Final Results

Anglo Pacific Group PLC
27 February 2008



Anglo Pacific Group PLC
27 February 2008


Preliminary Results for the year ended 31 December 2007

Anglo Pacific Group PLC (APG), the natural resources royalties company, today
announces record preliminary results for the year ended 31st December 2007.


Financial Highlights

•   Australian coal royalty independent valuation of £60.9 million (2006:
    £47.9 million)
•   Total mining and exploration interests and cash increased by 49% to
    £114.7 million (2006: £77.2 million)
•   Realised profits from mature mining interests increased by 92% to
    £25.6 million (2006: £13.3 million)
•   Earnings increased by 50% to 28.72p per share (2006: 19.12p)
•   Proposed final dividend increased by 16% to 4.35p per share (2006: 3.75p)
•   Total dividend for the year increased by 16% to 7.35p (2006: 6.35p)
•   Profit before tax increased by 53% to £33,768,000 (2006: £22,109,000)
•   Profit after tax increased by 54% to £29,740,000 (2006: £19,298,000)
•   Coal royalties for the year of £8.4 million (2006: £10.5 million)
•   Cash of £18.9 million (2006: £9.8 million)


Operational Highlights

•   New royalty packages acquired in Canada
•   Substantial increase in value of strategic quoted interests
•   Increased exposure to coal energy and uranium projects
•   Increase in gold, base metal and PGM projects
•   No debt and increased cash reserves


Commenting on the Preliminary Results, Peter Boycott, Chairman of Anglo Pacific
Group PLC said:

'2007 has been another record year for Anglo Pacific Group. Buoyant royalty
receipts together with increased profits from disposal of non-core mining
interests have once again enabled the Group to pay record dividends to
shareholders.  During the year, the Group has acquired new royalty packages as
well as substantially increasing its strategic investments and cash position.


The Group's strategy remains to develop new royalty flows from its mining
interests and to maximise shareholder value. The Board hopes to take advantage
of recent market setbacks to increase its exposure to gold, uranium and the coal
energy sector in furtherance of this strategy.'


Enquiries:

Brian Wides / Peter Boycott / Matthew Tack              Anglo Pacific Group PLC
                                                                  020 7318 6360

James Black / John Harrison                                    Numis Securities
                                                                  020 7260 1000

Stephen Scott / James Harris / James O'Shaughnessy                 Scott Harris
                                                                  020 7653 0030

Website                                               www.anglopacificgroup.com



2007 Review and Results

During the first half of 2007 world stock markets were strong, driven by double
digit rates of growth in developing economies.  The demand for metals, oil and
other energy products enabled many mining stocks to reach record levels.  Later
in the year the sub-prime problems in the USA and in the UK at Northern Rock
have caused large write-offs in the banking and financial sectors and the
subsequent liquidity crisis has raised fears of recession in the USA and other
developed economies.  This has been exacerbated by inflationary fears due to
higher raw material and energy costs associated with continuing demand from the
emerging third world economies.

Against this background and despite the substantial correction in junior mining
markets during the second half of 2007, Anglo Pacific Group has nevertheless
managed to increase its strategic investments and cash by a further 15% since
the end of June 2007.

Inflationary worries and geopolitical tensions have driven gold and precious
metals prices to new highs.  Platinum group metal prices have continued to rise
due to dollar weakness and supply shortages caused by safety concerns and power
shortages in South Africa.

Uranium prices have remained steady while ever increasing demand for coal
products has resulted in thermal coal prices increasing by well over 50% in the
last six months.  Furthermore, coking coal supplies have remained tight in the
face of buoyant demand in the Far East causing prices to escalate.

The Group's exposure to gold, uranium and coal products has enabled it to
produce record earnings of 28.72p per share in 2007 against 19.12p in 2006.

In 2007 gains on disposal of non-core interests were £25.6 million (2006: £13.3
million) while coal royalties declined to £8.4 million due to production delays
at both mines and reducing output from the Crinum mine as mining exhausts the
reserves on the Group's private ground.  However, due to increasing coal prices,
the value of the Group's coal royalty interests has increased over the year from
£48 million to £61 million as at 31st December 2007.

These record results have enabled the Group to increase the total dividends for
2007 to 7.35p per share, an increase of 16% over last year.

The Group's private mining interests remain in the financial statements at cost
and together with quoted stakes in mining projects at 31st December 2007 total
£96 million compared to £67 million a year ago. Furthermore the Group had no
borrowings and nearly £19 million of cash in the bank at 31st December 2007.

The Group's successful and rigorous active management of its mining interests
has again produced impressive results.


Strategy and Progress

The Group's overriding corporate strategy remains to maximise shareholder value
by:-

  • Developing royalty flows from its strategic mining interests
  • Increasing the value and diversification of those interests
  • Pursuing a progressive dividend policy


The Group has made substantial progress in all three areas during 2007:-

  • On 23rd August 2007 the Group announced the acquisition of a package of
    royalty interests in the Athabasca Basin in Canada.  The properties covered
    by the royalty interests total approximately 4.8 million acres and are
    currently operated by a number of listed Canadian companies.  The Athabasca
    Basin is considered to be highly prospective for uranium exploration and
    production and currently hosts large, high grade uranium mines and deposits.
    The Group issued 3.125 million new shares in consideration for these
    assets. More recently, the Group has invested in a number of projects using
    a form of non-redeemable loan stock convertible either into equity or future
    royalties on development of a mine.

