2014 
annual report  accounts
anglo pacific group plc
transforming through 
growth and diversification
apg11  ar14  240315  front  proof 7 apg11  ar14  240315  front  proof 7 performance measures
throughout the strategic report we use a number of financial measures to assess our 
performance the measures are defined on page 107 
third party information
as a royalty holder the group often has limited if any access to nonpublic scientific and 
technical information in respect of the properties underlying its portfolio of royalties or such 
information is subject to confidentiality provisions as such in preparing this annual report 
the group has relied upon the public disclosures of the owners and operators of the 
properties underlying its portfolio of royalties as available at the date of this annual report
references in this annual report to websites are made as inactive textual references and 
for informational purposes only information found at the relevant websites is not 
incorporated by reference into this annual report the group makes no representation as  
to the accuracy of any such information
cautionary statement on forwardlooking statements and related information
certain statements in this annual report other than statements of historical fact are 
forwardlooking statements based on certain assumptions and reflect the group’s 
expectations and views of future events forwardlooking statements which include the 
phrase ‘forwardlooking information’ are provided for the purposes of assisting readers in 
understanding the group’s financial position and results of operations as at and for the 
periods ended on certain dates and of presenting information about management’s current 
expectations and plans relating to the future readers are cautioned that such 
forwardlooking statements may not be appropriate other than for purposes outlined in this 
annual report these statements may include without limitation statements regarding the 
operations business financial condition expected financial results cash flow requirement 
for and terms of additional financing performance prospects opportunities priorities 
targets goals objectives strategies growth and outlook of the group including the outlook 
for the markets and economies in which the group operates costs and timing of acquiring 
new royalties mineral reserve and resources estimates estimates of future production 
production costs and revenue future demand for and prices of precious and base metals and 
other commodities for the current fiscal year and subsequent periods 
forwardlooking statements include statements that are predictive in nature depend upon 
or refer to future events or conditions or include words such as ‘expects’ ‘anticipates’ 
‘plans’ ‘believes’ ‘estimates’ ‘seeks’ ‘intends’ ‘targets’ ‘projects’ ‘forecasts’ or negative 
versions thereof and other similar expressions or future or conditional verbs such as ‘may’ 
‘will’ ‘should’ ‘would’ and ‘could’ forwardlooking statements are based upon certain 
material factors that were applied in drawing a conclusion or making a forecast or 
projection including assumptions and analyses made by the group in light of its experience 
and perception of historical trends current conditions and expected future developments as 
well as other factors that are believed to be appropriate in the circumstances the material 
factors and assumptions upon which such forwardlooking statements are based include 
the stability of the global economy the stability of local governments and legislative 
background the relative stability of interest rates the equity and debt markets continuing to 
provide access to capital the continuing of ongoing operations of the properties underlying 
the group’s portfolio of royalties by the owners or operators of such properties in a manner 
consistent with past practice the accuracy of public statements and disclosures including 
feasibility studies 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 forwardlooking statements are not guarantees of 
future performance and involve risks uncertainties and assumptions which could cause 
actual results to differ materially from those anticipated estimated or intended in the 
forwardlooking statements
by its nature this information is subject to inherent risks and uncertainties that may be 
general or specific and which give rise to the possibility that expectations forecasts 
predictions projections or conclusions will not prove to be accurate that assumptions may 
not be correct and that objectives strategic goals and priorities will not be achieved  
a variety of material factors many of which are beyond the group’s control affect the 
operations performance and results of the group its businesses and investments and  
could cause actual results to differ materially from those suggested by any forwardlooking 
information such risks and uncertainties include but are not limited to current global 
financial conditions royalty portfolio and associated risk adverse development risk 
financial viability and operational effectiveness of owners and operators of the relevant 
properties underlying the group’s portfolio of royalties royalties subject to other rights and 
contractual terms not being honoured together with those risks identified in the ‘principal 
risks and uncertainties’ section herein and the other risks identified in the ‘risk factors’ 
section of the group’s most recent annual information form available on wwwsedarcom 
and the group’s website wwwanglopacificgroupcom if any such risks actually occur they 
could materially adversely affect the group’s business financial condition or results of 
operations readers are cautioned that the list of factors noted in the section herein  
entitled ‘risk’ is not exhaustive of the factors that may affect the group’s forwardlooking 
statements readers are also cautioned to consider these and other factors uncertainties 
and potential events carefully and not to put undue reliance on forwardlooking statements
this annual report also contains forwardlooking information contained and derived from 
publicly available information regarding properties and mining operations owned by third 
parties the group’s management relies upon this forwardlooking information in its 
estimates projections plans and analysis although the forwardlooking statements 
contained in this annual report are based upon what the group believes are reasonable 
assumptions there can be no assurance that actual results will be consistent with these 
forwardlooking statements the forwardlooking statements made in this annual report 
relate only to events or information as of the date on which the statements are made and 
except as specifically required by applicable laws listing rules and other regulations the 
group undertakes no obligation to update or revise publicly any forwardlooking 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
us employment retirement income security act
fiduciaries of i us employee benefit plans that are subject to title i of the us employment 
retirement income security act of 1974 erisa ii individual retirement accounts keogh 
and other plans that are subject to section 4975 of the us internal revenue code of 1986 as 
amended the internal revenue code and iii entities whose underlying assets are deemed 
to be erisa ‘plan assets’ by reason of investments made in such entities by such employee 
benefit plans individual retirement accounts keogh and other plans collectively referred to 
as benefit plan investors should consider whether holding the company’s ordinary shares 
will constitute a violation of their fiduciary obligations under erisa or a prohibited 
transaction under erisa or the internal revenue code shareholders should be aware that 
the assets of the company may be or become treated as ‘plan assets’ that are subject to 
erisa fiduciary requirements andor the prohibited transaction rules of erisa and the 
internal revenue code the company’s ordinary shares are subject to transfer restrictions 
and forced transfer provisions that are intended to prevent among other things the assets 
of the company from being deemed to be ‘plan assets’ under erisa shareholders who 
believe these provisions may be applicable to them should review these restrictions which 
are set forth in the company’s articles of association and should consult their own counsel 
regarding the potential implications of erisa the prohibited transaction provisions of the 
internal revenue code or any similar law in the context of an investment in the company  
and the investment of the company’s assets
 
01
  
group overview
 02 mining royalties explained
 03 anglo pacific at a glance
 04 our royalty portfolio
 06 chairman’s statement
 
08
  
strategic report
 08 market overview
 10 our strategy
 12 principal risks and uncertainties
 14 chief executive officer’s statement
 16 our business model
 18 case study – narrabri acquisition
 20 corporate social responsibility
 22 business review
 32 key performance indicators
 33 financial review
 
36
  
governance
 36 corporate governance
 37 the board
 40 nomination committee
 41 audit committee
 44 remuneration committee
 45 directors’ remuneration report
 57 directors’ report
 59 statement of directors’ responsibilities 
 
62
  
financial statements
 62 independent auditor’s report
 65 consolidated income statement
 66 consolidated statement of comprehensive income
 67 consolidated and company balance sheets
 68 consolidated statement of changes in equity
 69 company statement of changes in equity
 70 consolidated cash flow statement and  
  company cash flow statement 
 71 notes to the consolidated financial statements
  
107
  
other information
107  performance measures
107 shareholder statistics
108 directory
contents our aim
to develop as a leading 
international diversified royalty 
company with a portfolio  
centred on base metals and  
bulk materials
anglo pacific group plc ‘anglo pacific‘ the ‘company’  
or the ‘group‘ is the only listed company on the london 
stock exchange focused on royalties connected with the 
mining of natural resources our strategy is to build a 
diversified portfolio of royalties focusing on accelerating 
income growth through acquiring royalties in cash or 
nearterm cash producing assets
it is an objective of the company to pay a substantial 
portion of these royalties to shareholders as dividends
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 01
group overview a mining royalty is a nonoperating 
interest in a mining project that  
provides the royalty holder with the 
right to a proportion of revenue profit  
or production 
historically royalties originated as a 
result of the sale of a mineral property 
allowing the seller to retain some 
ongoing economic participation in the 
property however an increasing 
number of royalties are now created 
directly by operators and developers as  
a source of finance a royalty holder is 
not generally obligated to contribute 
towards operating or capital costs nor 
environmental or reclamation liabilities
types of royalties
the group’s royalties are mostly revenue or 
productionbased royalties typically these 
royalties are either gross revenue royalties or 
net smelter return royalties each of which can 
be described as follows 
grr   
gross revenue royalty 
a grr entitles the royalty holder to a fixed 
portion of the gross revenues generated from  
the sales of mineral production from a property 
in calculating a grr payment deductions if any 
applied by the property owner to reduce the 
royalty payment are usually minimal and grrs 
are therefore the simplest form of royalty to 
account for and implement
nsr   
net smelter return royalty
an nsr entitles the royalty holder to a fixed 
portion of the net revenues received from a 
smelter or refinery from the sales of mineral 
production from a property after the deduction of 
certain offsite realisation costs typical realisation 
costs include those related to transportation 
insurance smelting and refining these 
deductions are generally higher in base metals 
mines due to the semifinished product such as 
concentrate often being produced at the mine 
site when compared to precious metals mines 
which produce a nearlyfinished product on site
primary versus secondary royalties
primary royalties are entered into between a 
royalty company and the property owner directly 
where the property owner grants a royalty to  
the royalty company in return for one or more 
upfront cash payments from the royalty 
company in contrast secondary royalties are 
existing royalties that are acquired from a third 
party with no payment made to the owner of  
the underlying property
group overview
mining royalties explained 
  grr examples in royalty  
 portfolio on page 5
  nsr examples in royalty  
 portfolio on page 5
anglo pacific group plc  annual report  accounts 2014 02
apg11  ar14  240315  front  proof 9  
anglo pacific at a glance
 · listing london stock exchange primary and toronto stock exchange secondary
 · 10 principal royalty assets across five continents
 · over 80 of royalties by value across five commodities are in production
 · key royalty asset in kestrel a tier 1 coking coal mine in australia operated  
and majorityowned by rio tinto
 · net assets at december 31 2014 of £1613m
 · acquisition of narrabri royalty for us650m in march 2015 along with  
us950m financing package 
delivering longterm returns to shareholders
diversified portfolio of royalties
020109 020110 020111 020112 020113 020114 020115
affordable and maintainable 
dividends
ftse 350 mining index vs anglo pacific group  
2009  2015
2
0
4
6
8
10
12
dividend per share 
p
09 10 11 12 14
835
905
975
1020
845
100
150
200
250
300
350
400
rebased  
to 100
13
1020
commodity exposure 
31122014
coking coal  683
iron ore  102
gold  87
uranium  25
other  103
commodity exposure 
post narrabri
coking coal  542
thermal coal 206
iron ore  81
gold  69
uranium  20
other  82
geographic exposure 
31122014
australia  753
brazil 102
spain 44
canada 30
other  71
geographic exposure 
post narrabri
australia  804
brazil 81
spain 35
canada 24
other  56
anglo pacific group plc  annual report  accounts 2014 03
group overview
apg11  ar14  200315  front  proof 6
ftse 350 mining anglo pacific group group overview
our royalty portfolio
1
2
4
6
3
7
9
10
8
5
our principal royalties
earlystage 
royalties
8
  
pilbara 
9
  
ring of fire 
10
  
dugbe 1 
producing  
royalties
1
  
kestrel
2
  
narrabri
3
  
maracás
4
  
four mile
5
  
el valleboináscarlés
6
  
amapá  tucano
development  
royalties
7
  
salamanca
anglo pacific group plc  annual report  accounts 2014 04
apg11  ar14  240315  front  proof 9 1 kestrel 7 of value up to a100tonne 125 of the value over a100tonne and up to a150tonne 15 thereafter
2 evbc 25 escalates to 3 when the gold price is over us1100 per ounce
3 tucano 1 grr is only on iron ore and other nonprecious metals other than copper the company is also entitled to royalties over a number of concessions  
 governed by a joint exploration agreement between zamin and beadell the royalty rate for these royalties is either 07 or 1 depending on the concession
4 dugbe 1 2 except where both the average gold price is above us1800 per ounce and sales of gold are less than 50000 ounces in which case it  
 increases to 25 in respect of that quarter  
5 this becomes a royalty upon the operator obtaining a mining licence
royalty description 
royalty  commodity operator location royalty rate balance sheet  
     and type classification
1
 
kestrel  coking   rio tinto australia 7 – 15 grr 
1
 investment 
  thermal coal    property 
2
 
narrabri thermal   whitehaven australia 1 grr royalty 
  pci coal coal   intangible
3
 
maracás vanadium largo brazil 2 nsr royalty 
   resources   intangible
4
 
four mile  uranium quasar australia 1 nsr royalty  
   resources    intangible
5
 
el valle gold copper orvana spain 25 – 3 nsr 
2
 royalty   
 boinás and silver minerals   financial 
 carlés     instrument
6
   
amapá  iron ore zamin ferrous brazil 1 grr 
3
 royalty 
  tucano  beadell   intangible 
   resources 
7
   
salamanca uranium berkeley spain 1 nsr royalty 
   resources    intangible
8
   
pilbara iron ore bhp billiton australia 15 grr royalty 
      intangible
9
   
ring of fire chromite cliffs natural canada 1 nsr royalty  
  resources     intangible
10
   
dugbe 1 gold hummingbird liberia 2 – 25 nsr 
4
 loan 
5
 
  resources
producing
earlystage
development
anglo pacific group plc  annual report  accounts 2014 05
group overview
apg11  ar14  240315  front  proof 9 group overview 
chairman’s statement
2014 has been a challenging year  
for anglo pacific and its shareholders  
we have suffered not just from the 
wider travails of the mining sector but 
also from an overreliance on one asset 
our kestrel royalty where during the 
year mining took place mostly outside 
our royalty lands while this trend at 
kestrel is expected to reverse during  
the current year and beyond in 2014  
it resulted in a fall of £112m in royalty 
income to £35m and an operating  
loss of £28m 2013 operating profit 
£106m
noncash impairments and revaluations totalling 
£434m 2013 £569m led to an overall loss 
before tax of £424m 2013 loss £529m
dividends
one direct consequence of the fall in our royalty 
income was our decision to review our dividend 
policy as stated in our announcement of 
february 4 2015 we as a board are committed 
to a progressive dividend policy but one that is 
affordable and appropriate we are therefore 
recommending a final dividend for the year ended 
december 31 2014 of 4p per share longer term 
we intend to adopt a policy of paying dividends  
of at least 65 of adjusted earnings with an 
expectation that there will be a minimum annual 
total dividend of 8p per share per annum
the overreliance on kestrel has reinforced  
the need to diversify our royalty portfolio it was 
therefore with great pleasure that we were able 
to announce the acquisition of the narrabri royalty 
in february 2015 which is a first major step down 
the diversification route and will hopefully provide 
a springboard for further progress down that path 
in the months and years ahead increased 
diversification will help smooth our income flow 
year on year and enable us to pay maintainable 
and progressive dividends to our shareholders
share price
in the fundraising associated with the narrabri 
royalty acquisition it was encouraging to see  
the level of support from existing shareholders  
we are very grateful for the confidence shown 
to both the company and its strategy particularly 
given the performance of the company’s share 
price which has more than halved during the 
year the board is confident that as soon as 
there is a more positive sentiment towards the 
mining sector there should be a recovery in our 
share price underpinned as it is by a healthy 
dividend yield and the current discount to net 
asset value the board demonstrated this 
confidence by committing significant sums  
to the recent fundraising
narrabri 
acquisition of the narrabri royalty  
in march 2015 a first major step  
down the diversification route 
anglo pacific group plc  annual report  accounts 2014 06
apg11  ar14  240315  front  proof 9 board
2014 has seen significant changes to the board 
the sad death of peter boycott the retirements  
of brian wides john whellock and michael 
atkinson the appointment of robert stan and 
my appointment as nonexecutive chairman 
were dealt with in last year’s annual report  
i should like however to pay a particular tribute  
to brian wides brian joined the board in 1997 
and held many positions including finance 
director chief executive and finally acting 
chairman the anglo pacific of today is the 
result of brian’s energy industry knowledge  
and commercial acumen working in tandem 
with peter boycott with whom he formed a 
formidable partnership
since then paul cooke has stepped off the board 
and i should like to thank him for his contribution 
to the group during his time with us we have 
appointed rachel rhodes and david archer as 
nonexecutive directors rachel is a chartered 
accountant and has over 15 years of mining 
experience including time with anglo american 
plc and london mining plc david has over  
34 years of resources industry experience 
covering most parts of the world he is currently 
chief executive of aimlisted savannah resources 
plc with involvement in a mineral sands project  
in mozambique and a copper project in oman 
rachel and david have already made significant 
contributions to the deliberations of the board
anthony yadgaroff has advised that he intends 
to step down from the board on december 31 
2015 after almost 13 years’ service i should  
like to take the opportunity now to thank him for 
his hard work diligence and sage advice during 
that period
our strategic report
our 2014 strategic report from pages 8 to 35 
was reviewed and approved by the board of 
directors on march 24 2015
outlook
while the mining sector continues to have its 
challenges that in itself brings opportunities for 
anglo pacific with the addition of the narrabri 
royalty and the associated fundraising we have 
demonstrated our ability to source and conclude 
significant acquisitions we therefore see 
ourselves as ideally placed to take advantage of 
future opportunities as they present themselves
in conclusion i should like to thank all directors 
and staff for their diligence and hard work during 
what has been a challenging year
on behalf of the board
wm blyth
chairman
march 24 2015
opportunities 
we see ourselves as ideally placed to  
take advantage of future opportunities as  
they present themselves
anglo pacific group plc  annual report  accounts 2014 07
group overview
apg11  ar14  240315  front  proof 9 strategic report 
market overview
current market opportunity for royalty 
and streaming companies
over the past few years the mining industry  
has faced increased funding challenges many 
mining projects have suffered from high cost 
inflation and budget overruns the directors 
believe that ma activity at the peak of the  
last economic cycle resulted in a substantial 
increase in leverage across global miners which 
in a falling commodity price environment has 
resulted in substantial declines in earnings  
and reduced balance sheet flexibility this is 
reflected in the net debt to ebitda multiple  
for the bloomberg world mining index which 
increased from 08x in 2010 to 18x in 2014  
the directors believe that this has had an  
impact on share price performance as two  
of the most capital intensive sectors within  
the mining industry the directors believe that  
base metals and bulk materials producers  
have been under additional pressure
falling commodity prices have put junior miners 
under increasing financial strain with limited 
access to capital this was further compounded 
by the operations of junior miners typically being 
carried out at a higher cost of capital than major 
mining companies
during 2014 the selloff in the mining sector 
had a significant impact on the mining equity 
markets global mining equity issuance in 2014 
amounted to us170bn representing a small 
increase of 4 from 2013 and a decrease of 
14 from 2012
1
lending to the global mining industry has also 
been impacted for example there has been  
a notable decrease in high yield debt issuance  
by the mining industry over the past two years 
down 38 from us146bn in 2011 to 
us91bn as of the end of 2014
accordingly given the funding challenges facing 
the mining industry demand has increased for 
alternative forms of financing including royalty 
financing the financing provided by the royalty 
and streaming industry has grown considerably 
in recent years with upfront payments totalling 
more than us2bn in each of 2012 and 2013
source
1 global mining equity issuance dealogic
2 global mining high yield debt issuance company filings bloomberg lcd news
3 royalty and stream payments in 2012 and 2013 company filings of silver wheaton corp 
sandstorm gold ltd franconevada corp anglo pacific group plc royal gold inc
15
10
5
0
global high yield debt issuance
 2
usbn
60
40
20
0
mining industry transactions
 3
 
total proceeds in usbn   number of deals
560
401
198
09 10 11 11 12 12 13 13 14 14
164
170
91
88
124
146
468
827
1076
884
657
423
557
anglo pacific group plc  annual report  accounts 2014 08
apg11  ar14  240315  front  proof 9 source
4 aggregate market cap of the top listed precious metals royalty companies in 2013 silver wheaton corp franconevada corp 
royal gold inc factset 21 march 2014
5 global mining production by value global mining perspective arctic cluster of raw materials conference intierrarmg  
report 26 september 2013 bmo global commodities research 10 november 2013
nonprecious royalties and anglo pacific’s 
competitive landscape
financing provided by the royalty and streaming 
industry has grown considerably in recent years 
nevertheless the industry’s historical focus on 
precious metals is disproportionately channelling 
investment into only a small part of the mining 
industry the aggregate market capitalisation of 
the top listed precious metals royalty companies 
in 2013 was approximately us20bn yet gold and 
silver producers constituted only approximately 
11 of global mining production by value
4
  
anglo pacific intends to focus on those nongold 
and silver producers that comprise approximately 
89 of global mining production by value
5
  
and which the directors believe are not well 
serviced by the royalty and streaming industry 
the directors believe that the universe of 
opportunities should be significantly larger in 
these markets than that for precious metals
the nonprecious royalty space does not benefit 
from dedicated golddenominated funds and  
so companies operating in the sector typically 
seek capital backing from investors with more 
alternatives as to where they are able to invest 
furthermore there is much less competition for 
nongold and silver royalties and anglo pacific 
believes there will continue to be a favourable 
supplydemand imbalance particularly in relation 
to secondary royalties the lower competition 
that results from the imbalance should lead to 
better pricing for the buyer in contrast there is 
a relatively large universe of companies focused 
on the silver and gold sector and they compete 
vigorously for the limited supply of new royalties 
coming onto the market driving down the yields 
which the royalties produce the directors 
believe that this may result in nonprecious 
royalties generally transacting at higher yields 
than precious royalties
2013 global mining production by value
coal 50
other 13
copper 9
gold 9
iron ore 19
anglo pacific group plc  annual report  accounts 2014 09
strategic report
apg11  ar14  240315  front  proof 9 1
aim
to develop as a leading  
international diversified royalty 
company with a portfolio centred  
on income producing base metals  
and bulk materials royalties
2
strategy
achieving our aim through  
acquisition of both primary  
and secondary royalties
3
criteria
achieving strategy through 
acquisitions which satisfy  
these criteria
 · established natural resources jurisdictions
 · longlife assets
 · highquality and lowcost assets
 · nearterm producing assets
 · production and exploration upside potential
 · strong operational management teams
 · diversification of royalty portfolio
4
goal
executing the strategy will  
result in additional cash producing 
royalties a substantial proportion 
of whose cash flows will be paid  
to shareholders as dividends
  see our latest acquisition  
 on page 18
the group is 
progressing towards 
achieving its strategy 
as demonstrated by  
the recently announced 
narrabri royalty 
acquisition
strategic report
our strategy
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 10 established natural resources  
jurisdictions
the group continues to review potential  
business opportunities globally and in order to 
manage its risk profile the group intends to 
focus predominantly on mines in established 
relatively lowrisk mining jurisdictions primarily 
those in north america south america europe 
and australia as at december 31 2014 93  
of the group’s existing assets were based in  
such jurisdictions
longlife assets
long mine life assets can provide longterm 
revenue which in turn can contribute to ensuring 
that acquisitions to replace depleted royalties 
and maintain cash flow are not required on a 
regular basis three of the royalties in the 
group’s existing portfolio are over mines that 
have reserves of 20 years or more
highquality and lowcost assets
the group is also focused on ensuring that new 
royalties are over highquality and lowcost 
operations this helps ensure longevity of cash 
flows by reducing the risk of mining operations 
ceasing to be economically viable within its 
existing portfolio the group has exposure to low 
cash cost assets in the kestrel and maracás 
mines kestrel’s costs are expected to fall further 
in 2015 once the mine achieves its forecast run 
of mine production of 57mt per year the 
recently acquired maracás royalty demonstrates 
management’s stated aim to focus on lowcost 
operations as the mine’s forecast cash cost is 
lower than historical vanadium prices since 2007 
nearterm producing assets
building on the critical mass and revenue  
stream derived from its existing portfolio of 
royalties the group is seeking to grow its 
portfolio by investing in producing or near 
term producing assets
production and exploration  
upside potential
the group seeks to acquire royalties where  
it may benefit from improvements made to  
the scale of mining operations any increases  
in production can result in higher royalty 
payments without requiring the group to 
contribute to the cost of expanding or optimising 
the operation royalties can also benefit from 
exploration successes that lead to enlarged 
economic reserves increased reserves can 
extend a mine’s life or facilitate an expansion  
of the existing operations potentially providing 
higher revenue over a longer period
strong operational management  
teams
strong operational management teams are 
integral to delivering a successful project and  
to optimising the value of a mine and therefore  
a royalty the group’s current royalty portfolio 
includes mines operated by highly experienced 
management teams
diversification of royalty  
portfolio
the group is seeking to build a diversified 
portfolio of royalties across a variety of different 
commodities and geographic locations to reduce 
dependency on its cornerstone royalty kestrel
the group’s target portfolio would result in an 
increased exposure across various base metals 
and bulk materials the group may also selectively 
pursue royalties in energy commodities such  
as uranium and oil and gas as well as other 
commodities such as platinum group metals  
and precious stones
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 11
strategic report strategic report 
principal risks and uncertainties 
external risks
risk description mitigation
whilst limiting a number of the risks associated with traditional mining and 
commodity investments royalty ownership is exposed to a number of risk factors  
an optimised selection of royalty investments within a balanced portfolio should 
nevertheless help to mitigate these anglo pacific also undertakes measures to  
seek to further mitigate the key risks related to its strategy as much as possible
commodity prices
changes in the prices of the commodities that underlie 
the group’s royalties are outside the control of the group 
and may directly impact revenue and profitability 
a fall in commodity price is partially mitigated by virtue  
of the relatively low fixed cost base of the group as it is  
not an operator nor has it any hedging contracts to fulfil
although commodity price increases will enhance 
profits periods of commodity price declines can 
represent an ideal time for royalty investment
dependence on operators
it may be difficult or impossible for the group to ensure 
that the projects on which it has royalties are developed 
or operated in the group’s best interest
the group has and will continue to have limited access 
to information data and disclosure regarding the 
operation of the underlying projects which affects the 
group’s ability to assess the underlying performance
the group depends on the operator for the accurate 
calculation and timely payment of royalties 
the group conducts detailed due diligence on all 
investments which will often include a site visit by 
suitably qualified personnel that will highlight any 
economic operational or environmental concerns 
further newly created royalties can be tailored to allow  
for performance milestones to try to ensure that the 
operator performs as intended  
certain of the group’s royalty agreements provide the 
group with change of control protection and audit rights 
both of which provide some assurance over the receipt 
and accuracy of royalty income
  
achieving investment projections
the group’s success largely depends upon its ability to 
acquire royalties at appropriate valuations
this success is based on the accuracy of investment 
assumptions regarding the estimates of mineral reserves 
and resources and the production estimates of mine 
operators as well as the group’s ability to make accurate 
assumptions regarding the valuation timing and amount  
of revenues to be derived from its royalties particularly 
with respect to royalties on development stage properties
unknown defects in or disputes relating to the royalties 
the group holds may prevent it from realising all of the 
anticipated benefits from its royalties 
the directors have significant experience of investing  
in the mining industry and have considerable expertise  
in assessing the forward demand for commodities  
the group uses consensus or lower forecasts when 
valuing all royalty investments which reduces the risk of 
underperformance and a site visit is undertaken where 
possible to assess the viability of the underlying project
the executive committee regularly reviews the group’s 
financial performance including the royalty income on a 
month by month basis for any sign of underperformance
financial covenants associated with secured debt
the group’s borrowings are secured and subject to 
certain financial covenants the failing of which could 
impact on the ability of the group to continue to run  
its business independently
indebtedness may increase the group’s vulnerability to 
general adverse economic and industry conditions or 
require the group to dedicate a substantial portion of its 
cash flow from operations and proceeds of any equity 
issuances to payments on its indebtedness rather than 
for example on new acquisitions or dividend payments 
any of which may place the group at a competitive 
disadvantage to its competitors that may have less debt 
the group has a conservative approach to borrowings 
and sets internal leverage limits which are relatively low 
compared to the financial limits permitted by the loan 
agreements
the group prepares regular cash flow projections which 
include forward covenant projections such that timely 
action can be taken if headroom deteriorates
anglo pacific group plc  annual report  accounts 2014 12
apg11  ar14  240315  front  proof 9 financial risks 
liquidity risk
risk description mitigation
the group seeks to ensure that it can meet all of its 
obligations as they fall due by preparing regular cash flow 
projections and highlighting any currency requirements 
well in advance of settlement the group has a strong 
balance sheet with us240m currently undrawn on the 
us300m threeyear revolving credit facility secured in 
february 2015 and potential access to the capital markets 
to provide additional funding to meet its obligations as 
well as its investment objectives  
the group operates controlled treasury policies which 
spreads the concentration of the group’s cash balances 
amongst separate financial institutions with high credit 
ratings the group’s credit risk on monies advanced  
to explorers and operators is taken into account when 
assessing the fair value of these assets at each reporting 
date for receivables the group presents these on  
the balance sheet net of any amount for doubtful debt 
as these primarily relate to the kestrel royalty the  
credit risk is minimal due to the world class nature of  
the operator
the group’s main foreign currency exposure is to the us 
dollar as this is the currency in which most of the group’s 
royalty revenue is derived with respect to royalty 
acquisitions the group is exposed to foreign exchange 
risk when raising equity in pound sterling and transacting 
in us dollars the directors take this into account as part 
of the financing strategy of each royalty acquisition
the group has limited exposure to interest rate risk  
and its threeyear revolving credit facility is unhedged
the value of the group’s royalties is underpinned by 
commodity prices which may affect the future expected 
cash flows this is taken into account at each reporting 
date in assessing for impairment the group has a 
portfolio of junior mining equity investments which 
fluctuate in value based on the active quoted share price 
the reduction in value of the portfolio over the last few 
years has resulted in a full impairment of unrealised 
losses such that any further pricing risk should be much 
less material to the group
credit risk
foreign exchange risk
interest rate risk
other pricing risk
anglo pacific group plc  annual report  accounts 2014 13
strategic report
apg11  ar14  240315  front  proof 9 strategic report 
chief executive officer’s statement
starting to deliver on our strategy
the narrabri acquisition and associated  
fundraise achieved several objectives at once 
• we should significantly enhance our income 
for 2015 a year during which we expect 
kestrel’s royalties to recover year on year but 
during which our income will still be below  
its ultimate expected run rate 
• we diversified our dependence away from  
a sole asset from coking coal and from one 
operator whilst maintaining our focus on  
highquality jurisdictions like australia  
• we brought a number of significant new 
institutional shareholders on to the shareholder 
register who we hope will be supportive for 
future opportunities  
• we acquired a very longlife and highquality 
royalty which should be generating royalty 
income until close to 2040 well after mining 
moves permanently outside our private royalty 
lands at kestrel
• we have also bolstered our financial resources 
such that we now have significant capacity  
in order to continue to deliver on our strategy 
to acquire new royalties which in turn will 
support our dividend policy
the strategic report includes a case study on  
 page 18  which illustrates the strategic criteria 
achieved by the acquisition of the narrabri royalty
the narrabri acquisition came on the back of the 
smaller maracás royalty acquisition in the middle 
of last year which itself was followed by the 
retention of a royalty over the assets of atrum 
coal in canada in the third quarter following the 
sale of our panorama coal licences
i am pleased to report that following the 
completion of the narrabri royalty acquisition 
the group will have six royalties which are in 
production compared to just three when i joined 
18 months ago thus the transformation strategy 
is beginning to bear fruit though there are many 
more steps on the road ahead
challenging environment
despite this achievement 2014 as a year was  
a challenging one for our company and for  
the natural resources sector the continued 
weakening of growth in emerging economies 
together with a slower than expected recovery 
in the world economy saw further softening in 
the demand for commodities as a result there 
were sharp declines in the prices for most of  
the commodities the group’s royalties are 
generated from
even with the group’s derisked royalty model 
which limits our direct exposure to operating  
or capital cost inflation of the underlying mine 
operations the effects of such a difficult macro
economic climate on the mine operators meant 
the group was not immune to challenges during 
the year london mining plc the operator of the 
isua project entered administration whilst zamin 
group fell behind in their efforts to reconstruct  
the santana port essential for exporting their iron 
ore from the amapá mine these developments 
resulted in the group recognising £246m in 
impairment charges against the carrying value  
of the royalties connected to these and other 
projects
in addition to the reduced income at amapá 
production at kestrel remained largely outside 
the group’s private royalty area for much of  
the year which when combined with lower 
metallurgical coal prices resulted in royalty 
related income falling from £147m in 2013 to 
£35m in 2014 despite supplementing the 
reduced income levels with some £87m in cash 
generated through the disposal of noncore 

