apg01  ar13  28032014  cover art apg01  ar13  28032014  cover art
anglo pacific group plc  annual report  accounts 2013
anglo pacific group plc
annual report  accounts 2013
anglo pacific group plc 
17 hill street 
mayfair 
london w1j 5lj 
united kingdom 
t  44 020 3435 7400  
f  44 020 7629 0370
e  infoanglopacificgroupcom 
w  wwwanglopacificgroupcom
a strong 
foundation  
for growth apg01  ar13  28032014  cover art apg01  ar13  28032014  cover art
 
01
  
group overview
 01 the vision 
 02 the opportunity
 04 anglo pacific at a glance
 05 our principal royalties
 06 chairman’s statement
 
09
  
strategic report
 09 chief executive officer’s statement
 10 market overview
 12 our strategic objectives
 14 our business model
 16 key performance indicators
 17 principal risks and uncertainties
 21 our portfolio
 22 business review  
 29 financial review
 33 corporate social responsibility report
 
35
  
governance
 35 directors’ report
 38 corporate governance report
 43 directors’ remuneration report
 56 important notices
 58 statement of directors’ responsibilities 
 
59
  
financial statements
 59 report of the independent auditor
 62 consolidated income statement
 63 consolidated statement  
  of comprehensive income
 64 consolidated and company  
  balance sheets
 65 consolidated statement  
  of changes in equity
 67 company statement of  
  changes in equity
 68 consolidated and company  
  cash flow statements
 69 notes to the consolidated  
  financial statements
 1 0 8 s h a r e h o l d er st a t i st ic s
 109 directors and advisers
contents
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directors
executive
bm wides 
acting chairman
ja treger 
chief executive officer
mr potter  
chief investment officer
nonexecutive
mh atkinson 
senior independent director
wm blyth
pnr cooke
rh stan
jg whellock
ah yadgaroff
secretary
ptj mason
head office
17 hill street  
london w1j 5lj
registered office
17 hill street  
london w1j 5lj
registered in england  
no 897608
auditors
grant thornton uk llp
grant thornton house 
melton street 
london nw1 2ep
bankers
barclays bank plc
business banking larger 
business
27th floor 
churchill place
london e14 5hp 
registrars
equiniti registrars limited
aspect house
spencer road
lancing
west sussex bn99 6da
transfer agent
equity transfer  trust 
company
suite 400
200 university avenue
toronto
ontario m5h 4h1
stockbrokers
liberum capital limited
ropemaker place
12th floor
25 ropemaker street
london ec2y 9ly
bmo capital markets limited
1st floor
95 queen victoria street
london ec4v 4hg
listings
london stock exchange
full listing 
symbol apf
toronto stock exchange
secondary listing
symbol apy
website
wwwanglopacificgroupcom
directors and advisers
financial statements apg01  ar13  31032014  front proof 13
the vision
to create a leading 
international diversified 
royalty company with  
a focus 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
anglo pacific group plc annual report  accounts 2013 01
group overview apg01  ar13  31032014  front proof 13
the opportunity
t o lead the industry  
in developing royalty 
financing for base 
metals and bulk 
materials companies
anglo pacific group plc annual report  accounts 2013 02 apg01  ar13  31032014  front proof 13
past 
historically royalties have originated as a result  
of the sale of a mineral property allowing the  
seller to retain some ongoing profit participation  
in the property
present
an increasing number of royalties are now  
created directly by operators and developers  
as a source of finance
falling commodity prices operating cost inflation  
poor capital allocation in particular ma at the top of 
the cycle and unproductive exploration spending in 
conjunction with slowing growth in china have led to  
a derating of mining equities raising capital through 
conventional sources has therefore become increasingly 
difficult consequently demand has increased for 
alternative forms of financing
future
anglo pacific is well positioned to grow its  
business in the underserved base metals and  
bulk materials sector
alternative financing has been more prevalent in  
the precious metals sector with a focus on base 
metals and bulk materials and a solid existing asset 
base anglo pacific intends to lead the development  
of this market and continue to support operators in 
bringing their projects into development 
anglo pacific group plc  annual report  accounts 2013 03
group overview apg01  ar13  31032014  front proof 13
group overview 
anglo pacific at a glance
delivering longterm returns to shareholders
commitment to a progressive 
dividend policy
consistent outperformance of the ftse 350 mining index
dividend per share p
08 09 10 11 12
2
0
4
6
8
10
12
13
ftse 350 mining index anglo pacific group plc
1208
100
150
200
250
300
350
400
price  
rebased to 100
1209 1210 1211 1212 1213
780
835
905
975
1020 1020
• 
key royalty asset in kestrel a tier 1 coking coal mine in australia  
 operated and majorityowned by rio tinto
• 
net assets at december 31 2013 of £2169m 
• 
dual listing london stock exchange premium listing and toronto  
 stock exchange
• 
10 principal royalty assets across five continents covering commodities  
 and properties at various stages from production to earlystage exploration
commodity exposure
coal  64
iron ore  21
gold  8
other  7
geographic exposure
australia  71
greenland  7
brazil  7
spain  6
liberia  3
canada  3
other  3
exposure by stage of production
producing  76
earlystage  13
development  10
nearproduction  1
anglo pacific group plc annual report  accounts 2013 04 apg01  ar13  31032014  front proof 13
group overview 
our principal royalties
producing  
royalties
page 22
nearproduction 
royalties
page 26
development  
royalties
page 27
earlystage 
royalties
page 28
1
  
