was offset somewhat
by the decision not to award the Executive Directors an annual bonus
this year. 
A reduction in finance income of GBP 0.8 million in the year, largely
as a result of the cessation of interest bearing royalty instruments,
along with no change in the amortisation of the Amapa royalty,
resulted in an operating profit of GBP 9.3 million in the year,
compared to GBP 31.8 million in 2011 (restated). 
In spite of very difficult equity markets, the Group realised gains
of GBP 7.3 million (2011: GBP 20.3 million) from its mining and
exploration interests in the year. The Group continued its strategy
of taking equity stakes in strategic opportunities with the prospect
of potential royalties. 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. The reduction in gains
compared to those achieved in 2011 largely reflects the difficulties
in the junior mining equity markets over the last year. 
Other losses of GBP 4.2 million reflect write downs in the mining and
exploration interests of GBP 3.7 million which the Directors consider
to be impaired. Further information can be found in note 3. The
losses of GBP 4.3 million in 2011 largely represented provisions in
respect to amounts receivable from royalty instruments, though GBP
0.8 million of this was recovered in 2011. Other income represents
returns from the Groups mining and exploration interests.  
Overall this resulted in profit before tax for the year of GBP 14.2
million compared to GBP 48.5 million (restated) reported in 2011.
Allowing for a tax charge of GBP 4.2 million (2011: GBP 12.2 million
(restated)), profit after tax was GBP 10.0 million (2011: GBP 36.3
million (restated)) which translates to an earnings per share of
9.27p (2011: 33.51p (restated)). 
Balance sheet 


 
-----------------------------------------------------------------
                                                         Restated
Asset summary GBP '000                             2012      2011
-----------------------------------------------------------------
                                                                 
Coal royalties (Kestrel and Crinum)(i)          170,995   165,967
Royalty instruments(ii)                          24,032    24,736
Intangibles - royalties(iii)                     70,477    68,334
-----------------------------------------------------------------
Total royalty assets                            265,504   259,037
-----------------------------------------------------------------
Mining and exploration interests                 55,793    64,551
Cash                                             24,036    32,197
Other intangibles (deferred exploration costs)      931       804
Other                                             7,204    14,450
-----------------------------------------------------------------
Total assets                                    353,468   371,039
-----------------------------------------------------------------
                                                                 
(i) Coal royalties relate to the Group's entitlement to royalties from the  
Kestrel and Crinum mines. As the Group owns the physical right to the       
minerals in its coal royalties, its royalty entitlement is treated as       
property, plant and equipment, as such it is carried at fair value as       
calculated by an independent consultant.                                    
(ii) Royalty instruments represent the Group's royalties which are          
structured as debentures. As these are financial assets they are carried at 
their fair value on the balance sheet.                                      
(iii) Intangibles - royalties are carried at amortised cost. Though the     
expected future cash flows from these royalties may enhance significantly   
post investment, accounting rules prevent th
e Group from reflecting this on 
the balance sheet.                                                          

 
The Group's royalty assets maintained their value in spite of a
difficult year for the mining and commodity sector. The Kestrel
royalty increased in value by GBP 5.0 million. This was largely as a
result of the increase to the Queensland royalty rate announced in
September. The decrease in production has also had a positive impact,
as resource depletion was lower in 2012, which should result in
future sales at both higher prices and higher royalty rates.  
The Directors, as part of the annual impairment review, conducted a
discounted cash flow valuation of the Group's other royalties. As
royalty investments are usually made at an early stage of a project,
changes in the projects' development between the point of investing
and the commencement of production can significantly impact on the
expected cash flows the Group could receive. If forecast commodity
prices and production schedules used by the Directors transpire, the
Group could achieve additional cash flows of GBP 60.6 million (2011:
GBP 52.2 million), on a discounted basis, above the initial
investment. This amount is not reflected on the balance sheet. 
The Group ended the year in a strong position, with GBP 24.0 million
in cash along with further potential liquidity in its mining and
exploration portfolio. 
Allowing for the provision for deferred tax of GBP 48.5 million,
mainly relating to the valuation of royalties and debentures, the
Group had net assets for the year ended 31 December 2012 of GBP 301.0
million. This is down slightly on GBP 306.2 million at the end of
2011 (restated).  
Finally, I would like to thank my Board colleagues and staff for
their application and hard work in what has been a challenging year
for the Group.  
B.M. Wides, Acting Chairman  
February 13, 2013 
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 2012             
                                                               
              CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 
                              DECEMBER 31, 2012                
                                                                            
                                                                   Restated 
                                                         2012          2011 
                                                     GBP '000      GBP '000 
                                                                            
Royalty income                                         13,267        34,679 
Finance income                                            676         1,507 
Amortisation of royalties                              (1,018)       (1,018)
Operating expenses                                     (3,633)       (3,393)
                                                   -----------   -----------
                                                                            
Operating profit                                        9,292        31,775 
                                                                            
Gain on sale of mining and exploration interests        7,347        20,303 
Other income                                            1,746           634 
Other losses                                           (4,165)       (4,261)
                                                   -----------   -----------
                                                                            
Profit before tax                                      14,220        48,451 
                                                                            
Income tax expense                                     (4,163)      (12,171)
                                                   -----------   -----------
                                                                            
Profit attributable to equity holders                  10,057        36,280 
                                                   -----------   -----------
                                                   -----------   -----------
                                                                            
Total and continuing earnings per share                                     
Basic earnings per share                                9.27p        33.51p 
                                                                            
Diluted earnings per share                              9.27p        33.51p 
                                                                            
                                                                            
                           Anglo Pacific Group PLC             
                                                               
                          Preliminary Results 2012             
                                                               
             CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR
                      THE YEAR ENDED DECEMBER 31, 2012         
                                                               
                                                                   Restated 
                                                         2012          2011 
                                                     GBP '000      GBP '000 
                                                                            
Profit for the year                                    10,057        36,280 
Other comprehensive income                                                  
Net gain/(loss) on revaluation of coal royalties        9,339        (4,139)
Net (loss) on revaluation of available for sale                             
 investments          
                                (10,308)      (51,669)
Net exchange (loss)/gain on translation of foreign                          
 operations                                            (4,482)        2,150 
Deferred tax                                            3,927         5,933 
                                                   -----------   -----------
Net income/(expense) recognised directly in equity      8,533       (11,445)
                                                   -----------   -----------
                                                                            
Transferred from income statement: disposal of                              
 available for sale investments                        (4,666)      (10,090)
                                                   -----------   -----------
Total transferred from equity                          (4,666)      (10,090)
                                                   -----------   -----------
                                                                            
Total comprehensive income/(expense) for the year       3,867       (21,535)
                                                   -----------   -----------
                                                   -----------   -----------
                                                                            
                                                                            
                           Anglo Pacific Group PLC             
                                                               
                          Preliminary Results 2012             
                                                               
             CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2012
                                                               
                                                      Group                 
                                                     Restated      Restated 
                                          
 2012          2011          2010 
                                       GBP '000      GBP '000      GBP '000 
                                                                            
Non-current assets                                                          
Property, plant and equipment             2,105         2,152         2,144 
Coal royalties                          170,995       165,967       169,304 
Royalty instruments                      24,032        24,736        28,061 
Intangibles                              71,408        69,138        42,741 
Mining and exploration interests         55,793        64,551       128,479 
Other receivables                         3,141             -             - 
                                     -----------   -----------   -----------
                                        327,474       326,544       370,729 
                                                                            
Current assets                                                              
Trade and other receivables               1,958        12,298         8,813 
Cash and cash equivalents                24,036        32,197        28,258 
                                     -----------   -----------   -----------
                                         25,994        44,495        37,071 
                                                                            
                                     -----------   -----------   -----------
Total assets                            353,468       371,039       407,800 
                                     -----------   -----------   -----------
                                     -----------   -----------   -----------
                                                                            