anglo pacific group plc  annual report  accounts 2014 14
apg11  ar14  240315  front  proof 9
although it came after the year end undoubtedly  
the highlight of the past 12 months was the successful 
acquisition and fundraising for the narrabri royalty equity interests together with monetising the 
panorama coal assets with kestrel performing 
well below expectations in the last quarter of 
2014 it was appropriate to revisit the group’s 
dividend policy as described by your chairman  
in his report 
the dividend should be protected by the gradual 
return to mining within our royalty lands in 2015 
at kestrel we estimate based on rio tinto’s 
forecast that 2025 of mining at kestrel will 
be within our royalty lands in the first half of 
2015 increasing to 7075 in the second half 
and longer term over 90 by 2017
positioned to take advantage  
of opportunities
the acquisition of the maracás royalty during  
the year and the narrabri royalty subsequent to 
the year end both of which are in production 
support the group’s ability to deliver on its 
revised dividend policy
we also entered into a new 300m revolving 
credit facility in march 2015 as part of the 
narrabri transaction which replaced the existing 
150m shorterterm facility this has a three
year term is secured on certain of the group’s 
assets and has a margin of 250 basis points over 
libor although large amounts of structured 
debt is not something which we consider 
appropriate for our assets we do need to take 
advantage prudently of lowcost financing 
opportunities available to us 
we are pleased to announce today the 
appointment of macquarie bank and peel hunt  
as brokers to work alongside bmo capital 
markets we believe the three of them provide  
us with good coverage in the major mining and 
financial centres of the world
outlook
we are optimistic for the longterm outlook of 
coking coal produced by kestrel and thermal 
coal produced by narrabri we are not calling  
the bottom but the risk is now to the upside  
the global power and steel industries rely on coal 
but roughly half the industry is uncompetitive at 
current prices this is an unsustainable situation 
and prices will likely recover in the years ahead  
as high cost production capacity is closed
whilst we are very comfortable with our current 
coal exposure we will focus in the months ahead 
on diversifying the portfolio away from coal and 
other bulk commodities in this respect base 
commodities like copper will be where we hope 
to put more capital to work and we have several 
interesting opportunities currently in the pipeline  
anglo pacific is well placed to make countercyclical 
investments at prices which are now well below 
the recent norm acquiring royalties that exceed 
our minimum internal return targets should provide 
shareholders with confidence in the group’s ability 
to meet its revised dividend policy along with  
the potential for upside should commodity prices 
recover in the medium term  
following the payment of the interim dividend in 
february along with the completion of the narrabri 
acquisition the group currently has over £35m 
in cash and 24m undrawn on our revolving 
credit facility with the additional income which 
narrabri and kestrel should bring in 2015 we are 
well funded to maintain our dividend payments 
and to take advantage of opportunities which 
may present themselves in the short term 
we look forward to building on our recent 
progress in the months ahead
ja treger
chief executive officer 
march 24 2015
anglo pacific group plc  annual report  accounts 2014 15
strategic report
apg11  ar14  240315  front  proof 9
anglo pacific is well placed to make countercyclical 
investments at prices well below the recent norm strategic report
our business model
the group is seeking to grow its portfolio of 
cashgenerative royalties and streams by 
investing in producing or nearterm producing 
assets with long mine lives given the relatively 
low overhead requirements of the business the 
group believes cash flow to shareholders can be 
maximised through economies of scale which 
would allow for growth in the portfolio without 
significantly increasing our cost base
revenuebased royalties limit the group’s direct exposure to 
operating or capital cost inflation of the underlying mine operations 
as there is no ongoing requirement for the group to contribute  
to capital exploration environmental or other operating costs at 
mine sites 
the group is seeking to build a diversified portfolio of royalties 
across a variety of different commodities and geographic locations 
investing in royalties across a wide spectrum of commodities and 
jurisdictions reduces the dependency on any one asset or location 
and any corresponding cyclicality a fully diversified portfolio can 
help to reduce the level of income volatility stabilising cash flows 
which contribute towards investment and dividend payments
royalty holders generally benefit from improvements made to  
the scale of a mining operation exploration success or lower 
cutoff grades as a result of rising commodity prices can serve to 
increase economic reserves and resources increased reserves  
will extend a mine’s life or facilitate an expansion of the existing 
operations any subsequent increases in production will generally 
result in higher royalty payments without the requirement of the 
royalty holder to contribute to the cost of expanding or optimising  
the operation 
royalties provide exposure to underlying commodity prices  
the group expects to benefit from a rising commodity price 
environment with the upside feeding through to increased  
royalty receipts
generating longterm 
cash returns
lower risk through 
topline revenue 
participation in 
mining companies 
lower volatility 
through commodity 
and geographic 
diversification 
exposure to 
increases in 
mineral reserves 
and production 
exposure to 
commodity price 
upside
creating value for our 
shareholders
anglo pacific group plc  annual report  accounts 2014 16
apg11  ar14  240315  front  proof 9 royalties reduce the upfront capital required  
to fund the development of a project these  
are generally structured as asset or even by
product specific often leaving the remaining 
assets of the developer unencumbered for 
raising additional finance 
compared to the issuance of new equity royalties do not depend  
on the prevailing state of the capital markets but are rather the 
result of bilateral negotiations the issuance of new equity can also 
serve to dilute existing shareholders particularly during periods  
of depressed share prices furthermore as royalties are asset 
specific the reduction in the upside for existing shareholders can  
be limited to a certain mine or product  
royalties do not typically levy interest nor do they typically require 
principal repayments or have a maturity date more importantly 
unlike conventional debt arrangements where interest payments 
tend to start immediately or are capitalised until cash payments can 
be made from a project’s cash flow most royalties are payable only 
once the project comes into production and is generating sales 
in addition many forms of debt such as project finance include 
restrictive covenants and may require commodity price hedges to 
be put in place these are not only typically costly in terms of fees 
but can also limit the miner’s exposure to upside in the prices of 
their core commodities 
the value of a royalty is realised over the duration of the mine life 
often royalty owners may have a need to free up cash in order  
to recycle capital there is a limited secondary market for royalties 
and anglo pacific can be a source of valuable liquidity for private 
royalty holders
secondary royalties
source of liquidity  
for holders of existing 
royalties
creating value for our 
counterparties
value 
creation
we serve as a 
partner to the mine 
operator 
primary royalties
an alternative  
form of financing  
to conventional 
equity which can  
be an expensive 
form of finance
flexible financing 
structures to suit  
the mine operator 
often structured  
as nondebt 
instruments  
therefore do not 
impact on credit 
ratings
partners
anglo pacific group plc  annual report  accounts 2014 17
strategic report
apg11  ar14  240315  front  proof 9 strategic report
case study narrabri royalty acquisition
”the narrabri acquisition is a first major 
step down the diversification route  
and will hopefully provide a springboard 
for further progress ”
wm blyth chairman
transaction highlights
 · 1 gross revenue royalty over all coal produced from narrabri royalty area
 · us650m consideration us600m cash us50m in anglo pacific group shares
 · majority owned and operated by asx listed whitehaven coal limited
 · 570mt of proved and 830mt of probable reserves at narrabri north 940mt of 
probable reserves at narrabri south
 · estimated reserve life of 22 years
 · targeting 65mt run of mine in fy2015 and 70mt in fy2017
  see how the 
criteria fits into 
our strategy on 
page 10 
strategic rationale
the group’s acquisition of the narrabri royalty meets the following strategic criteria
criteria
established natural resources  
jurisdiction 
longlife assets 
highquality and lowcost assets 
nearterm producing assets 
production and exploration  
upside potential
strong operational management  
teams
diversification of royalty  
portfolio
achievement 
	 located in the gunnedah basin in new  
 south wales australia an established  
 mining jurisdiction
 	 long mine life 22 years of reserves  
 at narrabri north with narrabri south  
 expansion potential
	 attractive position in the global thermal  
 and pci coal producer cost curve
	 royalty on producing asset £30m  
 in royalty income in the last 12 months  
 expected to ramp up in fy2015
	 production at narrabri north is in ramp  
 up and there is upside potential from  
 undeveloped narrabri south
	 whitehaven coal has an established track  
 record of operational expertise
	 reduced dependence on kestrel as the   
 primary source of royalty income
	 thermal coal fundamentally different to  
 coking coal
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 18 brisbane
sydney
newcastle
new sout h 
wa l e s
narrabri
established natural resources jurisdiction
notes whitehaven fiscal year ending 30 june
1 whitehaven disclosure
2 whitehaven has stated that in the longer term production is planned to reach the permitted 80mt pa level
diversification  
of royalty portfolio  
reduced dependence on kestrel as the  
primary source of royalty income
pro forma group royalty assets 2014
 
gbp millions
kestrel
52
other existing royalty 
portfolio assets
29
narrabri
19
£43m
£117m
£66m
production and  
exploration upside  
potential 
whitehaven expects 2015 production  
to exceed 65mt rom
historical and forecast production
  1
  
million tonnes rom
5
0
10
02
04
37
57
65 65
70
80
11 12 13 14 15 16 17
permitted  
 planned
2
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 19
strategic report strategic report
corporate social responsibility
anglo pacific seeks to maintain the 
highest standards in all areas of its 
business 
during the year the board commissioned a review of all  
of anglo pacific’s current corporate social responsibility 
‘csr’ practices and activities its purpose was to 
identify best practice where the review highlighted 
scope for improvement we made practical and effective 
changes within anglo pacific
the review took into account international guidance  
the standards considered included the extractive 
industries transparency initiative the global reporting 
initiative mining and metal sectors supplement the 
united nations’ guiding principles on human rights  
and the voluntary principles on security and human 
rights we also reviewed the csr reporting and  
csr commitments of the mines that we are invested  
in further we evaluated the implications of the  
united kingdom companies act 2006 strategic  
report and directors’ report regulations 2013 for  
our own csr reporting
following this extensive review we extended and 
strengthened our due diligence process to reflect current 
best practices the mechanism that we use to monitor csr 
issues has been given greater granularity in particular it 
directs us to consider the governance policy provision 
management measurement and reporting of each material 
issue we apply this to consideration of new investments 
and use it in the monitoring of existing investments 
at the same time we have improved our office practices 
these improvements include but are not confined to 
measures to conserve energy water and paper for 
instance all our lights are now on sensors and we have 
acted to maximise recycling and reduce waste generation 
we also prioritise local sourcing and will be setting targets 
for continuing improvement on an annual basis
we are confident that the changes made in the light  
of the review will enable us to achieve continuous 
improvement in our csr practice
integrity
anglo pacific is committed to maintaining its reputation 
for fair dealing we do not offer give or receive bribes or 
inducements whether directly or through a third party
we have policies and procedures in place to ensure that 
all of our directors officers employees consultants 
advisors business partners and anyone else who may 
be acting on our behalf are aware of their responsibilities 
in this area we actively promote a transparent approach 
to all of our business dealings and expect our employees 
to adopt a zero tolerance attitude to corruption our 
employees are encouraged to report any potential or 
apparent misconduct in accordance with our internal 
whistleblowing policy and any employee that refuses  
to pay bribes or raises any issues honestly and in good 
faith will be supported by the group
we choose our business partners and counterparties 
carefully based on merit and only work with persons of 
known integrity who we believe will act consistently with 
our own standard we do not make facilitation payments 
where we do business in countries with laws that are less 
restrictive than our own policies and procedures we will 
seek to follow our own policies and procedures promoting 
our standard of integrity wherever possible
environment
anglo pacific is committed to an environmental policy  
of collaborating fully with statutory authorities local 
communities and other interested parties in order to  
limit any potential adverse impacts of its activities on  
the natural and human environments associated with its 
operations the nature of our royalty investments is such 
that we do not operate any of the properties underlying 
our royalty portfolio and consequently we do not always 
have the ability to influence the manner in which the 
operations are carried out nevertheless a responsible 
approach to a project’s environmental impact and its 
sustainability management is essential to the success  
of the project over its life
as part of our investment decision process we give 
careful consideration to the environmental aspects of  
any potential asset purchase during the due diligence 
phase in particular we typically engage with consultants 
who have the requisite expertise to ensure that we can 
consider and if necessary mitigate any risks in this 
regard to a properly maintainable level   
in 2014 as part of its due diligence on the maracás 
royalty transaction anglo pacific looked at largo’s 
environmental and community policies largo’s 
environmental sustainability policy seeks to preserve  
the region’s natural resources and monitor the quality  
of soil water air and the protection of flora and fauna  
an independent consultant was also engaged to review 
general site safety at the mine as part of its recent 
acquisition of a royalty on the narrabri mine anglo 
pacific engaged an independent consultant to review  
the environmental aspects of the mine and comment  
on aspects likely to affect the surrounding community 
including subsidence noise and air quality
where we do engage in exploration efforts as part  
of advancing a property we undertake to do so in 
accordance with the highest industry standards we 
expect our employees to address environmental and 
sustainability responsibilities within the framework of 
normal operating procedures and to look to minimise 
waste as much as economically practicable the audit 
committee is responsible for periodically reviewing the 
group’s environmental practices and for monitoring  
their effectiveness
anglo pacific group plc  annual report  accounts 2014 20
apg11  ar14  240315  front  proof 9 social and community issues
anglo pacific acknowledges that whilst its activities 
have little direct contact with communities it can 
positively influence the social practices and policies of 
companies it conducts business with positive social  
and community relationships are essential to profitable 
and successful mining activities we endeavour to 
ensure that companies we work with have appropriate 
procedures in place to facilitate this more specifically 
anglo pacific’s investment decision process for potential 
asset purchases routinely involves due diligence 
including the full range of csr issues including the social 
and community aspects of the project as part of its 
recent acquisition of a royalty on the on the narrabri  
mine for instance anglo pacific extensively reviewed 
whitehaven coal’s policies on community development 
aboriginal engagement safety and environmental 
responsibilities where we believe our own operational 
activities may have an impact on local community 
groups we consult with these groups and provide them 
with the opportunity to engage at the planning stage  
the audit committee is responsible for periodically 
reviewing the group’s social and community practices  
and for monitoring their effectiveness
diversity
our people are instrumental to our success and we 
respect and value the individuality and diversity that 
every employee brings to the business as at december 
31 2014 the group had 13 employees five of whom 
were female in terms of the company’s board of 
directors there were seven directors six of whom  
were male and one of whom was female prior to any 
appointment to the board the nomination committee 
gives due regard to diversity and gender with a view  
to appointing the best placed individual for the role  
we recognise that we have more to do in encouraging 
and supporting gender diversity and hope to be able  
to identify and develop talent at all levels in the 
organisation as the company continues to grow
more information on the nomination committee’s 
approach to diversity can be found on page 40
human rights
the debate on the role of business and human rights has 
gained increasing prominence in recent years anglo 
pacific welcomes this focus as respect for human rights  
is implicit across the group’s employment practices 
further a commitment to human rights is an important 
part of any successful organisation and as part of our 
investment decision process we have access to 
consultants with the requisite expertise to ensure that  
we can consider and if necessary help to mitigate  
any such risks
health and safety
the health and safety of our employees is a fundamental 
responsibility the small size of our organisation allows 
the daytoday responsibility to remain at the board  
level being monitored by the chief executive officer 
furthermore a commitment to health and safety is a 
fundamental component of any mining project and as 
part of our investment decision process we have access 
to consultants with the requisite expertise to ensure that 
we can consider and if necessary help to mitigate any 
such risks
donations
our philosophy on charity has historically been that this  
is a decision best made by shareholders with their own 
resources the group has revised its policy and will now 
consider supporting select charities at the discretion  
of the directors in 2014 the group made donations 
totalling £4050 to various charities supporting mining 
communities
greenhouse gas emissions
the uk government requires that uk listed companies 
should report their global levels of greenhouse gas 
emissions in their annual report anglo pacific is a 
relatively small organisation with 13 employees which 
means that any emission sources within our operational 
and financial control such as business travel purchase  
of electricity heat or cooling by the group are not 
material in their impact
until december 2014 the group paid for the consumption 
of utilities through its annual service charge and therefore 
did not receive detailed information on its carbon 
emissions anglo pacific did not operate or control any 
of the properties where royalty interests are held which 
means that the group does not have any greenhouse  
gas measures to quantifiably report from operations 
following our move to a new office we have visibility 
over our power consumption and will monitor this in 2015
the information on pages 8 to 35 represents the group’s 
strategic report and has been approved by the board
ja treger
chief executive officer 
march 24 2015
anglo pacific group plc  annual report  accounts 2014 21
strategic report
apg11  ar14  240315  front  proof 9 6 producing  
royalties 
over 80 of the royalty 
portfolio by value are in 
production and 93 of  
the portfolio are located  
in well established mining 
jurisdictions
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 22 strategic report
business review
what we own
kestrel is an underground coal mine located in the bowen basin queensland 
australia it is operated by rio tinto limited ‘rio tinto’ the group owns 
50 of certain substratum lands which under queensland law entitle it to 
coal royalty receipts from the kestrel mine
the royalty rate to which the group is presently entitled is prescribed by  
the queensland mineral resources regulations these regulations currently 
stipulate that the basis of calculation is a threetiered fixed percentage of the 
invoiced value of the coal as follows
average price per tonne for period  rate
up to and including a100  7
over a100 and up to and including a150 first a100  7 
 balance  125
more than a150 first a100  7 
 next a50  125 
 balance  15
performance
the group received royalty income of £17m during the year from kestrel 
compared to £99m in 2013 the significant decrease in royalty income  
in 2014 was due to production at kestrel remaining largely outside the 
group’s private royalty land
on august 18 2014 the group announced that it had entered into an 
agreement with kestrel coal pty ltd a subsidiary of rio tinto and its kestrel 
joint venture partners queensland coal pty ltd and mitsui kestrel coal 
investment pty ltd for the provision of certain information in respect of kestrel 
the information to which the group is entitled under the agreement includes 
on a quarterly basis i the invoiced payable tonnes including product splits ii 
the royalty payable iii the split between the public and private royalty payable 
iv the estimated private royalty payable for the next quarter and v the forecast 
production tonnages split on a public and private royalty basis for the next four 
quarters the forecast information provides the group and its investors with 
more visibility on expected growth in royalty income from this key asset 
we estimate based on rio tinto’s forecast that 2025 of mining at kestrel 
will be within our royalty lands in the first half of 2015 increasing to 7075 
in the second half and longer term over 90 by 2017
valuation
the kestrel royalty was independently valued at a2230m £1171m and 
accounts for 59 of the group’s total assets the value of the land is calculated 
by reference to the discounted expected royalty income from mining activity 
this is an independent valuation conducted by suitably qualified consultants  
a discount rate of 7 is applied the group monitors the accuracy of this 
valuation by comparing the actual cash received to that forecasted
the decline in coking coal prices over the last two years has impacted on the 
valuation of expected future cash receipts and therefore valuation
brisbane
kestrel
rockhampton
townsville
cairns
q u e e n s l a n d
producing royalties 
kestrel coking coal australia
0
5
10
15
20
25
30
35
coal royalty 
income
£m
197
293
320
110
99
17
09 10 11 12 13 14
0
25
50
75
100
125
150
175
coal royalty 
valuation
£m
1499
1693
1660
1710
1314
1171
09 10 11 12 13 14
anglo pacific group plc  annual report  accounts 2014 23
strategic report
apg11  ar14  240315  front  proof 9 strategic report
business review
el valleboináscarlés ‘evbc’  
gold copper and silver spain 
what we own
the group has a 25 life of mine nsr royalty on the evbc gold copper  
and silver mine owned by tsxlisted orvana minerals corp ‘orvana’   
evbc is located in the rio narcea gold belt of northern spain and was 
previously mined from 1997 to 2006 by rio narcea gold mines the royalty 
rate increases to 3 when the gold price is over us1100 per ounce 
the evbc royalty was originally structured as a noninterest bearing 
convertible debenture but following an amendment in 2012 the convertible 
element has been removed the royalty is secured by way of ‘censos’ on  
the mining concessions and there is an intercreditor arrangement in place  
with credit suisse ag which has provided finance to orvana
performance
the group received royalty income of £17m from evbc during the year   
this compares to £40m received in 2013 of which £20m represented the 
repayment of the original debenture instrument
on october 27 2014 orvana announced evbc production for the 12 month 
period ending september 30 2014 of 62957 ounces of gold 156977 ounces 
of silver and 56mlbs of copper orvana also announced evbc production 
guidance for the 12 month period ending september 30 2015 of 63000 to 
72000 ounces of gold 60 to 70mlbs of copper and 150000 to 180000 
ounces of silver
on august 13 2014 orvana released an updated mineral resources and 
reserves estimates for evbc showing a 66 decrease in gold ounces and  
a 59 decrease in copper tonnes in the reserves and a decrease in gold 
ounces and copper tonnes of 32 and 22 respectively of measured and 
indicated resources on the same day orvana announced an updated lifeof
mine plan which reduced the expected mine life to approximately four years 
compared with the nine years previously disclosed
the expected performance of evbc under the new mine plan announced on 
august 13 2014 provides the group with confidence in the ability of this mine 
to generate royalty income during its remaining mine life
on december 9 2014 orvana announced that the focus on improved 
execution and grade optimisation had contributed to stronger evbc operating 
results in recent months with gold production of 33529 ounces in the second 
half of fiscal 2014 compared with 29428 ounces produced in the first half of 
fiscal 2014 an increase of 14 on january 16 2015 orvana announced its 
fy2015 first quarter production results for evbc the mine produced 15276 
ounces of gold 185mlbs of copper and 43946 ounces of silver
bilbao
el valleboinás
carlés
santander
león
gijón aviles
0
05
10
15
20
25
30
35
40
45
evbc royalty  
income
£m
06
16
40
17
11 12 13 14
anglo pacific group plc  annual report  accounts 2014 24
apg11  ar14  240315  front  proof 9 orvana also announced that it plans to make further investments in the 
growth of its business which includes an increase of evbc reserves and 
resource estimates through the potential to upgrade inferred mineral 
resources to mineral reserves and the potential to identify new resources  
at evbc and surrounding areas
valuation
the evbc royalty is classified as an availableforsale equity financial asset 
within royalty financial instruments on the balance sheet as such the asset  
is carried at fair value by reference to the discounted expected future cash 
flows over the life of the mine 
maracás vanadium brazil
what we own
the group has a 2 nsr royalty on all mineral products sold from the area  
of the maracás project to which the royalty interest relates the project is 
located 250km south west of the city of salvador the capital of bahia state 
brazil and is 9997 owned and operated by tsx venture exchange listed 
largo resources limited ‘largo’
the group acquired the maracás royalty on june 10 2014 for us220m  
and 500000 warrants which entitle the holder to acquire one anglo pacific 
ordinary share at a strike price of £250 which are exercisable over five years 
and a further us30m cash when the project reaches certain annualised 
production milestones 
performance
the maracás project has completed commissioning and achieved first 
production of vanadium pentoxide v
2
o
5
 on august 2 2014 largo has a 
target to reach name plate production capacity of 211mlbs 9600t of v
2
o
5
 
equivalent within 12 months and average annual production of approximately 
251mlbs 11400t v
2
o
5
 equivalent over a 29year mine life largo has also 
entered into an offtake agreement with glencore international ag for all 
vanadium products produced at the maracás project for the first six years  
of commercial production on september 3 2014 largo announced it had 
made its first shipment of v
2
o
5
 from the project
after achieving first production in august 2014 the maracás project continues 
to successfully ramp up production to name plate capacity on january 15 
2015 largo announced that production output was running between 
approximately 5575 of capacity and that approximately 1140 tonnes 
25mlbs had been shipped to date from the mine
salvador
maracás project
s t a t e o f 
b a h i a
petrolina
vitória de
conquista
anglo pacific group plc  annual report  accounts 2014 25
strategic report
apg11  ar14  240315  front  proof 9 on december 9 2014 largo announced it had commenced a prefeasibility 
study on the potential to produce saleable platinum concentrates at maracás  
this was based on preliminary investigations conducted by largo which 
indicated that it may be possible to produce platinum in addition to vanadium 
pentoxide from the nonmagnetic material separated during the benefication 
process platinum production represents a source of potential upside for our 
royalty which was not taken into account at the time of acquisition
the group expects to receive the first royalty payments in relation to maracás  
in the first half of 2015
valuation
the maracás royalty is classified as a royalty intangible asset on the balance 
sheet as such this asset is carried at cost less amortisation and impairments  
royalty intangible assets are amortised when commercial production 
commences on a straight line basis over the expected life of the mine
four mile uranium south australia 
what we own
the group has a 1 life of mine nsr royalty on the four mile uranium mine  
in south australia four mile is operated by quasar resources pty ltd  
‘quasar’ on behalf of its jv partners quasar 75 and asxlisted alliance 
resources limited ‘alliance’ 25
performance
production commenced on april 14 2014 and on october 6 2014 alliance 
announced that the first shipment of 300000 lbs of uranium ore concentrate 
had occurred in september total production from commencement of mining 
to december 31 2014 was 166mlbs of uranium ore concentrate alliance 
announced on november 7 2014 that quasar intends to produce 26mlbs of 
uranium ore concentrate in 2015 and intends to stockpile all 2014 and 2015 
production as a result the group does not anticipate receiving any royalty 
payments until this inventory is sold in 2016
on march 20 2015 alliance announced an updated  ‘exploration target’ for 
the four mile northeast fmne uranium prospect of 11 to 14 million tonnes  
of mineralisation at a grade range of 027 to 030 u
3
o
8
 containing 70  
to 80mlb u
3
o
8
 the potential quantity and grade is conceptual in nature 
valuation
the four mile royalty is classified as a royalty intangible asset on the balance 
sheet as such this asset is carried at cost less amortisation and impairments 
royalty intangible assets are amortised when commercial production 
commences on a straight line basis over the expected life of the mine
strategic report
business review
adelaide
four mile
south 
a us tralia
port augusta
anglo pacific group plc  annual report  accounts 2014 26
apg11  ar14  240315  front  proof 9 amapá and tucano iron ore brazil 
what we own
amapá
the group has a 1 life of mine grr on all iron ore and other nonprecious 
minerals produced from the amapá iron ore system ‘amapá’ in northern 
brazil owned and operated by zamin amapá consists of the mine in pedra 
branca do amapári and the port in santana which are linked by a railway  
the mine produces a mix of sinter feed pellet feed and spiral concentrates 
tucano
the group has a 1 life of mine grr on all iron ore and other nonprecious 
metals other than copper produced from the tucano project owned by 
asxlisted beadell resources limited ‘beadell’ tucano was acquired by 
beadell in 2010 and is located adjacent to amapá in northern brazil tucano  
is focused on gold mining with first gold being poured in 2012 however  
it also produces an iron ore concentrate from the tailings created by its gold 
processing plant the iron ore is sold to zamin pursuant to an offtake 
agreement for 500ktpa of 65 fe concentrate
the group is also entitled to royalties over a number of concessions governed 
by a joint exploration arrangement between zamin and beadell   
performance
shipments of iron ore from amapá were suspended in march 2013 due to  
a serious incident at the santana port which impacted key infrastructure at 
the loading bay a small number of shipments were made during 2014 from 
stockpiles at the port 
in the second half of 2014 zamin suspended production at the mine whilst 
the santana port is rebuilt in light of production being suspended and the 
continued delays in the rebuilding of the port facilities the directors have 
recognised an impairment charge of £84m to the group’s carrying value  
of the amapá royalty
valuation
the group acquired these preexisting royalties in 2010 and classified them  
as royalty intangible assets on the balance sheet as such these assets are 
carried at cost less amortisation and impairments royalty intangible assets 
are amortised when commercial production commences on a straight line 
basis over the expected life of the mine
salvador
amapá 
 tucano
recife
são luís
belém
royalty revenue
£m
3
25
20
15
10
05
0
02
27
22
07
02
10 11 12 13 14
anglo pacific group plc  annual report  accounts 2014 27
strategic report
apg11  ar14  240315  front  proof 9 strategic report
business review
development royalties
salamanca uranium spain
what we own
the group has a 1 life of mine nsr royalty on the salamanca uranium 
project located in spain and operated by asxlisted berkeley resources ltd 
‘berkeley’ the project consists of four main deposits retortillo alameda 
zona 7 and gambuta and is located in salamanca province spain 
approximately 250km west of madrid
performance
on april 24 2014 berkeley announced that it had been granted the mining 
licence for the retortillo deposit this is a major milestone in advancing the 
project towards first production 
in addition on november 26 2014 berkeley announced an updated mineral 
resource estimate for zona 7 the zona 7 inferred resource increased to 
301mlbs previously 36mlbs total inferred resources for the salamanca 
project increased by 90 to 561mlbs u
3
o
8
 primarily because of the increase  
in the zona 7 mineral resource indicated resources were constant at 
320mlbs u
3
o
8