  • The Group's strategic investments and cash have increased in value by
    nearly 50% from £77 million to £115 million as at 31st December 2007. The
    recent valuation of the Group's coal royalties raises the Group's total
    assets to £178 million with no debt. This does not include any excess over
    cost attributable to the real value of the Group's substantial private coal
    and other mining interests in British Columbia and Australia.

  • The Group's strategy of paying a substantial proportion of its earnings as
    dividends to shareholders continues with a final dividend of 4.35p per
    share, an increase of 16% over last year. As in previous years a scrip
    dividend alternative will be available to shareholders. The Directors
    continue to increase their investment in the Group by opting to take shares
    rather than cash on a substantial proportion of their holdings.


The Group's quoted equity interests disclosed on the LSE, ASX and TSX, where
initial equity stake disclosure levels are 3%, 5% and 10% respectively, amount
to £73 million in twenty different holdings.  The balance of quoted holdings of
£13 million is made up of a further thirty incubator investments.  The split of
the Group's strategic interests by commodity is now on the Group's website at
www.anglopacificgroup.com where all the equity disclosures can also be accessed.

The Group continues its active, merchant banking approach to projects by
providing specific business and financial support to management thereby reducing
some of the risks associated with the mining industry.


Outlook

The extent to which internal demand within the Chinese and Indian economies can
supplement their exports to Europe and the USA will dictate future demand for
metals and therefore the outlook for the mining sector.  In this respect the
Group remains confident in its strategy of exposure to a range of energy,
precious and base metal opportunities.

The recent setbacks in the markets due to liquidity problems and fears of
recession have made investors more risk averse and mining finance harder to
raise from conventional lenders.  In this regard, the Group's increased
liquidity and active management policy leave it well positioned to secure new
royalty flows and to continue to develop its mining interests.  As part of this
strategy the Group is in the process of expanding its in-house mining and
technical team.

The Group is confident that recent higher prices for coal will be maintained for
the medium term which should be reflected in the Group's coal royalty receipts.

In conclusion, I would like to thank shareholders for their continued support
and the directors and staff for all their hard work during the year and for
another record set of results.

P.M. BOYCOTT
Chairman
27th February 2008




                                                                              2007                2006
                                                                             £'000               £'000

Royalty income                                                                  8,439              10,472
Other operating income                                                            191                 266
Profit on sale of mining and exploration interests                             25,612              13,322
Finance income                                                                    623                 232
                                                                               34,865              24,292

Net operating expenses                                                        (1,097)             (2,183)
Profit before tax                                                              33,768              22,109

Tax                                                                           (4,028)             (2,811)
Profit attributable to equity holders                                          29,740              19,298


Basic earnings per share (note 1)                                              28.72p              19.12p

Fully diluted earnings per share (note 1)                                      28.72p              19.11p


Turnover and profit before tax are derived from the Group's continuing
operations.



                                                                              2007                2006
                                                                             £'000               £'000

Non-current assets
Property plant and equipment                                                     832                 838
Coal royalties                                                                60,874              47,868
Investments in subsidiary undertakings                                             -                   -
Mining and exploration interests                                              95,750              67,317
                                                                             157,456             116,023

Current assets
Trade and other receivables                                                    1,874               1,834
Cash at bank                                                                  18,904               9,836
                                                                              20,778              11,670

Total assets                                                                 178,234             127,693


Current liabilities
Taxation                                                                       2,538               1,414
Trade and other payables                                                         262                 255
                                                                               2,800               1,669

Non-current liabilities
Deferred tax                                                                  19,252              14,530
                                                                              19,252              14,530

Total liabilities                                                             22,052              16,199

Capital and reserves attributable to shareholders
Share capital                                                                  2,113               2,032
Share premium                                                                 17,742              12,112
Coal royalty revaluation reserve                                              40,899              35,403
Investment revaluation reserve                                                33,104              27,078
Share based payment reserve                                                       48                  27
Foreign currency translation reserve                                           2,224             (1,930)
Special reserve                                                                  632                 632
Retained Earnings                                                             59,420              36,140
                                                                             156,182             111,494

Total equity and liabilities                                                 178,234             127,693




                                                                          Share
                                 Share    Share      Coal  Investment     based     Foreign  Special Retained    Total
                               capital  premium   royalty     revalua   payment    currency  reserve earnings   equity
                                                  revalua        tion   reserve translation
                                                     tion     reserve               reserve
                                                  reserve                            
                                 £'000    £'000     £'000       £'000     £'000       £'000    £'000    £'000    £'000  
 
