# Anglo Pacific Group plc Q&A with CEO Julian Treger (LON:APF)

- Link: https://www.directorstalkinterviews.com/anglo-pacific-group-plc-qa-ceo-julian-treger-lonapf/412739788
- Published: 2017-11-13T11:09:58+00:00
- Author: Amilia Stone

**Anglo Pacific Group plc** (LON:APF) Chief Executive Officer Julian Treger caught
up with DirectorsTalk for an exclusive interview to discuss their recent trading
update

 

**Q1: We note a trading update released for the period 1st July to 9th November 
2017, can you talk us through some of the main highlights?**

**A1**: With pleasure, yes. I think we saw in this quarter another strong period
of growth year-on-year and the highlight in particular which was in part helped 
by one-off events was the tripling of our cash flow from around £5 million to around
£15 million, just for the quarter. That also was accompanied by a doubling of the
income that was generated from our royalty portfolio and as a result of all of that,
despite acquisitions, net cash position improved significantly from around £500,000
of debt to just over £6 million of net cash at the end of the quarter.

 

**Q2: What have been the key drivers in the increase for Anglo Pacific Group?**

**A2**: I think the key drivers have been actually higher than expected commodity
prices, in particularly both thermal and coking coal, which are two significant 
parts of our portfolio, have been much stronger than people expected at the beginning
of the year and certainly year-on-year, they continued to show very strong increases.
I think that’s also coupled with the fact that our share of the royalties from the
Kestrel royalty which is a significant part of our portfolio has gone up year-on-
year and we are close to 100% now for the next years, maybe 8-10 years.

On top of that, we always have, fortunately, some exposure to vanadium which has
been one of the commodities favoured for storage of electricity in relation to electric
batteries and that’s also shown significant like-for-like growth.

Finally, we did make an acquisition at the beginning of the year which is also contributing
to the like-for-like comparison.

 

**Q3: As you mentioned, you are in a net cash position of £6.2 million, do you have
your eyes on any further acquisitions down the line?**

**A3**: Yes, I would hope that we could try and execute on one more investment by
the end of year and we continue to believe that we’re in the beginnings of the recovery
phase of the super cycle and we should accelerate the rate in which we make new 
royalty investments. So, if we could do three this year, hopefully we can do more
next year.

 

**Q4: In terms of other news, what can we expect to see over the next quarter from
Anglo Pacific Group?**

**A4**: I think we actually expect Q4 to be hopefully the strongest quarter of the
year and we see a strong finish to the 2017 period. As I said, we expect to see 
an acquisition hopefully during the period as well and that will inform our decision
as to how we deal with the dividends for the full calendar year. So, investors should
expect a change in dividend, hopefully upwards, for Q4 which will be announced at
the beginning of next year.

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