given the significant scale high grade and shallow depth of the zona 7 
deposit berkeley is advancing its evaluation to the scoping study stage which  
is due for completion in 2015
this demonstrates the excellent potential upside associated with this project
valuation
the salamanca royalty is classified as a royalty intangible asset on the balance 
sheet as such this asset is carried at cost less amortisation and impairments 
royalty intangible assets are amortised when commercial production 
commences on a straight line basis over the expected life of the mine
madrid
salamanca
cáceres
zamora
anglo pacific group plc  annual report  accounts 2014 28
apg11  ar14  240315  front  proof 9 earlystage royalties
dugbe 1 gold liberia
what we own
the group entered into a royalty financing agreement with the aimlisted 
hummingbird resources plc ‘hummingbird’ in december 2012 in relation  
to hummingbird’s dugbe 1 gold project in liberia in exchange for us150m 
payable in three tranches of us50m the group is entitled to a 2 life of 
mine nsr from any sales of gold mined within a 20km radius of a specified 
point in the dugbe 1 resource
the group paid the third and final tranche of us50m in march 2014
performance
hummingbird is currently compiling a feasibility study for the project
valuation
the advances made to hummingbird under the royalty financing arrangement 
are classified as noncurrent receivables and carried at fair value on the 
balance sheet
pilbara iron ore australia
what we own
the group has a 15 life of mine grr over three exploration tenements  
in the central pilbara region of western australia owned by a wholly owned 
subsidiary of bhp billiton limited bhp billiton which is duallisted on the 
lse and asx
the tenements covering 263km
2
 host a number of known iron occurrences 
including the railway deposit the tenements are supported by extensive  
rail infrastructure including the rail lines from rio tinto’s west angelas and 
yandicoogina mines and bhp billiton’s rail line serving its current operations  
at mining area c which lie immediately to the east of the railway deposit
performance
the pilbara royalties are over undeveloped tenements of bhp billiton’s iron  
ore operations in western australia
valuation
the pilbara royalty is classified as a royalty intangible asset on the balance 
sheet as such this asset is carried at cost less amortisation and impairments 
royalty intangible assets are amortised when commercial production 
commences on a straight line basis over the expected life of the mine
monrovia
dugbe 1
liberia
i v o r y 
c o a s t
greenville
petrolina
vitória de
conquista
perth
pilbara
we s tern
a us tralia
karratha
port hedland
anglo pacific group plc  annual report  accounts 2014 29
strategic report
apg11  ar14  240315  front  proof 9 strategic report
business review
ring of fire chromite canada
what we own
the group has a 1 life of mine nsr royalty over a number of claims on  
the black thor black label and big daddy chromite deposits operated by 
nyselisted cliffs natural resources inc ‘cliffs’ in the ring of fire region  
of northern ontario canada
performance
cliffs announced on november 20 2013 its decision to halt development of its 
chromite project for the foreseeable future cliffs referenced the risk associated 
with the development of infrastructure required to advance the project as the 
main reason for its decision cliffs has announced that it will continue to work 
with stakeholders to explore for potential solutions to the current impasse 
valuation
the ring of fire royalty is classified as a royalty intangible asset on the balance 
sheet as such this asset is carried at cost less amortisation and impairments 
royalty intangible assets are amortised when commercial production 
commences on a straight line basis over the expected life of the mine
isua iron ore greenland 
what we own
the group has a 1 life of mine grr over the isua iron ore project in greenland 
the royalty rate increases for iron ore of less than 55 fe to a maximum of 14 
performance
on october 16 2014 the previous owner of the isua project london mining plc 
‘london mining’ the operator of the group’s isua royalty announced that it  
had appointed administrators on january 26 2015 anglo pacific received official 
confirmation from pricewaterhousecoopers llp ‘pwc’ the administrator  
of london mining that the government of greenland had approved the transfer 
of all shares of london mining greenland jersey 1 ltd ‘london mining 
greenland’ to general nice development limited ‘general nice’ anglo 
pacific welcomes this news and looks forward to developing its relationship 
with the new operator of the isua project
anglo pacific intends to waive its rights to the repayment of the us300m 
advanced to london mining in 2011 under the change of control provisions of 
the royalty financing agreement due to the inability of london mining to make 
this repayment the indirect transfer of the licence means that the company 
structure of london mining greenland as remains the same and therefore  
the royalty will continue to apply to the project
given the inherent uncertainty of this asset reaching commercial production 
the group’s royalty financial instrument arising from its interest in the isua 
royalty has been fully impaired
valuation
the isua royalty is classified as an availableforsale debt financial asset within 
royalty financial instruments on the balance sheet as such the asset is 
carried at fair value by reference to the discounted expected future cash flows 
over the life of the mine following the announcement by london mining the 
group recognised an impairment charge of £153m
thunder bay
ring of fire
ont ario
karratha
port hedland
isua
greenland
k u j a lle q
anglo pacific group plc  annual report  accounts 2014 30
apg11  ar14  240315  front  proof 9 diversified 
portfolio
the acquisition of the 
narrabri royalty in march 
2015 reduces the historical 
dependence on the group’s 
kestrel royalty
apg11  ar14  240315  front  proof 9
anglo pacific group plc  annual report  accounts 2014 31
strategic report strategic report
key performance indicators
25p 
adjusted earnings  
per share 
p
adjusted earnings per share 
reflects the profit which 
management is capable of 
influencing it disregards any 
valuation movements caused 
by shortterm commodity  
price fluctuations along with 
any noncash impairment or 
similar charges  
it also adjusts for any profits  
or losses which are realised 
from the sale of equity 
instruments within the mining 
and exploration interests as 
these are determined based  
on market forces outside the 
control of the directors see 
note 11 for further details
nil 
dividend cover
x
it is a policy of the group to  
pay a significant portion of its 
royalty income as dividends 
just as important to 
maintaining the dividend is 
maintaining the quality of the 
dividend dividend cover is 
calculated as the number of 
times adjusted earnings per 
share exceeds the dividend per 
share 
in any period where there is  
an adjusted loss the dividend 
cover will be reported as nil
£162m 
royalty assets acquired
£m
the group’s strategy is to 
acquire cash or nearcash 
producing royalties which will 
be accretive and in turn enable 
dividend growth the above 
chart shows how much the 
group invested in royalty 
acquisitions in each period  
5
5
0
10
15
20
25
199
134
203
87
84
25
05
0
05
10
15
20
25
22
16
21
09
08
00
10
0
20
30
40
119
10 09 11 12 13 14 10 09 11 12 13 14 09 10 11 12 13 14
69
368
284
56
162
anglo pacific group plc  annual report  accounts 2014 32
apg11  ar14  240315  front  proof 9 the combination of lower income and higher costs has resulted in an adjusted loss of £28m in 2014 compared with an adjusted profit of 
£92m in 2013 the impact of impairment provisions and valuation adjustments discussed hereafter results in a loss after tax of £47 6m 
2013 £425m by far the greatest reason for the group’s adjusted loss in 2014 was the lack of production within the group’s royalty lands 
at kestrel the group has historically been reliant on kestrel for the majority of its income the sensitivity of which should be reduced by 
the recently announced acquisition of the narrabri royalty
adjusted earnings
royalty income
2014
£’000
2013
£ ’000
kestrel 1657 9941
evbc 1650 2018
amapá 174 749
likeforlike royalty income 3481 12708
evbc conversion payment – 2023
total royalty related income 3481 14731
likeforlike royalty income declined by £92m in the year excluding the nonrecurring evbc conversion payment received in 2013  
the largest contributor to this was kestrel which produced £83m less income in the year most of this decrease was as a result of 
production being largely outside the group’s private royalty land also impacted by a strengthening of the pound against the australian 
dollar elsewhere evbc income was relatively stable in the year when considered in light of the falling gold price sales at amapá  
did not recommence to any significant level in 2014 with royalty receipts still being impacted severely whilst the port is being 
reconstructed
in addition to a large decrease in royalty income operating profit was also impacted by higher costs during 2014 of the total headline 
increase of £23m staff costs made up 16m reflecting a full year of the new management’s compensation noncash sharebased 
payment accounting provisions in relation to the value creation plan accounted for £06m of this increase the remaining increase was 
largely driven by higher head count and bonus provisions in 2014 which primarily reflected the imminent completion of the narrabri 
royalty acquisition other costs ran higher throughout 2014 as expenditure was incurred in appraising potential royalties and travel as 
part of investor relation initiatives associated with the recently announced narrabri royalty acquisition costs not directly related to the asset 
acquisition nor directly associated with the issuance of shares of £09m have been attributed to finance costs in 2014 professional fees 
may remain at an elevated level as the group actively pursues more investment opportunities going forward
overall the combination of lower income and higher costs resulted in an adjusted loss of £28m in 2014 compared with an adjusted 
profit of £92m in 2013
impairment charges
the directors have conducted a full review of the group’s assets at december 31 2014 in light of performance during the year and the 
continued macroeconomic pressures being experienced in the mining industry generally the group’s impairment policy is discussed 
further in notes 2 and 3 this applies predetermined impairment thresholds for the group’s ias 39 availableforsale equity assets 
which resulted in an impairment charge of £49m in 2014 as the cost base exceeded market value by greater than 25
the group’s royalty portfolio was charged with an impairment provision of £246m in 2014 2013 £83m the majority of this was  
in relation to the group’s isua royalty as previously announced due to the operator london mining plc entering administration 
although the asset has since been acquired by general nice development limited and the group’s royalty remains intact the 
directors do not consider an impairment reversal to be warranted at this juncture the following table summarises the total impairment 
provision in 2014
financial review
anglo pacific group plc  annual report  accounts 2014 33
apg11  ar14  24032015  back – proof 9
strategic report
strategic report asset
intangible 
asset
£ ’000
royalty 
instrument
£ ’000
ppe
£ ’000
mining  
exploration 
interests
£ ’000
2014
£’000
2013 
£ ’000
isua 15288 15288 –
amapá 8414 8414 –
bulqiza 700 700 947
creso 222 222 –
ring of fire – 4047
mount ida – 3319
total royalty impairment charge 9336 15288 – – 24624 8313
trefi – cost 535 535 –
trefi – development cost 697 697 –
shetland 817 817 –
various availableforsale equities 4873 4873 26321
total impairment 10033 15288 1352 4873 31546 34634
tax
the group on a headline basis has been loss making for the last number of years these losses are largely due to fair value adjustments 
and as such represent unrealised losses which are not available for offsetting the tax payable on any future underlying trading profit 
the divestment of the majority of the group’s mining and exploration interests has however created realised capital losses and the 
group continues to assess means of utilising these losses going forward trading losses have also recently occurred in certain of the 
group’s tax jurisdictions which will be available to offset future profits these amounts although not significant will help reduce the 
group’s effective tax rate when future trading profits are earned
balance sheet
the group’s net assets decreased from £2169m at january 1 2014 to £1613m at december 31 2014 a decrease of £556m or 26 
this is largely a result of the impairment provisions of £315m noted above £118m in relation to the revaluation of the kestrel royalty 
and exchange losses of £67m in the royalty portfolio as a result of the weakening of the australian dollar against both the us dollar and 
the pound royalty additions during the year of £165m were partially offset by the £96m equity raise in june 2014 finally dividends 
of £115m were paid in cash during 2014
balance sheet kestrel
royalty 
intangible 
assets
royalty 
financial 
instruments receivables 2014 2013
carrying basis
fair value 
£ ’000
amortised 
cost 
£ ’000
fair value
£ ’000
fair value
£ ’000 £ ’000 £ ’000
january 1 131434 36337 27847 8775 204393 268645
additions – 13166 – 3002 16168 5882
fair value adjustment 11822 – 4697 16519 24761
impairment – 9336 15288 24624 8313
exchange translation 2515 2299 280 2120 6654 36206
amortisation – 759 – 759 854
royalty assets 117097 37110 8142 9657 172006 204393
cash 8769 15706
mining and exploration interests 9896 20072
deferred tax 32601 30365
other assets  liabilities 3180 7045
net assets 161250 216851
net assets per share 138p 196p
the acquisition of the narrabri royalty in march 2015 was the group’s largest ever royalty addition and will significantly increase the 
group’s total royalty assets on a proforma basis the royalty will be included on the balance sheet at its cost including acquisition 
costs of approximately £440m the acquisition was funded largely from equity as this royalty is in production it will be amortised on 
a systematic basis over the expected mine life of 22 years this will impact on headline net asset value per share it is possible that the 
asset value may appreciate over time due to higher coal prices ramp up in production or even the commencement of mining in the 
financial review
anglo pacific group plc  annual report  accounts 2014 34
apg11  ar14  24032015  back – proof 9
strategic report narrabri south licence however in accordance with the group’s accounting policies under ifrs in relation to intangible assets  
no adjustment will be made to the cost based initial carrying value on the balance sheet for any subsequent favourable developments 
the directors will consider disclosing any internal valuation increase in future periods such that shareholders can assess for themselves 
the true value in use of the group’s royalty assets
cash flow
the group’s cash balances decreased from £157m at the beginning of 2014 to £88m at december 31 2014 
although royalty income was down significantly in the year the group generated cash of £150m from royalty assets and noncore asset 
disposals in 2014 which was down only £06m on that generated in 2013 most of the noncore assets disposed were from the group’s 
equity investments which had been used in the past as a means of sourcing royalties as it appeared likely that royalty income was going 
to be low by historic standards and as it is not envisaged that this portfolio will be a source of future royalty investments the group took  
the opportunity to make selective divestments to help cover the dividend during the year
the other main source of cash during 2014 was the equity placing in june which realised £96m these funds were largely used as 
part consideration of the maracás royalty this combined with the final advance of £30m to hummingbird resources plc resulted in 
total royalty related investment of £161m in 2014 the other large cash outflow was the group’s dividend of £115m the group had a 
15m revolving credit facility available for most of 2014 this remained undrawn at year end
as part of the narrabri royalty acquisition announced in february 2015 the group obtained a new 300m threeyear secured revolving 
credit facility which will be available for general working capital purposes and royalty acquisitions this facility along with the group’s 
cash balances provides the group with sufficient resources to meet its obligations in 2015 along with pursuing royalty investment 
opportunities as they arise
25
45
20
40
15
35
10
30
5
157
63
18
87
96
56
115
162
88
cash
01012014
royalty
related
receipts
finance  
tax fx  
 other
net noncore 
asset  
disposals
net  
fundraising
admin costs dividends royalty
additions
cash
31122014
anglo pacific group plc  annual report  accounts 2014 35
apg11  ar14  24032015  back – proof 9
strategic report the day to day management of the group is delegated to the 
executive committee save for certain matters reserved for 
consideration by the board the executive committee is chaired 
by the chief executive officer julian treger ‘ceo’ and also 
comprises the chief investment officer and the chief financial 
officer the chairman and ceo have distinct roles which have 
been defined in writing and agreed by the board
other responsibilities are devolved to the nomination remuneration 
and audit committees their members are all nonexecutive 
directors and their work is described more fully below the terms 
of reference of each committee and the matters reserved to the 
board are available on the group’s website 
mike atkinson acted as the group’s senior independent director 
‘sid’ until his retirement from the board on june 11 2014 when 
rachel rhodes took on the role on an acting basis following his 
appointment to the board david archer was appointed sid on 
november 14 2014 the role of the sid is to provide a sounding 
board for the chairman and to serve as an intermediary for the 
other directors where necessary the sid takes the lead on 
meetings of the nonexecutive directors outside the formal 
committee structure and is available to shareholders if they 
have concerns that have not been resolved through the normal 
channels of chairman ceo or other executive director or 
where such channels would be inappropriate
the board considers each of david archer rachel rhodes and 
robert stan to be independent and similarly considered mike 
atkinson to be independent as well as mike blyth prior to his 
appointment as chairman as noted in last year’s annual report 
on account of robert stan’s strong experience and entrepreneurial 
background the board continues to consider him to be independent 
despite his having served as a fellow director of whetstone minerals 
ltd alongside julian treger during the period consequently the 
board considers that it has complied with the requirement of the 
code to have at least two independent nonexecutive directors 
on the board throughout the year
our approach towards corporate governance
as a premium listed company on the london stock exchange 
the company is subject to the uk corporate governance code 
the ‘code’ although the company will need to measure itself 
against the revised version of the code published in september 
2014 the focus in this report is on the 2012 version of the code 
copies of both versions of the code are available from the 
financial reporting council’s website the board is committed 
to the highest standards of corporate governance and has taken 
steps during the year to ensure that it complies with all provisions 
of the code as it applies to companies below the ftse 350 and 
believes that it has properly complied with all such relevant 
provisions during the year
as announced by the company on december 22 2014 the 
company intends to apply for a transfer of the company’s listing 
category from a ‘premium listing commercial company’ on the 
official list and into the category of a ‘standard listing’ the 
‘proposed transfer’ the proposed transfer is the result of 
ongoing discussions with the ukla in relation to the appropriate 
categorisation of the company under the listing rules with 
respect to technical considerations relating to the company’s 
royalty business model the proposed transfer is subject to the 
ukla confirming that the company meets the eligibility 
requirements for such a listing and shareholder approval by 
special resolution
a standard listing fully complies with the relevant european 
directives setting common listing standards across all european 
union member states accordingly the company would remain 
subject to the relevant uk listing rules the uk disclosure and 
transparency rules and the uk prospectus rules however it 
will not be required to comply with the superequivalent 
provisions of the listing rules which apply to companies with a 
premium listing the company intends to continue to maintain 
the high standard of corporate governance that is familiar to its 
longterm investors and where appropriate will consider 
compliance on a voluntary basis with certain of the governance 
practices that go further than the standard listing requirements 
further details will be included in a circular to be sent to 
shareholders in due course
board and committee structure
the board is collectively responsible for approving the group’s 
longterm objectives and strategy and for reviewing performance 
against them the board is also responsible for the general 
oversight of the group’s operations and management 
the board was chaired by brian wides as executive acting 
chairman responsible for the leadership and effectiveness of 
the board until the appointment of mike blyth as nonexecutive 
chairman with effect from april 1 2014 from his role as an 
independent nonexecutive director mr wides continued in 
his role as an executive director until may 8 2014 the time 
commitment expected of the nonexecutive chairman is 
around six days per month mr blyth’s other mainly charitable 
commitments are shown on  page 37 none of which is 
considered to be significant
corporate governance report
governance
anglo pacific group plc  annual report  accounts 2014 36
apg11  ar14  24032015  back – proof 9 mineral sands project in mozambique and a copper project in 
oman and was previously the managing director of asxlisted 
company hillgrove resources limited where he was responsible 
for growing the company into a significant dividend paying 
mineral explorer and copper producer with assets in australia and 
indonesia mr archer was the founder and deputy chairman of 
savage resources limited a coal copper and zinc producer and 
the founder and executive chairman of powertel limited he is 
also a barrister nonpractising of the supreme court of new 
south wales
nonexecutive directors
rc rhodes
44 was appointed director in may 2014 and currently chairs the 
group’s audit committee she has an ma in economics from 
the university of cambridge and is a member of the institute of 
chartered accountants in england and wales having qualified 
with coopers and lybrand in london in 1997 she has over 15 
years of experience in the mining industry including with anglo 
american plc until august 2008 and london mining plc until 
november 2013 ms rhodes has played a leading role in listing 
companies on lse aim and jse in raising significant project 
and corporate finance and in negotiating mining licences and 
fiscal platforms
rh stan
61 was appointed director in february 2014 he has over 34 
years of experience in the mining industry he has held several 
senior positions with fording coal limited westar mining ltd 
and teck corporation before becoming a founding shareholder 
and director of publicly quoted grande cache coal corporation 
gcc an albertabased metallurgical coal mining company in 
2000 at gcc he served as president ceo and director from 
2001 to 2012 when the company was sold for us1 billion to 
winsway coking coal and marubeni corp an asianbacked 
strategic investor consortium he has served as chairman of the 
coal association of canada board of directors and has acted as a 
board member of the international energy agency’s coal industry 
advisory board he currently serves on the board of several 
private companies including quantex resources limited and 
spruce bluff resources limited and formerly served on the 
board of publicly listed whetstone minerals limited
ah yadgaroff
66 was appointed director in march 2003 and previously chaired 
the group’s remuneration committee he is a member of 
the chartered institute for securities and investment and has 
specialised in investment research and management consultancy 
during a 40year city career allenbridge group which he 
founded in 1984 to provide advisory services to private and 
institutional investors was acquired by close brothers in february 
2011 he is chairman of allenbridge investment solutions llp 
ais and is a member of the partnership alongside moody’s 
the global rating agency ais is a leading uk investment advisory 
business consulting to pension funds and charity clients which 
control some £42 billion of assets
chairman
wm blyth
64 was appointed director in march 2013 and became non
executive chairman on april 1 2014 he has a bsc from  
st andrews university and is a chartered accountant he was  
until his retirement in 2011 a partner for 30 years in baker tilly 
specialising in providing audit and related services to aim and  
full list clients during his career he held a number of senior 
management positions with the firm including a period on its 
national executive committee in addition to his chairmanship  
of anglo pacific mr blyth is vicechairman of erskine hospital 
board member of wheatley housing group and director of 
haldane property company ltd and glasgow  suburban 
property company ltd mr blyth also acts as trustee for  
a number of small charities
chief executive officer
ja treger
52 joined the group as chief executive officer and an executive 
director on october 21 2013 he has an mba from harvard business 
school and a ba from harvard university he began his career 
working for lord rothschild as an inhouse corporate financier 
managing a portfolio of public and private equity investments 
before cofounding active value advisors ltd to invest in 
undervalued predominantly uklisted companies where he 
advised on more than us9000m of funds over a 12year period 
most recently he has served as one of the principals of audley 
capital advisors llp  an investment advisory firm which he 
cofounded in 2005 managing valueorientated special situations 
investment strategies through hedge fund and coinvestment 
vehicles with a principal focus on the natural resources sector
chief investment officer
mr potter
38 joined the group as chief investment officer and an executive 
director on october 21 2013 he has a ba hons and an ma 
degree in engineering and management studies from trinity 
college university of cambridge after graduating he became 
a senior analyst in the investment banking division of schroder 
salomon smith barney citigroup from 2003 to 2005 he was 
an associate at dawnay day advising on ma private equity 
and initial public offerings for uklisted companies most recently 
he has served as one of the principals of audley capital advisors 
llp  an investment advisory firm which he joined at inception in 
2005 where he has been primarily responsible for covering all 
natural resources investments held by the firm’s flagship audley 
european opportunities fund
senior independent director
ds archer
58 was appointed director in october 2014 and currently chairs 
the group’s remuneration committee he is also the group’s 
senior independent director he has over 34 years’ international 
resources industry experience in the americas asia australia and 
the middle east he is the chief executive officer of aimlisted 
savannah resources plc which owns majority stakes in a 
the board
anglo pacific group plc  annual report  accounts 2014 37
governance
apg11  ar14  24032015  back – proof 9 board evolution
during 2014 alongside the appointment of a nonexecutive 
chairman the directors continued the process of board 
rejuvenation and reinvigoration ahead of the next stage of the 
group’s development with the transition handled in an orderly 
and progressive way
as noted above mr wides stepped down from his role as 
executive director on may 8 2014 mr wides carried out many 
roles for the company during his tenure of nearly 17 years 
including those of ceo and latterly acting chairman the board 
is especially grateful for the enormous contribution he made to 
the growth and development of the group during that time 
john whellock mike atkinson and paul cooke stood down as 
nonexecutive directors during the year in addition anthony 
yadgaroff has indicated that he will be standing down at the end 
of 2015 each has contributed his own valuable expertise to the 
work of the board and the board is extremely grateful for the 
experience and wise advice they have provided
during the year following the recommendations of the nomination 
committee the board appointed robert stan rachel rhodes 
and david archer as nonexecutive directors their respective 
experience is detailed on  page 37 and they are already making 
considerable contributions to the deliberations of the board
appointment development and assessment of directors
all directors are subject to election by shareholders at the first 
opportunity after their appointment under the terms of the 
company’s articles of association all directors are required to 
retire and seek reappointment by shareholders at an agm on the 
third anniversary of their appointment of the current nonexecutive 
directors mr yadgaroff was not appointed to a specified term 
of office mr blyth mr stan ms rhodes and mr archer were 
appointed on rolling threeyear contracts and the board intends 
that all future nonexecutive director appointments will be on 
similar terms notwithstanding this it is the board’s intention 
that all directors including the nonexecutive directors shall 
be subject to reelection at each agm
each director is required to disclose to the board their other 
significant commitments prior to appointment and when there 
is any significant change the board considers that all of the 
directors allocate sufficient time to the company to discharge 
their responsibilities effectively
actual and potential conflicts of interest are regularly reviewed 
also as permitted under the companies act 2006 the company’s 
articles of association contain provisions that enable the board 
to authorise conflicts or potential conflicts that individual directors 
may have and to impose such limits or conditions as the board 
thinks fit
the company’s directors have a wide range of skills as well 
as appropriate experience in financial commercial and mining 
activities each director takes responsibility for undertaking the 
appropriate training required for developing and updating their 
knowledge and capabilities the chairman regularly reviews 
the directors’ training needs and where appropriate the group 
provides the resources to meet the directors’ requirements
during the year the board undertook a formal and rigorous 
evaluation of its own performance and that of its committees 
and individual directors including the chairman facilitated by 
pricewaterhousecoopers pricewaterhousecoopers provide tax 
advice to the company but otherwise have no other connection 
with it the outputs from this process were discussed at a board 
away day in november and appropriate action plans put in place
the board now has in place a formal induction process for new 
directors on joining the board which is tailored to the needs of 
the individual
functioning of the board
the chairman in conjunction with the company secretary is 
responsible for setting the board’s agenda and for ensuring that 
the board receives accurate timely and clear information the 
agenda includes regular reports from the executive management 
and from the board’s committees on all matters relating to the 
running of the group the chairman is also responsible for 
ensuring that adequate time is available for discussion of all 
agenda items and in particular strategic issues
the group’s company secretary is responsible for advising the 
board through the chairman on all governance matters all of 
the directors have access to the company secretary’s services 
and advice all of the directors may also seek independent 
professional advice in the performance of their duties at the 
group’s expense
directors’ attendance at board and committee meetings which 
they were eligible to attend during 2014 was as follows
full 
board executive audit remuneration nomination
total meetings 
held 16 14 7 2 3
attendance
ds archer
1
55 – – 11 11
mh atkinson
2
56 – 44 – –
wm blyth 15 – 7 2 3
pm boycott
3
– – – – –
pnr cooke
4
811 – – – –
mr potter 15 13 – – –
rc rhodes
5
910 – 33 – 3
rh stan
6
1313 – 55 2 22
ja treger 16 14 – – –
jg whellock
7
66 – 44 – –
ah yadgaroff
8
13 – – – 11
bm wides
9
56 34 – – –
1
  ds archer was appointed to the board and to the remuneration and nomination 
committees on october 15 2014
2
  mh atkinson resigned from the board on june 11 2014
3
  pm boycott passed away on january 7 2014
4
 pnr cooke resigned from the board on october 15 2014
5
 rc rhodes was appointed to the board on may 8 2014
6
  rh stan was appointed to the board and to the audit remuneration and 
nomination committees on february 19 2014
7
 jg whellock resigned from the board on june 11 2014
8
 ah yadgaroff stepped down from the nomination committee on june 11 2014
9
 bm wides resigned from the board on may 8 2014
the board
governance
anglo pacific group plc  annual report  accounts 2014 38
apg11  ar14  24032015  back – proof 9 the key elements of the control system in operation are
• the board meets regularly with a formal schedule of matters 
reserved to it for decision and has put in place an organisational 
structure with clear lines of responsibility and appropriate 
delegation of authority
• there are established procedures for planning and approving 
investments and information systems for monitoring the 
group’s financial performance against budgets and forecasts
• the chief financial officer is required to undertake an annual 
assessment process to identify and quantify the risks that face 
the group’s businesses and functions and to assess the 
adequacy of the prevention monitoring and mitigation practices 
in place for those risks this process covers all material controls 
including financial operational and compliance controls  
the audit committee is responsible for reviewing the risk 
assessment process for completeness and accuracy
• in addition to its work on the above the audit committee also 
receives reports about significant risks and associated control 
and monitoring procedures the group’s internal controls and 
procedures documentation are regular agenda items for the 
committee the committee also receives regular reports from 
the external auditors
• the audit committee reports regularly to the board on 
these matters so as to enable the directors to review the 
effectiveness of the system of internal control the board also 
receives regular reports from its other committees and directly 
from management in addition to carefully considering the 
group’s risk register at regular intervals
• the system accords with the financial reporting council’s 
internal control revised guidance for directors on the 
combined code
there are no significant issues disclosed in the report and 
financial statements for the year ended december 31 2014 and 
up to the date of approval of the report and financial statements 
that have required the board to deal with any related material 
internal control issues
the directors confirm that the board has reviewed the 
effectiveness of the system of internal control as described 
during the period and concluded that the controls and 
procedures are adequate
relations with shareholders
the group is the only major mining royalty company in the uk and 
recognises the importance of developing a fuller understanding 
of its business model amongst investors and an effective twoway 
communication with fund managers institutional investors and 
analysts the chairman met with major shareholders during the 
year and the sid also maintained dialogue with a range of fund 
managers and institutions 
there are over 2000 private investors in the group the board 
was pleased by the attendance at the 2014 agm and the active 
engagement of investors in asking about current business activity 
at this year’s agm it is anticipated that all of the directors including 
the chairmen of the audit remuneration and nomination 
committees will be available to answer any shareholder 
questions
following the successful fundraise in february 2015 and the 
performance of the joint book runner in that process the board 
has appointed macquarie bank and peel hunt as joint brokers  
to work alongside bmo capital markets the decision was also 
influenced by the increased australian asset base of the group 
following the completion of the narrabri royalty acquisition 
following these appointments the board is satisfied that the  
uk australia and canada which are the three jurisdictions likely 
to make up most of our shareholder base are well covered by 
brokers with significant local expertise 
at the same time we have put in place arrangements for  
more regular investor relations reports to the board including 
commentary on the perception of the company views expressed 
by the investment community media reports share price 
performance and analysis so as to ensure that all directors are 
made aware of the major shareholders’ issues and concerns
risk management and internal control
the board retains overall responsibility for the group’s system of 
internal control and risk management and determines the nature 
and extent of the significant risks it is willing to take in achieving 
its strategic objectives a statement of directors’ responsibilities 
in respect of the financial statements is set out on  page 61
the group’s system of internal control is designed to provide the 
directors with reasonable but not absolute assurance that the 
group will not be hindered in achieving its business objectives 
or in the orderly and legitimate conduct of its business by 
circumstances that may reasonably be foreseen however no 
system of internal control can eliminate the possibility of poor 
judgement in decisionmaking human error fraud or other 
unlawful behaviour management overriding controls or the 
occurrence of unforeseeable circumstances and the resulting 
potential for material misstatement or loss
anglo pacific group plc  annual report  accounts 2014 39
governance
apg11  ar14  24032015  back – proof 9 committee meetings in 2014
the committee met three times during the year and attendance 
at those meeting is detailed on  page 38
main activities covered during 2014
the nomination committee was actively involved during 2014 
in reviewing the structure size and composition of the board in 
the light of the succession policies discussed earlier the need 
to maintain a balance of appropriate skills and accepted best 
corporate governance practice the committee is responsible 
for identifying and nominating candidates for both executive  
and nonexecutive directorships for approval by the board
although the committee has the authority to use an external 
search consultancy or open advertising it did not choose to do 
so in respect of all of the appointments made during 2014
the background to mr stan’s appointment in march 2014 as 
nonexecutive director and mr blyth’s appointment as chairman 
in april 2014 was described in the group’s 2013 annual report 
in the case of ms rhodes’ appointment the committee was 
looking for a replacement for the finance and audit experience of 
mr blyth following his appointment as chairman a shortlist of 
candidates was drawn up from internal sources and ms rhodes 
was appointed following a thorough interviewing process
for the appointment of mr archer the board was seeking a 
candidate with mining experience across a range of commodities 
and jurisdictions coupled with prior board experience to assist with 
this the board employed the services of a search consultancy 
heidrick  struggles
 
wm blyth
chairman 
march 24 2015
composition
compliant with the code
wm blyth – chairman
ds archer
rc rhodes
rh stan
mh atkinson – resigned from the board on june 11 2014
ah yadgaroff – stepped off the committee on june 11 2014
role and responsibilities
the primary responsibilities of the nomination committee are to
• set guidelines with the approval of the board for the types  
of skills experience and diversity being sought when making 
a search for new directors with the assistance of external 
consultants identifying and reviewing in detail each potential 
candidate available in the market and agreeing a ‘long list’ of 
candidates for each directorship following further discussions 
and research deciding upon a shortlist of candidates for 
interview interview of shortlisted candidates by the committee 
members who then convene to discuss their impressions and 
conclusions culminating in a recommendation to the board
• make recommendations as to the composition of the board 
and its committees and the balance between executive 
directors and nonexecutive directors neds with the aim of 
cultivating a board with the appropriate mix of skills experience 
independence and knowledge of the company
• ensure that the hr function of the group regularly reviews and 
updates the succession plans of directors and senior manager 
for subsequent debate with the neds and chief executive 
the committee’s terms of reference can be found on the  
anglo pacific group plc website
diversity policy
to increase diversity in particular the representation of women 
and ethnicity on the board
the board recognises the benefits of diversity and that its current 
composition is still deficient in several respects one particular 
focus of the committee has been to increase gender diversity 
on the board and the appointment of ms rhodes was a first 
step in this process the company continues to seek 
opportunities to promote both diversity to the board and to 
maintain a policy to appoint positions on merit and the needs  
of the group at any one time the opportunities for developing 
and appointing women to executive directorships will be kept 
under review 
nomination committee
governance
anglo pacific group plc  annual report  accounts 2014 40
apg11  ar14  24032015  back – proof 9 fair balanced and understandable
a key requirement of our financial statements is for the report 
and accounts to be fair balanced and understandable the audit 
committee and the board are satisfied that the annual report and 
accounts meet this requirement as appropriate weight has been 
given to both positive and negative developments in the year
in justifying this statement the audit committee has considered 
the robust process which operates in creating the report and 
accounts including
• a thorough process of review evaluation and verification by 
senior management which considered and drew on best practice 
for the creation of the report and accounts and recommendations 
made by the frc during their review earlier this year 
• a meeting of the audit committee is held to review and 
consider the draft annual report and accounts in advance 
of the final signoff
• final signoff is provided by the board of directors
audit tender
the group is in compliance with the current recommendations of 
the uk corporate governance code around audit tendering during 
the second quarter of the year the group conducted a formal 
tender process following which deloitte llp were appointed  
as its new independent auditors the committee is satisfied 
following a review that the external auditor is effective objective 
and independent
committee meetings in 2014
under its term of reference the audit committee is required 
to meet at least three times a year or more frequently as 
circumstances require meetings are attended by members of 
the committee and by invitation the chief executive officer and 
the chief financial officer other relevant personnel are invited  
to attend certain meetings as required the company’s auditors 
deloitte llp  also attend by invitation
the committee met seven times during the year and attendance 
at those meetings is detailed on  page 38
main activities covered during 2014
the committee’s activities focused on
a financial reporting
the audit committee assists the board in assuring the integrity 
of the financial statements following discussion with both 
management and the external auditor the committee determined 
the key risks and judgement areas for consideration during the 
year were
classification of royalties
management assessed the individual characteristics and 
contractual terms and conditions of each royalty arrangement 
entered into by the group during the year to ensure the 
classification was consistent with the group’s accounting policies 
stated in note 1 the committee reviewed and interrogated 
management’s application of the policies and concluded the new 
royalties had been appropriately classified the external auditor 
concurred with this classification
composition
compliant with the code
rc rhodes – chairman
wm blyth
rh stan
mh atkinson – resigned from the board on june 11 2014
jg whellock – resigned from the board on june 11 2014
ms rhodes has chaired the audit committee since may 2014 
being the date of her appointment to the board ms rhodes 
replaced mr blyth as audit committee chairman and has recent 
relevant financial experience as required by the code
the committee members have a wide range of financial and 
commercial expertise which the board considers appropriate 
to fulfill the committee’s duties biographies of the committee 
members are set out on  page 37
roles and responsibilities
the primary responsibilities of the audit committee are to
• monitor the integrity of the company’s annual and interim 
financial statements the accompanying reports to the 
shareholders and corporate governance statements
• make recommendations to the board concerning the adoption 
of the annual and interim financial statements
• review and challenge the consistency of and any changes to 
accounting policies methods and standards
• oversee the group’s relations with the external auditors 
including the assessment of independence and their 
effectiveness
• make recommendations to the board on the appointment 
retention and removal of the external auditors and tendering 
of external audit services
• advise the board on the external auditor’s remuneration for 
both audit and any nonaudit work
• review and monitor the reports from management on the 
principal risks of the group outlined on  pages 12 to 13 and 
the management of those risks
• monitor and review the adequacy and effectiveness of the 
company’s internal financial controls
• consider the need for and manage the effectiveness of the 
company’s approach to internal audit and
• review and monitor the environmental and social impact of the 
company’s activities the company’s whistleblowing procedure 
and the company’s systems and controls for the prevention 
of bribery
the committee’s terms of reference can be found on the  
anglo pacific group plc website
audit committee
anglo pacific group plc  annual report  accounts 2014 41
governance
apg11  ar14  24032015  back – proof 9
governance b internal control and risk management
the committee is responsible for the oversight of internal control 
and risk management systems across the group 
in carrying out its role the committee reviews the following
• regular updates of key internal control matters in respect of the 
group financial reporting processes such as financial reporting 
systems and controls
• procedures developed by management to identify and evaluate 
key business financial and operational risks and the 
effectiveness of the responses being implemented to mitigate 
the potential impacts
• policies and procedures in place to detect monitor and 
investigate activity in respect of antifraud bribery and 
corruption such as the group whistleblowing facilities 
the key elements of the control system in operation are
• the board meets regularly with a formal schedule of matters 
reserved to it for decision and has put in place an organisational 
structure with clear lines of responsibility and appropriate 
delegation of authority
• there are established procedures for planning and approving 
investments and information systems for monitoring the 
group’s financial performance against budgets and forecasts
• the chief financial officer is required to undertake an annual 
assessment process in conjunction with the company 
secretary to identify and quantify the risks that face the 
group’s businesses and functions and to assess the adequacy 
of the prevention monitoring and mitigation practices in place 
for those risks this process covers all material controls 
including financial operational and compliance controls 
the audit committee is responsible for reviewing the risk 
assessment process for completeness and accuracy
• in addition to its work on the above the audit committee also 
receives regular reports about significant risks and associated 
control and monitoring procedures the group’s risk register 
and internal controls and procedures documentation are regular 
agenda items for the committee the committee also receives 
regular reports from the external auditors
• the audit committee reports to the board on these matters 
so as to enable the directors to review the effectiveness of  
the system of internal control the board also receives reports 
from its other committees and directly from management
• the system accords with the financial reporting council’s 
internal control revised guidance for directors on the 
combined code
there are no significant issues disclosed in the report and 
financial statements for the year ended december 31 2014 and 
up to the date of approval of the report and financial statements 
that have required the board to deal with any related material 
internal control issues
the directors confirm that the board has reviewed the effectiveness 
of the system of internal control as described during the period 
and concluded that the controls and procedures are adequate
impairment of royalties and the investment portfolio
an impairment review was carried out where indicators of 
impairment exist for specific royalty arrangements in accordance 
with the group’s accounting policy stated in note 1 
management assessed the carrying value of each royalty by 
comparing the estimated recoverable amount to its carrying 
value based on the most up to date production profiles forecast 
commodity prices and using discount rates which reflected 
appropriate risk specific to the assets management disclosed 
to the committee the assumptions used and also the sensitivity 
of valuation to key assumptions the committee reviewed and 
interrogated management’s assumptions and determined the 
recoverable amount was appropriate the external auditor explained 
their audit procedures and reported to the committee that they 
considered the carrying value of assets was materially appropriate
valuation of royalties held at fair value
in accordance with its accounting policy stated in note 1 
management fair valued royalty arrangements held at fair value 
based on the most up to date production profiles forecast 
commodity prices and using discount rates which reflected 
appropriate risk specific to the assets the committee reviewed 
and interrogated management’s assumptions and determined  
the fair value was appropriate the external auditor explained  
their audit procedures and reported to the committee that  
they considered the fair value of royalties held at fair value was 
materially appropriate
assessment of the validity of the going concern assumption
the committee reviewed financial forecasts provided by 
management including sensitivity analysis to assess downside 
risk and its reasonably possible impact on committed liquidity 
the committee concluded taking account of reasonable 
possible changes in commodity prices the operating 
performance of the group’s royalty projects and possible 
mitigating actions that the group has sufficient committed 
liquidity to fund its committed expenditure
the quality and acceptability of accounting policies and practices
the committee receives reports from management outlining  
key accounting policies and practices 
as reported in the interim financial statements the group 
concluded its dialogue with the frc’s finance reporting review 
panel regarding the application of its accounting policies for 
the classification of its royalty interests as intangibles and the 
recognition of impairments for equity afs assets no further 
adjustments were required to the financial statements following 
the conclusion of this review and additional disclosures are made 
in respect of the group’s accounting policies as disclosed in  
note 1 below
material areas in which significant judgements have been applied
includes accounting for the fair value of future royalty payments 
to fair value royalty payments management has made assumptions 
over the expected production profile grade market price and 
discount rate
the committee has reviewed the assumptions presented by 
management and the work performed by the external auditor 
and has in each case concluded estimates were appropriate
audit committee
governance
anglo pacific group plc  annual report  accounts 2014 42
apg11  ar14  24032015  back – proof 9 the committee also considers on an annual basis whether an 
internal audit function is required its present view is that one is 
not yet justified given the compact size of the group and the 
directors’ involvement with individual transactions
c external audit
the committee considers the effectiveness of the external audit 
process the appointment of the external auditor and also assesses 
their independence on an ongoing basis 
as stated in the 2013 annual report in line with best practice 
the committee conducted a full review of the effectiveness of the 
external audit following the completion of the yearend process 
as a result of this review the group conducted an audit tender 
process in the second quarter which resulted in the appointment 
of deloitte as the new independent auditor resolutions to 
authorise the board to reappoint the auditors and to determine 
their remuneration for the year ending december 31 2015 will 
be proposed at the agm on april 30 2015 
to safeguard the objectivity and independence of the external 
audit process the committee adopted a policy whereby it would 
review and approve all fees related to nonaudit services this 
policy prohibits the auditors from providing certain services such 
as accounting or valuation services of the 2014 nonaudit fees  
of £535000 £499000 related to deloitte’s services in relation  
to the shareholder circular for the narrabri acquisition over half 
of this amount related to the historical financial information in  
the circular which was subject to a competitive tender of the 
remainder a significant element would only be performed by  
the group’s auditor and for the balance the committee was 
satisfied there was a significant efficiency benefit from using  
the group’s auditors
the committee will continue to review its activities in light of any 
regulatory developments going forward
 