kestrel coking coal
2
  
amapá iron ore
3
  
tucano iron ore
4
  
el valleboinás 
 carlés 
 gold copper  silver
5
  
four mile uranium
6
  
isua iron ore
7
  
salamanca 
 uranium
8
  
dugbe 1 gold
9
  
pilbara iron ore
10
  
ring of fire 
 chromite
 the table on page 21 provides additional information on the company’s entire royalty portfolio 
1
2
3
6
7
5
10
8
9
4
anglo pacific group plc  annual report  accounts 2013 05
group overview apg01  ar13  31032014  front proof 13
group overview 
chairman’s statement
despite the current challenges facing the global mining industry anglo pacific 
continued its underlying profitability during the period we have maintained our total 
dividend for the year despite the headline loss reported as we view the potential 
outlook for the business as being one where we expect to see future growth 
we are pleased to welcome julian treger and mark potter as the company’s new chief executive 
officer and chief investment officer respectively julian and mark joined late in 2013 from audley 
capital advisors llp an investment advisory firm managing valueorientated special situations 
investment strategies through hedge fund and coinvestment vehicles both have a strong track record  
of investing in the mining sector and a level of financial expertise that we believe will be of considerable 
benefit to anglo pacific’s current portfolio of royalty investments and also to future acquisitions  
in particular they bring with them new avenues for acquiring and creating royalties and opportunities 
for a wider spectrum of new investors in the company julian and mark invested £25m in new anglo 
pacific shares and the expectation is for them to increase their shareholding as the company grows 
we believe that there is increasing demand for alternative financing in the base metals and bulk 
materials sector this should provide many opportunities to acquire valueaccretive royalties increasing 
and diversifying the group’s revenue sources
our ambitions to expand are underpinned by our cornerstone asset the kestrel royalty the completion 
of rio tinto’s us2bn capex program on its new kestrel south mine underlines its commitment to  
the kestrel operations rio tinto’s production update for q4 2013 reflects substantial increases across 
both its coking coal and thermal coal operations and further strengthens our conviction in kestrel’s 
ability to meaningfully contribute to ebitda growth for the group in the mediumterm
our adjusted profit refer to page 30 of £91m 2012 £94m restated which excludes noncash 
impairment and valuation items and their associated tax impact demonstrates that the underlying 
business of the group remains profitable the group’s strategic equity investments currently 
representing 77 of its assets amount to £201m as at december 31 2013 despite difficulties in  
the junior mining markets during the year the group realised £53m in cash from the sale of equities 
where a royalty was no longer considered achievable the group plans to retain a select group of 
strategic equity investments which is hoped will enable future royalty discussions
in november 2013 the group was pleased to announce the signing of a coinvestment agreement  
with flowstream commodities ltd ‘flowstream’ an oil  gas streaming and royalty company  
anglo pacific was also a founding shareholder in this venture the agreement entitles the group to 
participation in flowstream’s first five investments 
appointment of julian treger  
and mark potter as ceo and cio
total dividend for 2013 maintained  
at 102p 
anglo pacific group plc  annual report  accounts 2013 06 apg01  ar13  31032014  front proof 13
cornerstone asset commences production  
at kestrel south following completion  
of rio tinto us2bn capex program 
impairment has been widespread across the international mining industry amidst falling commodity 
prices and continued tightening in the capital markets we believe that anglo pacific is well placed to 
endure these challenges and the underlying business of the group has remained profitable we have  
not escaped our own impairments particularly in our strategic equity investments most of which  
are junior mining equities however as these are carried at market value at each reporting date this  
has had little impact on the balance sheet there have also been impairment charges in relation to  
some of the group’s long dated royalties where macroeconomic conditions may delay the eventual 
production expected from them
the company is pleased to recommend a final dividend for 2013 of 575p per share maintaining a total 
dividend of 102p per share equalling the level paid out to shareholders for the year ended december 
31 2012 this reflects our confidence in future production from kestrel and our other producing royalties 
as well as our ability to acquire additional cashproducing royalties in the nearterm
board
it was with great sadness that on january 7 2014 peter boycott passed away peter had served as 
chairman of the board of the company since 1997 he stepped down as chairman in august 2012  
for health reasons but was still able to participate actively at board meetings and to chair the annual 
general meeting ‘agm’ in may 2013 with his tireless energy and business skills peter made an 
enormous contribution to the company’s recovery and growth over the past decade transforming it  
into the successful mining royalty company it is today as i took on the role of acting chairman due to 
peter’s ill health i will be stepping down from this intermediary position and will not be offering myself 
for reelection at the next agm i will be handing over to mike blyth who will succeed me as non
executive chairman with effect from april 1 2014 john whellock and michael atkinson will also be 
stepping down from the board at the next agm i would like to thank both john and michael for their 
contribution to the company over the years and have every confidence in mike and the rest of the  
team in leading anglo pacific through a new period of growth
finally i am pleased to welcome robert stan onto the board robert is a canadian national with a 
prominent background in the mining industry most recently serving as ceo for grande cache coal 
corporation until the company was sold in 2012 for us1bn his extensive knowledge and experience  
in the mining industry makes him a strong addition and his particular focus on the coal sector should 
provide valuable insights to the group’s bulk materials royalties his considerable network of contacts 
within the canadian investment community will also prove beneficial as the company seeks to  
expand its north american investor base
renewed focus on nearterm  
cashproducing royalties
anglo pacific group plc  annual report  accounts 2013 07
group overview apg01  ar13  31032014  front proof 13
outlook
the group enters 2014 with cautious optimism the mining majors appear to be focused on increasing 
returns to their shareholders which they are trying to achieve through renewed focus on the efficiency  
of their existing operations cutbacks have been announced for many new projects which over  
the medium and longterm should positively affect the supplydemand balance across commodities
in the meantime opportunities continue to arise for alternative financing in the base metals and bulk 
materials sector the group is currently assessing a number of suitable opportunities and we look 
forward to updating shareholders as and when these materialise 
in conclusion i would like to thank all my colleagues for their considerable energy and unstinting 
dedication to the running of our company throughout the year 
on behalf of the board
bm wides 
acting chairman
march 31 2014
group overview 
chairman’s statement
anglo pacific group plc  annual report  accounts 2013 08 apg01  ar13  31032014  front proof 13
strategic report 
chief executive officer’s 
statement
i am pleased to be joining anglo pacific at an important stage in the company’s 
development we believe we are well positioned to lead the company into  
its next phase of growth
i was encouraged by our maiden set of results for 2013 the company was able to maintain a steady 
royalty income at £147m for 2013 only slightly down from £152m for 2012 despite continued 
difficulties in the mining sector the company’s ability to withstand the current macroeconomic 
backdrop is further reflected in a resilient adjusted earnings after tax number refer to page 30 which  
has in turn encouraged us to maintain our total dividend at 102p
since my appointment in october 2013 the team has been hard at work on a number of fronts  
our primary focus has been on sourcing viable royalty transactions and i am pleased to say that our 
pipeline continues to grow our current focus is on diversifying our existing asset portfolio and securing 
nearterm cashproducing royalties in base metals and bulk materials projects providing the company 
with a clearly differentiated strategy from its north american listed precious metals peer group 
furthermore we have sought to provide a fair and balanced picture of the group’s assets in these 
accounts and believe our results reflect this updates during the year in relation to some of our royalties 
resulted in impairment charges as there is some uncertainty as to if and when these royalties will  
come into production we believe these impairment charges are accurate in the context of longterm 
commodity prices and the challenges facing those operations we believe we now have a robust 
balance sheet and this should serve as a good base for future growth
in february 2014 we also took on a new us15m twelvemonth unsecured revolving credit facility 
together with our net cash position this gives availability of between us35m and us40m and 
provides additional funding flexibility for the next 12 months
we were also pleased to welcome bmo capital markets ‘bmo’ to work alongside liberum capital  
as joint corporate broker in january 2014 bmo will play an increasingly important role as we look to 
grow the company and increase our profile internationally finally i would like to take the opportunity to 
thank brian wides for his contribution to the company as acting chairman over the past 15 months and 
in particular for his wise thoughtful leadership and guidance since my appointment in october 2013
we look forward to 2014 and are confident of the opportunity to provide our shareholders with growth and 
income from our dividend through the existing assets in our portfolio and the acquisition of new royalties 
the following section of our annual report up to and including page 34 is our strategic report for  
the year ended december 31 2013 and outlines amongst other things our business model and new 
strategic objectives along with an overview of the market and how we performed in the period 
ja treger
chief executive officer 
march 31 2014
anglo pacific group plc  annual report  accounts 2013 09
strategic report apg01  ar13  31032014  front proof 13
strategic report 
market overview
increased capital constraint amongst base metals and bulk materials producers
over the past few years the mining industry has faced increased funding challenges some of the 
world’s biggest projects have suffered from high cost inflation and budget overruns ma activity at  
the peak of the last economic cycle also 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 for instance the net debt to ebitda multiple for the bloomberg  
world mining index increased from 08x in 2010 to 14x in 2013 this has impacted on share prices  
as the most capital intensive sector within the mining industry 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 is further compounded by the typically higher cost operations of junior miners versus  
the mining majors
who are left with limited financing 
traditional funding routes remain limited
during the course of 2013 the selloff in the mining sector impacted on the mining equity markets 
global mining equity issuance in 2013 amounted to us164bn 17 and 59 down from 2012  
and 2011 respectively 
lending to the global mining industry has also been impacted for example there has been a notable 
decrease in high yield debt issuance to the mining industry over the past two years down 41 from 
us146bn in 2011 to us86bn as of the end of 2013 
560
401
198
09 10 11 12 13
0
10
20
30
40
50
60
827
1076
884
657
423
164
468
global mining equity issuance 
usbn
 total proceeds usbn
 number of deals
h1 h1 h1 h2
11 12 13
h2 h2
0
2
4
6
8
10
92
69
53
54 55
33
global mining high yield debt issuance 
usbn
source
1 global mining equity issuance dealogic
2 global mining high yield debt issuance company filings bloomberg lcd news
anglo pacific group plc annual report  accounts 2013 10 10 apg01  ar13  31032014  front proof 13
royalty financiers are focused almost exclusively on precious metals producers
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 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 cap of the top listed precious metals royalty 
companies in 2013 was approximately us20bn yet gold and silver producers made up approximately 
11 of global mining production by value by contrast the largest nonprecious metals royalty company 
labrador iron ore had a market cap of just under c2bn anglo pacific intends to provide royalties  
and streams to the rest of the mining sector 
coal 50
other 13
iron ore 19
gold 9
copper 9
2013 global mining production by value
source
1 source global mining production by value global mining perspective arctic cluster of raw materials conference intierrarmg report september 26 2013  
bmo global commodities research november 10 2013
2 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 
3 aggregate market cap of the top listed precious metals royalty companies in 2013 silver wheaton corp franconevada corp royal gold inc factset march 21 2014
4 labrador iron ore royalty corporation market cap bloomberg march 28 2014
anglo pacific group plc annual report  accounts 2013 11
