Interim Results

Anglo Pacific Group PLC
26 September 2000

                           ANGLO PACIFIC GROUP PLC 
 
                                 HIGHLIGHTS 
 
 
            Interim results for the Six months ended June 30 2000 
 
 
* Operating profit up 125% to £1 million 
 
* Coal royalty income increased by 168% to £0.93 million 
 
* Subsequent disposal of loss making silica sand business 
 
 
Anglo Pacific's Executive Chairman, Peter Boycott said:-
 
 'I am pleased to report that the Australian coal mines have returned to full
operation which has boosted our royalties substantially. Together with the
recent sale of our silica sand operation, we are now in a position to pursue
our strategy to improve and increase our royalty income. Anglo Pacific should
benefit from the expected continuation of the improvement in worldwide energy
raw material prices.'
 

Enquiries:-

 
Peter Gaze            Cardew & Co          020 7930 0777
Gavin Barry           Cardew & Co          020 7930 0777
 


CHAIRMAN'S STATEMENT

 
I am pleased to report the return to full operations for the Australian coal
mines which has had a significant impact on our six month profit figures.
 
Turnover reduced at Fife Silica Sands due to a contraction in the glass
bottle market. This business has now been sold.
 

RESULTS

 
The operating profit for the six months ended 30th June 2000 increased to
£1,008,000 (1999 £448,000). After interest payable, tax and write down of
mineral assets, the retained loss for the period was £2,438,000 (1999
£205,000 profit). Turnover for the six months was £1.4million compared to
£2.4 million.
 
These results have been affected by the provision resulting from the sale of
Fife Silica Sands Ltd which was announced on 4th September 2000. Shareholders
have already received a circular with full details of this disposal which was
approved by them at an EGM held on 22nd September 2000. Your Board decided to
sell the silica sand business in order to eliminate the continual need for
cash to finance trading losses and the large levels of capital expenditure
that have been required over the last few years for the business to remain
competitive. In selling the business for £4 million the Group needed to
provide a further £3 million at 30th June 2000 against the value of Fife's
assets.

The Group successfully sold a further tranche of Brancote Holdings PLC shares
realising a profit of £0.484 million.
 
In line with last year the Board is not recommending an interim dividend.
 
OPERATIONS 
 
Our coal royalties from the two mines in Queensland, Australia, operated by
BHP and Rio Tinto, increased to £925,000 (1999 £345,000)
 
Turnover at Fife Silica Sands was much reduced due to a contraction in the
glass bottle industry and intense competitive pressure.
 
Sales at Ledmore Marble have increased over the period.
 
The improvements made to the leases and mineral rights at Shetland Talc are
now complete and the Board is now actively looking for a partner to develop
and finance the deposit.
 
Anglo Digital has opened an office in Malvern and continues to identify and
evaluate a number of interesting technology and licensing projects.
 

OUTLOOK

 
With cashflow sharply better due to increased coal royalties and the sale of
Fife, your Board looks forward to the future with confidence. Anglo Pacific
should benefit from the expected continuation of the improvement in worldwide
energy raw material prices.
 
P M Boycott, Chairman
Anglo Pacific Group PLC     



  Anglo Pacific Group PLC                                                     
  CONSOLIDATED PROFIT AND LOSS ACCOUNT                                        
  FOR THE SIX MONTHS ENDED 30th JUNE 2000                                     

                                                                  Year ended  
                                    Six Months    Six Months            31st  
                                    ended 30th    ended 30th        December  
                                     June 2000     June 1999            1999  
                                         £'000         £'000           £'000  

  Turnover                                1427          2426            4512  

  Cost of Sales                          -1432         -2039           -4065  

  Gross (loss)/profit                       -5           387             447  

  Administrative expenses                 -447          -414            -897  

  Release of provision                       0            60              60  
 
  Profit on disposal of                                                       
  investments                              484             0             243  

  Royalty income                           925           345             710  

  Other income                              51            70             125  

  Operating Profit                        1008           448             688  

  Release of provision for                                                    
  fundamental restructuring                  0            70             135  

  Interest receivable                        0             1               2  

  Interest payable                        -220          -183            -390  

  Write down of mineral assets           -3014             0           -4000  

  (Loss)/Profit on ordinary                                                   
  activities before tax                  -2226           336           -3565  

  Taxation on (loss)/profit on                                                
  ordinary activities                     -212          -131            -219  

  (Loss)/Profit for the                                                       
  financial period                       -2438           205           -3784  

  Dividends                                  0             0             -43  

  Retained (Loss)/Profit for the                                              
  financial period                       -2438           205           -3827  

  (Loss)/Earnings per ordinary           (2.80)p        0.24p          (4.39)p
  share                                                                       

  Diluted (loss)/earnings per            (2.58)p        0.25p          (4.13)p
  ordinary share                                                              

  During the period no operations were terminated or sold.                    