Non-current liabilities                                                     
Deferred tax                             48,532        54,240        59,824 
                                     -----------   -----------   -----------
                                         48,532        54,240        59,824 
                                                                            
Current liabilities                                                         
Income tax liabilities                    1,801         3,731         4,987 
Trade and other payables                  2,171         6,896         6,470 
                                     -----------   -----------   -----------
                                          3,972        10,627        11,457 
                                                                            
                                     -----------   -----------   -----------
Total liabilities                        52,504        64,867        71,281 
                                     -----------   -----------   -----------
                                                                            
Capital and reserves attributable to                                        
 shareholders                                                               
Share capital                             2,192         2,184         2,175 
Share premium                            26,853        25,539        24,207 
Coal royalty revaluation reserve         86,721        80,285        83,405 
Investment revaluation reserve          (14,204)       (4,843)       51,780 
Share based payment reserve                 354           177            65 
Foreign currency translation reserve     38,349        41,614        39,686 
Special reserve                             632           632           632 
Investment in own shares                 (2,601)       (2,601)       (1,295)
Retained earnings                       162,668       163,185       135,864 
                                     -----------   -----------   -----------
Total equity                            300,964       306,172       336,519 
                                     -----------   -----------   -----------
                                                                            
Total equity and liabilities            353,468       371,039       407,800 
                                     -----------   -----------   -----------
                                     -----------   -----------   -----------
                                                                            
                                                                            
                           Anglo Pacific Group PLC             
                                                               
                          Preliminary Results 2012             
                                                               
               CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 
                    THE TWO YEARS ENDED DECEMBER 31, 2012      
                                                               
                                                          Coal              
                                     Share   Share     royalty   Investment 
                                   capital premium revaluation  revaluation 
                                       GBP     GBP     reserve      reserve 
                                      '000    '000    GBP '000     GBP '000 
----------------------------------------------------------------------------
                                                                            
Balance at January 1, 2011 (as                                              
 previously reported - note 1)       2,175  24,207      88,883       51,780 
Impact of restatement                    -       -      (5,478)           - 
                                   -----------------------------------------
Balance at January 1, 2011 (as                                              
 restated - note 1)                  2,175  24,207      83,405       51,780 
Profit for the year (restated)           -       -           -            - 
Other comprehensive income:          
                                       
Coal royalties:                                                             
  Royalties valuation movement                                              
   taken to equity (restated)            -       -      (4,139)           - 
  Deferred tax on valuation                                                 
   (restated)                            -       -       1,019            - 
Available-for-sale investments:                                             
  Valuation movement taken to                                               
   equity                                -       -           -      (51,669)
  Deferred tax on valuation              -       -           -        5,136 
  Transferred to income statement                                           
   on disposal                           -       -           -      (10,090)
Foreign currency translation             -       -           -            - 
                                   -----------------------------------------
Total comprehensive expense              -       -      (3,120)     (56,623)
                                   -----------------------------------------
Dividends                                -       -           -            - 
Issue of share capital under                                                
 share-based payment                     9   1,332           -            - 
                                   -----------------------------------------
Total transactions with owners of                                           
 the company                             9   1,332           -            - 
                                   -----------------------------------------
Balance at December 31, 2011                                                
 (restated)                          2,184  25,539      80,285       (4,843)
                                   -----------------------------------------
                                   -----------------------------------------
                                                                            
                                                                            
 
                                     Share                                  
                                     based     Foreign                      
                                   payment    currency           Investment 
                                   reserve translation   Special         in 
                                       GBP     reserve   reserve own shares 
                                      '000    GBP '000  GBP '000   GBP '000 
----------------------------------------------------------------------------
                                                                            