strategic report apg01  ar13  31032014  front proof 13
strategic report
our strategic objectives
specialise
in base metals  
and bulk materials
to become  
a leading
international
royalty company
focused on yield
and return
diversify
royalty income
accelerate
growth in royalty  
income
anglo pacific group plc annual report  accounts 2013 12 apg01  ar13  31032014  front proof 13
specialise 
focus on base metals and bulk materials typically linked to gdp 
growth the supply side economics of metals such as copper and  
zinc make it an attractive investment proposal infrastructureled 
gdp growth in developed economies combined with urbanisation  
in developing countries should ensure continued demand for  
bulk materials
accelerate 
acquire royalties on producing or nearterm producing mines with 
operators who have a strong track record in order to manage its risk 
profile the group will focus mainly on mines in established mining 
jurisdictions primarily north america south america europe and 
australia the current portfolio will be enhanced by the acquisition 
of existing royalties or the negotiation of new agreements  
royalties will be preferred which can demonstrate the potential  
to generate additional income from amongst other things 
• 
increased realised commodity prices
• 
increased production volumes
• 
increased reserves and resources and subsequent mine  
 life extensions
diversify 
rebalance the commodity spread and stage of production of the 
group’s royalty assets recognising that kestrel our cornerstone 
producing asset currently accounts for c 67 of revenues which  
in turn has meant an overweight position in coal our target portfolio 
would see increased exposure to iron ore copper and zinc in line 
with our strategic objective to specialise in the nonprecious metals 
sector opportunistic investment in noncore commodities such as 
oil  gas uranium diamonds and precious metals may be pursued 
the group will also be reviewing existing noncore royalty assets 
and mining and exploration interests which no longer fit with  
the new strategy
anglo pacific group plc annual report  accounts 2013 13
strategic report apg01  ar13  31032014  front proof 13
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 various 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 2013 14 apg01  ar13  31032014  front proof 13
royalties reduce the upfront capital required to fund the 
development of a project these are generally structured as asset 
or even biproduct specific often leaving the remaining assets  
of the developer unencumbered for raising additional finance  
the creation of a new royalty can create positive news flow  
for the developer and provides some validation of the economic 
viability of a project together these can help developers in 
securing additional funds from more traditional sources
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 this is particularly relevant 
for companies with more than one asset for which the issue of  
new shares gives away upside over all assets or future assets  
in the company finally there are costs associated with issuing 
equity which can be direct in the form of underwriting fees or 
indirect via the pricing of an issue at a discount to market 
royalties represent an alternative form of raising finance 
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 
repayable when a 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 finally debt financing 
agreements can also be slower to implement typically requiring 
more intrusive due diligence and increased documentation 
we serve as a partner  
to the mine operator 
an alternative form  
of financing which is 
often less dilutive to 
shareholders
flexible financing 
structures to suit the  
mine operator
creating value for our mining partners
anglo pacific group plc annual report  accounts 2013 15
strategic report apg01  ar13  31032014  front proof 13
0 0 0
10
20
30
40
5 05
10 10
15 15
20 20
25 25
strategic report
key performance indicators
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 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 12 for further details 
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
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 
134
199
203
87
84
12
37
28
6
09 10 11 12 13 09 10 11 12 13 09 10 11 12 13
16
22
21
09
08
7
anglo pacific group plc  annual report  accounts 2013 16 apg01  ar13  31032014  front proof 13
the group’s strategy is to diversify more broadly within the base 
metals and bulk materials sector increasing exposure to copper 
zinc and other metals not directly linked to steel production  
in line with our objective of specialising in the nonprecious  
metals sector 
the group’s current strategy is to accelerate the process of 
acquiring cashgenerative royalties to reduce the current reliance  
on kestrel our principal cashgenerative royalty
management is looking to improve relationships with the operators 
of the group’s existing royalties and to try to obtain better 
information rights for both existing and new royalties 
a renewed focus on acquiring income generating royalties along 
with liquidity in its mining and exploration interests should allow  
the group to seek to maintain and grow its dividend in addition  
the company has considerable accumulated distributable reserves 
the group understands the importance of and is committed to 
attracting retaining and incentivising key executives for more 
information on the group’s remuneration policies please refer to 
the directors’ remuneration report on pages 44 to 51
the group has an experienced management team with an extensive 
network of contacts and a strong track record of investing in the 
mining industry the new management team bring with them 
alternative avenues in exploring for and creating new royalty 
opportunities the group believes it can lead the development  
of royalty financing in the base metals and bulk materials sector 
given the predominant focus of its peers on precious metals
the group is cash generative and has liquidity in its mining and 
exploration portfolio in addition the potential to access capital 
markets and the entering into by the group of a twelvemonth 
unsecured revolving credit facility provide additional resources  
to acquire new royalties
corporate
risk description mitigation
overweight exposure  
to coking coal a key  
input in steel production 
increasing dependence 
on future demand for steel 
highly dependent on a 
single cashgenerative 
royalty
limited access to 
information from the 
operators
inability to pay the 
dividend
retention of key 
executives
inability to acquire 
royalties due to pricing  
or competition
inability to acquire  
new royalties due to  
lack of financing
strategic report
principal risks and uncertainties
whilst limiting a number of the risks associated with traditional mining and 
commodity investments royalties remain 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
anglo pacific group plc annual report  accounts 2013 17
strategic report apg01  ar13  31032014  front proof 13
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 to assess 
the viability of the underlying project
the group has limited control over the operation of the mine it  
has invested in 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
newly created royalties can be tailored to allow for performance 
milestones to try to ensure that the operator performs as intended
the group seeks to invest in countries with well established legal 
jurisdictions which will provide a means of recourse for breach  
of contract in addition the group will seek to register its royalty 
interest where possible to try to ensure the royalty survives both 
bankruptcy and change of control 
i the group seeks to focus its investments on those countries 
with established legal jurisdictions low geopolitical risk and an 
established mining industry having a diversified portfolio has 
allowed the group to derisk small investments in operations in 
developing countries
ii the group does not operate the mines which it invests in and 
bears no liability for any adverse event or disaster at site level 
iii as part of the due diligence process the group considers 
applicable withholding taxes and any existing state royalties  
a material alteration of a tax regime could impact the economic 
viability of a project and ultimately royalty income as the royalty 
rate for the kestrel royalty is set by the state a change in the tax 
regime could have a direct effect on royalty income the group’s 
assets are generally located in developed economies which 
encourage mining activity through a fair and consistent tax system 
risk description mitigation
legal
enforceability  
of royalty rights
jurisdiction risk
i resource nationalism
ii labour relations
iii tax
corporate
strategic report
principal risks and uncertainties
royalty acquisitions  
may not produce 
anticipated revenues
dependence on the 
operator to deliver a 
commercially efficient 
mining operation
potential misalignment  
of interests between the 
group and operators
anglo pacific group plc  annual report  accounts 2013 18 apg01  ar13  31032014  front proof 13
the group’s strategy is to diversify away from its dependence on 
coking coal through acquiring royalties in the base metals and bulk 
materials sector the group uses consensus or lower forecasts 
when valuing all royalty investments which reduce the risk of 
overpayment a fall in commodity price is 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
the group seeks to ensure that it can meet all of its obligations  
as they fall due by preparing regular cash flow projections 
highlighting any currency requirements well in advance of 
settlement the group has a strong balance sheet an undrawn 
us15m twelvemonth revolving credit facility 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 exposure to foreign currency arises from different 
currencies associated with income mainly australian dollars 
expenditure including dividend mainly in pounds sterling  
and investment usually in us dollars as there are so few 
transactions the risk is managed by the board using detailed  
cash flow projections prepared regularly at present the board  
has determined that a hedging policy is unnecessary
the group has limited exposure to interest rate risk and its 
twelvemonth 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
financial  
including financial instruments
risk description mitigation
commodity price
liquidity
credit
foreign exchange
interest rates
other pricing
anglo pacific group plc  annual report  accounts 2013 19
strategic report apg01  ar13  31032014  front proof 13
anglo pacific group plc  annual report  accounts 2013 20 apg01  ar13  31032014  front proof 13
strategic report
our portfolio
kestrel coking coal rio tinto australia 7 – 15 grr investment  
     property
amapá iron ore zamin ferrous brazil 1 grr intangible
tucano iron ore beadell brazil 1 grr intangible 
  resources
el valleboinás gold copper orvana minerals spain 25 – 3 nsr royalty 
carlés ‘evbc’ and silver    instrument
four mile uranium quasar australia 1 nsr intangible 
  resources 
salamanca uranium berkeley spain 1 nsr intangible 
  resources
isua iron ore london mining greenland 1 – 14 grr royalty 
     instrument
jogjakarta iron sands indo mines indonesia 1 – 2 nsr royalty  
     instrument
pilbara iron ore bhp billiton australia 15 grr intangible
ring of fire chromite cliffs natural canada 1 nsr intangible 
  resources
dugbe 1 gold hummingbird liberia 2 – 25 nsr loan 
  resources
bulqiza chromite columbus albania 3 nsr intangible 
  copper
mount ida iron ore jupiter mining australia 075 grr intangible
churchrock uranium uranium usa 5 grr option 
  resources
royalty  commodity operator location royalty type balance sheet  
    and rate
1 2
 classification
producing development earlystage
near 
production
private coal interests
in addition to its royalty assets the group also owns mineral licences in the groundhog panorama  
and discovery collectively referred to as ‘panorama’ and peace river ‘trefi’ coal deposits in  
british columbia canada
mining and exploration interests
the group has a select number of listed and unlisted equity investments primarily in junior  
miners across a wide spectrum of commodities which are held with a view to obtaining royalties  
the decline in junior mining markets has led to further declines in value during the year and this 
portfolio represents less than 8 of the group’s total assets
1 please refer to page 28 for further detail on the royalty type and rate for kestrel tucano evbc isua jogjakarta dugbe 1 and mount ida  
please note that the table above does not include royalty assets which have been ascribed no value as at december 31 2013
2 grr and nsr stand for gross revenue royalty and net smelter return respectively
anglo pacific group plc  annual report  accounts 2013 21
strategic report apg01  ar13  31032014  front proof 13
0
5
10
15
20
25
30
35
0
25
50
75
100
125
150
175
strategic report
business review
significant developments across our principal royalties during 2013
producing royalties 
kestrel coking coal australia
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 7 of value up to and including a100 
125 of the value over a100 and up to and including a150 and 15 thereafter
performance
rio tinto successfully completed the transition into its new kestrel south mine in h2 2013 and provided  
a strong q4 2013 production update more specifically a steady ramp up in kestrel hard coking coal 
production during 2013 was reported by rio tinto in its fourth quarter operations review 2013 released  
on january 16 2014 from 402kt in q1 to 908kt in q4 an increase of 126
coking coal royalty receipts for anglo pacific amounted to a161m 2012 a167m translating into 
£99m compared to £109m reported in 2012 the decrease in income is due to both the weakening of 
the australian dollar throughout 2013 and production disruptions associated with the extension to the 