rc rhodes
chairman 
march 24 2015
anglo pacific group plc  annual report  accounts 2014 43
governance
apg11  ar14  24032015  back – proof 9 committee meetings in 2014
the committee met twice during the year and attendance 
at those meetings is detailed on  page 38
main activities covered during 2014
the committee’s activities focused on
• the implementation of the value creation plan ‘vcp’
• determining fixed increases in the full time equivalent salaries 
of the ceo and cio for implementation in 2015 and 2016
• determining the maximum potential bonuses for 2014 and 
the associated performance scorecard criteria
• granting of vcp allocations and 
• providing guidance to the ceo on bonuses to be awarded 
to his direct reports and their staff
remuneration committee
composition
compliant with the code
ds archer – chairman
wm blyth
rc rhodes
rh stan
mh atkinson – resigned from the board on june 11 2014
role and responsibilities
the primary responsibilities of the remuneration committee are to
• establish and develop the group’s general policy on executive 
and senior management remuneration
• determine specific remuneration packages for the chairman 
and executive directors
• design the company’s share incentive schemes
the committee’s terms of reference can be found on the  
anglo pacific group plc website
external advisors
the committee has access to the advice of independent 
remuneration consultants when required during 2014 the 
committee received advice from new bridge street ‘nbs’ 
nbs was appointed by the committee on january 20 2014 
nbs is a signatory to the remuneration consultants’ code 
of conduct and has no other connection with the company 
the committee is satisfied that the advice that it receives 
from nbs is objective and independent
governance
anglo pacific group plc  annual report  accounts 2014 44
apg11  ar14  24032015  back – proof 9 directors’ remuneration report
dear shareholder
our remuneration report is as last year in two parts a statement 
of the company’s policy on directors’ remuneration and an 
annual remuneration report which describes how the policy 
was implemented in 2014 the annual remuneration report  
will be subject to an advisory shareholder resolution at the  
annual general meeting ‘agm’
as the incoming chairman of the remuneration committee i am 
pleased to report that there is an excellent established remuneration 
framework in place both with a shortterm incentive plan and a 
longterm incentive plan ‘ltip’ 
the ltip is in the form of a value creation plan ‘vcp’ which 
provides awards of shares in the form of nil cost share options 
at the end of five years to the two executive directors and to 
other senior managers for increases in total shareholder return 
‘tsr’ at rates above 7 per annum the ltip supports the 
company’s ambitious growth strategy and the remuneration 
committee believes that the incentives offered are strongly 
aligned with shareholder interests
in terms of shortterm incentives the ceo the cio and the ceo’s 
direct senior reports have individually crafted bonus objectives 
which were agreed for the 2014 financial year the bonus award 
criteria relate to a series of agreed corporate and personal 
performance criteria which are scored out of a total of 100 points 
this score is then applied to a maximum bonus calculated as a 
percentage of total salary the percentages range from 100  
to 170 depending on the executive’s position and his level of 
individual participation in the vcp  
bonuses were awarded to the ceo and cio for the 2014 year and 
reflect both the major changes that have been effected to the 
company and the successful post balance sheet date acquisition 
of the narrabri royalty 
bonus criteria will be further tailored for the 2015 year both to ensure 
that the bonus criteria closely match key performance metrics and  
at the same time provide real ‘stretchperformance’ targets
with respect to the ltip  and as anticipated in last year’s 
remuneration report the ceo and cio were awarded 56 and 
24 of the vcp allocation pool with 10 to other executives 
and 10 remaining unallocated 
the main objectives for the remuneration committee in 2015 
will be to
• review and refresh the remuneration policy having regard to 
the investment association’s 2014 review of the principles of 
remuneration and the principles themselves
• review and further tailor the senior executive bonus criteria 
for 2015 and 
• review and determine the most appropriate balance between 
salary and bonus for the senior executive 
more detail is provided in the body of the remuneration report 
and the remuneration committee hopes you will endorse the 
level of remuneration paid during 2014
yours sincerely
ds archer
chairman of the remuneration committee 
march 24 2015
the remuneration report is in two parts 
the first part constitutes the ‘remuneration policy report’ and 
sets out the remuneration strategy that the company applied 
during 2014 and intends to apply going forward it has been 
developed taking into account the principles of the uk corporate 
governance code 2012 and the views of our major shareholders 
the policy report was approved by shareholders at the 2014 
agm it is structured in the following sections
a strategic overview and policy drivers
b how the views of shareholders and employees have been 
taken into account
c the new remuneration policy for executive directors
d annual bonus – choice of performance measures and 
approach to targetsetting 
e ltip – principal terms and conditions and reward scenarios
f reward scenarios
g determinations to be made by and discretions available to the 
committee
h differences in remuneration policy for executive directors 
compared to other employees
i approach towards appointment of new executive directors
j service contracts and payments for loss of office
k nonexecutive directors and
l legacy arrangements
the second part the annual remuneration report for 2014 
details the remuneration paid to directors during 2014 with a 
comparison to the previous year it will be put to an advisory 
shareholder vote at the 2015 agm it is structured as follows 
a single figure total remuneration
b annual bonus for the year ending december 31 2014
c vesting of longterm incentive awards
d directors’ shareholding and share interests
e total pension entitlements
f loss of office payments
g percentage increase in the remuneration of the ceo
h total shareholder return
i total remuneration for the ceo over time
j relative importance of spend on pay
k external directorships
l 2015 salary review
m fees for the chairman and nonexecutive directors
n performance targets for the annual bonus and ltip awards 
granted in 2014 and beyond
o statement of shareholder voting
the information in sections a to g and i to m has been audited 
anglo pacific group plc  annual report  accounts 2014 45
governance
apg11  ar14  24032015  back – proof 9
governance to attract the new executive directors the company needed 
to offer basic salaries closer to market levels than the sublower 
quartile salaries of the past however they have been preset 
for the period through to december 2016 and as part of the 
package the cap on annual bonus has been reduced from 
150 of salary to 100 whilst the bonus criteria have been 
made more transparent the committee keeps under review 
the bonus structure for nonboard senior managers to ensure 
a sensible relationship between board and nonboard 
remuneration see section i below
b  how the views of shareholders and employees have been 
taken into account
the committee considers shareholder feedback received in 
relation to the agm each year details of votes cast for and 
against the resolution to approve last year’s remuneration report 
are provided in the annual remuneration report this feedback 
plus any additional feedback received during any meetings from 
time to time is then considered as part of the company’s annual 
review of remuneration policy feedback during 2013 included 
concern that the company’s jsop did not reward performance 
above the hurdle rate and concern about its ‘all or nothing’ nature
the committee actively engaged with major shareholders on 
the remuneration of the new directors and was encouraged 
by the general support shown for the proposals on basic salary 
and annual bonus several changes were made to the ltip in 
response to the constructive feedback received which were 
included in the final plan approved by shareholders at the 2014 
agm a remuneration framework was also established and 
remains in place for the next two years if there is a need for 
a material change to the framework within this period the 
committee chairman will consult major shareholders in advance
nonboard employees are consulted individually on the executive 
remuneration policy to the extent that it impacts upon the 
structure and level of their own pay and bonuses
c the new remuneration policy for executive directors
the policy in respect of basic salary and annual bonus was 
approved at the 2014 agm and outlined predetermined salary 
increases in 2015 and 2016 the ltip covers a fiveyear period 
from the date of its grant ie to mid2019 the committee 
expects to seek shareholder agreement in 2016 to a followon 
policy on basic salary and annual bonus and probably also to 
further longterm incentive arrangements covering the period 
beyond 2018
remuneration policy report
a strategic overview and policy drivers
in our 2013 report we reported some significant changes to 
our remuneration strategy following a number of board changes 
the strategy was historically based on the following company 
specific elements which continue to form the backdrop to the 
overall remuneration strategy 
• long investment horizons typically there can be an interval 
of between two and 10 years before a royalty comes on 
stream and the royalty may continue to flow for 20 years or 
more as the business focus has increasingly shifted towards 
royalty acquisition we have given greater weighting towards 
incentivising longerterm performance
• no comparable peer group certainly in the uk for the 
purposes of benchmarking director performance as a result 
our incentive plans are based on absolute performance rather 
than performance relative to other companies
• a high ratio between its market capitalisation £2040m 
at december 31 2013 and the number of its employees 
13 as at march 28 2014 of whom three were executive 
directors the risk to the business of losing key employees 
is correspondingly significant and we have traditionally 
regarded retention as an important objective of our 
remuneration strategy 
as reported in last year’s report a new executive management 
team was appointed in october 2013 with a view to amongst 
other things increase total shareholder return ‘tsr’ over a 
fiveyear period with the help of our remuneration consultants 
a value creation plan ‘vcp’ was constructed discussed with 
major shareholders and ultimately approved at the 2014 agm 
more details of this scheme are included in section f below
the vcp is based on the growth in the absolute tsr achieved 
over a fiveyear period from june 2014 we believe that this 
offers the most direct alignment of directors’ interests with those 
of shareholders we have considered how far a tsr measure 
could lead to over or underrewarding due to the impact on the 
share price of factors outside management control such as 
commodity price volatility we believe this risk is limited partly 
by the length of the performance period which comes close 
to covering a full commodity price cycle partly by the relative 
predictability of royalty volumes and partly by the relatively 
large dividend component of the tsr expected to flow from 
the company’s revised dividend strategy the performance 
target that has to be achieved before any options are awarded 
is considered challenging and there is a powerful incentive for 
both outperformance and retention over the next five years 
the committee has also awarded certain senior nonboard 
managers some access to the ltip 
directors’ remuneration report
governance
anglo pacific group plc  annual report  accounts 2014 46
apg11  ar14  24032015  back – proof 9 the committee’s specific policy for each element of remuneration is as follows
element purpose  
and link to strategy operation maximum
salary
to recruit retain and reward 
executives of a suitable 
calibre for the role and duties 
required
salaries are set with reference to individual performance 
experience and responsibilities to reflect the market rate 
for the individual and their role determined with reference 
to remuneration levels in companies of similar size and 
complexity taking into account pay levels within the 
company in general
there is no prescribed maximum annual increase but 
salaries have been set for 2014 to 2016 on a fulltime 
equivalent basis as follows
£’000 2014 2015 2016
ceo 360 380 400
cio 180 190 200
pension and benefits
to provide market 
competitive benefits
a company contribution to a money purchase pension scheme 
or a cash allowance in lieu of pension at the request of the 
individual other than a death in service policy which the 
company subscribes to no other benefits are provided
executive directors are entitled to 30 days’ leave
pension 10 of salary
death in service policy five times salary
annual bonus
to encourage and reward 
delivery of the company’s 
operational objectives
the annual bonus will be paid wholly in cash with no 
deferred component but with a provision for clawback 
up to 60 may be awarded for inyear achievement of 
corporate performance targets which are to be agreed 
by the board at the beginning of the year
up to 40 may be awarded for inyear achievement of 
personal performance targets which are to be agreed 
with the chairman and the committee
the committee will use a balanced scorecard approach to 
assess performance against targets at the end of the year
the targets are discussed more fully at section d below
the maximum annual bonus opportunity is 100 of salary
longterm incentives
to encourage and reward 
delivery of the company’s 
strategic objectives and 
provide alignment with 
shareholders through the 
use of shares and incentivise 
retention of key personnel
the ltip takes the form of a vcp with a performance period 
of five years from the date of grant ie to mid2019
awards will be subject to a tsr performance condition
the detailed design is discussed at section e below
the maximum number of shares that can be awarded under 
the option grants equates to 75 of the company’s issued 
share capital as at the end of the measurement period
the committee intends to allocate the pool as follows
ceo 56
cio 24
nonboard senior managers 20
the potential rewards achievable by executive directors under the remuneration policy are illustrated at section g the policy in respect 
of any future director appointments is discussed at section j below
d  annual bonus – choice of performance measures and approach 
to target setting
annual bonuses for 2014 and the two subsequent years are 
based on a scorecard of performance during the year the scorecard 
sets challenging targets for triggering bonus and for rewarding 
outperformance on a sliding scale the scorecard will be split on 
a 6040 basis between corporate objectives and personal objectives
the corporate objectives are agreed by the board at the 
beginning of each year together with an assessment of the 
potential for outperformance and the risk of shortfall this covers 
such areas as business performance finance relationships and 
reputation this constitutes the criteria for triggering a bonus and 
for assessing the levels of challenge and outperformance that 
would warrant higher levels of bonus the ceo’s personal 
objectives for the year are agreed at the beginning of the year by 
the chairman of the board in conjunction with the committee 
who will also agree the personal objectives of the cio in conjunction 
with the ceo the personal objectives focus on the required 
contribution of the individual director to the achievement of the 
company’s objectives for the year but also on important but less 
measurable aspects such as leadership building personal and 
team relationships and the extent to which they personally have 
‘gone the extra mile’
the ceo’s and cio’s performance against corporate and 
personal objectives is assessed by the chairman and the 
committee at the beginning of the following year and bonus 
is awarded on the basis of the agreed criteria
e ltip – principal terms and conditions and reward scenarios
the ltip takes the form of a vcp  the key features of the 
vcp are as follows 
• all employees are eligible to participate in the vcp although 
initial participation was limited to the two new executive 
directors together with other nonboard members of the senior 
management team at the discretion of the committee acting  
in consultation with the ceo
• no value accrues under the vcp to its participants unless 
growth in the company’s tsr over a fiveyear performance 
period is at least equal to 7 growth per annum or approximately 
40 total growth over the period 
• subject to such threshold growth participants become entitled 
to receive nil or nominal cost options over ordinary shares in the 
capital of the company subject to a cap set by reference to  
a share of a pool value equal to 10 of the growth in the 
company’s tsr over the fiveyear period or if less 50 of 
the growth in the company’s tsr over the fiveyear period  
in excess of the threshold growth
financial statements
anglo pacific group plc  annual report  accounts 2014 47
apg11  ar14  24032015  back – proof 9 directors’ remuneration report
• the maximum number of shares to be awarded under the 
option grants will not be capable of exceeding such number 
equating to 75 of the company’s issued share capital as at 
the end of the measurement period this cap would apply for 
total growth in tsr above 300
• this will mean that if the total growth in tsr over the fiveyear 
period is
 – below approximately 40 no value accrues
 – between approximately 40 and 50 the value that 
accrues is equal to 50 of the growth in the company’s tsr 
over the fiveyear period in excess of the threshold growth
 – between 50 and the 300 cap the value that accrues is 
equal to 10 of the growth in the company’s tsr over a 
fiveyear period and
 – above the cap the value that accrues is equal to the value 
of 75 of the company’s issued share capital as at the 
end of the measurement period
• options to which participants become entitled at the end 
of the fiveyear period will become exercisable as follows
 – onethird immediately
 – onethird after 12 months
 – onethird after 24 months
• awards were made following shareholder approval of the 
vcp at the 2014 agm and no other grants to the executive 
directors under the vcp are planned during the fiveyear plan 
period although the committee will have discretion to dilute 
the pool by an additional 10 for new joiners
• the committee intends to allocate the pool as follows
 – ceo 56
 – cio 24
 – nonboard senior managers 20
the following table and graph illustrates the potential return 
for participants and shareholders for various levels of growth 
in tsr over the fiveyear period
benefit assuming total growth in  
tsr over a fiveyear period of
allocation 
of pool 50 75 100 150 300
ceo 56 £63m £945m £126m £189m £378m
cio 24 £27m £405m £54m £81m £162m
others 20 £225m £3375m £45m £675m £135m
total 100 £1125m £16875m £225m £3375m £675m
share
holders £10125m £151875m £2025m £30375m £6075m
based on starting market capitalisation of £2250m
value to participants at different levels of performance
0 25 75 50 100
value to shareholders total growth in tsr over the fiveyear period
value to participantsshareholders £m
value to participants
0
25
50
75
100
125
150
175
200
225
when total growth in tsr over the 
fiveyear period is 50 the value 
to participants and shareholders is 
£1125m and £10125m respectively
governance
anglo pacific group plc  annual report  accounts 2014 48
apg11  ar14  24032015  back – proof 9 f reward scenarios
the company’s policy results in a significant portion of remuneration received by executive directors being dependent on company 
performance the charts below illustrate how the total pay opportunities for the executive directors vary under three different 
performance scenarios minimum fixed pay only target and maximum these charts are indicative as share price movement and 
dividend accrual have been excluded all assumptions made are noted below the charts 
ceo total remuneration at different levels of performance £’000
cio total remuneration at different levels of performance £’000
the ltip  which was approved by shareholders at the 2014 agm is a oneoff fiveyear plan and it is anticipated that no other awards 
will be made to the ceo and cio under the ltip during the performance period the charts on the previous page illustrate the total pay 
opportunities if the fiveyear ltip equivalent to five separate awards one in each year of the performance period was included in full 
in the year of grant to aid comparability with standard ltip structures there are additional charts below reflecting the total pay 
opportunities if the ltip was included on an annualised basis
fixed pay
below
target
ontarget
maximum
annual bonus ltip
£0 £500000 £1000000£1500000 £2000000 £2500000 £3000000 £3500000 £4000000 £4500000 £5000000
100
69
10
£396000
£576000
£4004000
31
9 81
below
target
ontarget
maximum
fixed pay annual bonus ltip
£0 £200000 £400000 £600000 £800000 £1000000 £1200000 £1400000 £1600000 £1800000 £2000000
100
69
11
£198000
£288000
£1770000
31
10 79
financial statements
anglo pacific group plc  annual report  accounts 2014 49
apg11  ar14  24032015  back – proof 9 directors’ remuneration report
ceo total remuneration at different levels of performance
cio total remuneration at different levels of performance
below
target
ontarget
maximum
fixed pay annual bonus ltip
£0 £200000 £400000 £600000 £800000 £1000000 £1200000 £1400000 £1600000
100
69
28
£396000
£576000
£1405600
31
26 46
below
target
ontarget
maximum
fixed pay annual bonus ltip
£0 £100000 £200000 £300000 £400000 £500000 £600000 £700000 £800000
100
69
30
£198000
£288000
£656400
31
27 43
assumptions 
• below target  fixed pay only salary  benefits  pension
• ontarget  fixed pay 50 vesting of the annual bonus and 
0 of the ltip awards ie the value that accrues for 
threshold performance
• maximum  fixed pay and 100 vesting of the annual bonus 
and ltip awards
• salary levels on which other elements of the package are 
calculated are based on those which applied from january 22 
2014 salary for the ceo is on a fulltime equivalent basis the 
executive directors do not receive any taxable benefits and
• the fair value of the ltip has been calculated using a black
scholes model using assumptions that at grant the market 
capitalisation is £2090m and that there are 1109m shares 
in issue
g  determinations to be made by and discretions available 
to the committee
the committee operates the group’s variable incentive plans 
according to their respective rules and in accordance with hmrc 
rules where relevant to ensure the efficient administration of these 
plans the committee will be required to make determinations and 
apply certain operational discretions these include the following
• selecting the participants in the plans on an annual basis
• determining the timing of grants of awards andor payment
• adjusting basic salaries for changes in time commitment 
within the fulltime equivalent levels set out in this policy
• determining the quantum of awards andor payments 
within the limits set out in the policy table above
• determining the extent of vesting based on the assessment 
of performance
• making the appropriate adjustments required in certain 
circumstances eg change of control variation of share capital 
including rights issues and corporate restructuring events and 
special dividends 
• determining ‘good leaver’ status for incentive plan purposes 
and applying the appropriate treatment and
• undertaking the annual review of weighting of performance 
measures and setting targets for the annual bonus plan from 
year to year
if an event occurs which results in the annual bonus plan or 
longterm incentive performance conditions andor targets being 
deemed no longer appropriate eg a material acquisition 
or divestment the committee will have the ability to adjust 
appropriately the measures andor targets and alter weightings 
provided that the revised conditions or targets are not materially 
less difficult to satisfy
governance
anglo pacific group plc  annual report  accounts 2014 50
apg11  ar14  24032015  back – proof 9 h  differences in remuneration policy for executive directors 
compared to other employees
the committee aims to ensure over time a proper differential 
between the level of the remuneration of executive directors and 
other employees but also appropriate differences in the structure 
of remuneration to reflect different levels of responsibility and 
planning horizons of employees across the company
the remuneration framework of nonboard employees will be 
reviewed for 2015 and subsequent years in the light of the overall 
remuneration package shareholders agree for the new executive 
directors there are likely to be two main differences 
• the committee will reserve access to the ltip to the most 
senior executives who have the greatest potential to influence 
the company’s longterm performance and
• the executive directors will receive any annual bonus wholly 
in cash because of the large potential shareholding offered by 
the ltip but in order to encourage employees without access 
or with less access to the ltip to build up a shareholding in the 
company consideration will be given to either including a share 
component in any annual bonuses awarded to nonboard 
employees or continuing to offer them a csop arrangement 
or a combination of the two 
i approach to appointment of new executive directors
the remuneration package for a new director would be set 
in accordance with the terms of the company’s approved 
remuneration policy in force at the time of appointment currently 
for an executive director this would include a potential annual 
bonus of no more than 100 there is provision within the 
proposed ltip arrangement for the committee to dilute the 
pool by an additional 10 for new appointees
the salary for a new executive director may be set below the 
normal market rate with phased increases following an initial 
probationary period and over the first few years as the executive 
gains experience in their new role this is the salary profile 
applied to the two executive directors appointed in 2013
the committee may offer new appointees additional cash andor 
sharebased elements when it considers these to be in the best 
interests of the company and its shareholders including the use 
of awards made under 942 of the listing rules such payments 
would take account of remuneration relinquished when leaving 
the former employer and would reflect as far as practicable 
the nature and time horizons attaching to that remuneration and 
the impact of any performance conditions shareholders will be 
informed of any such payments at the time of appointment 
for an internal executive director appointment any variable 
pay element awarded in respect of the prior role will be allowed 
to pay out according to its terms adjusted as relevant to take 
into account the appointment in addition any other ongoing 
remuneration obligations existing prior to appointment may 
continue provided that they are put to shareholders for approval 
at the earliest opportunity 
for external executive director appointments the committee 
may agree that the company will meet certain relocation 
expenses as appropriate
for the appointment of a new chairman or nonexecutive 
director the fee arrangement would be set in accordance 
with the approved remuneration policy in force at that time
j service contracts and payments for loss of office
the committee together with the nomination committee reviews 
the contractual terms for new executive directors to ensure that 
these reflect best practice 
although all of the executive directors’ service contracts are for an 
indefinite term it is the company’s continuing policy that service 
contracts should not have a notice period of more than one year
the service contracts contain provision for early termination 
a director’s service contract may be terminated without notice 
and without any further payment or compensation except for 
sums accrued up to the date of termination on the occurrence 
of certain events such as gross misconduct if the employing 
company terminates the employment of an executive director 
in other circumstances compensation is limited to salary due for 
any unexpired notice period and any amount assessed by the 
committee as representing the value of other contractual benefits 
including pension which would have been received during the 
period payments in lieu of notice are not pensionable the service 
contracts of mr potter and mr treger provide for a sixmonth 
notice period and an additional termination payment equivalent 
to six months’ basic salary in the event of a change of control 
of the company there is no enhancement to contractual terms 
service contracts are available for inspection at the company’s 
registered office
in summary the contractual provisions for executive directors are as follows
provision detailed terms 
notice period one year or less
termination payment basic salary plus benefits including pension paid monthly and subject to mitigation
in addition any statutory entitlements or sums to settle or compromise claims in connection 
with the termination would be paid as necessary
additional termination payment to bring total to the equivalent of 12 months’ basic salary
remuneration entitlements a prorata bonus may also become payable for the period of active service along with vesting 
for outstanding share awards in certain circumstances – see below 
in all cases performance targets would apply
change of control there are no enhanced terms in relation to a change of control
anglo pacific group plc  annual report  accounts 2014 51
governance
apg11  ar14  24032015  back – proof 9 directors’ remuneration report
any sharebased entitlements granted to an executive director under the vcp will be determined based on the plan rules the default 
treatment is that any outstanding unvested awards lapse on cessation of employment however in certain prescribed circumstances 
such as death disability retirement or other circumstances at the discretion of the committee taking into account the individual’s 
performance and the reasons for their departure ‘good leaver’ status can be applied for good leavers the unvested awards remain 
subject to performance conditions measured over the original time period and are reduced prorata in size to reflect the proportion of 
the performance period actually served the committee has the discretion to disapply time prorating if it considers it appropriate to do 
so in determining whether an executive should be treated as a good leaver or not the committee will take into account the performance 
of the individual and the reasons for their departure
k nonexecutive directors
the company aims to attract and retain a highcalibre chairman and nonexecutive directors by offering a market competitive fee level 
the committee’s specific policy is as follows
element purpose  
and link to strategy operation maximum
fee
attract retain and 
fairly reward high 
calibre individuals
fees are currently paid in cash although an option to pay a portion of fees in shares is being 
considered nonexecutive directors are not eligible to participate in the company’s 
annual performance related incentive schemes share option schemes or pension scheme
the chairman is paid a single fee for all his responsibilities the nonexecutive directors are paid 
a basic fee additional fees are paid to chairmen and members of the main board committees and 
to the sid to reflect their extra responsibilities
fees are reviewed by the board taking into account individual responsibilities factors such as 
committee chairmanships time commitment other pay increases being made to employees in 
the company and fees payable for the equivalent role in comparable companies 
normally fees are reviewed biannually and fee increases are generally effective from annual 
reelection after the agm
the board may adjust the fees for an individual nonexecutive director during the intervening 
period if there is a significant change in their responsibilities andor time commitments
current fee levels are set 
out in the annual report 
on remuneration
overall fee limit will be 
within the £400000 limit 
set out in the company’s 
articles of association
mr yadgaroff has a letter of appointment for an indefinite term although it may be terminated by either party subject to one month’s 
notice mr blyth mr archer ms rhodes and mr stan were appointed on rolling threeyear contracts with a onemonth notice period 
and the board intends that all future nonexecutive directors’ appointments will be on similar terms none of the letters of 
appointment have provisions that relate to a change of control of the company
the details of the nonexecutive directors’ letters of appointment are as follows
nonexecutive date of appointment notice period
wm blyth march 20 2013 one month 
ds archer october 15 2014 one month
rh stan february 19 2014 one month
rc rhodes may 8 2014 one month
ah yadgaroff may 19 2003 30 days
l legacy arrangements
in approving this policy report authority is given to the company to honour any commitments entered into with current or former 
directors such as the payment of a pension or the unwinding of legacy share schemes that have been disclosed to shareholders 
in previous remuneration reports details of any payments to former directors will be set out in the annual remuneration report 
as they arise
governance
anglo pacific group plc  annual report  accounts 2014 52
apg11  ar14  24032015  back – proof 9 annual remuneration report for 2014
this part of the report details the remuneration paid to directors during 2014 with a comparison to the previous year it will be put to an 
advisory shareholder vote at the 2015 agm the information in sections a to g and i to m has been audited
a single figure for total remuneration
salaryfees
£ ’000
benefits
£ ’000
total bonus
£ ’000
pensioncash 
allowance
14
£ ’000
other
£ ’000
total 
remuneration
£ ’000
executive directors
ja treger
1
2014 248 – 160 24 – 432
2013 39 – – – – 39 
mr potter
2
2014 179 – 113 6 – 298
2013 31 – – – – 31 
nonexecutive directors
wm blyth
3
2014 81 – – – – 81
2013 30 – – – – 30
ds archer
4
2014 8 – – – – 8
2013 – – – – – –
rh stan
5
2014 33 – – – – 33
2013 – – – – – –
rc rhodes
6
2014 25 – – – – 25
2013 – – – – – –
ah yadgaroff 2014 38 – – – – 38
2013 38 – – – – 38
former directors 
bm wides
7
2014 121 – – – – 121
2013 129 – – 12 – 141
pm boycott
8
2014 3 – – – – 3
2013 130 – – 13 – 143
j theobald
9
2014 – – – – – –
2013 174 2 – 17 –
15
193
ac orchard
10
2014 – – – – – –
2013 134 2 – 14 –
15
150
mh atkinson
11
2014 19 – – – – 19
2013 42 – – – – 42
pnr cooke
12
2014 28 – – – – 28
2013 36 – – – – 36
jg whellock
13
2014 19 – – – – 19
2013 38 – – – – 38
1
 ja treger was appointed to the board on october 21 2013
2
 mr potter was appointed to the board on october 21 2013
3
 wm blyth was appointed nonexecutive chairman on april 1 2014
4
 ds archer was appointed to the board on october 15 2014
5
 rh stan was appointed to the board on february 19 2014
6
 rc rhodes was appointed to the board on may 8 2014
7
 bm wides resigned from the board on may 8 2014
8
 pm boycott passed away on january 7 2014
9
 j theobald resigned from the board on october 21 2013
10
 ac orchard resigned from the board on october 21 2013
11
 mh atkinson resigned from the board on june 11 2014
12
 pnr cooke resigned from the board on october 15 2014
13
 jg whellock resigned from the board on june 11 2014
14
 ja treger mr potter and j theobald received contributions toward pension plans all other amounts were cash payments in lieu of pension
15
  j theobald and ac orchard received payments in lieu of notice in 2013 of £63333 and £70833 respectively  
termination payments of £95000 and £85000 respectively paid in 2014 and £2400 each towards legal advice
financial statements
anglo pacific group plc  annual report  accounts 2014 53
apg11  ar14  24032015  back – proof 9 directors’ remuneration report
b annual bonus for the year ending december 31 2014
the cio and the ceo’s direct senior reports have individually crafted bonus objectives which were agreed for the 2014 financial year 
the bonus award criteria relate to a series of agreed corporate and personal performance criteria which are scored out of a total of 
100 points this score is then applied to a maximum bonus calculated as a percentage of total salary the percentages range from 
100 to 170 depending on the executive’s position and his level of individual participation in the vcp  
bonuses were awarded to the ceo and cio of £160000 and £113000 respectively for the 2014 year and reflect both the major 
changes that have been effected to the company and the successful post balance sheet date acquisition of the narrabri royalty  
which was at an advanced stage of certainty at the year end the ceo scorecard was 64 and the cio scorecard was 63
bonus criteria will be further tailored for the 2015 year to ensure that the bonus criteria closely match key performance metrics and  
at the same time provide real ‘stretchperformance’ targets
c vesting of longterm incentive awards
as flagged in the 2013 annual report awards under the vcp out of the pool to executive directors were 56 to the ceo and 24 
to the cio
longterm incentive awards made during the year
there were no awards granted to executive directors under either the jsop or the csop in 2014
outstanding share awards
there are currently no awards to executive directors outstanding under either the jsop or the csop  
d directors’ shareholding and share interests
the committee encourages the executive directors to build up a shareholding in the company so as to ensure the alignment of their 
interest with those of shareholders but there is no formal shareholding guideline in addition the proposed new vcp is designed to 
increase this alignment the chairman and nonexecutive directors are also encouraged to hold shares in the company although the 
chairman and independent nonexecutive directors are expected to ensure that the level of their shareholding is not significant and 
cannot call into question their continuing independence 
details of the directors’ interests in shares are shown in the table below
beneficially 
owned at 
march 25 2015
beneficially 
owned at 
december 31 
2014
not subject to  
performance conditions
subject to  
performance conditions
ltip
deferred  
bonus shares ltip
deferred 
bonus shares
executive directors
ja treger 5391454 1199389 – – – –
mr potter 121473 100000 – – – –
nonexecutive directors
wm blyth 61372 20600 – – – –
rc rhodes – – – – – –
rh stan 73540 – – – – –
ds archer – – – – – –
ah yadgaroff 180501 180501 – – – –
none of the directors hold their shares in hedging arrangements or as collateral for loans such an arrangement would require 
the express permission of the board 
governance
anglo pacific group plc  annual report  accounts 2014 54
apg11  ar14  24032015  back – proof 9 e total pension entitlements
the company makes contributions to employees’ pensions and 
has designated aegon scottish equitable plc as its stakeholder 
pension provider the committee is prepared to pay additional 
basic salary or fees in lieu of part or all of a director’s pension 
contribution
during 2013 the company paid additional basic salary or fees  
in lieu of pension contribution to mr boycott mr wides and 
mr orchard
f loss of office payments
there were no loss of office payments made in 2014 
g percentage increase in the remuneration of the ceo
ceo £ ’000 2014 2013  change
– salary 356 213
1
67
– benefits 3 2 0
– bonus 160 – –
average per employee £ ’000
– salary 78 75 4
– benefits – – –
– bonus 58 13 353
1
  this reflects the salary for mr theobald up until october 21 2013 the date 
mr theobald resigned from the board and mr treger joined and the salary 
on a fulltime equivalent basis for mr treger thereafter
the table above shows the movement in the salary benefits 
and annual bonus for the ceo between the current and previous 
financial year compared to that for the average uk employee 
the committee has chosen this comparator and it feels that it 
provides a more appropriate reflection of the earnings of the 
average worker than the movement in the group’s total wage bill 
which is distorted by movements in the number of employees 
for the benefits and bonus per employee this is based on those 
employees eligible to participate in such schemes
h total shareholder return
100
150
200
250
300
350
400
rebased  
to 100
ftse 350 mining anglo pacific group
the performance of the company’s ordinary shares compared 
with the ftse 350 mining index for the fiveyear period ended 
on december 31 2014 is shown in the graph above both have 
been rebased at the start of the period in order to provide a 
graphical measure of comparative performance
the company has chosen the ftse 350 mining index as a 
comparator for historical reporting purposes as it believes it 
to be the nearest relevant index appropriate to the group
the middle market price of an ordinary share on december 31 
2014 was 100p during the year the share price ranged from a 
low of 75p to a high of 205p 
020109 020110 020111 020112 020113 020114 020115
anglo pacific group plc  annual report  accounts 2014 55
governance
apg11  ar14  24032015  back – proof 9 i total remuneration for the ceo over time
2009 2010 2010 2011 2012 2013 2013 2014
bm wides j theobald
1
ja treger
2
ja treger
total remuneration £’000 197 155 69 253 209 193
3
 39 432
bonus outturn  na
4
na
4
na
4
37 – – – 64
bonus £’000 75 76 38 84 – – – 160
ltip vesting  – – – – – – – –
1
 j theobald was appointed ceo on october 6 2010
2
 ja treger was appointed ceo on october 21 2013
3
 j theobald also received £63333 as payment in lieu of notice £95000 termination payment paid in january 2014 and £2400 for legal advice
4
 for 2009 and 2010 this is not applicable as there were no caps in place
the chart above shows the total remuneration for the ceo during each of the financial years the total remuneration figure includes 
the annual bonus no ltip awards vested the bonus outturn percentage is expressed as a percentage of the cap where applicable 
for the period in question as there were no caps on bonus in 2009 and 2010 the actual bonus payable based on performance in 
those years has been included for information in the table
j relative importance of spend on pay
£m 2014 2013  increase
staff costs 366 204 794
dividends 1153 1107 42
k external directorships
none of the executive directors held any external directorships for which they earned fees during the year
l 2015 salary review
the executive directors’ fte salaries were reviewed in january 2014 following the initial probationary period see section j of the 
policy report the increases took effect from january 22 2014 and the current salaries on a fulltime equivalent basis are as follows
current salaries for the executive directors
executive fte salary as at january 1 2015 fte salary as at january 22 2014
1
increase
ja treger 380000 360000 56
mr potter 190000 180000 56
bm wides
2
– 141400 na
1
 salaries at january 22 2014 reflect the completion of a probation period
2 
bm wides resigned from the board on may 8 2014
directors’ remuneration report
governance
anglo pacific group plc  annual report  accounts 2014 56
apg11  ar14  24032015  back – proof 9 m fees for the chairman and nonexecutive directors
as detailed in the remuneration policy the company’s approach to 
setting nonexecutive directors’ remuneration is with reference 
to market levels in similar companies levels of responsibility and 
time commitments a summary of current fees is as follows
2015 2014  increase
chairman 95000 95000 na
base fee 38000 36000 56
senior independent 
director 48000 42000 143
committee chairman 43000 38000 132
committee member 40000 38000 53
up to the end of march 2014 the chairman was a parttime 
executive director post and the chairmanship component was 
not separately remunerated on march 28 2014 the company 
announced the appointment of mr blyth as nonexecutive 
chairman with effect from april 1 2014 on the recommendation 
of the other members of the remuneration committee his fee 
was set at £95000 per annum for a twoyear period having 
regard to the time commitment required six days a month  
and the level of fees in similar companies
members of the main board committees are paid an additional 
amount currently £2000 per annum to reflect extra 
commitments with a committee chair receiving a further 
£3000 the sid also receives a further additional fee currently 
£5000 per annum to reflect his extra duties
n  performance targets for the annual bonus and ltip awards 
to be granted in 2014 and beyond
annual bonuses and longterm incentive awards for 2014 have 
been made in accordance with the new policy further details of 
which are detailed in the remuneration policy report
annual bonuses in 2014 were based on a scorecard of performance 
during the year and a similar scorecard approach will continue in 
2015 the scorecard will set challenging targets for triggering 
bonus and for rewarding outperformance on a sliding scale 
the scorecard will be split on a 6040 basis between corporate 
objectives and personal objectives corporate objectives for 2015 
will cover areas such as business performance funding and 
finance relationships and reputation 
the committee has chosen not to disclose the performance 
targets for the forthcoming year in advance as these include 
items which the committee considers commercially sensitive 
retrospective disclosure of the targets and performance against 
them will be provided in next year’s annual remuneration report
longterm incentive awards for 2014 were made under a 
oneoff vcp with a fiveyear performance period from the date 
of grant ie to mid2019 no value accrues under the vcp to 
its participants unless growth in the company’s tsr over the 
performance period is at least equal to 7 growth per annum 
or approximately 40 total growth over the period
o statement of shareholder voting 
at last year’s agm held on june 11 2014 the directors’ 
remuneration report was approved by shareholders on a show of 
hands details of the valid proxy votes received for the resolution 
are detailed below
votes percentage
votes cast in favour including proxy 
appointments that gave discretion to the 
chairman 61018869 83
votes cast against 12131478 17
total votes cast excluding votes directed 
to be withheld 73150347 100
votes withheld 944923
approval 
this report was approved by the board on march 24 2015 and 
signed on its behalf by
ds archer
chairman of the remuneration committee
anglo pacific group plc  annual report  accounts 2014 57
governance
apg11  ar14  24032015  back – proof 9 the directors present their report and audited consolidated 
financial statements for the year ended december 31 2014
principal activities
the group’s principal royalty activities are set out in the 
strategic report on  pages 4 and 5 
going concern
the financial position of the group and its cash flows are set out 
on pages 67 and 70 as at december 31 2014 the group had  
no borrowings and an undrawn us150m unsecured revolving 
credit facility as discussed in note 31 on february 27 2015  
the group has announced the completion of a firm placing and 
placing and open offer raising £395m together with securing  
a new us300m threeyear secured revolving credit facility  
the combined financing package was largely used to finance  
the acquisition of a us650m royalty along with providing 
additional working capital to the group
the directors have considered the group’s cash flow forecasts 
for the period to the end of march 2016 the board is satisfied 
that the group’s forecasts and projections taking into account 
reasonably possible changes in trading performance and other 
uncertainties the proceeds received from the new share issue 
and the undrawn facilities show that the group will be able to 
operate within the level of its current facilities for the foreseeable 
future for this reason the group continues to adopt the going 
concern basis in preparing its financial statements 
results and dividends
the consolidated income statement is set out on  page 65 of 
the financial statements
the group reported a loss after tax of £476m 2013 £425m
total dividends for 2014 will amount to 845p per share 2013 
102p per share combining the recommended final dividend of 
400p per share for the year ended december 31 2014 with the 
interim dividend of 445p per share paid on february 4 2015 
the final dividend for the year ended december 31 2014 is 
subject to shareholder approval at the 2015 annual general 
meeting ‘agm’ the board proposes to pay the final dividend 
on august 7 2015 to shareholders on the company’s share 
register at the close of business on june 26 2015 the shares 
will be quoted exdividend on the london stock exchange on 
june 25 2015 and the toronto stock exchange on june 24 
2015 at the present time the board has resolved not to offer  
a scrip dividend alternative 
directors
the names of the directors who served during the year together 
with their biographical details and other information are shown 
on  page 37
all directors will stand for reelection at the 2015 annual general 
meeting
a table of directors’ attendance at board and committee 
meetings during 2014 is on  page 38
directors’ disclosures
with regard to the appointment and replacement of directors 
the company is governed by its articles of association the 
uk corporate governance code the ‘code’ the companies 
act 2006 and related legislation at the next agm all of the 
company’s directors will be offering themselves for reelection
the directors may exercise all the powers of the company 
subject to applicable legislation and regulation and the articles 
of association of the company the company’s articles of 
association may be amended by special resolution of the 
shareholders at the 2014 agm held on june 11 2014 the 
directors were given the power to issue new shares up to an 
aggregate nominal amount of £739249 this power will expire 
at the earlier of the conclusion of the 2019 agm or june 12 2019 
further the directors were given the power to make market 
purchases of ordinary shares up to a maximum number of 
11088742 this power will expire at the earlier of the conclusion 
of the 2015 agm or december 11 2015 
at the agm held on june 11 2014 the directors were given the 
power to allot equity shares or sell treasury shares for cash other 
than prorata to existing shareholders this power was limited to 
5 of the company’s issued ordinary share capital other than in 
connection with a rights or other similar issue and will expire at the 
earlier of the conclusion of the 2015 agm or september 11 2015
in addition to the authorities set out above at the general 
meeting held on february 26 2015 the directors were given the 
power to issue new shares up to an aggregate nominal amount 
of £1070205 such authority to expire on the earlier of the 
company’s next annual general meeting or august 26 2015
the group maintains insurance for its directors and officers 
against certain liabilities in relation to the group the group  
has entered or will enter into qualifying third party indemnity 
arrangements for the benefit of all its directors in a form and 
scope which comply with the requirements of the companies act
directors’ report
anglo pacific group plc  annual report  accounts 2014 58
apg11  ar14  24032015  back – proof 9
governance special control rights
the company’s ordinary shares are subject to transfer 
restrictions and forced transfer provisions that are intended to 
prevent among other things the assets of the company from 
being deemed to be ‘plan assets’ under us employment 
retirement income security act of 1974 erisa for more 
information refer to the important notices section
employee share schemes
details of employee share schemes are set out on  page 47 
below and in note 25 to the financial statements
treasury
no shares are currently held in treasury by the company
warrants
on may 22 2014 the company resolved to create 500000 
warrants to be issued pursuant to a warrant instrument dated 
june 10 2014 these warrants entitle the warrant holders to 
subscribe in cash for ordinary shares at the subscription price 
of £250 per ordinary share subject to any adjustment events in 
accordance with the warrant instrument the rights to subscribe 
for ordinary shares conferred by the warrants may only be 
exercised within five years from the date of the grant of the 
warrants and in accordance with the warrant instrument
allotment of ordinary shares
on june 5 2014 the company issued 5544371 new ordinary 
shares of £002 each ‘ordinary shares’ at a price of 180 pence 
per share amounting to an aggregate nominal value of £11088742 
and aggregate consideration of £997986780 the issue price 
was fixed on june 2 2014 and represented a small premium 
of less than 1 to the closing middle market price on the 
london stock exchange of 179 pence per share on may 30 2014 
the net proceeds were used to fund a portion of the cash 
consideration payable for the acquisition of the maracás royalty 
further details of which are set out on  page 96
capital structure
the structure of the company’s ordinary share capital at march 20 
2015 was as follows
issued no
nominal 
value per 
share total
 of total 
capital
ordinary shares 169942034 002 3398840 100
change of control
there are a number of agreements that terminate upon a change 
of control of the company such as certain commercial contracts 
and the revolving credit facility none of these are considered 
significant in terms of the business as a whole there is no change 
of control provision in any of the directors’ contracts 
rights and obligations
dividends
the £002 ordinary shares carry the right to dividends determined 
at the discretion of the board
voting rights
the £002 ordinary shares carry the right to one vote per share
restrictions on transfer of holdings
there are no specific restrictions on the size of a holding nor on 
the transfer of the company’s shares which are both governed by 
the general provisions of the articles of association of the company 
and prevailing legislation there are no known agreements 
between holders of the company’s shares that may result in 
restrictions on the transfer of shares or voting rights
anglo pacific group plc  annual report  accounts 2014 59
governance
apg11  ar14  24032015  back – proof 9 directors’ report
on february 27 2015 the company issued 49375000 new 
ordinary shares at a price of 80 pence per share amounting to an 
aggregate nominal value of £987500 and aggregate consideration 
of £39500000 as part of a firm placing placing and open offer 
announced on february 4 2015 the issue price was fixed on 
february 6 2015 and represented a discount of approximately 
36 to the closing middle market price on the london stock 
exchange of 83 pence per share on february 5 2015 the net 
proceeds were used to provide the majority of funding for the 
acquisition of the narrabri royalty further details of which are  
set out on  page 105 15460557 of the shares issued were 
pursuant to the open offer representing approximately 68  
of the maximum shares available under the open offer the 
7164443 shares not applied for pursuant to the open offer  
were taken up by placees under the placing with the remaining 
26750000 shares being issued pursuant to the firm placing
on march 12 2015 the company issued 4135238 new ordinary 
shares at a price of 80 pence per share amounting to an aggregate 
nominal value of £8270476 and aggregate consideration of 
£330819040 the issue price was fixed on february 6 2015 
and represented a discount of approximately 36 to the closing 
middle market price on the london stock exchange of 83 pence 
per share on february 5 2015 the shares comprised part of the 
consideration for the acquisition of the narrabri royalty further 
details of which are set out on  page 105
as a result of the preceding issuances the company has 
issued 36429609 new ordinary shares other than as part  
of a preemptive offer in the 12 months preceding the date 
of this annual report representing approximately 21 of the 
company’s share capital as at the date of this annual report 
the company has issued a further 1698210 new ordinary 
shares other than as part of a preemptive offer in the three 
years preceding the date of this annual report representing  
an aggregate of approximately 22 of the company’s share 
capital as at the date of this annual report
substantial shareholdings
the company has been notified aside from the interests of the 
directors of the following interests of 3 or more in the share 
capital of the company at march 20 2015
ordinary 
shares of 
2p each representing
liontrust investment partners llp 17388541 1048
ransome’s dock limited 7489360 451
aberforth partners llp 6549032 394
schroders plc 5501515 331
axa investment managers uk 5494332 331
kings chapel international ltd 5235204 315
kings chapel international ltd is a connected person of mr ja treger
see  page 54 for a list of directors’ interests in shares
statement as to disclosure of information to auditors
the directors who were in office on the date of approval of these 
financial statements have confirmed that as far as they are aware 
there is no relevant audit information of which the auditors are 
unaware each of the directors has confirmed that they have 
taken all the steps that they ought to have taken as directors in 
order to make themselves aware of any relevant audit information 
and to establish that it has been communicated to the auditors
other statutory and regulatory information
information in relation to the group’s payment policy can be 
found in note 23 and a statement on going concern is provided 
in note 311
auditors
deloitte llp have expressed willingness to continue in office 
in accordance with section 4894 of the companies act 2006 
united kingdom a resolution to appoint auditors will be proposed 
at the 2015 agm
designated foreign issuer status
the company continues to be listed on the tsx and to be a 
‘reporting issuer’ in the province of ontario canada the company 
also continues to be a ‘designated foreign issuer’ as defined 
in national instrument 71102 – continuous disclosure and 
other exemptions relating to foreign issuers of the canadian 
securities administrators as such the company is not subject 
to the same ongoing reporting requirements as most other 
reporting issuers in canada generally the company will be in 
compliance with canadian ongoing reporting requirements if it 
complies with the uk financial conduct authority in its capacity 
as the competent authority for the purposes of part vi of the 
financial services and markets act 2000 united kingdom as 
amended from time to time and the applicable laws of england 
and wales the ‘uk rules’ and files on its sedar profile at 
wwwsedarcom any documents required to be filed or furnished 
pursuant to the uk rules
by order of the board
k flynn
company secretary 
march 24 2015
registered office
1 savile row
london
w1s 3jr
anglo pacific group plc  annual report  accounts 2014 60
apg11  ar14  24032015  back – proof 9
directors’ report statement of directors’ responsibilities
directors’ statement pursuant to the disclosure 
and transparency rules
we confirm that to the best of our knowledge
• the financial statements prepared in accordance with 
international financial reporting standards as adopted by  
the european union give a true and fair view of the assets 
liabilities financial position and profit or loss of the company 
and the undertakings included in the consolidation taken as a 
whole
• the strategic report includes a fair review of the development 
and performance of the business and the position of the 
company and the undertakings included in the consolidation 
taken as a whole together with a description of the principal 
risks and uncertainties that they face and
• the annual report and financial statements taken as a whole 
are fair balanced and understandable and provide the 
information necessary for shareholders to assess the 
company’s performance business model and strategy
the directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the group’s 
website wwwanglopacificgroupcom legislation in the united 
kingdom governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
the directors consider that the annual report and accounts 
taken as a whole is fair balanced and understandable and 
provides the information necessary for shareholders to assess 
the company’s performance business model and strategy
by order of the board
 