Balance at January 1, 2011 (as                                              
 previously reported - note 1)          65      39,686       632     (1,295)
Impact of restatement                    -           -         -          - 
                                  ------------------------------------------
Balance at January 1, 2011 (as                                              
 restated - note 1)                     65      39,686       632     (1,295)
Profit for the year (restated)           -           -         -          - 
Other comprehensive income:                                                 
Coal royalties:                                                             
  Royalties valuation movement                                              
   taken to equity (restated)            -         802         -          - 
  Deferred tax on valuation                                                 
   (restated)                            -        (235)        -          - 
Available-for-sale investments:                                             
  Valuation movement taken to                                               
   equity                                -        (237)        -          - 
  Deferred tax on valuation              -          13         -          - 
  Transferred to income statement                                           
   on disposal                           -           -         -          - 
Foreign currency translation             -       1,585         -          - 
                                  ------------------------------------------
Total comprehensive expense              -       1,928         -          - 
                                  ------------------------------------------
Dividends                                -           -         -          - 
Issue of share capital under                                                
 share-based payment                   112           -         -     (1,306)
                                  ------------------------------------------
Total transactions with owners of                                           
 the company                           112           -         -     (1,306)
                                  ------------------------------------------
Balance at December 31, 2011                                                
 (restated)                            177      41,614       632     (2,601)
                                  ------------------------------------------
                                  ------------------------------------------
                                                                            
                                                                            
 
                                                        
                                                        
                                    Retained      Total 
                                    earnings     equity 
                                    GBP '000   GBP '000 
--------------------------------------------------------
                                                        
Balance at January 1, 2011 (as                          
 previously reported - note 1)       139,755    345,888 
Impact of restatement                 (3,891)    (9,369)
                                  ----------------------
Balance at January 1, 2011 (as                          
 restated - note 1)                  135,864    336,519 
Profit for the year (restated)        36,280     36,280 
Other comprehensive income:                             
Coal royalties:                                         
  Royalties valuation movement                          
   taken to equity (restated)              -     (3,337)
  Deferred tax on valuation                             
   (restated)                              -        784 
Available-for-sale investments:                         
  Valuation movement taken to                           
   equity                                  -    (51,906)
  Deferred tax on valuation                -      5,149 
  Transferred to income statement                       
   on disposal                             -    (10,090)
Foreign currency translation               -      1,585 
                                  ----------------------
Total comprehensive expense           36,280    (21,535)
                                  ----------------------
Dividends                             (8,978)    (8,978)
Issue of share capital under                            
 share-based payment                      19        166 
                                  ----------------------
Total transactions with owners of                       
 the company                          (8,959)    (8,812)
                                  ----------------------
Balance at December 31, 2011                            
 (restated)                          163,185    306,172 
                                  ----------------------
                                  ----------------------
                                                        
                                                        
                           Anglo Paci
fic Group PLC             
                                                               
                          Preliminary Results 2012             
                                                               
               CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR 
                    THE TWO YEARS ENDED DECEMBER 31, 2012      
                                                               
                                                          Coal              
                                     Share   Share     royalty   Investment 
                                   capital premium revaluation  revaluation 
                                       GBP     GBP     reserve      reserve 
                                      '000    '000    GBP '000     GBP '000 
----------------------------------------------------------------------------
                                                                            
Balance at January 1, 2012                                                  
 (restated)                          2,184  25,539      80,285       (4,843)
Profit for the year                      -       -           -            - 
Other comprehensive income:                                                 
Coal royalties:                                                             
  Royalties valuation movement                                              
   taken to equity                       -       -       9,339            - 
  Deferred tax on valuation              -       -      (2,903)           - 
Available-for-sale investments:                                             
  Valuation movement taken to                                               
   equity                                -       -           -      (10,308)
  Deferred tax on valuation              -       -           -        5,613 
  Transferred to income statement                                           
   on disposal                           -       -           -       (4,666)
Foreign currency translation             -       -           -            - 
                                   -----------------------------------------
Total comprehensive income               -       -       6,436       (9,361)
                                   -----------------------------------------
Dividends                                -       -           -            - 
Issue of ordinary shares                 8   1,314           -            - 
Value of employee services               -       -           -            - 
                                   -----------------------------------------
Total transactions with owners of                                           
 the company                             8   1,314           -            - 
                                   -----------------------------------------
Balance at December 31, 2012         2,192  26,853      86,721      (14,204)
                                   -----------------------------------------
                                   -----------------------------------------
                                                                            