new kestrel south mine with the transition to the new kestrel south mine now completed it is 
anticipated that production at kestrel should become less volatile which will benefit the group as  
and when production moves fully within its private royalty land
 for additional information please see wwwriotintocoalaustraliacomau
coal royalty income 
£m
coal royalty valuation 
£m
08 09 10 11 12 13
934
1499
1693
1660
1710
1314
08 09 10 11 12 13
196 197
293
320
110
99
anglo pacific group plc  annual report  accounts 2013 22 apg01  ar13  31032014  front proof 13
valuation
the kestrel royalty accounts for 51 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 in addition to the australian dollar to us dollar exchange rate over the  
last two years has impacted on the valuation of expected future cash receipts and therefore valuation 
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 amapá consists of the mine in pedra branca  
do amapári and the port in santana which are linked by a railway amapá’s recorded revenue in  
2012 was us327m and us481m in 2011 based upon production volumes of 61mt and 48mt 
respectively the mine produces a mix of sinter feed pellet feed and spiral concentrates 
on january 4 2013 zamin ferrous ltd ‘zamin’ announced that it had signed a binding agreement  
for the purchase of amapá from anglo american plc 70 and cliffs natural resources inc 30  
this process completed on november 4 2013 and zamin is now the owner and operator the group  
is encouraged by this change of ownership and looks forward to establishing a good working 
relationship with zamin going forward
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 this resulted in reported 2013 
income from amapá of £07m 2012 £22m shipments have now recommenced and the expectation  
is that royalties will resume in the nearterm the group is also expecting royalty income to commence 
from the adjacent tucano mine in 2014 
 for additional information please see wwwzaminferrouscom and wwwbeadellresourcescomau
valuation
the group acquired these preexisting royalties in 2010 these are considered to be intangible assets 
and as such are presented on the balance sheet at cost intangible royalties are amortised when 
production commences on a straight line basis over the expected life of the mine
anglo pacific group plc  annual report  accounts 2013 23
strategic report apg01  ar13  31032014  front proof 13
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
production at evbc was encouraging throughout 2013 the group received royalty income of £20m 
during the year a satisfactory result considering the decline in the gold price in 2013 the group 
received an additional payment of £20m in 2013 representing repayment of the original debenture 
instrument orvana announced fy 2013 calendarised production for evbc of 65992 ounces of gold 
197768 ounces of silver and 67m pounds of copper whilst fy 2014 production guidance was 65000  
to 75000 ounces of gold 175000 to 200000 ounces of silver and 6 to 65m pounds of copper
 for additional information please see wwworvanacom
valuation
although evbc is a royalty the original debenture agreement displayed characteristics of a financial 
asset as such the asset is carried on the balance sheet at its fair value by reference to the discounted 
expected future cash flows over the life of the mine
anglo pacific group plc  annual report  accounts 2013 24 apg01  ar13  31032014  front proof 13
25
strategic report
anglo pacific group plc annual report  accounts 2013 apg01  ar13  31032014  front proof 13
nearproduction royalties
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
significant progress was made in advancing the four mile project during 2013 and the expectation  
of alliance is for this to enter production during 2014 the progress at the project includes
• on august 16 2013 alliance announced that the program for environment protection and 
rehabilitation had been approved on the same day it was announced that the environment 
protection authority south australia had approved a licence for mining and mineral processing 
including radiation management and radioactive waste management plans 
• on september 3 2013 alliance announced that the four mile uranium mine monitoring  
mine closure and community engagement plans had also been approved 
• on december 3 2013 alliance announced that construction had commenced and that the 
production budget had been approved 
• on january 31 2014 alliance announced the approval of the four mile revised startup plan  
and program and budget the startup plan envisages insitu recovery mining commencing  
in april 2014 with first uranium oxide sales in july 2014
 for additional information please see wwwallianceresourcescomau
valuation
similar to amapá this was the acquisition of a preexisting royalty and is accounted for as an intangible 
asset at cost with amortisation commencing upon production
strategic report
business review
anglo pacific group plc  annual report  accounts 2013 26 apg01  ar13  31032014  front proof 13
development royalties
isua iron ore greenland 
what we own
the group has a 1 life of mine grr on aimlisted london mining plc’s ‘london mining’ isua iron ore 
project in greenland the royalty rate increases for iron ore of less than 55 fe to a maximum of 14
the royalty agreement contains a number of milestones the breach of which would allow the group  
to convert the royalty back into the us30m consideration the satisfaction of which can be in cash  
or london mining shares at london mining’s election the remaining milestones include commercial 
production not occurring prior to june 20 2017 a change of control of the project or of london mining 
and the revocation of any material licences or permits 
london mining announced a feasibility study for isua on march 27 2012 which envisaged an initial 
10year mine life with annual production of 15mtpa
performance
the project was granted an exclusive 30year exploitation licence on october 24 2013 this is a key 
milestone in advancing the project
 for additional information please see wwwlondonminingcouk
valuation
as there is a contractual means of recovering the monies advanced the royalty is considered a financial 
asset and carried at fair value at each reporting date
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 three main 
deposits retortillo alameda and gambuta and is located in salamanca province spain approximately 
250km west of madrid
performance
on september 26 2013 berkeley announced the results of its prefeasibility study which estimated  
an average production of 27mlbs u3o8 per annum over an 11year mine life and a total capital cost  
of us169m in october 2013 berkeley announced that it had been granted its environmental licence 
for the retortillo deposit this is a major milestone for the project 
 for additional information please see wwwberkeleyresourcescomau
valuation
this is an intangible asset carried at cost until such time as production commences at which point 
amortisation will commence
anglo pacific group plc  annual report  accounts 2013 27
strategic report apg01  ar13  31032014  front proof 13
earlystage royalties
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
 for additional information please see wwwcliffsnaturalresourcescom
valuation
this is an intangible asset and accounted for at cost due to the announcement referred to above  
the expected future cash flows no longer exceed cost an impairment charge has been recognised  
to reflect the difference
footnotes to the royalty table on page 21
kestrel for more information on the royalty rate please see page 22
tucano the 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
evbc the company owns a 25 nsr royalty which escalates to 3 when the gold price is over us1100 per ounce
isua the royalty rate increases to 14 for iron ore of less than 55 iron content and 12 for beneficiated ore of less than 55 iron content
jogjakarta the nsr royalty reduces to 1 after repayment of the principal amount of the debenture if at the time the pig iron price is below us700 per tonne  
the royalty is only payable over a 70 share in the project
dugbe 1 the royalty is 2 except where both the average gold price is above 1800 and sales of gold are less than 50000 ounces in which case it increases  
to 25 in respect of that quarter
mount ida the consideration was payable in three tranches as follows us6m paid for a 03 grr on completion and agreement on the terms of the transaction 
us4m for a further 0225 grr on the production of a positive dfs plus a formal decision to mine plus 20 of preproduction capital costs being provided for  
and us4m for a further 0225 grr on commencement of commercial production to date only the first tranche has been paid by the group
strategic report
business review
anglo pacific group plc  annual report  accounts 2013 28 the group revised some of its accounting policies during the year in light of a review of the group’s 2012 annual report by the 
conduct committee of the financial reporting council ‘frc’ as part of their annual review process
the following changesclarifications have been reflected in the financial statements
• kestrel following the frc review this is now accounted for as investment property in accordance with ias 40 this has no 
impact on valuation
• royalty instruments evbc this is accounted for as an available for sale equity financial asset in accordance with ias 39 
as such all receipts should be accounted for as returns on investment previously the group treated the evbc debenture 
repayments as offsetting the capital outstanding these are now restated as a return on investment and recognised in the 
income statement this has no impact on the balance sheet as these are carried at fair value
• royalty instruments other these are accounted for as available for sale debt financial assets in accordance with ias 39 as the 
agreements contain several features which are similar to those found in conventional financing contracts as such regardless 
of the contractual interest rate an effective interest rate is applied where material similar to ias 39 equity financial assets 
these too are carried at fair value at each reporting date
• impairment of equity instruments although the way in which the group considers impairment has not changed in the period 
a key input into this assessment is relevant underlying mining indices as this has changed the threshold which the directors 
consider to be significant this is deemed a change in policy which requires a prior period adjustment this does not alter the 
value of the equities which are always accounted for at mark to market at each reporting period end
please see note 213 to the financial statements which describes the items yet to be resolved with the frc and the group’s 
assessment of their potential impact 
income statement
the group’s underlying business remained profitable throughout 2013 a number of valuation and noncash items recognised in 
the income statement results in the group reporting a loss after tax of £425m compared to a profit of £116m in 2012 restated 
due to the number of such items the group has decided to present an adjusted earnings per share metric to better report the 
underlying performance of the group
financial review
anglo pacific group plc  annual report and accounts 2013 29
strategic report
strategic report
apg01  ar13  31032014  back proof 7 adjusted earnings per share see note 12
2013 
£’000
2012 
restated 
£ ’000 description
lossprofit after tax 42497 11580 per the income statement
noncash valuation of coal royalties 13568 9512 this represents the revaluation of kestrel in accordance with ias 40 
previously kestrel was accounted for in accordance with ias 16 this change 
in policy has no impact on the carrying value of the asset see note 214
noncash impairment of mining and 
exploration interests strategic equity 
investments ias 39
26321 11401 the further unrealised decline in value of the group’s mining and exploration 
interests in the period is considered ‘significant’ in the context of the group’s 
impairment policy and ias 39 such decline requires previous unrealised losses 
recognised in the revaluation reserve to be recognised as impairment in the 
income statement the balance sheet always reflects current market value 
noncash impairment of intangible 
assets royalty interests
8313 – an impairment review is carried out to determine whether the expected 
future cashflows exceed carrying value as discussed below events during 
the year have created uncertainty as to if and when some of the 
group’s royalties will come into production 
noncash revaluation of available for 
sale debt financial assets royalty 
instruments 8689 767
this represents the valuation movement in the year caused by changes to 
expected future cash flows in accordance with ias 39 see note 29eii 
and 214
effective interest rate on available for 
sale debt financial assets royalty 
instruments – jogjakarta
1140 570
ias 39 requires an effective interest rate to be applied to financial assets 
which fall under the definition of debt as this is a nonproducing royalty it is 
considered unprudent to reward income ahead of receiving the equivalent 
cash see note 29eii
noncash amortisation of 
producing royalties amapá 854 1018
this represents the amortisation charge of royalty interests once the project 
is in production ias 38
realised lossprofit on sale of mining 
and exploration interests
6398 7347
this represents realised lossesgains on the sale of certain mining  
and exploration interests strategic investments once the possibility  
of obtaining a royalty becomes unlikely
noncash tax associated with the  
above adjustments 11370 2096
deferred tax is recognised on most valuation movements
adjusted profit after tax 9136 9433
weighted average number of shares 
‘000 108932 108545
adjusted earnings per share 839p 869p there is no impact of dilution on these numbers