wm blyth
chairman 
march 24 2015
the directors are responsible for preparing the annual report 
the directors’ remuneration report and the financial statements 
in accordance with applicable law and regulations
company law requires the directors to prepare financial 
statements for each financial year under that law the directors 
have elected to prepare the group and parent company financial 
statements in accordance with international financial reporting 
standards ‘ifrss’ as adopted by the european union ‘eu’ 
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and 
fair view of the state of affairs of the group and the company 
and of the profit or loss of the group and the company for that 
period in preparing these financial statements international 
accounting standard 1 requires that directors
• properly select and apply accounting policies
• present information including accounting policies in a manner 
that provides relevant reliable comparable and understandable 
information 
• provide additional disclosures when compliance with the 
specific requirements in ifrss are insufficient to enable users 
to understand the impact of particular transactions other 
events and conditions on the entity’s financial position and 
financial performance and
• make an assessment of the company’s ability to continue as a 
going concern
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the company and the group and enable 
them to ensure that the financial statements and the directors’ 
remuneration report comply with the companies act 2006 
united kingdom and as regards the group financial statements 
article 4 of the ias regulation they are also responsible for 
safeguarding the assets of the company and the group and 
hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities
the directors who were in office at the date of this statement 
confirm that 
• so far as they are each aware there is no relevant audit 
information of which the company’s auditors are unaware and
• the directors have taken all steps that they ought to have taken 
to make themselves aware of any relevant audit information 
and to establish that the auditors are aware of that information
anglo pacific group plc  annual report  accounts 2014 61
governance
apg11  ar14  24032015  back – proof 9
governance independent auditor’s report to the members of anglo pacific group plc
consolidated and company statement of changes in equity 
and the consolidated and company cash flow statement and 
the related notes 1 to 32
the financial reporting framework that has been applied in 
their preparation is applicable law and ifrss as adopted by the 
european union and as regards the parent company financial 
statements as applied in accordance with the provisions of 
the companies act 2006
going concern
as required by the listing rules we have reviewed the directors’ 
statement contained within the directors’ report on  page 58  
that the group is a going concern we confirm that
• we have concluded that the directors’ use of the going concern 
basis of accounting in the preparation of the financial 
statements is appropriate and
• we have not identified any material uncertainties that may 
cast significant doubt on the company’s ability to continue 
as a going concern
however because not all future events or conditions can be 
predicted this statement is not a guarantee as to the company’s 
ability to continue as a going concern
opinion on financial statements of anglo pacific group plc
in our opinion
• the financial statements give a true and fair view of the state 
of the group’s and of the parent company’s affairs as at 
december 31 2014 and of the group’s loss for the year then 
ended
• the group financial statements have been properly prepared in 
accordance with international financial reporting standards 
ifrss as adopted by the european union
• the parent company financial statements have been properly 
prepared in accordance with ifrss as adopted by the european 
union and as applied in accordance with the provisions of the 
companies act 2006 and
• the financial statements have been prepared in accordance 
with the requirements of the companies act 2006 and as 
regards the group financial statements article 4 of the ias 
regulation
the financial statements comprise the consolidated income 
statement the consolidated statement of comprehensive 
income the consolidated and company balance sheet the 
our assessment of risks of material misstatement
the assessed risks of material misstatement described below are those that had the greatest effect on our audit strategy the 
allocation of resources in the audit and directing the efforts of the engagement team
risk how the scope of our audit responded to the risk
classification of new royalty arrangements acquired in 
transactions during 2014 note 2
anglo pacific group entered into one new royalty agreement in the year  
for a 2 net smelter royalty on all mineral products sold on the maracás 
project which is 9997 owned by largo resources limited 
the accounting treatment for each royalty arrangement entered into by 
anglo pacific group is a key area of judgement as the underlying terms of 
each arrangement are often complex and bespoke in nature in terms of 
how the group will achieve a return on its investment 
we have assessed management’s accounting treatment for all royalty 
arrangements entered into in the year through obtaining the underlying 
agreement and reviewing the key terms and conditions
impairment assessment of the royalty and investment portfolio 
notes 13 16 and 17
as a consequence of the volatility in current commodity prices the 
assessment of the recoverable amount of royalty arrangements accounted 
for as intangible assets property plant equipment and available for sale 
equity financial instruments and loans and receivables to mining and 
exploration companies are key judgements the recoverable amount of 
valuations are often subjective and contain significant levels of judgement 
in relation to the discount rates used the forecast commodity prices and 
the expected production profiles
in the year impairments totalling £315m have been recognised at amapá 
bulqiza trefi shetland talc and certain of the group’s availableforsale 
equity financial instruments see notes 13 16 and 17
we challenged management’s assessment as to whether indicators of 
impairment exist for specific royalty arrangements through discussions 
with management review of publically available information and 
discussions with the entity’s third party specialists where such indicators 
were identified we obtained copies of the valuation models and 
challenged the assumptions made by management in relation to these 
models by comparison to third party forecast commodity price data 
reference to third party documentation   and review of reserves and 
resources reports we also considered management’s assessment of 
whether projects still in the development phase would reach production 
for loans and receivables we challenged management’s assessment of 
recoverability based on the publically available financial statements and 
interest payments received
valuation of royalty arrangements held at fair value note 15
royalties arrangements held at fair value which have a value of £81m  
at december 31 2014 have a material impact on the financial statements 
the valuations are often subjective and contain significant levels of 
judgement in relation to the discount rates used the forecast commodity 
prices and the expected production profiles 
we obtained the valuation models used by management to determine the 
fair value of royalty arrangements held at fair value we challenged the 
assumptions made by management by comparison to recent third party 
forecast commodity price data reference to third party documentation  
and review of reserves and resources reports
the description of risks above should be read in conjunction with the significant issues considered by the audit committee discussed 
on  pages 41 and 42
financial statements
anglo pacific group plc  annual report  accounts 2014 62
apg11  ar14  24032015  back – proof 9
financial statements our application of materiality
we define materiality as the magnitude of misstatement in the 
financial statements that makes it probable that the economic 
decisions of a reasonably knowledgeable person would be 
changed or influenced we use materiality both in planning the 
scope of our audit work and in evaluating the results of our work
we determined materiality for the group to be  £30m which 
represents 2 of equity  in 2013 the previous auditors 
determined materiality as £26m which equated to 1 of total 
assets
we agreed with the audit committee that we would report to 
the committee all audit differences in excess of £60000 as well 
as differences below that threshold that in our view warranted 
reporting on qualitative grounds we also report to the audit 
committee on disclosure matters that we identified when 
assessing the overall presentation of the financial statements
an overview of the scope of our audit
consistent with how the group is managed we considered the 
group to be one component  consequently all assets liabilities 
income and expenses are subject to a full scope audit
opinion on other matters prescribed by the companies act 2006
in our opinion
• the part of the directors’ remuneration report to be audited 
has been properly prepared in accordance with the companies 
act 2006 and
• the information given in the strategic report and the directors’ 
report for the financial year for which the financial statements 
are prepared is consistent with the financial statements
matters on which we are required to report by exception
adequacy of explanations received and accounting records
under the companies act 2006 we are required to report 
to you if in our opinion
• we have not received all the information and explanations 
we require for our audit or
• adequate accounting records have not been kept or returns 
adequate for our audit have not been received from branches 
not visited by us or
• the financial statements are not in agreement with the 
accounting records and returns
we have nothing to report in respect of these matters
directors’ remuneration
under the companies act 2006 we are also required to report if 
in our opinion certain disclosures of directors’ remuneration have 
not been made or the part of the directors’ remuneration report 
to be audited is not in agreement with the accounting records and 
returns we have nothing to report arising from these matters
corporate governance statement
under the listing rules we are also required to review the part of 
the corporate governance statement relating to the company’s 
compliance with ten provisions of the uk corporate governance 
code we have nothing to report arising from our review
our duty to read other information in the annual report
under international standards on auditing uk and ireland we 
are required to report to you if in our opinion information in the 
annual report is
• materially inconsistent with the information in the audited 
financial statements or
• apparently materially incorrect based on or materially 
inconsistent with our knowledge of the company acquired 
in the course of performing our audit or
• otherwise misleading
in particular we are required to consider whether we have 
identified any inconsistencies between our knowledge acquired 
during the audit and the directors’ statement that they consider 
the annual report is fair balanced and understandable and 
whether the annual report appropriately discloses those matters 
that we communicated to the audit committee which we 
consider should have been disclosed we confirm that we have 
not identified any such inconsistencies or misleading statements
our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole and 
not to express an opinion on individual accounts or disclosures our opinion on the financial statements is not modified with respect 
to any of the risks described above and we do not express an opinion on these individual matters
financial statements
anglo pacific group plc  annual report  accounts 2014 63
apg11  ar14  24032015  back – proof 9 independent auditor’s report to the members of anglo pacific group plc
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts 
and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free 
from material misstatement whether caused by fraud or error 
this includes an assessment of whether the accounting policies 
are appropriate to the company’s circumstances and have been 
consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates made by the 
directors and the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that 
is apparently materially incorrect based on or materially 
inconsistent with the knowledge acquired by us in the course 
of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the 
implications for our report
christopher thomas aca
senior statutory auditor 
for and on behalf of deloitte llp
chartered accountants and statutory auditor 
london united kingdom  
march 24 2015
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities 
statement the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give 
a true and fair view our responsibility is to audit and express an 
opinion on the financial statements in accordance with applicable 
law and international standards on auditing uk and ireland 
those standards require us to comply with the auditing practices 
board’s ethical standards for auditors we also comply with 
international standard on quality control 1 uk and ireland 
our audit methodology and tools aim to ensure that our quality 
control procedures are effective understood and applied our 
quality controls and systems include our dedicated professional 
standards review team and independent partner reviews
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 
2006 our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose 
to the fullest extent permitted by law we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body for our audit work for this 
report or for the opinions we have formed
financial statements
anglo pacific group plc  annual report  accounts 2014 64
apg11  ar14  24032015  back – proof 9 notes
2014
£’000
2013
£ ’000
royalty related income 4 3481 14731
amortisation of royalties 16 759 854
operating expenses 5a 5524 3275
operating lossprofit before impairments revaluations and gainlosses on disposals 2802 10602
gainloss on sale of mining and exploration interests 17 1350 6398
gain on disposal of coal tenures 13 1409 –
impairment of mining and exploration interests 17 4873 26321
impairment of royalty and exploration intangible assets 16 10033 8313
impairment of royalty financial instruments 15 15288 –
impairment of property plant and equipment 13 1352 –
revaluation of coal royalties kestrel 14 11822 13568
revaluation of royalty financial instruments 15 – 8735
finance income 7 439 789
finance costs 8 1408 2964
other income 9 1981 2012
loss before tax 42399 52896
current income tax charge 10 1386 715
deferred income tax chargecredit 10 3804 11114
loss attributable to equity holders 47589 42497
total and continuing loss per share
basic and diluted loss per share 11 4209p 3901p
the notes on  pages 71 to 106 are an integral part of these consolidated financial statements
the company has elected to take the exemption under section 408 of the companies act 2006 united kingdom not to present 
the parent company profit and loss account
the loss for the parent company for the year was £20684000 2013 £25506000
consolidated income statement
for the year ended december 31 2014
financial statements
anglo pacific group plc  annual report  accounts 2014 65
apg11  ar14  24032015  back – proof 9 consolidated statement of comprehensive income 
for the year ended december 31 2014
notes
2014
£’000
2013
£ ’000
loss attributable to equity holders 47589 42497
items that will not be reclassified to profit or loss – –
items that have been or may be subsequently reclassified to profit or loss
availableforsale investments
revaluation of availableforsale investments 8640 36749
reclassification to income statement on disposal of availableforsale investments 1350 6398
reclassification to income statement on impairment 4873 26321
deferred tax relating to items that have been or may be reclassified 22 1034 171
net exchange loss on translation of foreign operations 2710 28923
other comprehensive loss for the year net of tax 6793 33124
total comprehensive loss for the year 54382 75621
the notes on   pages 71 to 106 are an integral part of these consolidated financial statements
financial statements
anglo pacific group plc  annual report  accounts 2014 66
apg11  ar14  24032015  back – proof 9 consolidated balance sheet and company balance sheet 
as at december 31 2014
group company
notes
2014
£’000
2013
£ ’000
2014
£’000
2013
£ ’000
noncurrent assets
property plant and equipment 13 153 1989 153 846
coal royalties kestrel 14 117097 131434 – –
royalty financial instruments 15 8142 27847 8142 12839
royalty and exploration intangible assets 16 37110 37288 2349 3050
mining and exploration interests 17 9896 20072 6190 13975
deferred costs 18 1462 – 1381 –
investments in subsidiaries 19 – – 36973 45475
other receivables 20 9657 8775 22318 12351
deferred tax 22 2307 8837 5 8016
total noncurrent assets 185824 236242 77511 96552
current assets
trade and other receivables 20 5272 5332 15681 19128
cash and cash equivalents 21 8769 15706 1996 4106
total current assets 14041 21038 17677 23234
total assets 199865 257280 95188 119786
noncurrent liabilities
other payables 23 83 – 83 –
deferred tax 22 34908 39202 1206 2244
total noncurrent liabilities 34991 39202 1289 2244
current liabilities
income tax liabilities 687 465 623 465
trade and other payables 23 2937 762 2883 696
total current liabilities 3624 1227 3506 1161
total liabilities 38615 40429 4795 3405
capital and reserves attributable to shareholders
share capital 24 2329 2218 2329 2218
share premium 24 29328 29328 29328 29328
other reserves 15832 12509 12289 6258
retained earnings 113761 172796 46447 78577
total equity 161250 216851 90393 116381
total equity and liabilities 199865 257280 95188 119786
the notes on  pages 71 to 106 are an integral part of these consolidated financial statements
the financial statements of anglo pacific group plc registered number 897608 on  pages 65 to 106 were approved by the board 
and authorised for issue on march 24 2015 and are signed on its behalf by
wm blyth ja treger 
chairman chief executive officer
financial statements
anglo pacific group plc  annual report  accounts 2014 67
apg11  ar14  24032015  back – proof 9
financial statements consolidated statement of changes in equity
for the two years ended december 31 2014
other reserves
share
capital
£ ’000
share
premium
£ ’000
merger
reserve
£ ’000
warrant
reserve
£ ’000
investment
revaluation
reserve
£’000
share
based
payment
reserve
£ ’000
foreign
currency 
translation
reserve
£’000
special 
reserve
£ ’000
investment 
in own  
shares
£’000
retained
earnings
£ ’000
total
equity
£ ’000
january 1 2013 2192 26853 – – 9771 354 37673 632 2601 226090 300964 
loss for the year – – – – – – – – – 42497 42497
other comprehensive income
availableforsale investments
valuation movement taken 
to equity – – – – 36749 – 542 – – – 37291
transferred to income statement 
on disposal – – – – 6398 – – – – – 6398
transferred to income statement 
on impairment – – – – 26321 – – – – – 26321
deferred tax – – – – 171 – 45 – – – 126
foreign currency translation – – – – – – 28426 – – – 28426
total comprehensive loss – – – – 4201 – 28923 – – 42497 75621
dividends – – – – – – – – – 11065 11065
issue of ordinary shares 26 2475 – – – – – – – – 2501
value of employee services – – – – – 196 – – – 268 72
total transactions with owners 
of the company 26 2475 – – – 196 – – – 10797 8492
december 31 2013 2218 29328 – – 5570 158 8750 632 2601 172796 216851
january 1 2014 2218 29328 – – 5570 158 8750 632 2601 172796 216851
loss for the year – – – – – – – – – 47589 47589
other comprehensive income
availableforsale investments
valuation movement taken 
to equity – – – – 8640 – 302 – – – 8338
transferred to income statement 
on disposal – – – – 1350 – – – – – 1350
transferred to income statement 
on impairment – – – – 4873 – – – – – 4873
deferred tax – – – – 1034 – 19 – – – 1015
foreign currency translation – – – – – – 2993 – – – 2993
total comprehensive loss – – – – 4083 – 2710 – – 47589 54382
dividends – – – – – – – – – 11535 11535
issue of ordinary shares 111 – 9453 143 – – – – – – 9707
value of employee services – – – – – 520 – – – 89 609
total transactions with owners 
of the company 111 – 9453 143 – 520 – – – 11446 1219
december 31 2014 2329 29328 9453 143 1487 678 6040 632 2601 113761 161250
the notes on  pages 71 to 106 are an integral part of these consolidated financial statements
financial statements
anglo pacific group plc  annual report  accounts 2014 68
apg11  ar14  24032015  back – proof 9 company statement of changes in equity
for the two years ended december 31 2014
other reserves
share
capital
£ ’000
share
premium
£ ’000
merger
reserve
£ ’000
warrant
reserve
£ ’000
investment
revaluation
reserve
£ ’000
share
based
payment
reserve
£ ’000
foreign
currency 
translation
reserve
£ ’000
special 
reserve
£ ’000
retained
earnings
£ ’000
total
equity
£ ’000
january 1 2013 2192 26853 – – 8949 354 82 632 114880 153942
changes in equity for 2013
availableforsale investments
valuation movement taken 
to equity – – – – 24767 – – – – 24767
transferred to income statement 
on disposal – – – – 6618 – – – – 6618
transferred to income statement 
on impairment – – – – 16990 – – – – 16990
deferred tax on valuation – – – – 2404 – – – – 2404
net income recognised direct into 
equity – – – – 3563 – – – – 3563
loss for the period – – – – – – – – 25506 25506
total recognised income 
and expenses – – – – 3563 – – – 25506 29069
dividends – – – – – – – – 11065 11065
issue of ordinary shares 26 2475 – – – – – – – 2501
value of employee services – – – – – 196 – – 268 72
december 31 2013 2218 29328 – – 5386 158 82 632 78577 116381
january 1 2014 2218 29328 – – 5386 158 82 632 78577 116381
changes in equity for 2014
availableforsale investments
valuation movement taken 
to equity – – – – 7892 – – – – 7892
transferred to income statement 
on disposal – – – – 1786 – – – – 1786
transferred to income statement 
on impairment – – – – 4557 – – – – 4557
deferred tax on valuation – – – – 1036 – – – – 1036
net income recognised direct into 
equity – – – – 4085 – – – – 4085
loss for the period – – – – – – – – 20684 20684
total recognised income 
and expenses – – – – 4085 – – – 20684 24769
dividends – – – – – – – – 11535 11535
issue of ordinary shares 111 – 9453 143 – – – – – 9707
value of employee services – – – – – 520 – – 89 609
december 31 2014 2329 29328 9453 143 1301 678 82 632 46447 90393
the notes on  pages 71 to 106 are an integral part of these consolidated financial statements
financial statements
anglo pacific group plc  annual report  accounts 2014 69
apg11  ar14  24032015  back – proof 9
financial statements consolidated cash flow statement and  
company cash flow statement
for the year ended december 31 2014
group company
notes
2014
£’000
2013
£ ’000
2014
£’000
2013
£ ’000
cash flows from operating activities
loss before taxation 42399 52896 12621 29441
adjustments for
finance income 7 439 789 127 483
finance costs – excluding foreign exchange gainslosses 8 1042 129 871 57
other income 9 1981 2012 1788 2859
gainloss on disposal of mining and exploration interests 17 1350 6398 1786 6618
gain on disposal of coal tenures 13 1409 – – –
impairment of mining and exploration interests 17 4873 26321 4557 16990
impairment of royalty and exploration intangible assets 16 10033 8313 701 947
impairment of royalty financial instruments 15 15288 – – –
impairment of property plant and equipment 13 1352 – 817 –
impairment of investment in subsidiaries 19 – – 9954 –
revaluation of coal royalties kestrel 14 11822 13568 – –
revaluation of royalty financial instruments 15 – 8735 – 8735
depreciation of property plant and equipment 13 23 22 23 22
amortisation of royalty intangible assets 16 759 854 – –
sharebased payment 6a 609 72 609 72
forgiveness of loan to subsidiary undertaking – – 4387 5500
intercompany dividends – – 5251 8600
1777 8715 346 2442
decreaseincrease in trade and other receivables 2588 1082 52 87
increasedecrease in trade and other payables 2175 1409 1407 25
cash generated from operations 2986 6224 1805 2554
income taxes paid 10 27 3817 611 1632
net cash generated from operating activities 2959 2407 1194 4186
cash flows from investing activities
proceeds on disposal of mining and exploration interests 17 9549 5258 6350 4492
purchases of mining and exploration interests 17 1161 3118 391 1032
purchases of royalty and exploration intangible assets 16 13213 101 – –
proceeds from royalty financial instruments 9 826 – 826
other royalty related advances 20 3002 5634 – –
prepaid acquisition costs 359 – 295 –
proceeds on disposal of coal tenures 13 302 – – –
purchases of property plant and equipment 13 188 14 147 14
dividends and fixed income received from mining and exploration interests 9 169 708 – 130
sundry income 9 475 164 451 23
finance income 7 439 789 127 438
investment in subsidiaries 19 – – 1452 15772
loans granted to subsidiary undertakings 29 – – 14870 6574
loan repayments from subsidiary undertakings 29 – – 9245 32368
net cash used in investing activities 6163 1948 156 14059
cash flows from financing activities
proceeds from issue of share capital 24 9980 2501 9980 2501
transaction costs of share issue 24 416 – 416 –
dividends paid 12 11535 11065 11535 11065
prepaid fundraising costs 320 – 306 –
finance costs – excluding foreign exchange gainslosses 8 1042 129 871 57
net cash used in financing activities 3333 8693 3148 8621
net decrease in cash and cash equivalents 6537 8234 2110 1252
cash and cash equivalents at beginning of period 15706 24036 4106 2854
unrealised foreign currency gainloss 400 96 – –
cash and cash equivalents at end of period 8769 15706 1996 4106
the notes on  pages 71 to 106 are an integral part of these consolidated financial statements
financial statements
anglo pacific group plc  annual report  accounts 2014 70
apg11  ar14  24032015  back – proof 9 1 general information
anglo pacific group plc the ‘company’ and its subsidiaries together the ‘group’ secure natural resources royalties by acquisition 
and through investment in mining and exploration interests the group has royalties and investments in mining and exploration 
interests primarily in australia north and south america and europe with a diversified exposure to commodities that is strongly 
represented by coal iron ore gold and uranium
the company is a public limited company which is listed on the london stock exchange and toronto stock exchange and incorporated 
and domiciled in the united kingdom the address of its registered office is 1 savile row london w1s 3jr united kingdom 
registered number 897608
2 critical accounting judgements and key sources of estimation uncertainty
in the application of the group’s accounting policies the directors are required to make judgements and estimates that can have a 
significant impact on the financial statements estimates and judgements are regularly evaluated and are based on historical experience 
and other factors including expectations of future events that are believed to be reasonable under the circumstances the most critical 
accounting judgement relates to the classification of royalty arrangements and the key sources of estimation uncertainty relate to the 
calculation of certain royalty arrangements fair value and the key assumptions used when assessing impairment of property plant and 
equipment and intangible assets the use of inaccurate assumptions in assessments made for any of these estimates could result in 
a significant impact on financial results 
critical accounting judgements
classification of royalty arrangements initial recognition and subsequent management
the directors must decide whether the group’s royalty arrangements should be classified as
• intangible assets in accordance with ias 38 ‘intangible assets’
• financial assets in accordance with ias 32 ‘financial instruments presentation’ and ias 39 ‘financial instruments recognition 
and measurement’ or
• investment properties in accordance with ias 40 ‘investment property’
the directors use the following selection criteria to identify the characteristics which determine which accounting standard to apply 
to each royalty arrangement
type 1 – intangible assets ‘vanilla’ royalties royalties in their simplest form are classified as intangible assets by the group 
the group considers the substance of a simple vanilla royalty to be economically similar to holding a direct interest in the underlying 
mineral asset existence risk the commodity physically existing in the quantity demonstrated production risk that the operator can 
achieve production and operate a commercially viable project timing risk commencement and quantity produced determined by the 
operator and price risk returns vary depending on the future commodity price driven by future supply and demand are all risks which 
the group participates in on a similar basis to an owner of the underlying mineral licence furthermore in a vanilla royalty there is only 
a right to receive cash to the extent there is production and there are no interest payments minimum payment obligations or means 
to enforce production or guarantee repayment these are accounted for as intangible assets under ias 38
type 2 – financial assets royalties with additional financial protection in certain circumstances where the ‘vanilla’ risk is considered 
too high but the group still fundamentally believes in the quality or potential of the underlying resource the group will look to introduce 
additional protective measures this has typically taken the form of performance milestone penalties usually resulting in the receipt of 
cash or cash equivalent minimum payment terms and interest provisions or mechanisms to convert the initial outlay into the equity 
instruments of the operator in the event of project deferral once an operation is in production these mechanisms generally fall away 
such that the royalty will display identical characteristics and risk profile to the vanilla royalties however it is the contractual right to 
enforce the receipt of cash through to production which results in these royalties necessarily being treated as financial assets in 
accordance with ias 32 and ias 39 
type 3 – investment property royalties which are derived from the ownership of substratum land are accounted for as investment 
properties under ias 40 even though the substance of their commercial terms is identical to vanilla royalties the group does not 
expect to obtain royalties in this manner going forward as it is unusual for substratum minerals not to be the property of the state 
notes to the consolidated financial statements
for the year ended december 31 2014
financial statements
anglo pacific group plc  annual report  accounts 2014 71
apg11  ar14  24032015  back – proof 9
financial statements notes to the consolidated financial statements
for the year ended december 31 2014
a summary of the group’s accounting approach is set out below
accounting classification substance of contractual terms accounting treatment examples
intangible assets •  simple royalty with no right to 
receive cash other than through 
a royalty related to production
•  investment is presented as an 
intangible asset and carried at 
cost less accumulated 
amortisation and any impairment 
provision
•  royalty income is recognised as 
revenue in the income statement
•  intangible asset is amortised on 
a systematic basis
•  intangible asset is assessed for 
indicators of impairment at each 
period end
•  amapá  tucano
•  f o u r m i l e
•  sa l a m a n ca
•  p i l b a r a
•  ring of fire
•  b u l q i z a
•  m o u n t i d a 
•  m a ra cá s
•  c r es o 
•  na r r a br i 
availableforsale debt financial 
asset
•  royalty arrangement with a 
contractual right to receive cash 
eg through a mandated interest 
rate or milestones which if not 
met trigger repayment
•  financial asset is recognised at 
fair value on the balance sheet
•  changes in fair value due to 
changes in expected future 
cash flows are recognised 
within the income statement 
with other valuation changes 
taken to reserves
•  fixed effective interest 
income recognised in the 
income statement
•  royalty receipts reduce 
the asset’s carrying value
•  i s u a
•  j o g j ak a r t a
availableforsale equity financial 
asset
•  similar in contractual terms to an 
intangible asset
•  however includes a right to 
convert into equity noting that 
for evbc this right was 
subsequently extinguished
•  financial asset is carried at fair 
value with fair value movements 
recognised in reserves
•  royalty income is recognised as 
revenue in the income statement
•  asset is assessed for impairment 
at each reporting period end
•  e v b c
investment property •  direct ownership of substratum 
land
•  returns based on royalty related 
production
•  investment property is carried at 
fair value on the balance sheet
•  movements in fair value 
recognised in income statement
•  royalty income is recognised as 
revenue in the income statement
•  k e s t r e l
•  c r i n u m