                                                                            
 
                                                                            
                                     Share                                  
                                     based     Foreign                      
                                   payment    currency           Investment 
                                   reserve translation   Special         in 
                                       GBP     reserve   reserve own shares 
                                      '000    GBP '000  GBP '000   GBP '000 
----------------------------------------------------------------------------
                                                                            
Balance at January 1, 2012                                                  
 (restated)                            177      41,614       632     (2,601)
Profit for the year                      -           -         -          - 
Other comprehensive income:                                                 
Coal royalties:                                                             
  Royalties valuation movement                                              
   taken to equity                       -      (4,311)        -          - 
  Deferred tax on valuation              -       1,274         -          - 
Available-for-sale investments:                                             
  Valuation movement taken to                                               
   equity                                -        (375)        -          - 
  Deferred tax on valuation              -         (57)        -          - 
  Transferred to income statement                                           
   on disposal                           -           -         -          - 
Foreign currency translation             -         204         -          - 
                                  ------------------------------------------
Total comprehensive income               -      (3,265)        -          - 
                                  ------------------------------------------
Dividends                                -           -         -          - 
Issue of ordinary shares                 -           -         -          - 
Value of employee services             177           -         -          - 
                                  ------------------------------------------
Total transactions with owners of                                           
 the company                           177           -         -          - 
                                  ------------------------------------------
Balance at December 31, 2012           354      38,349       632     (2,601)
                                  ------------------------------------------
                                  ------------------------------------------
                                                                            
                                                                            
 
                                                        
                                    Retained      Total 
                                    earnings     equity 
                                    GBP '000   GBP '000 
--------------------------------------------------------
                                                        
Balance at January 1, 2012                              
 (restated)                          163,185    306,172 
Profit for the year                   10,057     10,057 
Other comprehensive income:                             
Coal royalties:                                         
  Royalties valuation movement                          
   taken to equity                         -      5,028 
  Deferred tax on valuation                -     (1,629)
Available-for-sale investments:                         
  Valuation movement taken to                           
   equity                                  -    (10,683)
  Deferred tax on valuation                -      5,556 
  Transferred to income statement                       
   on disposal                             -     (4,666)
Foreign currency translation               -        204 
                                  ----------------------
Total comprehensive income            10,057      3,867 
                                  ----------------------
Dividends                            (10,579)   (10,579)
Issue of ordinary shares                   -      1,322 
Value of employee services                 5        182 
                                  ----------------------
Total transactions with owners of                       
 the company                         (10,574)    (9,075)
                                  ----------------------
Balance at December 31, 2012         162,668
    300,964 
                                  ----------------------
                                  ----------------------
                                                        
                                                        
                          Anglo Pacific Group PLC                           
                                                                            
                          Preliminary Results 2012                          
                                                                            
    CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012   
                                                                            
                                                             Group          
                                                                   Restated 
                                                         2012          2011 
                                                     GBP '000      GBP '000 
                                                                            
Cash flows from operating activities                                        
Profit before taxation                                 14,220        48,451 
Adjustments for:                                                            
Interest received                                      (1,723)       (1,507)
Unrealised foreign currency (gain)/loss                  (431)        1,712 
Depreciation of property, plant and equipment              21            21 
Amortisation of intangibles - royalties                 1,018         1,018 
Gain on disposal of mining and exploration                                  
 interests                                             (7,347)      (20,303)
Provision for non-recovery of interest receivable           -           709 
Royalty instrument (recovery)/provision                  (806)        1,563 
Loss on impairment of royalty intangible                    -         1,088 
Loss on 
write down of mining and exploration                                
 interests                                              4,013            42 
Share based payment                                       183           130 
                                                   -----------   -----------
                                                        9,148        32,924 
                                                                            