dividend per share 102p 102p
financial review
anglo pacific group plc  annual report and accounts 2013 30
apg01  ar13  31032014  back proof 7
strategic report royalty income
the group was encouraged by the performance of its producing royalties during the year despite falling commodity prices and foreign 
exchange rates royalty income during the year was resilient overall royalty related income was £147m in 2013 a decrease of only 
£04m from that reported in 2012 restated 
2013
£’000
2012
£ ’000
kestrel 9941 10921
evbc – royalties 2018 1890
evbc – conversion payment 2023 –
amapá 749 2229
crinum – 117
total 14731 15157
income from kestrel was £99m 2012 £109m the weakening of the australian dollar resulted in a foreign exchange loss of £05m 
underlying income was a161m compared to a167m in 2012
elsewhere royalty income from evbc during the year of £20m reflects the favourable impact of an increased level of gold and copper 
production despite lower gold and copper prices the additional £20m received represents repayment of the initial debenture 
investment as evbc is accounted for as an available for sale equity interest in accordance with ias 39 this represents a return on 
investment and not a return of capital and is recognised in the income statement and is not recurring all income from evbc will be in 
the form of royalties going forward
as previously reported royalty income from amapá was significantly impacted by the incident at the santana port in march 2013 
which resulted in the suspension of all shipments of iron ore from the mine this has not stopped production at the mine and royalties 
will resume once shipping recommences
the group was encouraged that operating profit remained steady in 2013 at £113m 2012 £112m restated
impairment
the following table summarises the impairment charges reflected in the income statement
impairment summary
2013 
£’000
2012 
£ ’000 description
ring of fire 4047 – the operator’s announcement that it was placing its operation on care and 
maintenance places uncertainty over the future of this project this announcement 
has resulted in a partial impairment of this royalty however the group maintains 
its view that this is a world class deposit that will eventually come into production
mount ida 3319 – similar to the ring of fire the operator has placed this operation on care and 
maintenance and is now focusing on its other projects should iron ore prices 
increase significantly in future years this project could restart in the meantime 
the group has ascribed limited value to this royalty
bulqiza 947 – the operator is increasingly focused on its copper projects in turkey rather than  
this chromite deposit in albania this has altered the timing of expected cash flows 
impacting on the value of the group’s royalty
royalty impairment 8313 –
mining and exploration interests 26321 11401 this represents the transfer of the absolute decline in value of the strategic equity 
investments from the revaluation reserve to the income statement in the period 
equities are always carried at mark to market at each reporting period reflecting 
current share prices 
total 34634 11401
anglo pacific group plc  annual report and accounts 2013 31
strategic report
apg01  ar13  31032014  back proof 7 financial review
balance sheet
the group’s net assets decreased in value from £3010m at the end of 2012 to £2169m at december 31 2013 foreign exchange 
movements accounted for a significant portion of this decline as several of the group’s royalty assets including kestrel are 
denominated in australian dollars the underlying valuation of the majority of these royalties remained resilient in 2013 
net asset reconciliation £m £m
pence  
per share
net assets at january 1 2013 3010 275
kestrel note 15
 – foreign exchange 260
 – underlying valuation 136
 – deferred tax 119 277
intangibles note 17
 – foreign exchange 73
 – impairment 83 156
royalty instruments note 16
 – fair value net of tax 111
 – foreign exchange 29 140
mining and exploration interest note 18
 – mark to market 297
 – net disposals 53 350
dividend note 13 111
share issue page 37 25
adjusted profit note 12 91
other 77
net assets at december 31 2013 2169 196
the net decline in the valuation of the kestrel royalty of £277m in the period largely reflects the weakness in the australian dollar 
the royalty was independently valued at a2446m before tax at december 31 2013 – a decrease of a22m from the value at the 
beginning of the year the decline in the royalty valuation also reflects the foreign exchange impact of the exchange rate between  
the us dollar the currency in which the income is derived and the australian dollar the currency in which the royalty is reported 
the us dollar also weakened substantially against the pound during the year
royalty intangibles represent the group’s ‘plain vanilla’ royalties as a proportion of these are denominated in australian dollars the 
decrease in value is largely represented by unfavourable exchange rate movements as discussed above certain of these interests 
were considered impaired as at december 31 2013
royalty instruments represent the evbc isua and jogjakarta royalties which are accounted for as financial assets these are carried at 
fair value on the balance sheet as they represent financial assets in accordance with ias 39 the decline in value is largely attributable 
to project assumptions for jogjakarta along with a risk assessment of operating in indonesia the decline in the gold price during the 
year also had some impact on the valuation of evbc
the decline in value of the group’s mining and exploration interests strategic equity investments largely reflects a decline in the mark 
to market value during the period although there were some sales when it was considered a royalty was no longer probable the 
magnitude of the decline is such that the directors consider this to be significant in the context of the group’s impairment policy and 
have recognised an impairment charge accordingly 
the group ended the year with £157m of cash and cash equivalents and together with the new us15m unsecured twelvemonth 
revolving credit facility signed in february 2014 this leaves the group in a favourable position to continue to expand and diversify its 
portfolio of royalties
allowing for deferred tax associated with the unrealised revaluation surplus of kestrel and the royalty instruments the group ended the 
year with net assets of £2169m 2012 £3010m restated
anglo pacific group plc  annual report and accounts 2013 32
apg01  ar13  31032014  back proof 7
strategic report corporate social responsibility report
anglo pacific seeks to maintain the highest standards in all  
areas of its business as part of this the board has committed to 
undertake a review all of anglo pacific’s current corporate social 
responsibility ‘csr’ practices and activities focusing on 
examining current activities and identifying areas of improvement 
based on industry best practice the board expects to be in a 
position to implement changes commencing in 2014
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 advisers 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 whistle 
blowing 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 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 and 
promote 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 2010 for instance a due diligence report was commissioned 
which investigated the environmental aspects of the amapá 
project 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
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 and 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 a due diligence process on the 
environmental social and health and safety aspects of the 
project the group standardises its due diligence process with 
regards to csr aspects by including these in its due diligence 
checklists in 2011 the group’s due diligence of the isua project 
involved a detailed review of the ecology ground water surface 
water and socio economic effects of the project by an external 
specialist consultant 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 we respect and 
value the individuality and diversity that every employee brings 
to the business as at december 31 2013 the group had 
13 employees four of whom were female of the total 
workforce two were senior managers both male in terms of 
the company’s board of directors there were nine directors all 
of whom were male 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  p a g e 41
human rights
over the past year there has been continued external attention 
and debate on the role of business and human rights anglo pacific 
welcomes this focus as respect for human rights is implicit across 
all of 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 
a 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
anglo pacific group plc  annual report and accounts 2013 33
strategic report
strategic report
apg01  ar13  31032014  back proof 7 donations 
our philosophy on charity has historically been that this is a 
decision best made by shareholders with their own resources 
the group is currently evaluating its donations policy and will in 
future consider supporting select charities at the discretion of  
the directors no donations were made in 2013
greenhouse gas emissions 
during the year the uk government introduced a requirement 
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  
the group pays for the consumption of utilities through its  
annual service charge and therefore does not receive detailed 
information on its carbon emissions anglo pacific does 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 
the information on  pages 9 to 34 represents the group’s 
strategic report and has been approved by the board
ja treger
chief executive officer 
march 31 2014
corporate social responsibility report
anglo pacific group plc  annual report and accounts 2013 34
strategic report
apg01  ar13  31032014  back proof 7 brian m wides joined the board in june 1997 and was 
appointed finance director in september 1997 in july 2006 he 
was appointed chief executive officer and on october 6 2010 
was appointed director of international business development 
after standing down as chief executive officer he has a 
bachelor of commerce from the university of witwatersrand  
and is a chartered accountant south africa his specialist 
experience includes corporate finance management consultancy 
and creating shareholder value for a large spectrum of private and 
public companies in the uk australia and canada mr wides has 
served as acting chairman since december 2012 at which time 
the company’s chairman peter m boycottt took a leave of 
absence from his role for health reasons mr boycott passed 
away on january 7 2014
julian a treger joined the group as chief executive officer and 
member of the board 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 900m 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
mark r potter joined the group as chief investment officer and 
member of the board on october 21 2013 he has a ba hons 
and an ma 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 
michael h atkinson was appointed director in february 2006 
and is currently the group’s senior independent director he  
also chairs the nomination committee and the remuneration 
committee he has an ma in history from the university of 
cambridge and is a qualified management accountant he 
worked for the national coal board as a capital investment 
analyst before joining the uk department of energy later the 
department of trade and industry he was a senior civil servant 
for nearly twenty years until his retirement in 2004 and held  
a range of financial management and policy posts including 
director of coal and chairman of british coal
directors
the following individuals have held office as directors of the 
company since january 1 2013 unless stated otherwise
executive
j theobald  chief executive officer  
resigned october 21 2013
ac orchard  chief investment officer  
resigned october 21 2013
bm wides  acting chairman
ja treger  chief executive officer  
appointed october 21 2013
mr potter  chief investment officer  
appointed october 21 2013
p m boycott  executive director  
deceased january 7 2014
nonexecutive
mh atkinson  senior independent director  
nomination committee and  
remuneration committee chairman
wm blyth  nonexecutive director and audit committee 
chairman appointed march 20 2013
p nr cooke  nonexecutive director
jg whellock  nonexecutive director
ah yadgaroff  nonexecutive director
rh stan  nonexecutive director  
appointed february 19 2014
directors’ report
governance governance
anglo pacific group plc  annual report and accounts 2013 35
governance
apg01  ar13  31032014  back proof 7 principal activities
the group’s principal royalty activities are set out in the strategic 
report on  p a g e 21 
results and dividends
the consolidated income statement is set out on  p a g e 62 of the 
financial statements
the group reported a loss after tax of £425m 2012 profit of 
£116m restated
total dividends for 2013 will amount to 102p per share 2012 
102p per share combining the recommended final dividend of 
575p per share for the year ended december 31 2013 with the 
interim dividend of 445p per share paid on february 5 2014  
the final dividend is subject to shareholder approval at the 2014 
annual general meeting ‘agm’ the board proposes to pay  
the final dividend on august 7 2014 to shareholders on the 
company’s share register at the close of business on june 6 
2014 the shares will be quoted exdividend on the london stock 
exchange and the toronto stock exchange on june 4 2014  
at the present time the board has resolved not to offer a scrip 
dividend alternative 
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 
aside from those who have indicated that they will be stepping 
down
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 2013 agm held on may 22 2013 the 