 as at december 31 2014 these royalty assets have a carrying value of £nil
the group considers that the application of the above accounting standards and the resulting accounting classification and financial 
impact of each in the financial statements most appropriately reflects the substance of the underlying commercial terms of each 
royalty arrangement the application of each standard to the underlying royalty arrangement rather than electing to apply ias 32 and 
ias 39 to all royalties is consistent currently with the group’s international peer group and as such enables its stakeholders to make 
informed investment decisions
key sources of estimation uncertainty
assessment of fair value of royalty arrangements held at fair value
a number of the group’s royalty arrangements are held at fair value fair value is determined based on discounted cash flow models 
and other valuation techniques using assumptions considered to be reasonable and consistent with those that would be applied by 
a market participant the determination of assumptions used in assessing fair values is subjective and the use of different valuation 
assumptions could have a significant impact on financial results
in particular expected future cash flows which are used in discounted cash flows models are inherently uncertain and could materially 
change over time they are significantly affected by a number of factors including reserves and resources and timinglikelihood of 
mines entering production together with economic factors such as commodity prices discount rates and exchange rates 
financial statements
anglo pacific group plc  annual report  accounts 2014 72
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property plant and equipment and intangible assets are assessed for indicators of impairment at each reporting date with the 
assessment considering variables such as the production profiles production commissioning dates where applicable forecast 
commodity prices and guidance from the mine operators
where indicators are identified the starting point for the impairment review will be to measure the expected future cash flows 
expected from the royalty arrangement should the project continuecome into production a pretax real discount rate of between 7 
and 10 is applied to the future cash flows this discount rate is driven from the discount rate of 7 which is used by the independent 
consultant in their valuation of kestrel which should be the lowest discount rate applied to any of the group’s assets the directors use 
considerable judgement to assign a discount rate with rates varying according to mineral quality jurisdiction commodity stage of 
production and counterparty credentials 
the outcome of this net present value calculation is then risk weighted to reflect management’s current assessment of the overall 
likelihood and timing of each project coming into production and royalty income arising this assessment is impacted by news flow 
relating to the underlying operation in the period in conjunction with management’s assessment of the economic viability of the 
project based on commodity price projections 
3 significant accounting policies
the principal accounting policies applied in the preparation of these consolidated financial statements are set out below these policies 
have been consistently applied to all the years presented unless otherwise stated
31 basis of preparation
the financial statements have been prepared in accordance with international financial reporting standards ifrss the financial 
statements have also been prepared in accordance with ifrss adopted by the european union and therefore the group financial 
statements comply with article 4 of the eu ias regulation
the financial statements have been prepared on the historical cost basis as modified by the revaluation of coal royalties investment 
property and certain financial instruments
the preparation of financial statements in conformity with ifrs requires the use of certain critical accounting estimates it also requires 
management to exercise its judgement in the process of applying the group’s accounting policies the areas involving a higher degree 
of judgement or complexity or areas where assumptions and estimates are significant to the consolidated financial statements are 
disclosed in note 2
311 going concern
the directors have at the time of approving the financial statements a reasonable expectation that the company and the group have 
adequate resources to continue in operational existence for the foreseeable future thus the going concern basis of accounting in 
preparing the financial statements continues to be adopted further details are contained in the directors’ report on  page 58
financial statements
anglo pacific group plc  annual report  accounts 2014 73
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
312 changes in accounting policies and disclosures
a new and amended standards adopted by the group
the following standards have been adopted by the group for the first time for the financial year beginning on or after january 1 2014
• amendment to ias 1 ‘financial statement presentation’ regarding other comprehensive income
the amendments to ias 1 introduced the grouping of items presented in other comprehensive income items that may be 
reclassified or recycled to the income statement at a future point in time are now presented separately from items that will not 
be reclassified the amendment affected presentation only and had no impact on the group’s financial position or performance 
• ifrs 13 ‘fair value measurement’
ifrs 13 establishes a single framework for measuring fair value when such measurements are required or permitted by other 
standards the application of ifrs 13 has not materially affected the fair value measurements carried out by the group ifrs 13 
also requires specific disclosures on fair values some of which replace existing disclosure requirements in other standards including 
ifrs 7 ‘financial instruments disclosure’ the additional disclosure requirements are reflected within the relevant notes to the 
group financial statements
• ifrs 10 ‘consolidated financial statements’ and ias 27 ‘separate financial statements’
ifrs 10 replaces the parts of the previously existing ias 27 that dealt with consolidated financial statements the new standard 
changes the definition of control such that an investor controls an investee when it is exposed or has rights to variable returns from 
its involvement with the investee and has the ability to control those returns through its power over the investee the adoption of 
ifrs 10 has had no impact on the consolidation of investments held by the group
there are no other ifrss or ifric interpretations that are effective for the first time for the financial year beginning on or after 
january 1 2014 that would be expected to have a material impact on the group
b new standards and interpretations not yet adopted
a number of new standards and amendments to standards and interpretations have not yet been adopted and have not been applied in 
preparing these consolidated financial statements none of these are expected to have a significant effect on the consolidated financial 
statements of the group except the following set out below
• ifrs 9 ‘financial instruments’ – not yet endorsed by the european union
ifrs 9 addresses the classification measurement and recognition of financial assets and financial liabilities it replaces the parts of 
ias 39 that relate to the classification and measurement of financial instruments ifrs 9 requires financial assets to be classified into 
two measurement categories those measured as at fair value and those measured at amortised cost where assets are measured 
at fair value gains and losses are either recognised entirely in profit or loss fair value through profit or loss fvtpl or recognised in 
other comprehensive income fair value through other comprehensive income fvtoci the determination is made at initial 
recognition the classification depends on the entity’s business model for managing its financial instruments and the contractual 
cash flow characteristics of the instrument 
for financial liabilities the standard retains most of the ias 39 requirements the main change is that in cases where the fair value option 
is taken for financial liabilities the part of a fair value change due to an entity’s own credit risk is recorded in other comprehensive income 
rather than the income statement unless this creates an accounting mismatch 
the group is currently assessing the impact the application of ifrs 9 will have on its financial statements particularly in respect of the 
group’s financial assets 
there are no other ifrss or ifric interpretations that are not yet effective that would be expected to have a material impact on the group
32 consolidation
subsidiaries
the financial statements incorporate a consolidation of the financial statements of the company and entities controlled by the 
company its subsidiaries control is achieved when the company has the power over the investee is exposed or has rights to 
variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee
the existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing 
whether the group controls another entity subsidiaries are fully consolidated from the date on which control is transferred to the 
group they are deconsolidated from the date that control ceases
investments in subsidiaries are accounted for in the parent company at cost less impairment cost is adjusted to reflect changes 
in consideration arising from contingent consideration amendments
intercompany transactions balances and unrealised gains on transactions between group companies are eliminated on consolidation 
unrealised losses are also eliminated accounting policies of subsidiaries have been changed where necessary to ensure consistency 
with the policies adopted by the group
financial statements
anglo pacific group plc  annual report  accounts 2014 74
apg11  ar14  24032015  back – proof 9 33 foreign currencies
a functional and presentation currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic 
environment in which the entity operates ‘the functional currency’ the consolidated financial statements are presented in pounds 
sterling which is the company’s functional and the group’s presentation currency
b transactions and balances
foreign currency transactions are translated into the functional currency of the respective group entity using the exchange rates 
prevailing at the dates of the transactions or valuation where items are remeasured foreign exchange gains and losses resulting from 
the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated 
in foreign currencies are recognised in the income statement nonmonetary assets and liabilities measured at historical cost are 
translated using the exchange rates at the date of the transaction and not retranslated nonmonetary assets and liabilities measured 
at fair value are translated using the exchange rates at the date when fair value was determined
c group companies
the results and financial position of all the group entities that have a functional currency different from the presentation currency 
are translated into the presentation currency as follows
i  assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
ii  income and expenses for each income statement are translated at average exchange rates and
iii  all resulting exchange differences are chargedcredited to other comprehensive income and recognised in the currency translation 
reserve in equity
exchange differences on foreign currency balances with foreign operations for which settlement is neither planned nor likely to occur 
in the foreseeable future and therefore form part of the group’s net investment in these foreign operations are recognised in other 
comprehensive income and accumulated in the foreign currency translation reserve in equity when a foreign operation is partially 
disposed of or sold exchange differences that were recorded in equity are reclassified in the income statement as part of the gain 
or loss on sale
34 property plant and equipment
property plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses the cost of 
property plant and equipment comprises its purchase price and any costs directly attributable to bringing the asset to the location 
and condition necessary for it to be capable of operating in the manner intended by management once a mining project has been 
established as commercially viable expenditure other than that on land buildings plant and equipment is capitalised as a producing 
asset within ‘other assets’ together with any amount transferred from ‘exploration and evaluation costs’ note 36b
property plant and equipment is depreciated over its useful life or where applicable over the remaining life of the mine if shorter once 
it is operating in the manner intended by management the major categories of property plant and equipment are depreciated on a 
units of production andor straight line basis as follows
equipment and fixtures 4 to 10 years
other assets
producing assets units of production over reserves
coal tenures units of production over reserves
the gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in profit or loss
35 coal royalties investment property
royalty arrangements which are derived from the ownership of substratum lands are accounted for as investment properties in 
accordance with ias 40 investment property is held to earn a return in the form of royalty entitlements arising from mining activity 
and is initially measured at cost including any transaction costs investment property is subsequently measured at fair value at each 
reporting date with any valuation movements recognised in the income statement fair value is determined by a suitably qualified 
independent external consultant based on the discounted future royalty income expected to accrue to the group 
financial statements
anglo pacific group plc  annual report  accounts 2014 75
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
36 intangible assets
a royalty arrangements
royalty arrangements which are identified and classified as intangible assets are initially measured at cost including any transaction costs 
upon commencement of production at the underlying mining operation intangible assets are amortised on a straight line basis over 
the life of the mine amortisation rates are adjusted on a prospective basis for all changes to estimates of the life of mine
b exploration and evaluation costs 
exploration expenditure relates to the initial search for deposits with economic potential evaluation expenditure arises from a detailed 
assessment of deposits or other projects that have been identified as having economic potential
expenditure on exploration and evaluation activities is capitalised when there is a high degree of confidence in the project’s viability and 
hence it is probable that future economic benefits will flow to the group if this is no longer the case an impairment loss is recognised 
in the income statement amortisation of capitalised exploration and evaluation costs does not commence until the underlying project 
commences commercial production
37 impairment of property plant and equipment and intangible assets
at each reporting date the group reviews the carrying amounts of its property plant and equipment and intangible assets to determine 
whether there is any indication that those assets are impaired if such an indication is identified the recoverable amount of the asset is 
estimated in order to determine the extent of any impairment 
the recoverable amount is the higher of fair value less costs of disposal and value in use in assessing value in use the estimated 
cash flows are discounted to their present value using a pretax discount rate that has been adjusted to reflect the risks specific to that 
asset if the recoverable amount of the asset is estimated to be less than its carrying value the carrying amount of the asset is reduced 
to its recoverable amount an impairment loss is also recognised in the income statement 
should an impairment loss subsequently reverse the carrying amount of the asset is increased to the revised estimate of its 
recoverable amount but so that the increased carrying amount does not exceed the carrying amount that would have been 
determined had no impairment been recognised a reversal of an impairment loss is also recognised in the income statement 
38 financial instruments
financial assets and financial liabilities are recognised on the group’s balance sheet when the group has become a party to the 
contractual provisions of the instrument
a cash and cash equivalents
cash and cash equivalents comprise cash on hand and demand deposits together with other shortterm highly liquid investments 
that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value
b loans and receivables
loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market 
on initial recognition loans and receivables are stated at their fair value after initial recognition these are measured at amortised cost 
using the effective interest method less provision for impairment discounting is omitted where the effect of discounting is immaterial 
the group’s trade and other receivables fall into this category of financial instruments
c mining and exploration interests
mining and exploration interests are recognised and derecognised on a trade date where a purchase or sale of an investment is under 
a contract whose terms require delivery of the investment within the timeframe established by the market concerned and are initially 
measured at fair value including transaction costs
mining and exploration interests are classified upon initial recognition as availableforsale financial assets 
interests classified as availableforsale are measured at subsequent reporting dates at their fair value for availableforsale investments 
unrealised gains and losses arising from changes in fair value are recognised directly in other comprehensive income and accumulated 
in the investment revaluation reserve until the security is either disposed of or is determined to be impaired at which time the 
cumulative gain or loss previously recognised in other comprehensive income is included in profit or loss for the period unquoted 
investments are measured at cost where fair value cannot be reliably determined when a market price can be established these 
investments are revalued to fair value accordingly
financial statements
anglo pacific group plc  annual report  accounts 2014 76
apg11  ar14  24032015  back – proof 9 d royalty instruments
royalty instruments are recognised or derecognised on completion date where a purchase or sale of the royalty is under a contract 
and are initially measured at fair value including transaction costs
royalty instruments are classified as either debt or equity instruments depending on the nature of the individual agreement
debt
assets classified as debt instruments are carried on the balance sheet at fair value upon initial recognition an effective interest rate 
is computed based on the estimated future cash flows expected future cash flows are determined based on nonobservable market 
data such as commodity price forecasts and estimated production schedules valuation movements caused by changes in expected 
future cash flows which could be caused by changes in resource estimates or commodity price assumptions are recognised in the 
income statement along with the effective interest if material with other valuation changes taken to other comprehensive income 
amounts are required to be recognised whether received in cash or not
equity
similar to debt instruments equity instruments are carried at fair value at each reporting date based on the estimated future cash 
flows from the underlying operation all valuation movements are recognised in other comprehensive income except to the extent 
where valuation is below cost and is considered ‘significant’ or ‘prolonged’ in accordance with ias 39 and the policy outlined in 
note 39 in this case the valuation difference is recycled through the income statement
e financial liabilities and equity instruments
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into 
an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities
f trade payables
trade payables are not interest bearing and are stated at their fair value on initial recognition after initial recognition these are measured 
at amortised cost using the effective interest method
g equity instruments
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs
39 impairment of financial assets including receivables
a financial asset not measured at fair value through profit or loss is assessed at each reporting date to determine whether there is any 
objective evidence that it is impaired a financial asset is impaired if objective evidence indicates that a loss event has occurred after 
the initial recognition of the asset
an impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying 
amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate losses are 
recognised in the income statement when a subsequent event causes the amount of impairment loss to decrease the decrease 
in impairment loss is reversed through the income statement
impairment losses relating to availableforsale equity investments are recognised when the decline in fair value is considered 
significant or prolonged which are defined as follows
• prolonged a period of greater than 18 months that the interest’s fair value is below cost or
• significant a decline in fair value of greater than 25 relative to an individual asset’s original acquisition cost or its rebased cost 
post impairment
these impairment losses are recognised by transferring the cumulative loss that has been recognised in the statement of 
comprehensive income to the income statement the loss recognised in the income statement is the difference between the 
acquisition cost or rebased cost and the current fair value once the group has recognised an impairment loss on an availableforsale 
equity investment it cannot recognise a reversal through the income statement 
impairment losses on debt instruments classified as availableforsale are reversed only if in a subsequent period the fair value of that 
debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised 
the amount of such reversal is recognised through the income statement
financial statements
anglo pacific group plc  annual report  accounts 2014 77
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
310 taxation
the tax expense represents the sum of the tax currently payable and deferred tax
current tax
the tax currently payable is based on taxable profit for the year taxable profit differs from net profit as reported in the income 
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items 
that are never taxable or deductible the group’s liability for current tax is calculated by using tax rates and laws that have been enacted 
or substantively enacted by the reporting date
deferred tax
deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in 
the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the 
balance sheet liability method deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax 
assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary 
differences can be utilised such assets and liabilities are not recognised if the temporary difference arises from the initial recognition 
of goodwill or from the initial recognition other than in a business combination of other assets and liabilities in a transaction that 
affects neither the taxable profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates and 
interests in joint ventures except where the group is able to control the reversal of the temporary difference and it is probable that 
the temporary difference will not reverse in the foreseeable future deferred tax assets arising from deductible temporary differences 
associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable 
profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future
the carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer 
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered
deferred tax is calculated at the tax rates that are expected to apply to the period when the liability is settled or the asset is realised 
based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date 
the measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which 
the group expects at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities
deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax 
liabilities and when they relate to income taxes levied by the same taxation authority and the group intends to settle its current tax 
assets and liabilities on a net basis
current and deferred tax for the year
current and deferred tax are recognised in profit or loss except when they related to items that are recognised in other comprehensive 
income or directly in equity in which case the current and deferred tax are also recognised in other comprehensive income or directly 
in equity respectively where current tax or deferred tax arises from the initial accounting for a business combination the tax effect is 
included in the accounting for the business combination
311 sharebased payments
the group operates a number of equitysettled sharebased compensation plans under which the entity receives services from 
employees as consideration for equity instruments options and jointlyowned shares of the company the fair value of the employee 
services received in exchange for the grant of the options is recognised as an expense the total amount to be expensed is determined 
by reference to the fair value of the options granted
• including any market performance conditions
• excluding the impact of any service and nonmarket performance vesting conditions and
• including the impact of any nonvesting conditions
nonmarket vesting conditions are included in assumptions about the number of options and jointlyowned shares that are expected to 
vest the total expense is recognised over the vesting period which is the period over which all of the specified vesting conditions are 
to be satisfied at the end of each reporting period the entity revises its estimates of the number of options and jointlyowned shares 
that are expected to vest based on the nonmarket vesting conditions it recognises the impact of the revision to original estimates 
if any in the income statement with a corresponding adjustment to equity
when options are exercised the company issues new shares the proceeds received net of any directly attributable transaction costs 
are credited to share capital and share premium when the options are exercised
financial statements
anglo pacific group plc  annual report  accounts 2014 78
apg11  ar14  24032015  back – proof 9 312 reserves
equity comprises the following
• ‘share capital’ represents the nominal value of equity shares in issue
• ‘share premium’ represents the excess over nominal value of the fair value of consideration received for equity shares net of 
issuance costs
other reserves
• ‘merger reserve’ is created when more than 90 of the shares in a subsidiary are acquired and the consideration includes the issue 
of new shares by the company the merger reserve was established during the year in connection with the allotment of shares to 
the acquired company’s shareholders as part of the wider structure associated with the maracás royalty acquisition in june 2014
• ‘warrant reserve’ was created in june 2014 in connection with the issue of share warrants as part consideration of the maracás 
royalty
• ’investment revaluation reserve‘ represents gains and losses due to the revaluation of the investments in mining and exploration 
interests and royalty instruments from the opening carrying values including the effects of deferred tax and foreign currency changes
• ‘sharebased payment reserve’ represents equitysettled sharebased employee remuneration until such share options are exercised
• ‘foreign currency reserve’ represents the differences arising from translation of investments in overseas subsidiaries
• ‘special reserve’ represents the level of profit attributable to the group for the period ended june 30 2002 which was created 
as part of a capital reduction performed in 2002
• ‘investment in own shares’ represents the shares held by the anglo pacific group employee benefit trust for awards made 
under the joint share ownership plan ‘ jsop’ note 23
• ‘retained earnings’ represents retained profits
of these reserves £113761000 are considered distributable as at december 31 2014 december 31 2013 £172796000 
313 revenue recognition
the revenue of the group comprises mainly royalty related income it is measured at the fair value of the consideration received 
or receivable after deducting discounts value added tax and other sales tax the royalty income becomes receivable on extraction 
and sale of the relevant minerals at which point the revenue is recognised
interest income is accrued on a time basis by reference to the carrying value and at the effective interest rate applicable which 
is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net 
carrying amount
dividend income from investments is recognised when the shareholders’ rights to receive payment have been established
314 leases
rentals payable under operating leases are charged to income on a straight line basis over the term of the lease except where another 
more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed 
in the event that lease incentives are received to enter into operating leases such incentives are recognised as a liability the aggregate 
benefit of incentives is recognised as a reduction of rental expense on a straight line basis over the lease except where another 
systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed
315 dividend distribution
dividend distribution to the company’s shareholders is recognised as a liability in the group’s financial statements in the period in which 
the dividends are approved by the company’s shareholders or in the case of the interim dividend when it is paid to the shareholders
financial statements
anglo pacific group plc  annual report  accounts 2014 79
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
4 segment information
the group’s chief operating decision maker is considered to be the executive committee the executive committee evaluates 
the financial performance of the group based on a portfolio view of its individual royalty arrangements royalty related income and 
its associated impact on operating profit is the key focus of the executive committee the income from royalties is presented based 
on the jurisdiction in which the income is deemed to be sourced as follows 
australia kestrel four mile pilbara mount ida
americas amapá and tucano maracás churchrock ring of fire
europe evbc salamanca bulqiza
other jogjakarta isua dugbe i and includes the group’s mining and exploration interests
the following is an analysis of the group’s results by reportable segment the key segment result presented to the executive 
committee for making strategic decisions and allocation of resources is operating profit as analysed below
the segment information for the year ended december 31 2014 is as follows noting that total segment operating profit corresponds 
to operating profit before impairments revaluations and gainslosses on disposals which is reconciled to lossprofit before tax on 
the face of the consolidated income statement
australia
royalties
£’000
americas
royalties
£’000
europe
royalties
£’000
all other
segments
£’000
total
£’000
royalty related income 1657 174 1650 – 3481
amortisation of royalties – 759 – – 759
operating expenses 3269 – – 2255 5524
total segment operating lossprofit 1612 585 1650 2255 2802
total segment assets 129666 22711 8091 39397 199865
total assets include
additions to noncurrent assets other than  
financial instruments and deferred tax assets – 13166 – 235 13401
total segment liabilities 33702 – 1364 3549 38615
the segment information for the year ended december 31 2013 is as follows
australia
royalties
£ ’000
americas
royalties
£ ’000
europe
royalties
£ ’000
all other
segments
£ ’000
total
£ ’000
royalty related income 9941 749 4041 – 14731
amortisation of royalties – 854 – – 854
operating expenses 2454 – – 821 3275
total segment operating profitloss 7487 105 4041 821 10602
total segment assets 147577 22827 28692 58184 257280
total assets include
additions to noncurrent assets other than  
financial instruments and deferred tax assets – – – 115 115
total segment liabilities 35676 – 2244 2509 40429
the amounts provided to the executive committee with respect to total segment assets are measured in a manner consistent with 
that of the financial statements these assets are allocated based on the operations of the segment and the physical location of the 
asset
the amounts provided to the executive committee with respect to total segment liabilities are measured in a manner consistent with 
that of the financial statements these liabilities are allocated based on the operations of the segment
the royalty related income in australia of £1657000 2013 £9941000 is derived from a single coal royalty and represents greater 
than 10 of the group’s revenue in 2013 and 2014 in addition royalty related income in europe of £1650000 2013 £4041000 
is derived from a single gold royalty and represents greater than 10 of the group’s revenue in 2013 and 2014
financial statements
anglo pacific group plc  annual report  accounts 2014 80
apg11  ar14  24032015  back – proof 9 5a expense by nature
2014
£’000
2013
£ ’000
group
employee benefit expense note 6a 3666 2044
professional fees 834 488
listing fees 142 153
operating lease payments 175 167
other expenses 707 423
5524 3275
5b auditor’s remuneration
2014
£’000
2013
£ ’000
group
fees payable to company’s auditor for the audit of parent company and consolidated financial statements
1
85 77
fees payable to the company’s auditor and its associates for other services
the audit of company’s subsidiaries
1
2 9
total audit fees 87 86
auditrelated assurance services
2
499 –
other assurance services pursuant to legislation
1
17 17
other services 19 –
total nonaudit fees 535 17
1
 the 2013 comparatives relate to the company’s previous auditor grant thornton uk llp who resigned as auditor on june 11 2014
2
  auditrelated assurance services relate wholly to the reporting accountant work performed in 2014 by the auditors on the acquisition of the narrabri royalty details of which 
are set out in note 31
details of the company’s policy on the use of auditors for nonaudit services the reasons why the auditor was used rather than 
another supplier and how the auditor’s independence and objectivity were safeguarded are set out in the audit committee report 
on  page 43 no services were provided pursuant to contingent fee arrangements
6a employee benefits expense
group company
2014
£’000
2013
£ ’000
2014
£’000
2013
£ ’000
wages and salaries 2695 1763 2609 1680
sharebased awards to directors and employees 609 72 609 72
social security costs 309 174 306 172
other pension costs 53 35 53 35
3666 2044 3577 1959
6b retirement benefits plans
the group operates a money purchase group personal pension scheme under this scheme the group makes contributions to 
personal pension plans of individual directors and employees the pension cost charge represents contributions payable by the group 
to these plans in respect of the year
the total cost charged to income of £53000 2013 £35000 represents contributions payable to these schemes by the group at rates 
specified in the rules of the schemes as at december 31 2014 contributions of £4000 2013 £5000 due in respect of the current 
reporting period had not been paid over to the schemes
financial statements
anglo pacific group plc  annual report  accounts 2014 81
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
6c average number of people employed
2014 2013
group
number of employees 13 13
2014 2013
group
average number of people including executive directors employed
executive directors 2 4
administration 11 9
13 13
company
the average number of administration staff employed by the company during the year including executive directors was 11 2013 13
directors’ salaries are shown in the directors’ remuneration report on  pages 45 to 57 including the highest paid director
7 finance income
2014
£’000
2013
£ ’000
group
interest on bank deposits 98 95
interest on royalty financial instruments 116 473
interest on longterm receivables 225 221
439 789
8 finance costs
2014
£’000
2013
£ ’000
group
professional fees 883 129
revolving credit facility fees 159 –
net foreign exchange loss 366 2835
1408 2964
9 other income
2014
£’000
2013
£ ’000
group
dividends received from mining and exploration interests 169 441
fixed income from mining and exploration interests – 267
shares inlieu of interest on mining and exploration interests 511 –
effective interest income on royalty financial instruments 194 1140
recovery of royalty financial instruments 632 –
sundry income 475 164
1981 2012
financial statements
anglo pacific group plc  annual report  accounts 2014 82
apg11  ar14  24032015  back – proof 9 10 income tax expense
2014 
£’000
2013 
£ ’000 
analysis of charge for the year
united kingdom corporation tax credit 329 306 
overseas tax 1057 1017 
adjustments in respect of prior years – 608
current tax 1386 715 
deferred tax 3804 11114
income tax expensecredit 5190 10399
factors affecting tax charge for the year
loss before tax 42399 52896
tax on loss calculated at united kingdom corporation tax rate of 215 2013 235 9116 12431
tax effects of
items nontaxabledeductible for tax purposes
nondeductible expenses 5998 3186 
nontaxable income 227 4196
temporary difference adjustments
utilisation of losses not previously recognised 1048 –
current year losses not recognised 139 2689 
write down of deferred tax assets previously recognised 7628 –
adjustment in deferred tax due to change in tax rate 177 136 
other temporary difference adjustments 2754 –
other adjustments
withholding taxes 961 819 
effect of differences between local and united kingdom tax rates 1239 747
prior year adjustments to current tax – 608
other adjustments 837 753 
income tax expensecredit 5190 10399
refer to note 22 for information regarding the group’s deferred tax assets and liabilities
financial statements
anglo pacific group plc  annual report  accounts 2014 83
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
11 lossearnings per share
loss per ordinary share is calculated on the group’s loss after tax of £47589000 2013 £42497000 and the weighted average 
number of shares in issue during the year of 113075454 2013 108932340
loss per ordinary share excludes the issue of shares under the group’s jsop  as the employee benefit trust has waived its right 
to receive dividends on the 925933 ordinary 2p shares it holds as at december 31 2014 december 31 2013 925933
2014
£’000
2013
£ ’000
net profit attributable to shareholders
earnings – basic 47589 42497
earnings – diluted 47589 42497
2014 2013
weighted average number of shares in issue
basic number of shares outstanding 113075454 108932340
dilutive effect of employee share option scheme – –
diluted number of shares outstanding 113075454 108932340
as the group is loss making in 2014 and 2013 the employee share option scheme is considered antidilutive because including it in 
the diluted number of shares outstanding would decrease the loss per share
due to the growing number of valuation and other noncash movements being recognised in the income statement the group 
presents an adjusted earnings per share metric to better reflect the underlying performance of the group during the year in calculating 
the adjusted earnings per share the weighted average number of shares in issue remains consistent with those used in the earnings 
per share calculation
earnings
£’000
earnings 
per share 
p
diluted 
earnings 
per share 
p
net profit attributable to shareholders
loss – basic and diluted for the year ended december 31 2014 47589 4209p 4209p
adjustment for
amortisation of royalty intangible assets 759
gain on sale of mining and exploration interests 1350
gain on disposal of coal tenures 1409
impairment of mining and exploration interests 4873
impairment of royalty and exploration intangible assets 10033
impairment of royalty financial instruments 15288
impairment of property plant and equipment 1352
revaluation of coal royalties kestrel 11822
effective interest income on royalty financial instruments 194
tax effect of the adjustments above 3577
adjusted loss – basic and diluted for the year ended december 31 2014 2838 251p 251p
financial statements
anglo pacific group plc  annual report  accounts 2014 84
apg11  ar14  24032015  back – proof 9 earnings
£ ’000
earnings 
per share 
p
diluted 
earnings 
per share 
p
net profit attributable to shareholders
loss – basic and diluted for the year ended december 31 2013 42497 3901p 3901p
adjustment for
amortisation of royalty intangible assets 854
loss on sale of mining and exploration interests 6398
impairment of mining and exploration interests 26321
impairment of royalty and exploration intangible assets 8313
revaluation of coal royalties kestrel 13568
revaluation of royalty financial instruments 8735
effective interest income on royalty financial instruments 1140
tax effect of the adjustments above 11371
adjusted earnings – basic and diluted for the year ended december 31 2013 9181 843p 843p
12 dividends
on february 4 2014 an interim dividend of 445p per share was paid to shareholders in respect of the year ended december 31 2013 
on august 7 2014 a final dividend of 575p per share was paid to shareholders to make a total dividend for the year of 1020p per 
share total dividends paid during the year were £1154m 2013 £1107m
on february 4 2015 an interim dividend of 445p per share was paid to shareholders in respect of the year ended december 31 2014 
this dividend has not been included as a liability in these financial statements the directors propose that a final dividend of 400p per 
share be paid to shareholders on august 7 2015 to make a total dividend for the year of 845p per share this dividend is subject to 
approval by shareholders at the agm and has not been included as a liability in these financial statements
the proposed final dividend for 2014 is payable to all shareholders on the register of members on june 26 2015 the total estimated 
dividend to be paid is £680m at the present time the board has resolved not to offer a scrip dividend alternative
13 property plant and equipment
group
other
assets
£’000
equipment
and
fixtures
£’000
total
£’000
gross carrying amount
at january 1 2014 1964 129 2093
additions 41 147 188
disposals 617 – 617
foreign currency translation 32 – 32
at december 31 2014 1356 276 1632
depreciation and impairment
at january 1 2014 4 100 104
disposals – – –
depreciation – 23 23
impairment 1352 – 1352
at december 31 2014 1356 123 1479
carrying amount december 31 2014 – 153 153
financial statements
anglo pacific group plc  annual report  accounts 2014 85
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
group
other
assets
£ ’000
equipment
and
fixtures
£ ’000
total
£ ’000
gross carrying amount
at january 1 2013 2072 175 2247
additions – 14 14
disposals – 60 60
foreign currency translation 108 – 108
at december 31 2013 1964 129 2093
depreciation and impairment
at january 1 2013 2 140 142
disposals – 60 60
depreciation 2 20 22
at december 31 2013 4 100 104
carrying amount december 31 2013 1960 29 1989
other assets relate to the group’s panorama and trefi coal projects in british columbia canada and the group’s talc deposit in 
shetland scotland
impairment
as at december 31 2014 following minimal progress in the year the directors have taken a view that the group’s ability to monetise 
both the trefi coal project and the shetland talc deposit is inherently uncertain and as a result have fully impaired these assets 
resulting in an impairment charge for the year of £14m
disposals gain on coal tenures
on september 2 2014 the group completed its disposal of the panorama coal project to atrum coal nl the carrying value of 
panorama was £09m comprising £06m recognised within property plant and equipment and £03m recognised within royalty and 
exploration intangible assets see note 16
the group received total consideration of £23m comprising us05m £03m in cash 1000000 atrum coal nl shares valued at 
£08m and deferred consideration of us20m £12m in the form of a 12month promissory note with an interest coupon of 80 
per annum thus generating a profit on disposal of £14m
in addition the group retained a royalty on coal sales from the assets being sold equivalent to the higher of 1 of gross revenue on a 
mine gate basis or us1tonne due to the uncertainty regarding the panorama project entering production this royalty has been 
considered to have £nil value at december 31 2014
company
other
assets
£’000
equipment
and
fixtures
£’000
total
£’000
gross carrying amount
at january 1 2014 821 129 950
additions – 147 147
at december 31 2014 821 276 1097
depreciation and impairment
at january 1 2014 4 100 104
depreciation – 23 23
impairment 817 – 817
at december 31 2014 821 123 944
carrying amount december 31 2014 – 153 153
financial statements
anglo pacific group plc  annual report  accounts 2014 86
apg11  ar14  24032015  back – proof 9 company
other
assets
£ ’000
equipment
and
fixtures
£ ’000
total
£ ’000
gross carrying amount
at january 1 2013 821 175 996
additions – 14 14
disposal – 60 60
at december 31 2013 821 129 950
depreciation and impairment
at january 1 2013 2 140 142
disposals – 60 60
depreciation 2 20 22
at december 31 2013 4 100 104
carrying amount december 31 2013 817 29 846
the group’s property plant and equipment is carried at cost less depreciation and impairment prior to their impairment as at 
december 31 2014 the leases relating to the talc deposit on shetland scotland held by the parent company were carried at  
a directors’ valuation of £08m an external valuation was carried out on march 26 2001 at the date of transition to ifrs the 
group elected to use this valuation as deemed cost at that date
14 coal royalties kestrel
group £ ’000
at january 1 2013 170995
foreign currency translation 25993
loss on revaluation of coal royalties 13568
at december 31 2013 131434
foreign currency translation 2515
loss on revaluation of coal royalties 11822
at december 31 2014 117097
the group’s coal royalty entitlements comprise the kestrel and crinum coal royalties and derive from mining activity carried out 
within the group’s private land area in queensland australia rather uniquely to this royalty the substratum land is the property of 
the freeholder including the minerals contained within the ownership of the land therefore entitles the group to a royalty equivalent 
to what the state receives on areas outside the group’s private land this royalty is accounted for as investment property in 
accordance with ias 40
the coal royalty was valued during december 2014 at £1171m a2230m 2013 £1314m and a2444m by an independent coal 
industry advisor on a net present value of the pretax cash flow discounted at a rate of 7 the net royalty income from this 
investment is currently taxed in australia at a rate of 30 this valuation is incorporated in the accounts and the above revaluation 
adjustment represents the difference between the opening carrying value and the external valuation excluding the effects of foreign 
currency changes
were the coal royalty to be realised at the revalued amount there are £31m a60m of capital losses potentially available to offset 
against taxable gains these losses have been included in the deferred tax calculation note 22 were the coal royalty to be carried at 
cost the carrying value would be £02m 2013 £02m the directors do not presently have any intention to dispose of the coal royalty
the shares over the entity which is the beneficial owner of the kestrel royalty have been guaranteed as security in connection with the 
threeyear secured revolving credit facility in february 2015
financial statements
anglo pacific group plc  annual report  accounts 2014 87
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
15 royalty financial instruments
the group’s royalty instruments are represented by four royalty agreements which entitle the group to either the repayment 
of principal and a net smelter return ‘nsr’ royalty for the life of the mine or a gross revenue royalty ‘grr’ where the project 
commences commercial production or the repayment of principal where it does not details of the group’s royalty financial 
instruments which are held at fair value are summarised below
project commodity
original cost
‘000
royalty
rate escalation classification
december 31 
2014
carrying value
£ ’000
el valleboinascarles mines
gold silver
copper c7500 250 3 gold us1100oz
availablefor
sale equity 5742
jogjakarta iron sands a5000 200 –
availablefor
sale debt 2400
isua iron ore a28000 100 –
availablefor
sale debt –
the group’s entitlements to cash by way of the repayment of the principal and the nsr royalty or the grr have been classified as 
availableforsale financial assets in accordance with ias 39 and are carried at fair value in accordance with the classification of royalty 
arrangements criteria set out in note 2 
group
£ ’000
company
£ ’000
fair value
at january 1 2013 41945 24032
revaluation of royalty financial instruments recognised in the income statement 8735 7002
revaluation of royalty financial instruments recognised in equity 4191 4191
foreign currency translation 1172 –
at december 31 2013 27847 12839
impairment of royalty financial instruments 15288 –
revaluation of royalty financial instruments recognised in equity 4697 4697
foreign currency translation 280 –
at december 31 2014 8142 8142
during the year effective interest of £01m was recognised in other income see note 9 this was directly offset by cash received in 
the year of the same amount
on october 16 2014 london mining plc the operator of the group’s isua royalty announced that it had appointed administrators 
subsequent to yearend the isua royalty was sold to general nice development limited with the group’s royalty interest being 
transferred concurrently however given the inherent uncertainty of this asset reaching commercial production the group’s royalty 
financial instrument arising from its interest in the isua royalty has been fully impaired resulting in an impairment charge for the year  
of £153m
financial statements
anglo pacific group plc  annual report  accounts 2014 88
apg11  ar14  24032015  back – proof 9 16 royalty and exploration intangible assets
the group’s intangibles comprise capitalised exploration and evaluation costs and royalty interests 
group
exploration 
and evaluation 
costs 
£’000
royalty 
interests 
£’000
total 
£’000
gross carrying amount
at january 1 2014 951 48713 49664
additions 47 13166 13213
disposals 275 – 275
foreign currency translation 26 2174 2200
at december 31 2014 697 59705 60402
amortisation and impairment
at january 1 2014 – 12376 12376
amortisation charge – 759 759
impairment charge 697 9336 10033
foreign currency translation – 124 124
at december 31 2014 697 22595 23292
carrying amount december 31 2014 – 37110 37110
group
exploration 
and evaluation 
costs 
£ ’000
royalty 
interests 
£ ’000
total 
£ ’000
gross carrying amount
at january 1 2013 931 55773 56704
additions 101 – 101
conversion of royalty option – 248 248
foreign currency translation 81 7308 7389
at december 31 2013 951 48713 49664
amortisation and impairment
at january 1 2013 – 3209 3209
amortisation charge – 854 854
impairment charge – 8313 8313
at december 31 2013 – 12376 12376
carrying amount december 31 2013 951 36337 37288
company
2014
£’000
2013
£ ’000
royalty interests
at january 1 3050 3997
impairment charge 701 947
at december 31 2349 3050
financial statements
anglo pacific group plc  annual report  accounts 2014 89
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
disposals and impairments of exploration and evaluation costs
the exploration and evaluation costs comprise expenditure that was directly attributable to the panorama and trefi coal projects in 
british columbia canada the group disposed of its interest in the panorama coal project and fully impaired its interests in the 
trefi coal project during the year as outlined in note 13
additions to royalty interests
on june 10 2014 the group acquired a 2 net smelter return royalty interest on all mineral products sold from the area of the 
maracás project to which the royalty interest relates in exchange for total consideration of £132m which comprised us220m 
£131m of cash and 500000 warrants which entitle the holder to acquire one anglo pacific ordinary share at a strike price of £250 
which are exercisable over five years which the group valued at £01m
a further us30m £19m of cash is payable when the project reaches certain annualised production milestones as set out in note 
28 due to the directors not considering payment of the contingent consideration to be probable at december 31 2014 no liability has 
been recognised
amortisation of royalty interests
the amapá royalty interest is the only producing royalty interest and therefore subject to amortisation amortisation of the remaining 
interests will commence once they begin commercial production no intangible assets have been pledged as security for liabilities
impairments of royalty interests
as described in notes 36 and 37 an annual impairment review is carried out to determine whether the future expected cash flows 
calculated on a valueinuse basis exceed cost this has resulted in the directors determining that three of the group’s intangible 
royalties were impaired at december 31 2014 as outlined below see note 2 for the impairment methodology applied
year ended december 31 2014
amapá
due to a lack of progress in rebuilding the santana port royalty income from amapá was minimal during the year with only small 
shipments possible the lack of shipping facilities also resulted in production at the mine being scaled back during the year taking into 
account the directors’ assessment as to when production will restart the discounted cash flow model using a discount rate of 10 
required an impairment charge of £84m to be recorded at december 31 2014 resulting in a residual carrying value of amapá of £49m
bulqiza
in 2013 the directors took the view that this project was no longer the principal focus of the owner of the licences and recognised an 
impairment charge of £09m in the year which left a residual carrying value of £07m in light of there being no further advancement  
in this project during 2014 it is inherently uncertain that these licences will enter commercial production and as a result a further 
impairment charge of £07m was recognised in the year with the residual carrying value being reduced to £nil
creso
on january 16 2014 the group was notified by creso exploration inc of its intention to abandon a number of the mining claims over 
which the group held a 2 nsr the directors took the view that the remaining claims were unlikely to be commercially developed 
and fully impaired the creso royalty resulting in an impairment charge of £02m
year ended december 31 2013
ring of fire
the operator cliffs natural resources inc announced the placing of its chromite asset onto care and maintenance although the group 
believes that this is too important a project to all stakeholders for the project to be deferred indefinitely in the absence of any other 
publicly available information it has deferred the estimated production profile and applied a risk weighted probability measure 
accordingly the combination of both has resulted in the estimated future royalty income being less than the acquisition cost of the 
royalty should the impasse resolve and production commence this impairment would be reversed in the income statement this has 
resulted in an impairment charge of £42m in the year calculated using a pretax discount rate of 10 with the residual carrying value 
being £54m there has been no further impairment charge in 2014 nor any reversal of the previous provision
mount ida
the group acquired the mount ida royalty in 2012 for us60m settled by way of a cash payment of us37m £23m and the issue 
of ordinary shares for the us23m £13m balance due to the significant infrastructure required to bring the project into production 
including the construction of port and rail facilities the owner has placed this project on care and maintenance although this is a large 
relatively high grade deposit which with a recovery in iron ore prices could become economic in the meantime the directors are of 
the view that it is unlikely that production will happen in a time frame such that the future cash flows will exceed cost calculated using 
a pretax discount rate of 10 this has resulted in the full carrying amount being impaired by £32m in the year
financial statements
anglo pacific group plc  annual report  accounts 2014 90
apg11  ar14  24032015  back – proof 9 17 mining and exploration interests
a availableforsale
group
£ ’000
company
£ ’000
fair value
at january 1 2013 55545 36753
additions 3118 1032
disposals 5258 4492
revaluation adjustment 32558 19318
foreign currency translation 775 –
at december 31 2013 20072 13975
additions 1161 391
disposals 8197 6350
revaluation adjustment 3162 1826
foreign currency translation 22 –
at december 31 2014 9896 6190
historically mining and exploration interests were acquired as part of a strategy to acquire royalty assets this method of sourcing 
royalties is unlikely to be followed going forward and as a result remaining mining and exploration interests are now considered 
noncore to the group’s primary business and are gradually being disposed the fair values of listed securities are based on quoted 
market prices unquoted investments and royalty options are initially recognised using cost where fair value cannot be reliably 
determined in the absence of an active market for these securities the group considers each unquoted security to ensure there has 
been no material change in the fair value since initial recognition further guidance on fair value measurement is provided in note 2
an impairment charge representing the recognition of losses previously deferred to equity is recognised in the income statement 
when the absolute decline in value below cost of any individual investment is considered ‘significant’ or ‘prolonged’ in accordance with 
the group’s impairment policy following significant declines in mining equity markets the group recognised an impairment charge of 
£49m for the year ended december 31 2014 december 31 2013 £263m
for the year ended december 31 2014 the group realised £95m in cash december 31 2013 £53m through the disposal of a 
number of its mining and exploration interests from which management no longer considered royalty opportunities to exist these 
disposals resulted in a gain of £14m for the year ended december 31 2014 december 31 2013 loss of £64m
total mining and exploration interests at december 31 are represented by
2014 2013
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
quoted investments 8820 6023 16018 13646
unquoted investments 1076 167 3896 171
royalty options – – 158 158
9896 6190 20072 13975
number of investments 16 12 29 26
financial statements
anglo pacific group plc  annual report  accounts 2014 91
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
18 deferred costs
group
deferred 
acquisition 
costs 
£ ’000
deferred 
financing  
costs
£ ’000
total 
£ ’000
carrying amount
at january 1 2014 – – –
additions 1335 127 1462
carrying amount at december 31 2014 1335 127 1462
company
deferred 
acquisition 
costs 
£ ’000
deferred 
financing  
costs
£ ’000
total 
£ ’000
carrying amount
at january 1 2014 – – –
additions 1254 127 1381
carrying amount at december 31 2014 1254 127 1381
on march 11 2015 the group announced the completion of its acquisition of the narrabri thermal coal royalty this acquisition was 
funded by a firm placing and open offer together with the partial utilisation of a newly agreed bank facility refer to note 31 for further 
details
as at december 31 2014 the group had incurred a significant portion of the costs associated with the transaction those costs 
directly attributable to the asset acquisition together with those costs associated with the firm placing and open offer have been 
deferred and classified as deferred acquisition costs
the costs associated with entering into the new us300m threeyear secured revolving credit facility have been deferred will be 
amortised over the term of the facility and have been classified as deferred financing costs
financial statements
anglo pacific group plc  annual report  accounts 2014 92
apg11  ar14  24032015  back – proof 9 19 investments in subsidiaries
the group’s full listing of subsidiaries is provided in note 32 the company’s investment in subsidiaries as at december 31 2014  
and december 31 2013 is as follows
£ ’000
cost
at january 1 2014 49662
additions 1452
at december 31 2014 51114
impairment of investment in subsidiary
at january 1 2014 4187
current year charge 9954
at december 31 2014 14141
carrying amount december 31 2014 36973
cost
at january 1 2013 33890
additions 15772
at december 31 2013 49662
impairment of investment in subsidiary
at january 1 2013 345
current year charge 3842
at december 31 2013 4187
carrying amount december 31 2013 45475
as a result of impairing underlying royalty interests the net asset value of certain subsidiaries held by the company have fallen below 
their carrying value and have therefore been written down
20 trade and other receivables
2014 2013
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
current
income tax receivable 763 – 2292 –
prepayments and accrued income 13 – 100 87
royalty receivables 98 – 2824 195
other receivables 4398 328 116 97
deposits with subsidiaries – 15353 – 18749
5272 15681 5332 19128
noncurrent
other receivables 9657 – 8775 –
amounts due from subsidiaries – 22318 – 12351
9657 22318 8775 12351
trade and other receivables principally comprise amounts relating to royalties receivable for the final quarter in each year the promissory 
noted received from atrum coal nl and the royalty related advances made to hummingbird resources plc and laramide resources ltd 
promissory note
on september 2 2014 the group completed its disposal of the panorama coal project to atrum coal nl as described in note 13 
forming part of the consideration received by the group is a us20m 12month promissory note with an interest coupon of 80 
per annum which has been classified as current receivable as at december 31 2014
financial statements
anglo pacific group plc  annual report  accounts 2014 93
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
hummingbird resources plc
on december 18 2012 the group entered into a royalty financing agreement with hummingbird resources plc under which the 
group provided a noninterest bearing advance of us150m in three tranches of us50m subject to the satisfaction of various 
conditions precedent in return for 2025 nsr over the dugb1 project during 2013 the group advanced two of the three tranches 
the third and final tranche of us50m £30m was advanced on march 6 2014
laramide resources ltd 
on august 13 2012 the group provided laramide resources ltd with an interest bearing facility of c50m which is repayable  
in december 2015 in return laramide resources ltd granted anglo pacific an option to acquire a 5 gross revenue royalty for an 
exercise price of us150m the facility bears interest at a rate of 7 per annum payable quarterly in arrears in line with interest 
bearing facility becoming repayable in december 2015 it has been reclassified from noncurrent to current as at december 31 2014 
the option has not been valued at december 31 2014 due to the likelihood that it will not be exercised
the directors consider that the carrying amount of trade and other receivables is approximately their fair value
amounts due from subsidiaries are considered longterm loans the directors consider that the carrying amount of amounts due  
from subsidiaries is approximately their fair value
21 cash and cash equivalents
cash and cash equivalents include the following for the purposes of the statement of cash flows
2014 2013
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
cash at bank and on hand 7395 622 15501 3902
trading deposits with brokers 1374 1374 205 204
cash and cash equivalents 8769 1996 15706 4106
22 deferred tax
the following are the major deferred tax liabilities and assets recognised by the group and the movements thereon during the period
coal royalties availableforsale investments
group
revaluation
of coal
royalty
£ ’000
effects of
tax
losses
£ ’000
revaluation
of royalty
instruments
£ ’000
revaluation
of mining
interests
£ ’000
impairment 
of intangible 
royalties
£ ’000
accrual of
royalty
receivable
£ ’000
other tax
losses
£ ’000
total 
£ ’000
at january 1 2013 50785 607 3957 5809 – 206 – 48532
chargecredit to profit 
or loss 5160 8 1111 3282 2330 641 – 11250
chargecredit to other 
comprehensive income – – 600 204 – – – 396
exchange differences 7162 99 – 45 – 116 – 7224
effect of change in tax rate
income statement – – 101 237 – – – 136
equity – – 229 4 – – – 225
at december 31 2013 38463 516 3116 9099 2330 731 – 30365
chargecredit to profit 
or loss 3858 460 – 7682 2330 714 1176 3804
reclassification from 
current to deferred tax 
asset – – – – – – 650 650
chargecredit to other 
comprehensive income – – 1629 877 – – – 752
exchange differences 10 33 – 19 – 13 41 116
effect of change in tax rate
income statement – – – – – – – –
equity – – 281 1 – – – 282
at december 31 2014 34615 943 1206 522 – 30 1785 32601
financial statements
anglo pacific group plc  annual report  accounts 2014 94
apg11  ar14  24032015  back – proof 9 deferred tax assets and liabilities are offset where the group has a legally enforceable right to do so the following is the analysis of the 
deferred tax balances after offset for financial reporting purposes
2014
£’000
2013
£ ’000
group
deferred tax liabilities 34908 39202
deferred tax assets 2307 8837
32601 30365
as at december 31 2014 the group has unused tax losses of £81m 2013 £17m available for offset against future profits a deferred 
tax asset has been recognised in respect of these losses which may be carried forward indefinitely
the group has the following balances in respect of which no deferred tax asset has been recognised
2014 2013
tax
losses –
trading
£’000
tax
losses –
capital
£’000
other 
temporary 
differences
£’000
total
£’000
tax
losses –
trading
£ ’000
tax
losses –
capital
£ ’000
total
£ ’000
expiry date
within one year – – – – – – –
greater than one year less than five years – – – – – – –
greater than five years – – – – – – –
no expiry date 4843 4879 22828 32550 8501 2906 11407
4843 4879 22828 32550 8501 2906 11407
timing differences associated with investments in subsidiaries joint ventures and associates are insignificant
the following are the major deferred tax liabilities recognised by the company and the movements thereon during the period
availableforsale investments
company
revaluation
of royalty
instruments
£ ’000
revaluation
of mining
interests
£ ’000
total 
£ ’000
at january 1 2013 3958 5758 1800
released to income for the year – 2216 2216
charge to equity for the year 1714 42 1756
at december 31 2013 2244 8016 5772
released to income for the year – 8013 8013
charge to equity for the year 1038 2 1040
at december 31 2014 1206 5 1201
financial statements
anglo pacific group plc  annual report  accounts 2014 95
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
23 trade and other payables
2014 2013
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
current
other taxation and social security payables 240 236 147 99
trade payables 107 91 43 40
other payables 231 225 426 424
accruals and deferred income 2359 2331 146 133
2937 2883 762 696
the average credit period taken for trade purchases is 16 days 2013 26 days the directors consider that the carrying amount of trade 
and other payables is approximately their fair value all amounts are considered short term and none are past due
2014 2013
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
noncurrent
other taxation and social security payables 83 83 – –
83 83 – –
noncurrent other taxation and social security payables relates to employer national insurance due on vesting of certain sharebased 
payments
24 share capital and share premium
issued share capital
number of
shares
share
capital
£ ’000
share
premium
£ ’000
merger
reserve
£ ’000
total
£ ’000
group and company
ordinary shares of 2p each at january 1 2013 109605376 2192 26853 – 29045
issue of share capital under private placing a 1282049 26 2475 – 2501
ordinary shares of 2p each at december 31 2013 110887425 2218 29328 – 31546
issue of share capital under private placing b 5544371 111 – 9453 9564
ordinary shares of 2p each at december 31 2014 116431787 2329 29328 9453 41110
a on october 21 2013 the company issued 1282049 ordinary shares at a share price of 195 pence per share by way of a private 
placing settled in cash with mr ja treger and mr mr potter
b on june 2 2014 the group completed the placing of 5544371 new ordinary shares of 2 pence each at a price of 180 pence per 
share raising £100m against which £04m in allowable transaction costs were offset the proceeds of this placing were ultimately 
used in the acquisition of the 2 net smelter return royalty over the maracás project described in note 16 as the shares were 
placed in return for acquiring over 90 of the share capital of a related entity the proceeds raised in excess of the nominal value 
issued is recorded in the merger reserve
own shares
included in the company’s issued share capital are shares held by the anglo pacific group employee benefit trust ‘ebt’ in 
accordance with the group’s jsop as follows
2014 2013
number of
shares £’000
number of
shares £ ’000
own shares
own shares held by the ebt 925933 2601 925933 2601
total 925933 2601 925933 2601
as the ebt has waived its right to receive dividends the company’s shares held by the ebt are excluded from the weighted average 
number of shares in issue for the purposes of calculating earnings per share in note 11
financial statements
anglo pacific group plc  annual report  accounts 2014 96
apg11  ar14  24032015  back – proof 9 25 sharebased payments
the group operates three equitysettled sharebased compensation plans as follows
• the hmrc approved company share ownership plan the ‘csop’
• the jsop operated through the anglo pacific group employee benefit trust and
• the value creation plan the ‘vcp’
a company share ownership plan 
under the csop  share options are granted to directors and to selected employees the exercise price of the granted options is equal 
to the average midmarket closing price of an ordinary share for the three days before the grant the options are conditional on the 
employee completing three years’ service the vesting period the options are exercisable starting three years from the grant date 
subject to the group achieving its target growth in absolute tsr over the period of 3 per annum not compounded in excess of the 
uk retail price index the options have a contractual option term of 10 years the group has no legal or constructive obligation to 
repurchase or settle the options in cash
movements in the number of share options outstanding and their related weighted average exercise prices are as follows
2014 2013
options
weighted
average
exercise
price £ options
weighted
average
exercise
price £
outstanding at january 1 52880 27406 76928 27406
granted during the year 24600 16258 –
surrendered during the year 33258 27060 – –
forfeited during the year – – 24048 24950
outstanding at december 31 44222 21205 52880 27406
out of the 44222 outstanding options 2013 52880 nil options 2013 nil were exercisable
share options outstanding at the end of the year have the following expiry date and exercise prices
options
expiry date
exercise price
in £ per share 2014 2013
2019 24950 – 24048
2021 32570 – 9210
2021 29535 – –
2022 33043 9079 9079
2022 28454 10543 10543
2024 16258 24600 –
44222 52880
weighted average remaining contractual life 911 748
the weighted average fair value of options granted during 2014 determined using the blackscholes valuation model was £0816 per 
option granted in september 2014 the significant inputs into the model were weighted average share price of £1626 at the grant 
date exercise price shown above volatility of 40 expected option life of three years and an annual riskfree interest rate of 11 
see note 6a for the total expense recognised in the income statement for share options granted to directors and employees there 
were no grants made during 2013 
three employees surrendered a total of 33258 options in september 2014 after the options lapsed due to the performance criteria not 
being satisfied in accordance with the rules of the csop  mr theobald and mr orchard forfeited all their outstanding options at the 
time of their resignation on october 21 2013
b joint share ownership plan 
under the jsop  the remuneration committee invites selected directors and employees to enter into an agreement with the anglo 
pacific group employee benefit trust the ‘coowner’ to acquire a number of ordinary shares in the capital of the company the shares 
are held in the name of the coowner however the selected directors and employees maintain a beneficial interest in these shares
awards under the jsop are conditional on the employee completing three years’ service the vesting period and the group’s absolute 
total shareholder return growing at an annual rate not compounded of 3 in excess of the uk retail price index over the threeyear 
vesting period in addition the company’s share price must reach a hurdle price during the threeyear vesting period as determined by 
the remuneration committee at the time of making the award
financial statements
anglo pacific group plc  annual report  accounts 2014 97
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
upon satisfying the performance targets and service requirements the beneficial interest conferred will entitle the director or employee 
to receive a proportion of the proceeds of sale of the ordinary shares their entitlement will be to receive the equivalent of all sales proceeds 
in excess of the threshold amount settled in ordinary shares of the company the threshold amount is fixed by the remuneration 
committee and will not be set less than the market value of the ordinary shares of the company at the time the jsop award is made
jsop awards made during the year were as follows
shares
grant price in
£ per share
hurdle price in
£ per share 2014 2013 expiry date
outstanding at january 1 2480 3150 277357 866610 2014
awarded in march 2011 3260 4225 – – 2015
awarded in september 2011 2919 4625 – – 2015
awarded in march 2012 3320 4500 – – 2016
awarded in september 2012 2668 3692 – – 2016
surrendered during the year 122697 338700
forfeited during the year – 250553
outstanding at december 31 154660 277357
weighted average remaining contractual life 250 342
no shares were awarded under the jsop during 2013 or 2014 a total of 122697 shares were surrendered in 2014 as a result of 
performance criteria not being satisfied in accordance with the terms of the jsop 2013 338700 
in accordance with the terms of the jsop  mr theobald and mr orchard forfeited their awards upon their resignation on october 21 2013
see note 6a for the total expense recognised in the income statement for share options granted to directors and employees
c value creation plan
following approval at the 2014 agm the group implemented a new longterm incentive arrangement for the executive directors 
and selected senior management the vcp was designed by the remuneration committee to incentivise the executive directors  
and senior management to drive growth in shareholder return over a fiveyear measurement period
under the terms of the vcp  no value would accrue to the participants unless growth in the group’s total shareholder return over the 
measurement period is at least equal to 7 per annum subject to such threshold growth participants would become entitled to receive 
nil or nominal cost options over the ordinary shares of the company subject to a cap set by reference to a share of a pool value equal 
to 10 of the growth in the company’s total shareholder return over the measurement period or if less 50 of the growth in the 
company’s total shareholder return over the measurement period in excess of the threshold growth
options granted under the vcp will comprise three equal tranches the first tranche exercisable as from the time of the grant of the 
options and the other tranches exercisable as from one and two years thereafter respectively subject to appropriate adjustments in 
accordance with the terms of the vcp  the maximum number of shares set under the option grants will not be capable of exceeding 
such number equating to 75 of the company’s issued share capital as at the end of the measurement period
vcp awards made during the year were as follows
expiry date
options
2014
2019 88000
88000
weighted average remaining contractual life 450
the weighted average fair value of options granted during 2014 determined using the monte carlo valuation model was £5486 per 
option granted in june 2014 the significant inputs into the model were weighted average share price of £1833 at the grant date 
exercise price of nil volatility of 333 expected dividend yield of 557 expected option life of five years and an annual riskfree 
interest rate of 195 see note 6a for the total expense recognised in the income statement for share options granted to directors 
and employees 
financial statements
anglo pacific group plc  annual report  accounts 2014 98
apg11  ar14  24032015  back – proof 9 26 special reserve
as part of the capital reduction in 2002 a special reserve was created which represents the level of profit attributable to the group 
for the period ended june 30 2002 at december 31 2014 this reserve remains unavailable for distribution 
group
£ ’000
company
£ ’000
at january 1 2014 and december 31 2014 632 632
27 financial commitments
operating leases
the group’s most significant operating lease commitments relate to premises maintained in both london england and shetland scotland
at the balance sheet date the group had outstanding commitments under noncancellable operating leases the total commitments 
due under these leases are shown according to the scheduled expiry dates of the leases as follows
group
2014
£’000
2013
£ ’000
within one year 176 168
in the second to fifth years inclusive 1171 100
after five years – 75
1347 343
capital commitments
at the year end the group had capital commitments of £nil 2013 £nil in respect of purchases of quoted investments
subsidiary undertakings have commitments as detailed below
shetland talc limited
a bond was granted to shetland islands council for £10000 in respect of the installation of a talc processing plant at broonies taing 
sandwick and the extraction of talc magnesite rock at catpund cunningsburgh
28 contingent liabilities
on june 10 2014 the group acquired a 2 net smelter return royalty interest on all mineral products sold from the area of the 
maracás project to which the royalty interest relates in exchange for us220 million and 500000 warrants which entitle the holder 
to acquire one anglo pacific ordinary share at a strike price of £250 which are exercisable over five years and a further us30m 
cash when the project reaches the following annualised production thresholds
• us15m cash when production reaches an annualised rate over a quarter of 9500t
• a further us15m cash when production reaches an annualised rate over a quarter of 12000t
as largo resources ltd are still in the process of ramping up production a lower level of production is expected in the short term  
until such time that the directors consider it probable that these criteria will be met the deferred consideration is not recognised  
as a liability on the balance sheet
financial statements
anglo pacific group plc  annual report  accounts 2014 99
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
29 related party transactions
during the year group companies entered into the following transactions with subsidiaries
2014
£’000
2013
£ ’000
net financing of related entities 5625 25794
management fee 3251 2166
amounts owed by related parties at year end 37671 31100
all transactions were made in the course of funding the group’s continuing activities
remuneration of key management personnel
the remuneration of the key management personnel including directors of the group is set out below in aggregate for each of the 
categories specified in ias 24 related party disclosures further information about the remuneration of individual directors is provided 
in the audited part of the directors’ remuneration report on  pages 50 to 56
2014
£’000
2013
£ ’000
shortterm employee benefits 1177 1098
postemployment benefits 30 17
sharebased payment 563 –
1770 1115
directors’ transactions
the group made payments of £2184277 to audley capital advisors llp  a company which mr ja treger chief executive officer 
is both a director and shareholder for the reimbursement of travel related expenditure and it recharges during the year ended 
december 31 2014 2013 £nil during the same period the group received £4820160 from audley capital advisors llp for the 
reimbursement of office relocation expenditure at december 31 2014 a total of £nil was owing to or from audley capital advisors 
llp 2013 £nil
financial statements
anglo pacific group plc  annual report  accounts 2014 100
apg11  ar14  24032015  back – proof 9 30 financial risk management
the group’s principal treasury objective is to provide sufficient liquidity to meet operational cash flow and dividend requirements and 
to allow the group to take advantage of new growth opportunities whilst maximising shareholder value the group’s activities expose 
it to a variety of financial risks including liquidity risk credit risk foreign exchange risk and price risk the group operates controlled 
treasury policies which are monitored by management to ensure that the needs of the group are met while minimising potential 
adverse effects of unpredictability of financial markets on the group’s financial performance
financial instruments
the group and company held the following investments in financial instruments this includes investment properties
2014 2013
group
£’000
company
£’000
group
£ ’000
company
£ ’000
investment property held at fair value
coal royalties kestrel 117097 – 131434 –
availableforsale held at fair value
royalty financial instruments 8142 8142 27847 12839
mining and exploration interests 9896 6190 20072 13975
loans and receivables
trade and other receivables
1
14153 37671 11599 31295
cash at bank and in hand 8769 1996 15706 4106
financial liabilities
trade and other payables
2
2466 2422 189 173
1
 trade and other receivables include royalty receivables and other noncurrent receivables only as set out in note 20
2
 trade and other payables include trade payables and accruals only as set out in note 23
cash and cash equivalents comprise cash and shortterm deposits held by the group treasury function the carrying amount of these 
assets approximates their fair value
liquidity and funding risk
the objective of the company in managing funding risk is to ensure that it can meet its financial obligations as and when they fall due 
at december 31 2014 and december 31 2013 there was no debt outstanding the addition of a 12month us150m revolving credit 
facility signed in february 2014 added further flexibility and liquidity to the group’s cash balances
credit risk
the group’s principal financial assets are bank balances royalty instruments held as financial assets trade and other receivables  
and investments these represent the group’s maximum exposure to credit risk in relation to financial assets and total £229m at 
december 31 2014 £273m at december 31 2013
the group’s credit risk is primarily attributable to its other receivables including royalty receivables it is the policy of the group to 
present the amounts in the balance sheet net of allowances for doubtful receivables estimated by the group’s management based on 
prior experience and the current economic environment in certain cases the group has the right to audit the reported royalty income
the group’s credit risk on royalty instruments held as financial instruments has been reviewed and the estimated current exposure  
is as disclosed in note 15 where the future contractual right to cash flows from these instruments is reflected in their fair value
the credit risk on bank deposits is mitigated by banking with household name financial institutions in reputable jurisdictions the  
group has no significant concentration of credit risk with exposure spread over a large number of currencies and counterparties
financial statements
anglo pacific group plc  annual report  accounts 2014 101
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
share price risk
the group is exposed to share price risk in respect of its mining and exploration interests which include listed and unlisted equity 
securities and any convertible instruments
a 10 increase or decrease in the fair value of our mining and exploration interests listed and unlisted would increasedecrease 
the mining and exploration interests’ balance and investment revaluation reserve in equity by £10m at december 31 2014 £20m 
at december 31 2013 we note that if a 10 decrease were to occur then a further assessment would be required to determine 
whether the decrease was considered to be ‘significant’ with any resulting impairment recognised in the income statement
the royalty portfolio exposes the group to other price risk through fluctuations in commodity prices particularly the prices of coking 
coal iron ore gold and uranium as the directors obtain independent commodity price forecasts the generation of which takes into 
account fluctuations in prices no detailed analysis of the impact of fluctuations on the valuations of the royalties has been undertaken
historically mining and exploration interests were acquired as part of a strategy to acquire royalty assets this strategy is unaffected  
by recent fluctuations in prices for mining and exploration equities however interests are continually monitored for indicators that may 
suggest problems for these companies raising capital or continuing their daytoday business activities to ensure remedial action can  
be taken if necessary this method of sourcing royalties is unlikely to be followed going forward and as a result remaining mining and 
exploration interests are now considered noncore to the group’s primary business and are gradually being sold
no specific hedging activities are undertaken in relation to these interests and the voting rights arising from these equity instruments 
are utilised in the group’s favour
foreign exchange risk
the group’s transactional foreign exchange exposure arises from income expenditure and purchase and sale of assets denominated 
in foreign currencies as each material commitment is made the risk in relation to currency fluctuations is assessed by the executive 
committee and regularly reviewed the group does not consider it necessary to have a hedging programme in place at this time
financial assets and liabilities are split by currency as follows
2014 2013
gbp
£’000
aud
£’000
cad
£’000
usd
£’000
nok
£’000
eur
£’000
gbp
£ ’000
aud
£ ’000
cad
£ ’000
usd
£ ’000
nok
£ ’000
eur
£ ’000
financial assets 12365 125579 5661 14452 – – 22280 148187 12410 22925 851 5
financial liabilities 2457 8 1 – – – 175 12 2 – – –
net exposure 9908 125571 5660 14452 – – 22105 148175 12408 22925 851 5
foreign exchange sensitivities
with the exception of the cash balances the majority of the financial instruments not denominated in gbp are held in entities with 
the same functional currency and for the purpose of this sensitivity analysis the impact of changing exchange rates on the translation 
of foreign subsidiaries into the group’s presentation currency has been excluded
in terms of the cash balance the significant sensitivities are as follows
• a  10 change in the gbpaud rate would increasedecrease profit after tax and equity by £28k 2013 £104k
• a  10 change in the gbpcad rate would increasedecrease profit after tax and equity by £246k 2013 £506k
• a  10 change in the gbpusd rate would increasedecrease profit after tax and equity by £355k 2013 £200k 
exposures to foreign exchange rates vary during the year depending on the volume of overseas transactions nonetheless the analysis 
above is considered to be representative of the group’s exposure to currency risk
financial statements
anglo pacific group plc  annual report  accounts 2014 102
apg11  ar14  24032015  back – proof 9 capital management and procedures 
the group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to realise the 
full value of its assets and to enhance shareholder value in the company and returns to shareholders by acquiring further royalty assets
the directors continue to monitor the capital requirements of the group by reference to expected future cash flows capital for the 
reporting periods presented is summarised in the consolidated statement of changes in equity 
the optimal capital structure for the group is to fund its business via equity in certain circumstances the directors will tolerate a level 
of gearing the targeted debt capacity will be 152 times free cash flow although a higher ratio can be tolerated for shorter periods 
when there is a reasonable expectation of a recovery in free cash flow
fair value hierarchy
the following table presents financial assets and liabilities measured at fair value in the balance sheet in accordance with the fair value 
hierarchy this hierarchy aggregates financial assets and liabilities into three levels based on the significance of the inputs used in 
measuring the fair value of the financial assets and liabilities the fair value hierarchy has the following levels
• level 1 quoted prices unadjusted in active markets for identical assets and liabilities
• level 2 inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly ie as prices 
or indirectly ie derived from prices and
• level 3 inputs for the asset or liability that are not based on observable market data unobservable inputs
the level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair 
value measurement
the following tables present the group’s assets and liabilities that are measured at fair value at december 31 2014
2014
group note
level 1 
£’000
level 2
£’000
level 3 
£’000
total 
£’000
assets
coal royalties kestrel a – – 117097 117097
royalty financial instruments b – – 8142 8142
mining and exploration interests – quoted c 8821 – – 8821
mining and exploration interests – unquoted d – 1075 – 1075
mining and exploration interests – royalty options e – – – –
net fair value 8821 1075 125239 135135
the following tables present the group’s assets and liabilities that are measured at fair value at december 31 2013
2013
group note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
coal royalties kestrel a – – 131434 131434
royalty financial instruments b – – 27847 27847
mining and exploration interests – quoted c 16018 – – 16018
mining and exploration interests – unquoted d – 3896 – 3896
mining and exploration interests – royalty options e – 158 – 158
net fair value 16018 4054 159281 179353
financial statements
anglo pacific group plc  annual report  accounts 2014 103
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
the following tables present the company’s assets and liabilities that are measured at fair value at december 31 2014 and 
december 31 2013
2014
company note
level 1 
£’000
level 2
£’000
level 3 
£’000
total 
£’000
assets
royalty financial instruments b – – 8142 8142
mining and exploration interests – quoted c 6024 – – 6024
mining and exploration interests – unquoted d – 166 – 166
mining and exploration interests – royalty options e – – – –
net fair value 6024 166 8142 14332
2013
company note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
royalty financial instruments b – – 12839 12839
mining and exploration interests – quoted c 13646 – – 13646
mining and exploration interests – unquoted d – 171 – 171
mining and exploration interests – royalty options e – 158 – 158
net fair value 13646 329 12839 26814
there have been no significant transfers between levels 1 and 2 in the reporting period
the methods and valuation techniques used for the purposes of measuring fair value of royalty financial instruments gives more 
prominence to the probability of production by applying a risk weighting to the discounted net present value outcome in order to fully 
reflect the risk that the operation never comes into production rather than factoring this risk into the discount rate applied to the future 
cash flow
a coal royalties investment property
the group’s coal royalties derive from its ownership of certain substratum land in queensland australia in accordance with ias 40 
this land is revalued at each reporting date on the basis of future expected income discounted at 7 by an independent valuation 
consultant see note 14 for further details all unobservable inputs are obtained from third parties
the group’s independent coal industry advisor who prepares the coal royalty valuation provided an analysis of the valuation’s 
sensitivity to fluctuations in coal prices as follows
• a 10 reduction in the coal price would have resulted in the coal royalties being valued at a1876m £985m and an additional 
charge to the income statement of £186m and
• a 10 increase in the coal price would have resulted in the coal royalties being valued at a2594m £1362m and a decrease in the 
charge to the income statement of £191m
b royalty instruments
at the reporting date the royalty instruments are valued based on the net present value of the pretax cash flows discounted at a rate 
management considers reflects the risk associated with each of the underlying projects the outcome is then risk weighted to reflect 
the likelihood of the project achieving production based on any published updates in the year note 15 details the discount rates used 
this is the only unobservable input determined by management all other unobservable inputs are obtained from third parties
c mining and exploration interests – quoted
all the quoted mining and exploration interests have been issued by publicly traded companies in well established security markets 
fair values for these securities have been determined by reference to their quoted bid prices at the reporting date
d mining and exploration interests – unquoted
all the unquoted mining and exploration interests are initially recognised using cost as the best approximation of fair value the  
group notes any trading activity in the unquoted instruments and will value its holding accordingly at present the group holds these 
investments with a view to generating future royalties and there is no present intention to sell the vast majority of these are in 
investments which the group anticipates a realistic possibility of a future listing
financial statements
anglo pacific group plc  annual report  accounts 2014 104
apg11  ar14  24032015  back – proof 9 e mining and exploration interests – royalty options
all the royalty options are initially recognised using cost where fair value cannot be reliably determined the group considers the 
progress of the projects related to each of the royalty options to ensure there has been no material change in the fair value since initial 
recognition
fair value measurements in level 3
the group’s financial assets classified in level 3 use valuation techniques based on significant inputs that are not based on observable 
market data
the following table presents the changes in level 3 instruments for the year ended december 31 2014
royalty
financial
instruments
£’000
coal
royalties
kestrel
£’000
total
£’000
at january 1 2014 27847 131434 159281
revaluation gains or losses recognised in
other comprehensive income 4697 – 4697
income statement – 11822 11822
impairment 15288 – 15288
foreign currency translation 280 2515 2234
at december 31 2014 8142 117097 125239
the following table presents the changes in level 3 instruments for the year ended december 31 2013
royalty
financial
instruments
£ ’000
coal
royalties
kestrel
£ ’000
total
£ ’000
at january 1 2013 41945 170995 212940
revaluation gains or losses recognised in
other comprehensive income 2458 – 2458
income statement 8735 13568 22303
foreign currency translation 2905 25993 28898
at december 31 2013 27847 131434 159281
there have been no transfers into or out of level 3 in any of the years
the group measures its entitlement to the royalty income and any optionality embedded within the royalty instruments using 
discounted cash flow models in determining the discount rate to be applied management considers the country and sovereign risk 
associated with the projects together with the time horizon to the commencement of production and the success or failure of projects 
of a similar nature
31 events occurring after year end
on march 12 2015 the group completed its acquisition of the narrabri royalty for us650m the narrabri royalty is a 1 gross 
revenue royalty over all coal produced from the narrabri mine located in new south wales australia owned and operated by 
whitehaven coal limited
of the total consideration of us650m us600m was paid in cash and us50m was satisfied by the issue of 4135238 ordinary 
shares the cash component of the consideration was partly funded through the firm placing placing and open offer that was completed 
on february 27 2015 resulting in the issue of 49375000 new shares at a price of 80p per share raising £395m before costs
in addition to the firm placing placing and open offer the group entered into a new threeyear us300m revolving credit facility on 
february 19 2015 the new facility is secured by way of a floating charge over the group’s assets and is subject to a number of 
financial covenants
financial statements
anglo pacific group plc  annual report  accounts 2014 105
apg11  ar14  24032015  back – proof 9 notes to the consolidated financial statements
for the year ended december 31 2014
32 principal subsidiaries
country of registration  
and operation principal activity
proportion of shares held at 
december 31 2014
starmont holdings pty ltd australia intermediate holding company 100
indian ocean resources pty ltd australia investments 100
†
alkormy pty ltd australia investments 100
†
argo royalties pty ltd australia investments 100
†
starmont ventures pty ltd australia investments 100
†
gordon resources pty ltd australia owner of coal royalty 100
†
apg aus no 1 pty ltd australia owner of iron ore royalties 100
apg aus no 2 pty ltd australia owner of iron ore royalties 100
apg aus no 3 pty ltd australia owner of uranium royalties 100
apg aus no 4 pty ltd australia owner of iron ore royalties 100
apg aus no 5 pty ltd australia owner of iron ore royalties 100
apg aus no 6 pty ltd australia owner of vanadium royalties 100
apg aus no 7 pty ltd australia investments 100
anglo pacific finance ltd ireland treasury 100
†
anglo pacific group employee benefit trust guernsey administering group incentive plans 100
anglo pacific cygnus ltd england investments 100
centaurus royalties ltd england owner of iron ore royalties 100
southern cross royalties ltd england owner of iron ore and uranium royalties 100
shetland talc ltd scotland mineral exploration 100
advance royalty corporation canada owner of uranium royalties 100
†
panorama coal corporation canada owner of coal royalty 100
trefi coal corporation canada owner of coal tenures 100
polaris royalty corporation canada intermediate holding company 100
†
albany river royalty corporation canada owner of chromite royalty 100
†
†
denotes held by a subsidiary company 
financial statements
anglo pacific group plc  annual report  accounts 2014 106
apg11  ar14  24032015  back – proof 9 throughout this report a number of financial measures are used to assess the group’s performance the measures are defined  
as follows
adjusted earningsloss
adjusted earningsloss represents the group’s underlying operating performance from core activities adjusted earningsloss is the 
profitloss attributable to equity holders less all valuation movements noncash impairments and amortisation charges which are 
noncash ifrs adjustments that arise primarily due to changes in commodity prices finance costs any associated deferred tax and 
any profit or loss on noncore asset disposals as these are not expected to be ongoing see note 11 to the financial statements for 
adjusted earningsloss
operating profitloss
operating profitloss represents the group’s underlying operating performance from its royalty interests operating profitloss is 
royalty related income less amortisation of royalties and operating expenses and excludes impairments revaluations and gainloss 
on disposals operating profitloss reconciles to ‘operating profitloss before impairments revaluations and gainlosses on 
disposals’ on the income statement
a size of holding at march 18 2015
category 
uk and canada
number of 
shareholders 
number of 
shares 
1 – 1000 647 3059 339352 020
1001 – 5000 828 3915 1945446 114
5001 – 10000 212 1002 1533923 090
10001 – and over 428 2024 166123313 9775
2115 10000 169942034 10000
b the percentage of total shares held by or on behalf of the 20 largest shareholders as at march 18 2015 was 6024
performance measures
shareholder statistics
anglo pacific group plc  annual report  accounts 2014 107
other information
apg11  ar14  24032015  back – proof 9
other information registered office
anglo pacific group plc
1 savile row  
london w1s 3jr
registered in england  
no 897608
telephone  
44 0 20 7435 7400
fax 44 0 20 7629 0370
website
wwwanglopacificgroupcom
shareholders
please contact your  
respective registrar if you  
have any queries about  
your shareholding
equiniti registrars limited
aspect house
spencer road
lancing
west sussex bn99 6da
telephone 
44 0 19 0383 3088
equity transfer  trust company
suite 400
200 university avenue
toronto
ontario m5h 4h1
telephone 
1 416 361 0152
stockbrokers
bmo capital markets limited
1st floor
95 queen victoria street
london ec4v 4hg
macquarie capital
ropemaker place
28 ropemaker street
london ec2y 9hd
peel hunt
moor house
120 london wall
london ec2y 5et
contact details
directory
anglo pacific group plc  annual report  accounts 2014 108
apg11  ar14  24032015  back – proof 9 printed in the uk by cpi colour  
on amadeus primo silk fsc
®
 certified paper
amadeus primo silk is certified fsc and  
is made using ecf pulp is manufactured  
according to iso 9001 and iso 14001
designed and produced by boone design
wwwboonedesigncom
apg11  ar14  24032015  back – proof 9 anglo pacific group plc 
1 savile row 
london w1s 3jr 
united kingdom 
t  44 020 3435 7400  
f  44 020 7629 0370
e  infoanglopacificgroupcom 
w  wwwanglopacificgroupcom
apg11  ar14  240315  front  proof 7