Decrease/(Increase) in trade and other receivables      7,199        (3,483)
(Decrease)/Increase in trade and other payables        (4,725)          423 
Receipts from royalty instruments                       2,898           742 
                                                   -----------   -----------
Cash generated from operations                         14,520        30,606 
Income taxes paid                                      (6,186)      (13,083)
                                                   -----------   -----------
Net cash generated from operating activities            8,334        17,523 
                                                   -----------   -----------
                                                                            
Cash flows from investing activities                                        
Proceeds on disposal of mining and exploration                              
 interests                                             19,280        51,491 
Purchases of mining and exploration interests         (23,781)      (28,101)
Purchases of royalty interests                         (2,398)      (28,395)
Purchases of property, plant and equipment                  -           (29)
Exploration and evaluation expenditure                   (127)         (108)
Interest received                                       1,110           536 
Investments in subsidiaries                                 -             - 
                                                   -----------   -----------
Net cash used in from investing activities             (5,916)       (4,606)
                                                   -----------   -----------
                                                                            
Cash flows from financing activities                                        
Dividends paid                                        (10,579)       (8,978)
                                                   -----------   -----------
Net cash used in from financing activities            (10,579)       (8,978)
                                                   -----------   -----------
                                                                            
Net (decrease)/increase in cash and cash                                    
 equivalents                                           (8,161)        3,939 
                                                                            
Cash and cash equivalents at beginning of period       32,197        28,258 
                                                   -----------   -----------
                                                                            
Cash and cash equivalents at end of period             24,036        32,197 
                                                   -----------   -----------
                                                   -----------   -----------

 
Anglo Pacific Group PLC  
Preliminary Results 2012  
NOTES 
1. Prior period adjustment 
As mentioned in the royalty review, an audit conducted by the
Queensland Office of State Revenue identified a misallocation of
royalty revenue attributable to the Group. As a result, the Group
received GBP 4.6million (A$7.1 million) more than it was entitled to
over a six year period ended December 31, 2011. An associated
interest charge of GBP 1.4million (A$2.2million) was also incurred on
the overpayments. In accordance with IAS 8, the prior periods
financial statements are restated to reflect what the position would
have been, taking into account this information. The following tables
reconcile the restated position to that previously reported: 


 
Consolidated Income Statement                                               
                                                                            
                                                     Year ended             
                                                  December 31, 2011         
                                           Restated    Original  Adjustment 
                                           GBP '000    GBP '000    GBP '000 
Consolidated Income Statement                                               
Royalty income                               34,679      35,103        (424)
Finance income                                1,507       1,507           - 
Operating expenses                           (3,393)     (3,262)       (131)
                                                                            
Operating profit                             31,775      32,330        (555)
                                                                            
Other income                                    634         634           - 
                                                                            
Profit before tax                            48,451      49,006        (555)
Income tax expense                          (12,171)    (12,337)        166 
                                         -----------------------------------
Profit attributable to equity holders        36,280      36,669        (389)
                                         -----------------------------------
                                                                            
Total and continuing earnings per share                                     
                                                                            
Basic earnings per share                     33.51p      33.87p      (0.36p)
                                                                      
      
Diluted earnings per share                   33.51p      33.87p      (0.36p)
                                                                            
                                                                            
Consolidated Statement of Comprehensive Income                              
                                                                            
                                                     Year ended             
                                                  December 31, 2011         
                                           Restated    Original  Adjustment 
                                           GBP '000    GBP '000    GBP '000 
Consolidated Statement of Comprehensive                                     
 Income                                                                     
Profit for the financial period              36,280      36,669        (389)
Other comprehensive income                                                  
Net loss on revaluation of coal                                             
 royalties                                   (4,139)     (2,844)     (1,295)
Net exchange gain on translation of                                         
 foreign operations                           2,150       2,188         (38)
Deferred tax                                  5,933       5,532         401 
                                                                            