directors were given the power to issue new shares up to an 
aggregate nominal amount of £730702 this power will expire  
at the earlier of the conclusion of the 2018 agm or may 22 
2018 further the directors were given the power to make 
market purchases of ordinary shares up to a maximum number 
of 10960537 this power will expire at the earlier of the 
conclusion of the 2014 agm or november 22 2014
at the agm held on may 22 2013 the directors were also 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 2014 agm  
or august 22 2014
the group maintains insurance for its directors and officers 
against certain liabilities in relation to the group
w michael blyth was appointed director in march 2013  
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 mike is also 
vicechairman of erskine hospital a veterans’ charity and a  
board member of wheatley housing group scotland’s largest 
registered social landlord
paul nr cooke was appointed director in december 2012 he 
has an ma in history from the university of cambridge and is  
a qualified chartered surveyor he is a substantial shareholder  
in a number of property companies specialising in property 
development investment and financing he is also involved in 
farming and forestry interests in the uk and abroad he serves  
on the boards of several charities
dr john g whellock was appointed director in march 2003 
he has a bsc and phd in chemical engineering from the 
university of birmingham and is a member of the minerals 
metals and materials society of the american institute of  
mining metallurgy and petroleum he has over thirty years of 
experience in the development and implementation of extractive 
metallurgy mineral and chemical plants he is the founder of  
jw technologies providing innovative technology and thermal 
processing equipment for the metals minerals and chemical 
industries prior to this he worked for minproc technology inc 
and was founder and vicepresident of tolltreck international ltd
anthony h yadgaroff was appointed director in march 2003 
he is a member of the chartered institute for securities and 
investment and has specialised in investment research and 
management consultancy during a forty year 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 13 local 
authorities corporate pension funds and charity clients which 
control some £40bn of assets
robert h stan was appointed director in february 2014 he has 
a bcomm from the university of saskatchewan he has over 
34 years of experience in the mining industry he held several 
senior positions with fording coal limited westar mining ltd 
and teck corporation before becoming a founding shareholder 
and director of publiclyquoted 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 1bn 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 of publiclylisted 
whetstone minerals limited
directors’ report
governance
anglo pacific group plc  annual report and accounts 2013 36
apg01  ar13  31032014  back proof 7 substantial shareholdings
the company has been notified aside from the interests of 
directors of the following interests of 3 or more in the share 
capital of the company at march 20 2014
ordinary shares 
of 2p each representing
liontrust investment partners llp 7195364 649
schroders plc 5501515 496
axa investment managers uk 5494332 495
see  page 52 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 have 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 26 and a statement on going concern is provided  
in note 211
auditors
grant thornton uk llp have expressed willingness to continue 
in office in accordance with section 4894 of the companies 
act 2006 united kingdom a resolution to reappoint appoint 
auditors will be proposed at the 2014 agm
designated foreign issuer status
the company continues to be listed on the toronto stock 
exchange 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 registered office 
 17 hill street
p tj mason london
company secretary w1j 5lj 
march 31 2014 
capital structure
the structure of the company’s ordinary share capital at 
march 27 2014 was as follows
issued no
nominal 
value per 
share 
£
total 
£
 of total 
capital
ordinary shares 110887425 002 2217749 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
special control rights
none of the shares carry any special control rights
employee share schemes
details of employee share schemes are set out on  p a g e 5 2 
below and in note 25 to the financial statements
treasury
no shares are currently held in treasury by the company
allotment of ordinary shares
on october 21 2013 in connection with the appointment of 
mr treger and mr potter as ceo and cio respectively the 
company announced the issue of 1282049 new ordinary  
shares of 2p each at a price of 195 pence per share amounting  
to an aggregate nominal value of £2564098 and aggregate 
consideration of £2501000 the terms of the issue were fixed 
on october 18 2013 on which date the market price of the 
ordinary shares on the london stock exchange was £195 
the shares were issued to the following persons audley natural 
resources master fund limited in which mr treger has a 
443 shareholding 333333 shares kings chapel international 
limited in which mr treger has a beneficial interest 897435 
shares and mr potter 51281 shares
anglo pacific group plc  annual report and accounts 2013 37
apg01  ar13  31032014  back proof 7
governance approach towards corporate governance
the group is characterised by a high ratio between its market 
capitalisation £204m as at december 31 2013 and the size  
of its management team staff total 13 of which three are 
executive directors as at march 27 2014 and by relatively few 
but high value transactions the board believes that corporate 
governance and internal control processes need to be 
appropriately tailored to this distinctive profile
as a premium listed company on the london stock exchange 
the group is subject to the uk corporate governance code the 
‘code’ and specifically to the revised 2012 version which is 
available from the financial reporting council’s website the 
board believes that it complies with the main principles of the 
code as it applies to companies below  
the ftse 350 except in respect of a formal annual process to 
evaluate the performance of the board and of its committees 
and individual directors the reasons for this departure from the 
code are explained on  p a g e 4 0
with the appointment of the new management team in october 
2013 and in conjunction with the group’s newly publicised 
strategy to create a leading international diversified royalty 
company with a focus on base metals and bulk materials the 
board is focused on improving its corporate governance in line 
with ftse 350 best practice and believes that it has already 
taken some useful steps forward in this process as detailed 
below
board and committee structure
the board is collectively responsible for approving the group’s 
longterm objectives and strategy and for reviewing performance 
against it and for the general oversight of the group’s operations 
and management 
during 2013 the board continued to be chaired by an executive 
chairman responsible for the leadership and effectiveness of  
the board the year was overshadowed by the illness and  
death early in 2014 of the chairman mr boycott he had been 
executive chairman of the company since 1997 and had 
together with mr wides then chief executive officer played  
a large part in the group’s strong growth over the following 
decade despite his illness mr boycott continued during 2013  
to participate actively in many meetings of the board and chaired 
the annual general meeting ‘agm’ in may mr wides was 
appointed executive acting chairman in 2012 during 2013 both 
mr wides and mr boycott served on a parttime 3dayaweek 
basis
in the 2011 annual report prior to mr boycott’s illness the 
board announced its intention that the role of chairman should 
become a nonexecutive post within the following two to three 
years and that thereafter mr boycott and mr wides would 
consider acting as nonexecutive directors on march 28 2014  
in accordance with this objective the board announced the 
appointment of mr blyth as nonexecutive chairman with 
effect from april 1 2014 from his role as an independent 
nonexecutive director mr wides will continue in his role as  
an executive director until the 2014 agm or earlier by mutual 
agreement when he is to retire from the board he will then 
continue in a parttime consulting role for six months to ensure  
an effective handover of his responsibilities 
the time commitment expected of the new nonexecutive 
chairman is around 6 days per month mr blyth’s other mainly 
charitable commitments are shown on  p a g e 3 6 none of which 
are considered to be significant
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 ‘ceo’ and comprises the 
executive directors which throughout 2013 included the acting 
chairman the general counsel and the chief financial officer 
‘cfo’ the chairmanacting chairman and ceo continue to 
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
mr atkinson acted as the group’s senior independent director 
‘sid’ throughout the year 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 or where such channels would be inappropriate
following the appointment of mr blyth who the board also 
considers to be independent as a nonexecutive director in 
march 2013 the company complied with the requirement of the 
code to have at least two independent nonexecutive directors 
on the board for the remainder of the year
corporate governance report
governance
anglo pacific group plc  annual report and accounts 2013 38
apg01  ar13  31032014  back proof 7 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 dr whellock and mr 
atkinson were not appointed to specified terms of office 
mr cooke mr blyth and mr stan 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 
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 during the year the group’s policy on 
conflicts of interest was reviewed and tightened in line with 
evolving best practice
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 where appropriate the group 
provides the resources to meet the directors’ requirements
board evolution
during 2013 alongside the move to a nonexecutive chairman 
the directors took the view that the board should be rejuvenated 
and reinvigorated ahead of the next stage of the group’s 
development with the transition handled in an orderly and 
progressive way in october 2013 mr theobald ceo and 
mr orchard chief investment officer ‘cio’ stepped down 
from the board by mutual agreement and left the group the 
board would like to express its appreciation for what they 
achieved over the four years they served in these roles
in october 2013 the board on the recommendation of the 
nomination committee appointed mr treger and mr potter as 
ceo and cio respectively mr treger and mr potter joined from 
audley capital advisors llp  both have a strong track record of 
investing in the mining sector and a level of financial expertise 
and breadth of contacts that will be of considerable benefit in 
developing the group’s business mr treger joined the group 
initially on a threeday a week basis but since january 2014 he 
has increased his formal commitment to three and half days a 
week the expectation is for mr treger to increase this further 
over the coming year
dr whellock and mr atkinson have indicated that they will be 
standing down at the forthcoming agm after 11 and eight years 
service respectively as nonexecutive directors 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
in march 2014 on the recommendation of the nomination 
committee the board appointed mr stan as a replacement 
nonexecutive director mr stan is canadianbased and comes 
with a deep knowledge and proven track record in the canadian 
and international mining industry he was a founding shareholder 
and until 2012 the president and ceo of grande cache coal 
corporation on account of his strong experience and 
entrepreneurial background the board considers mr stan to be 
independent despite his being a fellow director alongside mr 
treger on whetstone minerals ltd the nomination committee 
is currently conducting a search for an additional independent 
nonexecutive director
anglo pacific group plc  annual report and accounts 2013 39
apg01  ar13  31032014  back proof 7
governance 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 during 2013 the illness of  
our chairman reduced the opportunity for dialogue with major 
shareholders although the sid continued to meet 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 2013 agm where 
investors were able to ask 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
in november 2013 the group appointed a designated head  
of marketing and investor relations as part of a strategy of 
strengthening investor relations in january 2014 the board 
appointed bmo capital markets ‘bmo’ to work alongside 
liberum capital as joint corporate broker bmo will play an 
increasingly important role as we look to grow the company and 
internationalise our share register 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
nomination committee
during 2013 the nomination committee comprised mr 
atkinson mr yadgaroff dr whellock until march 2013 and 
mr blyth from march 2013 mr atkinson was chairman of the 
committee consequently for most of the year under review 
the committee complied with the code requirement that it be 
comprised of a majority of independent nonexecutive directors 
mr stan joined the committee following his appointment to the 
board in february 2014
the nomination committee was actively involved during 2013  
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 chose not to do so in 
respect of any of the appointments made during 2013 nor for the 
appointment of mr stan the background to mr blyth’s march 
2013 appointment as nonexecutive director was described in 