Summary:
 strategic report 
chief executive officer’s statement
starting to deliver on our strategy
the narrabri acquisition and associated  
fundraise achieved several objectives at once 
• we should significantly enhance our income 
for 2015 a year during which we expect 
kestrel’s royalties to recover year on year but 
during which our income will still be below  
its ultimate expected run rate 
• we diversified our dependence away from  
a sole asset from coking coal and from one 
operator whilst maintaining our focus on  
highquality jurisdictions like australia  
• we brought a number of significant new 
institutional shareholders on to the shareholder 
register who we hope will be supportive for 
future opportunities  
• we acquired a very longlife and highquality 
royalty which should be generating royalty 
income until close to 2040 well after mining 
moves permanently outside our private royalty 
lands at kestrel
• we have also bolstered our financial resources 
such that we now have significant capacity  
in order to continue to deliver on our strategy 
to acquire new royalties which in turn will 
support our dividend policy
the strategic report includes a case study on  
 page 18  which illustrates the strategic criteria 
achieved by the acquisition of the narrabri royalty
the narrabri acquisition came on the back of the 
smaller maracás royalty acquisition in the middle 
of last year which itself was followed by the 
retention of a royalty over the assets of atrum 
coal in canada in the third quarter following the 
sale of our panorama coal licences
i am pleased to report that following the 
completion of the narrabri royalty acquisition 
the group will have six royalties which are in 
production compared to just three when i joined 
18 months ago thus the transformation strategy 
is beginning to bear fruit though there are many 
more steps on the road ahead
challenging environment
despite this achievement 2014 as a year was  
a challenging one for our company and for  
the natural resources sector the continued 
weakening of growth in emerging economies 
together with a slower than expected recovery 
in the world economy saw further softening in 
the demand for commodities as a result there 
were sharp declines in the prices for most of  
the commodities the group’s royalties are 
generated from
even with the group’s derisked royalty model 
which limits our direct exposure to operating  
or capital cost inflation of the underlying mine 
operations the effects of such a difficult macro
economic climate on the mine operators meant 
the group was not immune to challenges during 
the year london mining plc the operator of the 
isua project entered administration whilst zamin 
group fell behind in their efforts to reconstruct  
the santana port essential for exporting their iron 
ore from the amapá mine these developments 
resulted in the group recognising £246m in 
impairment charges against the carrying value  
of the royalties connected to these and other 
projects
in addition to the reduced income at amapá 
production at kestrel remained largely outside 
the group’s private royalty area for much of  
the year which when combined with lower 
metallurgical coal prices resulted in royalty 
related income falling from £147m in 2013 to 
£35m in 2014 despite supplementing the 
reduced income levels with some £87m in cash 
generated through the disposal of noncore 