Net expense recognised directly in                                          
 equity                                     (11,445)    (10,124)     (1,321)
                                                                            
                                         -----------------------------------
Total comprehensive expense for the                                         
 financial period                           (21,535)    (20,214)     (1,321)
                                         -----------------------------------
                                                                            
                                                                            
Consolidated Balance Sheet                                                  
                                                                            
                       December 31, 2011             December 31, 2010      
                 Restated Original Adjustment  Restated Original Adjustment 
                 GBP '000 GBP '000   GBP '000  GBP '000 GBP '000   GBP '000 
Consolidated                                                                
 Balance Sheet                                                              
Coal royalties    165,967  175,124     (9,157)  169,304  177,130     (7,826)
                                                                            
Total assets      371,039  380,196     (9,157)  407,800  415,626     (7,826)
                                                                            
Deferred tax       54,240   58,822     (4,582)   59,824   63,838     (4,014)
Trade and other                                                             
 payables           6,896      781      6,115     6,470      913      5,557 
                                                                            
Total                                                                       
 liabilities       64,867   63,334      1,533    71,281   69,738      1,543 
                                                                            
Total equity and                                                            
 liabilities      371,039  380,196     (9,157)  407,800  415,626     (7,826)
                                                                            
                                                                            
Consolidated Statement of Cash Flows                                        
                                                                            
                                                      Year ended            
                                                  December 31, 2011         
                                            Restated   Original  Adjustment 
                                            GBP '000   GBP '000    GBP '000 
Consolidated Statement of Cash Flows                                        
Cash flows from operating activities                                        
Profit before taxation                        48,451     49,006        (555)
                                                                            