the group’s 2012 annual report the october 2013 appointment 
of mr treger as ceo and mr potter as cio was seen as the 
bringing in of an executive team rather than as separate individual 
appointments and the issues raised which included the future 
strategic direction of the group meant that it was appropriate for 
the board as a whole to take the lead in considering their joint 
appointment
the code recommends that the board undertakes a formal and 
rigorous annual evaluation of its own performance and that of its 
committees and individual directors including the chairman 
given the compactness of the organisation the longestablished 
personal working relationships and the extent of collective 
decisiontaking the board has not hitherto felt such formal 
standalone systems were justified however in the light of the 
current changes in its composition the board believes a more 
structured and rigorous annual assessment process is needed 
which would be linked to the directors’ training and development 
needs and expects to comply with the code’s requirements 
during 2014
similarly the board has previously provided an informal induction 
process for new directors on joining the board but now believes 
a more structured process is needed and expects to comply with 
the code’s requirements for a full formal and tailored induction 
moving forward
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 committee 
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
peter mason the group’s general counsel and company 
secretary is responsible for advising the board through the 
chairman on all governance matters all of the directors have 
access to his 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 2013 was as follows
full board executive audit remuneration nomination 
total meetings  
held 15 8 7 4 3
attendance
pm boycott 1415 58 – – –
acorchard 1213 88 – – –
j theobald 1313 88 – – –
bm wides 1515 88 – – –
ja treger 22 – – – –
mr potter 22 – – – –
mh atkinson 1415 – 77 44 33
jg whellock 1515 – 77 – 11
ah yadgaroff 1515 – 11 – 33
pnr cooke 1215 – – – –
wm blyth 910 – 66 44 22
wm blyth was appointed to the board on march 20 2013
ac orchard resigned from the board on october 21 2013
j theobald resigned from the board on october 21 2013
ja treger was appointed to the board on october 21 2013
mr potter was appointed to the board on october 21 2013
corporate governance report
governance
anglo pacific group plc  annual report and accounts 2013 40
apg01  ar13  31032014  back proof 7 the committee meets at least three times a year at appropriate 
times in the reporting and audit cycle and may be attended by 
invitation by the chairman the ceo the cfo and the company 
secretary the external auditors are invited to attend meetings  
on a regular basis the committee’s primary duty is to monitor 
the integrity of the group’s financial statements and the related 
reports and announcements in doing so the committee reviews 
and where necessary challenges the consistency of the group’s 
accounting policies methods and standards the clarity and 
context of disclosures and the material information presented 
with the financial statements the committee is also responsible 
for monitoring and reviewing the adequacy and effectiveness of 
the group’s internal controls including the group’s policies and 
procedures in relation to anticorruption and whistle blowing and 
to the environmental and social impact of the group’s activities 
one particular area of focus of the committee in 2013 was the 
group’s policy on conflicts of interest which was thoroughly 
reviewed and tightened in line with evolving best practice
the committee also considers the adequacy of arrangements  
for the statutory audit and supporting the independence and 
objectivity of the external auditor in particular the committee 
advises the board in respect of the external auditor’s 
appointment performance and remuneration and meets  
regularly with the external auditor to discuss its remit any issues 
arising from the audit and its effectiveness the committee is 
responsible for reviewing the extent of nonaudit services 
provided by the external auditor the committee accepts that 
some nonaudit work is most appropriately undertaken by the 
firm responsible for the statutory audit but requires any such 
engagement to be approved in advance by the committee’s 
chairman the group also uses other accounting firms for 
nonaudit work with the decision on each engagement being 
taken with the objective of maintaining an appropriate balance 
between experience objectivity independence and value for 
money
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
in 2013 the committee met seven times during the year  
the committee undertook an in depth review of the group’s 
accounting policies following an enquiry by the conduct 
committee of the frc into the group’s 2012 annual report  
and accounts the particular matters under review included the 
group’s accounting policies in respect of coal royalties royalty 
interests and royalty instruments together with its impairment 
policy in respect of its mining and exploration interests the 
committee sought external professional accountancy advice in 
relation to some of these matters this review has resulted in 
changes in policy in relation to the accounting for the group’s  
coal royalties and royalty instruments as detailed in note 214 
the frc enquiry remains open in relation to royalty interests 
royalty instruments and the impairment of mining and exploration 
interests our accounts have been prepared in accordance  
with our existing policies in these areas see note 213 which 
discusses the possible impact on the financial statements  
should any further restatement be required
in the case of mr stan’s appointment the committee was 
looking for a replacement for the coal industry experience of  
mr atkinson and the insight into north american mining and 
mineral processing provided by dr whellock although the 
combination of familiarity with the global coking coal market on 
which the group has historically been heavily dependent and an 
understanding of the canadian mining scene which is likely to be 
a key focus for the group’s future is not unique the committee 
felt that the degree of mr stan’s insights and his successful 
entrepreneurial background was unlikely to be matched through a 
search process further once mr stan had been identified as a 
potential candidate the committee did use the services of opus 
executive partners to interview him and advise on his suitability 
for the role opus executive partners does not have any other 
connection with the group
given the appointment of an external executive director team 
there was a general view amongst the board including all of the 
nonexecutive directors that in the interests of continuity the 
new nonexecutive chairman should be an internal appointment 
and that mr blyth’s experience of financial and corporate 
governance made up him wellqualified for this role 
consequently the committee also chose to use neither an 
external search consultancy nor open advertising for this 
appointment 
the board recognises the benefits of diversity and that its  
current composition does not provide this in several respects  
a description of the board’s policy on diversity can be found on 
 page 33 one particular focus of the committee has been to 
increase gender diversity on the board and it is its intention to 
include wherever possible at least one woman on the shortlist 
for future nonexecutive director appointments the final 
selection will continue to be based on merit and on what the 
committee judges to be the best interests of shareholders  
the opportunities for developing and appointing women to 
executive directorships will be kept under review
audit committee
until march 20 2013 the audit committee comprised 
mr yadgaroff mr atkinson and dr whellock who was also the 
chairman of the committee following mr blyth’s appointment 
to the board on that date the audit committee comprised of 
mr blyth mr atkinson and dr whellock who remained the 
chairman of the committee until february 14 2014 when 
mr blyth assumed that role consequently the committee 
comprised entirely of nonexecutive directors the majority of 
whom the board consider to be independent for most of the 
year under review the board believes that dr whellock still 
brings useful skills and experience to the committee and that he 
should continue to be a member until he steps down from the 
board at the forthcoming agm mr stan joined the committee 
following his appointment to the board in february 2014 
mr blyth and mr atkinson both have recent and relevant 
financial experience
anglo pacific group plc  annual report and accounts 2013 41
apg01  ar13  31032014  back proof 7
governance 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 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
• 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 2013 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
the committee continued to place a particular focus on the 
group’s risk management systems it reviewed in detail the 
annual assessment conducted by the ceo and the company 
secretary of the risks that face the group and the adequacy of 
the prevention monitoring and mitigation practices in place for 
those risks whilst the review did not highlight any significant 
issues with the effectiveness of the group’s internal controls  
and procedures it did highlight a few areas where improvement 
could be made and the group has subsequently implemented 
the committee’s recommendations the review also resulted  
in an updating of the group’s risk register following the changes 
in senior management team and the resulting revision to the 
group’s strategy additional information on the group’s internal 
controls can be found below 
the current year is the sixth that christopher smith the audit 
partner of the group’s external auditors grant thornton uk llp  
has been in post as senior statutory auditor in normal course 
there would have been a rotation of senior statutory auditor  
after five years’ service the committee felt however that given 
the changes in accounting policy that have taken place and the 
further changes which may occur following the conclusion of the 
frc review it was important to maintain continuity of senior 
statutory auditor for a further year the committee is satisfied 
that this extension does not in any way prejudice the objectivity 
and independence of the senior statutory auditor the 
committee is due to conduct a full review of the effectiveness  
of the external audit process following the completion of the 
yearend process and will consider the appointment or the 
reappointment of the senior statutory auditor in light of its 
findings
risk management  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 the preparation of the financial statements is set out on  
 p a g e 58
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 
judgment 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
corporate governance report
governance
anglo pacific group plc  annual report and accounts 2013 42
apg01  ar13  31032014  back proof 7 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 2013 what is different this year is that in 
accordance with new regulations governing the disclosure and 
approval of directors’ remuneration the policy report is being 
put to a binding shareholder resolution at the forthcoming annual 
general meeting ‘agm’ and the annual remuneration report 
will be subject to an advisory shareholder resolution
there have been significant changes in our remuneration 
strategy over the last few months and i thought it might be 
helpful to briefly explain the background and put the changes  
in context 
all four executive directors in post at the last agm have either 
left the board or will be doing so at the forthcoming agm in 
october 2013 we recruited in their place a strong team of two 
executive directors mr treger as ceo and mr potter as cio 
with a venture capital background and a mission to reinvigorate 
the company and achieve a significant increase in total 
shareholder return over the next five years
the basic salaries paid to the previous directors were well below 
those in companies of comparable size but this was offset by  
a relatively high annual bonus opportunity of 150 of salary  
to recruit the new directors we needed to offer basic salaries  
in line with market rates their annual bonuses have however 
been capped at 100 the bonus criteria are being made more 
specific and the increases in basic salary for the following two 
years have been predetermined
the major change however is a five year longterm incentive 
plan ‘ltip’ in the form of a value creation plan ‘vcp’ which 
will offer awards of shares in the form of nil cost share options 
at the end of five years to the two executive directors and to  
a lesser extent to other senior managers for increases in total 
shareholder return ‘tsr’ at rates above 7 per annum 
shareholder approval for the vcp will be sought at our 
forthcoming agm and will replace the previous joint share 
option plan ‘ jsop’ which has not rewarded outperformance
the vcp offers potentially significant rewards for 
outperformance but only to the extent of the increase in tsr 
actually achieved over the five year period the remuneration 
committee has worked hard with our remuneration advisers 
new bridge street ‘nbs’ to ensure that the plan supports the 
ambitious growth strategy discussed earlier in the annual report 
and we believe that the incentives offered are strongly aligned 
with shareholder interests
i accordingly hope you will feel able to support our new 
remuneration policy at this year’s forthcoming agm as well  
as endorsing the level of remuneration paid during 2013
yours sincerely
mh atkinson 
chairman of the remuneration committee 
march 27  2014
 