Balance at 1st January 2006      2,005   11,338    41,211       5,180        12       1,321      632   22,361   84,060
Changes in equity for 2006
Coal Royalties:
     Royalties valuation             -        -   (5,792)           -         -     (3,055)        -        -  (8,847)
     movement taken to equity
     Deferred tax on valuation       -        -      (16)           -         -         726        -        -      710
Available-for-sale investments:
     Valuation movement taken to     -        -         -      28,349         -       (575)        -        -   27,774
     equity
     Deferred tax on valuation       -        -         -     (1,382)         -        (63)        -        -  (1,445)
     Transferred to income           -        -         -     (5,069)         -           -        -        -  (5,069)
     statement on disposal
Foreign currency translation         -        -         -           -         -       (284)        -        -    (284)
Net income recognised direct         -        -   (5,808)      21,898         -     (3,251)        -        -   12,839
into equity
Profit for the period                -        -         -           -         -           -        -   19,298   19,298
Total recognised income and          -        -   (5,808)      21,898         -     (3,251)        -   19,298   32,137
expenses
Dividends                            -        -         -           -         -           -        -  (5,519)  (5,519)
Scrip Dividend                       9      580         -           -         -           -        -        -      589
Issue of share capital on           18      194         -           -         -           -        -        -      212
exercise of options
Equity share options issued          -        -         -           -        15           -        -        -       15
Balance at 1st January 2007      2,032   12,112    35,403      27,078        27     (1,930)      632   36,140  111,494
Changes in equity for 2007
Coal Royalties:
     Royalties valuation             -        -     8,759           -         -       4,247        -        -   13,006
     movement taken to equity
     Deferred tax on valuation       -        -   (3,263)           -         -     (1,134)        -        -  (4,397)
Available-for-sale investments:
     Valuation movement taken to     -        -         -      24,778         -         937        -        -   25,715
     equity
     Deferred tax on valuation       -        -         -       (319)         -          15        -        -    (304)
     Transferred to income           -        -         -    (18,433)         -           -        -        - (18,433)
     statement on disposal
Foreign currency translation         -        -         -           -         -          89        -        -       89
Net income recognised direct         -        -     5,496       6,026         -       4,154        -        -   15,676
into equity
Profit for the period                -        -         -           -         -           -        -   29,740   29,740
Total recognised income and          -        -     5,496       6,026         -       4,154        -   29,740   45,416
expenses
Dividends                            -        -         -           -         -           -        -  (6,460)  (6,460)
Issue of share capital              18    1,350         -           -         -           -        -        -    1,368
Scrip Dividend                      63    4,280         -           -         -           -        -        -    4,343
Equity share options issued          -        -         -           -        21           -        -        -       21
Balance at 31st December 2007    2,113   17,742    40,899      33,104        48       2,224      632   59,420  156,182



                                                                              2007              2006
                                                                              £'000             £'000

Cashflows from operating activities
Profit before taxation                                                          33,768            22,109
Adjustments for:
Interest received                                                                (623)             (232)
Unrealised foreign currency loss / (gain)                                           89             (284)
Depreciation of property, plant and equipment                                       10                10
(Gain) on disposal of mining and exploration interests                        (25,612)          (13,322)
Inter-company dividends                                                              -                 -
Share based payments                                                                21                15
                                                                                 7,653             8,296
(Increase) / Decrease in trade and other receivables excluding                    (40)               715
amounts due from subsidiary companies
Increase / (Decrease) in trade and other payables                                    7             (340)
Cash generated from operations                                                   7,620             8,671
Income taxes paid                                                              (2,883)           (2,990)
Net cash from operating activities                                               4,737             5,681

Cash flows from investing activities
Proceeds on disposal of mining and exploration interests                        44,945            30,024
Purchase of mining and exploration interests                                  (36,145)          (27,180)
Interest received                                                                  623               232
Net cash used in investing activities                                            9,423             3,076

Cash flows from financing activities
Proceeds from issue of share capital                                                 -               212
Dividends paid                                                                 (5,092)           (4,930)
Net financing of related entities                                                    -                 -
Net cash used in financing activities                                          (5,092)           (4,718)

Net increase in cash and cash equivalents                                        9,068             4,039

Cash and cash equivalents at beginning of period                                 9,836             5,797

Cash and cash equivalents at end of period                                      18,904             9,836




1.  Earnings per ordinary share is calculated on the Group's profit
    after tax of £29,740,000 (2006:  £19,298,000) and the weighted average 
    number of shares in issue during the year of 103,546,147 (2006:  
    100,949,018).

    The diluted earnings per ordinary share is calculated on a profit after 
    tax of £29,740,000 (2006: £19,298,000) and 103,565,904 shares (2006: 
    100,963,278). The dilutive effect is due to options outstanding under the
    Employee Share Option Scheme at the year end.

2.  The above figures do not constitute full accounts within the meaning of 
    Section 240 of the Companies Act 1985. The figures for the year ended
    31st December 2006 constitute abridged accounts extracted from the published
    accounts for the year which have been filed with the Registrar of Companies 
    and on which the auditors' report was unqualified and did not contain a 
    statement under Section 237(2) or (3) of the Companies Act 1985. The audit 
    opinion on the accounts for the year ended 31 December 2007 has not yet 
    been signed.




                      This information is provided by RNS
            The company news service from the London Stock Exchange