  PRO FORMA CONSOLIDATED PROFIT AND LOSS ACCOUNT                              
  FOR THE SIX MONTHS ENDED 30th JUNE 2000                                     

  Excluding mineral asset write down and release of the restructuring         
  provision                                                                   
                                    Six months    Six months    Twelve months 
                                          2000          1999             1999 
                                         £'000         £'000            £'000 

  Operating Profit                        1008           448              688 

  Profit on ordinary activities            788           266              300 
  before tax                                                                  

  The above pro forma is presented to assist comparisons with prior year      
  figures.                                                                    



  STATEMENT OF CONSOLIDATED RETAINED PROFITS                                  

                                    Six months    Six months    Twelve months 
                                          2000          1999             1999 
                                         £'000         £'000            £'000 

  At 1 January                           -6854         -3027            -3027 

  (Loss)/Profit for the period           -2438           205            -3827 

                                         -9292         -2822            -6854 


                                                     
  CONSOLIDATED BALANCE SHEET                                                  
  AS AT 30th JUNE 2000                                                        
                                           30th June 2000      31st December  
                                                               1999           
                                  Note     £'000    £'000      £'000    £'000 

  Fixed assets                                                                

  Tangible assets                                    6260                9273 

  Investments                         1              2580                2720 

                                                     8840               11993 
  Current assets                                                              
  Stocks                                     374                 232          

  Debtors                                   1123                1014          

  Cash at bank and in hand                    15                  14          

                                            1512                1260          

  Creditors - amounts falling due                                             
  within one year                          -2705               -2729          

  Net current liabilities                           -1193               -1519 

  Total assets less current liabilities              7647               10474 

  Creditors - amounts falling due after more than one year                    

  Other creditors                                   -3752               -4118 

  Provisions for liabilities and charges              -87                 -88 

                                                     3808                6268 

  Capital and reserves                                                        

  Share capital                                      8696                8696 
 
  Share premium                                      2581                2581 

  Capital redemption reserve                          122                 122 

  Revaluation reserve                                1606                1606 

  Foreign currency translation reserve                 95                 117 

  Profit and loss account - deficit                 -9292               -6854 

  Equity shareholders' funds                         3808                6268 


  Notes  
                                                                     
  1. Fixed asset investments

     The fixed asset investments comprise the Kestrel (formerly Gordonstone)  
     and Crinum royalty and the holding in Brancote Holdings PLC. All fixed   
     asset investments are stated at cost to the Group.                       
     The company commissioned a valuation of the coal royalty in June 2000 on 
     a discounted cashflow basis which produced a valuation of £26.8 million  
     (A$67.6 million), a surplus of £24.3 million over the book amount. Were  
     the coal royalty to be realised at the revalued amount there are         
     £12.3 million (A$30.4 million) of capital losses potentially available to
     offset against taxable gains. Neither the revalued amounts nor the       
     related potential tax liabilities are incorporated in the accounts.      

  2. Basis of preparation

     These unaudited accounts, which do not constitute statutory accounts,    
     have been prepared using accounting policies set out in the Group's 1999 
     statutory accounts. The financial statements have been subject to a      
     review by the Group's auditors. The 1999 accounts received an            
     unqualified auditor's report and have been delivered to the Registrar of 
      Companies.                                                              

  3. Loss per ordinary share

     The loss per ordinary share is calculated on the Group's loss after tax  
     of £2,438,000 and 86,962,955 shares. Diluted loss is calculated on a loss
     after tax of £2,401,881 and 93,204,600 shares.                           

  4. Post balance sheet event

     On 22nd September 2000 Anglo Pacific Group plc concluded the disposal of 
     Fife Silica Sands Ltd and Fife Resources Ltd (formerly Anglo Pacific     
     Resources Ltd). A deficit of £3,014,000 between the carrying value of the
     assets disposed of and the disposal proceeds is incorporated in the above
     interim accounts.                                                        

  5. This statement will be sent to shareholders and will be available at the 
     Company's registered office at 29 Albemarle Street, London W1X 3FA.      


                                                   
  CONSOLIDATED CASH FLOW STATEMENT                                            
  FOR THE SIX MONTHS ENDED 30th JUNE 2000                                     

                                                                   Year ended 
                                   Six months      Six months            31st 
                                   ended 30th      ended 30th        December 
                                         1999            1999            1999 
                                        £'000           £'000           £'000 

  Net cash inflow from operating                                              
  activities                              235             411             906 

  Interest paid                          -232            -197            -392 

  Tax paid                               -136            -268            -396 

  Capital expenditure and                                                     
  financial investment                    329            -604            -825 

  Equity dividends paid                     0               0             -84 

  Net cash inflow/(outflow)                                                   
  before financing                        196            -658            -791 

  Net cash (outflow)/inflow from                                              
  financing                              -442             229              37 

  (Decrease) in cash                     -246            -429            -754 



  RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOW                   

                                   Six months    Six months    Twelve months 
                                         2000          1999             1999 
                                        £'000         £'000            £'000 

  Operating profit                       1008           448              688 

  Depreciation                            217           175              408 

  (Gain) on sale of tangible                                                 
  fixed assets                           -484           -43             -271 
 
  Net (increase)/decrease in                                                 
  working capital                        -506          -169               81 

                                          235           411              906 



INDEPENDENT REVIEW REPORT TO ANGLO PACIFIC GROUP PLC


Introduction
 
We have been instructed by the company to review the financial information
set out on pages 2 to 6 and we have read the other information contained in
the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
 

Directors' responsibilities
 
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
 

Review work performed
 
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions, it is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on
the financial information.
 

Review conclusion
 
On the basis of our review we are not aware of any material modifications
that should be made to the financial information as presented for the six
months ended 30 June 2000.
 
HLB Kidsons                                             Breckenridge House
Registered Auditors                                     274 Sauchiehall Street
Chartered Accountants                                   Glasgow
Date                                                    G2 3EH