Decrease in trade and other payables             423       (132)        555 

 
Overall, the net assets of the Group at December 31, 2011 were
overstated by GBP 10.7million as a result of this overpayment and the
corresponding impact on the coal royalty valuation. The value of the
coal royalty was GBP 9.2million less when taking into account roads
over the remaining portion of the private royalty ground which has
yet to be mined. Trade and other payables now reflect an amount owing
to the mine operator as a result of these overpayments and the
associated interest charge. The deferred tax balance has been
recalculated based on the new coal royalty valuation and also
reflects a credit to the group arising on the payment of tax on the
previously overstated revenue.  
2. Earnings per share 
Earnings per ordinary share is calculated on the Group's profit after
tax of GBP 10,057,000 (2011: GBP 36,280,000 (restated)) and the
weighted average number of shares in issue during the year of
108,540,723 (2011: 108,263,282). 
The diluted earnings per ordinary share is calculated on the Group's
profit after tax of GBP 10,057,000 (2011: GBP 36,280,000 (restated))
and 108,544,883 shares (2011: 108,274,402). The dilutive effect is
due to options outstanding under the Company Share Option Plan at the
year end. 
3. Events occurring after year end 
On February 8, 2013, an investee company in which the Group holds
both secured and unsecured mining and exploration interests filed for
protection under a corporate reconstruction based on a shortage of
liquidity.  
As at December 31, 2012, the Group's mark to market losses on the
unsecured interest was GBP 3.7million. In light of the investee
company's filing on February 8, 2013, management consider the fall in
the market value of the investee company at December 31, 2012 to be
impaired and have recognised these losses through "other losses" in
the income statement. 
The Group considered that there was sufficient recourse attached to
the secured interest and as such, no impairment was considered
necessary as at December 31, 2012. 
4. Status of financial information 
This preliminary announcement does not constitute the Group's full
financial statements for 2012. 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 2012 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, 2011 prior to
restatement 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, 2011 was unqualified and did
not contain statements under section 498(2) of the United Kingdom
Companies Act 2006 (regarding adequacy of accounting records and
returns), or under 498(3) (regarding provision of necessary
information and explanations). 
Standards of disclosure for mineral projects 
National Instrument 43-101 - Standards of Disclosure for 
Mineral
Projects ("NI 43-101") contains certain requirements relating to the
use of mineral resource and mineral reserve categories of an
"acceptable foreign code" (as defined in NI 43-101) in "disclosure"
(as defined in NI 43-101) made by Anglo Pacific Group PLC with
respect to a "mineral project" (as defined in NI 43-101), including
the requirement to include a reconciliation of any material
differences between the mineral resource and mineral reserve
categories used under an acceptable foreign code and the standards
developed by the Canadian Institute of Mining, Metallurgy and
Petroleum, as the CIM Definition Standards on Mineral Resources and
Mineral Reserves adopted by CIM Council, as amended (the "CIM
Standards") in respect of a mineral project. Pursuant to an exemption
order granted to Anglo Pacific Group PLC by the Ontario Securities
Commission (the "Exemption Order"), the information contained herein
with respect to the Four Mile Uranium Project, the Ring of Fire
Project, the Jogjakarta Iron Sands and Pig Iron Project and the
Tucano Project has been extracted from information publicly
disclosed, disseminated, filed, furnished or similarly communicated
to the public by an issuer whose securities trade on a "specified
exchange" (as defined under NI 43-101) that discloses mineral
reserves and mineral resources under one of the JORC Code, the PERC
Code, the SAMREC Code, SEC Industry Guide 7 or the Certification Code
(each as defined in NI 43-101). As the definitions and standards of
the JORC Code, the PERC Code, the SAMREC Code, SEC Industry Guide 7
and the Certification Code are substantially similar to the CIM
Standards, a reconciliation of any material differences between the
mineral resource and mineral reserve categories reported under the
JORC Code, the PERC Code, the SAMREC Code, SEC Industry Guide 7 and
the Certification Code, as applicable, to categories under the CIM
Standards is not included and no Form 43-101F1 technical report will
be filed to support the disclosure based upon such exemption. 
Alliance Resources Limited, Indo Mines Limited and Beadell Resources
Limited are all listed on the Australian Securities Exchange and
report in accordance with the JORC Code. Cliffs Natural Resources
Inc. is listed on the New York Stock Exchange and reports in
accordance with SEC Industry Guide 7. 
Cautionary note to U.S. investors concerning estimates of measured,
indicated and inferred resources: Certain technical disclosure in
this press release has been prepared in accordance with the
requirements of Canadian securities laws, including NI 43-101, in
certain cases as modified by the Exemption Order referred to above,
which differ from the requirements of U.S. securities laws. This
press release uses the terms "measured resources", "indicated
resources" and "inferred resources". U.S. investors are advised that
while such terms are recognised and required by Canadian Securities
laws, the Securities and Exchange Commission does not recognise them.
"Inferred resources" have a great amount of uncertainty as to their
existence and as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred resource will be
upgraded to a higher category. Under Canadian Securities laws,
estimates of inferred resources may not form the basis of feasibility
or other economic studies. U.S. investors are cautioned not to assume
that all or any part of measured resources or indicated resources
will ever be converted into reserves. U.S. investors are also
cautioned not to assume that all or any part of an inferred mineral
resource exists, or is economically or legally mineable. 
Contacts:
Anglo Pacific Group PLC
John Theobald
Chief Executive Officer
+44 (0) 20 3435 7400 
Anglo Pacific Group PLC
Chris Orchard
Chief Investment Officer
+44 (0) 20 3435 7400 
Anglo Pacific Group PLC
Kevin Flynn
Chief Financial Officer
+44 (0) 20 3435 7400
www.anglopacificgroup.com 
Liberum Capital
Chris Bowman
+44 (0) 20 3100 2000 
Liberum Capital
Christopher Kololian
+44 (0) 20 3100 2000 
Pelham Bell Pottinger
Lorna Spears
+44 (0) 20 7861 3232 
Pelham Bell Pottinger
James Macfarlane
+44 (0) 20 7861 3232