Anglo Pacific achieves record royalty income

published 22 February 2012

The commodities royalites firm Anglo Pacific says royalty income rose 17% through 2011, giving it headroom to raise the final dividend by 7.8%.

Anglo Pacific makes money by taking stakes in natural resource projects, usually early in the development stage, and then derives a royalty income when the mine swings into production.

In 2011 it received £35.1m in royalties, up from £30.1m in 2010. The final dividend will rise to 5.5p per share versus the 5.1p paid in 2010. The total dividend has risen 7.7% to 9.75p per share.

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Anglo Pacific also saw operating profit rise to £32.3m compared to £27.9m in the prior year although sales of mining and exploration interests were down 51% to £20.3m. That slow down in sales reduced profits before tax to £49m, a fall of 26%.

Profits attributable to shareholders were £36.7m in 2011 compared to the £56.3m achieved in 2010. Earnings per share fell from 51.99p to 33.87p, a drop of 35%.

Anglo Pacific's Chairman, Peter Boycott said of the results:

"We are pleased to announce a record year for our royalty income, as Anglo Pacific continues to make progress with its strategy of developing a leading portfolio of royalties. During the year we have increased and diversified our portfolio with three new royalties, further delivering on our stated strategy."

The group's shares gained 1.6% at the open. Over the past 12 months the stock has fallen 2.5%.