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although it came after the year end undoubtedly  
the highlight of the past 12 months was the successful 
acquisition and fundraising for the narrabri royalty equity interests together with monetising the 
panorama coal assets with kestrel performing 
well below expectations in the last quarter of 
2014 it was appropriate to revisit the group’s 
dividend policy as described by your chairman  
in his report 
the dividend should be protected by the gradual 
return to mining within our royalty lands in 2015 
at kestrel we estimate based on rio tinto’s 
forecast that 2025 of mining at kestrel will 
be within our royalty lands in the first half of 
2015 increasing to 7075 in the second half 
and longer term over 90 by 2017
positioned to take advantage  
of opportunities
the acquisition of the maracás royalty during  
the year and the narrabri royalty subsequent to 
the year end both of which are in production 
support the group’s ability to deliver on its 
revised dividend policy
we also entered into a new 300m revolving 
credit facility in march 2015 as part of the 
narrabri transaction which replaced the existing 
150m shorterterm facility this has a three
year term is secured on certain of the group’s 
assets and has a margin of 250 basis points over 
libor although large amounts of structured 
debt is not something which we consider 
appropriate for our assets we do need to take 
advantage prudently of lowcost financing 
opportunities available to us 
we are pleased to announce today the 
appointment of macquarie bank and peel hunt  
as brokers to work alongside bmo capital 
markets we believe the three of them provide  
us with good coverage in the major mining and 
financial centres of the world
outlook
we are optimistic for the longterm outlook of 
coking coal produced by kestrel and thermal 
coal produced by narrabri we are not calling  
the bottom but the risk is now to the upside  
the global power and steel industries rely on coal 
but roughly half the industry is uncompetitive at 
current prices this is an unsustainable situation 
and prices will likely recover in the years ahead  
as high cost production capacity is closed
whilst we are very comfortable with our current 
coal exposure we will focus in the months ahead 
on diversifying the portfolio away from coal and 
other bulk commodities in this respect base 
commodities like copper will be where we hope 
to put more capital to work and we have several 
interesting opportunities currently in the pipeline  
anglo pacific is well placed to make countercyclical 
investments at prices which are now well below 
the recent norm acquiring royalties that exceed 
our minimum internal return targets should provide 
shareholders with confidence in the group’s ability 
to meet its revised dividend policy along with  
the potential for upside should commodity prices 
recover in the medium term  
following the payment of the interim dividend in 
february along with the completion of the narrabri 
acquisition the group currently has over £35m 
in cash and 24m undrawn on our revolving 
credit facility with the additional income which 
narrabri and kestrel should bring in 2015 we are 
well funded to maintain our dividend payments 
and to take advantage of opportunities which 
may present themselves in the short term 
we look forward to building on our recent 
progress in the months ahead
ja treger
chief executive officer 
march 24 2015
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anglo pacific is well placed to make countercyclical 
investments at prices well below the recent norm