introduction
the remuneration committee the ‘committee’ determines on 
behalf of the board the company’s policy on the remuneration of 
the chairman and the executive directors it also recommends 
and monitors the level and structure of remuneration for other 
senior executives the committee’s terms of reference are 
available on the company’s website
membership of the remuneration committee
membership of the committee during 2013 is set out in the table 
below together with the attendance record for meetings of the 
committee since march 2013 all of the committee’s members 
have been independent nonexecutive directors in accordance 
with the corporate governance code 
remuneration committee membership and attendance in 2013
number of meetings attended out of a 
potential maximum
mh atkinson 4 out of 4
wm blyth
1
4 out of 4
ah yadgaroff
2
0 out of 0
jg whellock
3
0 out of 0
1
 wm blyth joined the committee on march 20 2013
2
 ah yadgaroff stepped off the committee on march 20 2013
3
 jg whellock stepped off the committee on march 20 2013
following mr stan’s appointment to the board on february 19 
2014 the remuneration committee is now comprised of 
mr atkinson mr blyth and mr stan
external advisors
the committee has access to the advice of independent 
remuneration consultants when required no such consultants 
were used during 2013 however during 2014 the committee 
has received advice from 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
the remuneration report is in two parts 
the first part constitutes the ‘remuneration policy report’ and 
sets out the remuneration strategy that the company proposes 
to apply for 2014 onwards 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 
will be put to a binding shareholder vote at the 2014 agm and 
the policy will take formal effect from that date 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 reasons for changing the previous remuneration policy
e  annual bonus – choice of performance measures and 
approach to targetsetting
anglo pacific group plc  annual report and accounts 2013 43
apg01  ar13  31032014  back proof 7
governance
governance these are continuing factors however there have been major 
changes in our remuneration strategy since last year driven by 
the decision to rejuvenate and reinvigorate the board and to 
sharpen the focus of the executive team on raising total 
shareholder returns over the next fiveyear period it is anticipated 
that by this year’s agm all executive directors in post at the last 
agm will have left the board in october 2013 the company 
recruited two new executive directors mr treger as ceo and 
mr potter as cio on the explicit basis that they would be entitled 
to a significant share of any increase in shareholder value created 
from when they joined the committee has worked with its 
remuneration advisers nbs on designing a new ltip in the form 
of a vcp  the details of which are discussed at section f below
the vcp is based on the growth in the absolute tsr achieved 
over the next five years 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 progressive 
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 if shareholders endorse these 
remuneration proposals the committee proposes to offer senior 
nonboard managers some access to the ltip  
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 has been made more 
transparent the committee is reviewing 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 proposed remuneration of the new directors and was 
encouraged by the general support shown for the proposals  
on basic salary and annual bonus we have made a number of 
changes to the ltip in response to the constructive feedback we 
received a remuneration framework has now been set for the 
next three 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
f ltip – principal terms and conditions and reward scenarios
g reward scenarios
h  determinations to be made by and discretions available to 
the committee
i  differences in remuneration policy for executive directors 
compared to other employees
j approach towards appointment of new executive directors
k service contracts and payments for loss of office
l nonexecutive directors and
m legacy arrangements
the second part the annual remuneration report for 2013 
details the remuneration paid to directors during 2013 with a 
comparison to the previous year it will be put to an advisory 
shareholder vote at the 2014 agm it is structured as follows 
the information in sections a to g and i to m has been audited
a single figure total remuneration
b  annual bonus for the year ending december 31 2013
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 2014 salary review
m fees for the chairman and nonexecutive directors
n  performance targets for the annual bonus and ltip awards 
to be granted in 2014 and beyond
o statement of shareholder voting
remuneration policy report
a strategic overview and policy drivers
in our 2012 report we identified three important elements that 
had historically shaped the company’s remuneration policy the 
company has
• 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 £204m as 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 
directors’ remuneration report
governance
anglo pacific group plc  annual report and accounts 2013 44
apg01  ar13  31032014  back proof 7 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 proposed for shareholder approval in respect of basic salary and annual bonus covers the three years 201416 the ltip covers a 
five year 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
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 e 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 will take 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 f 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 reasons for changing the previous remuneration policy
the new remuneration package summarised above represents a significant change to the remuneration policy that has applied up 
until 2013 
previously basic salaries were reviewed annually by the committee with a view to progressive alignment with lower quartile levels 
within similar sized ftse companies through annual increases of around £2025000 and with a primary aim of retention to attract 
new directors the company has had to offer in addition to stronger longterm incentives initial basic salaries closer to the median 
market rate for similar companies
the annual bonus opportunity was previously capped at 150 of basic salary it was designed to encourage and reward delivery of the 
company’s operational objectives and to build directors’ shareholding in the company through part payment in shares the cap has 
now been reduced to 100 partly reflecting the higher basic salary but mainly to reflect the committee’s concern to tilt the remuneration 
package towards incentivising longerterm tsr performance through a new ltip  the focus of the annual bonus has also changed 
it was previously geared largely to securing a threshold value of new royalty agreements during the year which meant that directors’ 
remuneration was not directly exposed to the risk that income from them might be later or lower than expected under the new 
remuneration policy royalty acquisition is principally rewarded through the ltip  and those rewards will accordingly reflect any royalty delays 
and shortfalls to a much greater extent the annual bonus is now focused on the achievement of inyear corporate business financial and 
relationship objectives together with a greater emphasis on achievement of personal objectives by individual directors see section e 
anglo pacific group plc  annual report and accounts 2013 45
apg01  ar13  31032014  back proof 7
governance directors’ remuneration report
• subject to such threshold growth participants would 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 five year period or if less 50 
of the growth in the company’s tsr over the fiveyear period in 
excess of the threshold growth
• 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 will be made following shareholder approval of the vcp 
at the forthcoming agm and no other grants to the executive 
directors under the vcp are planned during the five year 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 five year 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 £225m
under the previous strategy it was normal for part of the annual 
bonus to be paid in the form of shares however the rewards 
available under the new ltip will be wholly in the form of shares 
in addition the executive directors have separately agreed to inject 
substantial new share capital into the company over time the 
committee accordingly believes it is appropriate that the annual 
bonus for executive directors should be paid wholly in cash
the company has previously offered two sharebased longer
term share schemes to executive directors and certain other 
employees a company share option scheme ‘csop’ and the 
jsop  awards were granted subject to continued employment 
and satisfaction of performance conditions measured over three 
years including a tsr performance condition no grants were 
made under either plan in 2013 and it is not intended that further 
grants under either scheme will be made to executive directors 
e annual bonus – choice of performance measures and approach 
to target setting
annual bonuses for 2014 and the two subsequent years will be 
based on a scorecard of performance during the year the 
scorecard will set challenging targets for triggering bonus and for 
rewarding out performance on a sliding scale the scorecard will 
be split on a 6040 basis between corporate objectives and 
personal objectives
the corporate objectives will be agreed by the board at the 
beginning of each year together with an assessment of the 
potential for outperformance and the risk of shortfall they will 
cover such areas as business performance finance relationships 
and reputation these will constitute 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 will be 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 
will 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 will be assessed by the board chairman and 
the committee at the beginning of the following year and bonus 
will be awarded on the basis of the agreed criteria
f ltip – principal terms and conditions and reward scenarios
the ltip will take the form of a vcp  the key features of the vcp 
are as follows 
• all employees will be eligible to participate in the vcp although 
it is currently expected that initial participation will be 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 would accrue under the vcp to its participants unless 
growth in the company’s tsr over a five year performance 
period is at least equal to 7 growth per annum or 
approximately 40 total growth over the period 
governance
anglo pacific group plc  annual report and accounts 2013 46
apg01  ar13  31032014  back proof 7 g 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
cio total remuneration at different levels of performance
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
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
anglo pacific group plc  annual report and accounts 2013 47
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governance directors’ remuneration report
the ltip  which is subject to approval by shareholders at the forthcoming 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 five year 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
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 £209m and that there are 1109m shares  
in issue
h 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
governance
anglo pacific group plc  annual report and accounts 2013 48
apg01  ar13  31032014  back proof 7 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
k 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 
six month notice period and an additional termination payment 
equivalent to six months’ basic salary as did the service 
contracts of mr theobald and mr orchard whereas the service 
contract of mr wides simply limits payment for loss of office  
to twelve months’ basic salary as did the service contract of 
mr boycott 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
• 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
i 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 2014 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 
j 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 
anglo pacific group plc  annual report and accounts 2013 49
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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 twelve 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
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
l 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 paid in cash 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 dr whellock and mr atkinson have letters of appointment for an indefinite term although they may be terminated 
by either party subject to one month’s notice mr cooke  mr blyth 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 director’s letters of appointment are as follows
nonexecutive date of appointment notice period
mh atkinson february 9 2006 30 days
wm blyth march 20 2013 one month 
pnr cooke december 17 2012 one month
rh stan february 19 2014 one month
jg whellock may 19 2003 30 days
ah yadgaroff may 19 2003 30 days
governance
anglo pacific group plc  annual report and accounts 2013 50
apg01  ar13  31032014  back proof 7 m 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
annual remuneration report for 2013
this part of the report details the remuneration paid to directors during 2013 with a comparison to the previous year it will be put  
to an advisory shareholder vote at the 2014 agm the information in sections a to g and i to m has been audited
a single figure for total remuneration
salaryfees
£ ’000
benefits
7
£ ’000
total bonus
£ ’000
longterm 
incentives
£ ’000
pension
cash 
allowance
8
£ ’000
other
£ ’000
total 
remuneration
£ ’000
executive directors 
ja treger
1
2013 39 – – – – – 39
2012 – – – – – – –
mr potter
2
2013 31 – – – – – 31
2012 – – – – – – –
pm boycott 2013 130 – – – 13 – 143
2012 129 – – – 12 – 141
bm wides 2013 129 – – – 12 – 141
2012 129 – – – 12 – 141
nonexecutive directors
mh atkinson 2013 42 – – – – – 42
2012 37 – – – – – 37
wm blyth
3
2013 30 – – – – – 30
2012 – – – – – – –
pnr cooke
4
2013 36 – – – – – 36
2012 – – – – – – –
jg whellock 2013 38 – – – – – 38
2012 36 – – – – – 36
ah yadgaroff 2013 38 – – – – – 38
2012 36 – – – – – 36
former directors
j theobald
5
2013 174 2 – – 17 –
9
193
2012 190 2 – – 19 – 211
ac orchard
6
2013 134 2 – – 14 –
10
150
2012 170 2 – – 17 – 189
1
 ja treger was appointed to the board on october 21 2013
2
 m potter was appointed to the board on october 21 2013
3
 wm blyth was appointed to the board on march 20 2013
4
 pnr cooke was appointed to the board on december 10 2012
5
 j theobald resigned from the board on october 21 2013
6
 ac orchard resigned from the board on october 21 2013
7
 benefits include taxable and nontaxable benefits including death in service policy premiums
8
 the company made direct contributions to j theobald’s pension plan all other amounts were cash payments in lieu of pension
9
 j theobald received £63333 as payment in lieu of notice £95000 termination payment paid in january 2014 and £2400 for legal advice
10
 ac orchard received £70833 as payment in lieu of notice £85000 termination payment paid in january 2014 and £2400 for legal advice
anglo pacific group plc  annual report and accounts 2013 51
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governance directors’ remuneration report
b annual bonus for the year ending december 31 2013
the bonus award for the year under review was based on performance against the value of new royalties achieved operating profit and 
dividends per share as in 2012 the value of new royalties acquired during the year fell short of the target further although the dividend was 
maintained the fall in operating profit and net asset value led the committee to conclude that no bonus should be paid in respect of 2013
c vesting of longterm incentive awards
awards granted on may 20 2010 under the csop were subject to a performance condition that the company’s absolute tsr must 
grow at a rate of 3 per annum not compounded in excess of the uk retail price index over the three years from the date of grant 
this condition was not met and consequently no awards vested
awards granted on may 19 2010 under the jsop were subject to two performance conditions as follows 
a  that the company’s share price must reach a hurdle price of 315p during the three years from the date of grant and 
b  that the company’s absolute total shareholder return must grow at a rate of 3 per annum not compounded in excess of the  
uk retail price index over the three years from the date of grant 
whilst the first condition was met the second was not and consequently no awards vested 
the following table summarises the awards held by executive directors who served during the year and whose performance periods 
ended during the year 
number of 
shares at grant
number of 
shares to vest 
number of 
shares to lapse sub–total
reinvestment 
of dividend on 
vested shares total value
j theobald csop 12024 – 12024 – – – –
jsop 297262 – 297262 – – – –
ac orchard csop 12024 – 12024 – – – –
jsop 291991 – 291991 – – – –
longterm incentive awards made during the year
there were no awards granted to executive directors under either the jsop or the csop in 2013
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 
not subject to  
performance conditions
subject to  
performance conditions
beneficially  
owned at 
march 27  
2014
beneficially 
owned at  
december 31 
2013 ltip
deferred  
bonus shares ltip
deferred 
bonus shares
executive directors
ja treger 1230768 1230768 – – – –
mr potter 51281 51281 – – – –
bm wides 2926153 2926153 – – – –
pm boycott –
1
2691947
nonexecutive directors
mh atkinson 7422 7422 – – – –
wm blyth 10000 10000 – – – –
pnr cooke 8949904 8949904 – – – –
rh stan – – – – – –
jg whellock 13084 13084 – – – –
ah yadgaroff 175460 175460 – – – –
1
 pm boycott passed away on january 7 2014
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 and accounts 2013 52
apg01  ar13  31032014  back proof 7 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
mr theobald and mr orchard left the company on october 21 
2013 mr theobald received his annual salary and pension up to 
november 30 2013 and mr orchard received his annual salary 
and pension up to october 31 2013 under the terms of their 
service agreements the company then paid them termination 
payments equivalent to 6 months’ salary and payments in lieu 
of notice as compensation for loss of office as follows
j theobald ac orchard
termination payment  
equivalent to six months salary £95000 £85000
payment in lieu of notice £63333 £70833
total £158333 £155833
mr theobald and mr orchard each also received £2400 as a 
contribution to legal fees incurred by them in connection with 
their departures
g percentage increase in the remuneration of the ceo
ceo £ ’000 2013 2012  change
– salary 213
1
 190 12
– benefits 2 2 0
– bonus – – –
average per employee £000
– salary 75 74 1
– benefits – – –
– bonus 13 20 36
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
the performance of the company’s ordinary shares compared with the ftse 350 mining index for the fiveyear period ended on 
december 31 2013 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 2013 was 184p during the year the share price ranged from a low  
of 159p to a high of 293p
ftse 350 mining index anglo pacific group plc
1208
100
150
200
250
300
350
400
price  
rebased to 100
1209 1210 1211 1212 1213
anglo pacific group plc  annual report and accounts 2013 53
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governance directors’ remuneration report
i total remuneration for the ceo over time
2009 2010 2010 2011 2012 2013 2013
bm wides j theobald
1
ja treger
2
total remuneration £000 197 155 69 253 209 193
3
 39
bonus outturn  na
4
na
4
na
4
37 – – –
bonus £’000 75 76 38 84 – – –
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 2013 2012  increase
staff costs 204 178 146
dividends 1107 1058 46
k external directorships
the table below sets out details of the external directorships held by the executive directors during the year where the fees were 
retained by the individual
position 2013
ja treger firestone diamonds limited nonexecutive director £12500
ja treger rm auctions inc nonexecutive director us24990
l 2014 salary review
the executive directors 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 salary as at january 22 2014 salary as at january 1 2013 increase
ja treger 360000 333333
1
8
mr potter 180000 160000
1
125
bm wides 141400 141400 0
1
 salaries for mr treger and mr potter reflect their salaries as at october 21 2013 which was the date they were both appointed to the board
governance
anglo pacific group plc  annual report and accounts 2013 54
apg01  ar13  31032014  back proof 7 o statement of shareholder voting 
at last year’s agm held on may 22 2013 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 59969450 93
votes cast against 4603806 7
total votes cast excluding votes directed 
to be withheld 64573256 100
votes withheld 927647
approval 
this report was approved by the board on march 27 2014  
and signed on its behalf by
mh atkinson
chairman of the remuneration committee 
march 31 2014
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 
2014 2013  increase
chairman 95000 na
1
na
base fee 36000 36000 0
senior independent 
director 42000 42000 0
committee chairman 
or member 38000 38000 0
1
 the chairman during 2013 was an acting executive chairman
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 6 days a month and 
the level of fees in similar companies
chairmen and members of the main board committees are paid 
an additional amount currently £2000 per annum to reflect 
extra commitments the sid also receives a further additional 
fee currently £4000 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 will be 
made in accordance with the new policy further details of which 
are detailed in the remuneration policy report
for 2014 annual bonuses will be based on a scorecard of 
performance during the year 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 2014 will cover areas such as business 
performance 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 will be made under a  
new oneoff vcp subject to approval by shareholders at the 
forthcoming agm 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
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apg01  ar13  31032014  back proof 7
governance 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 forward
looking statements
important notices
governance
anglo pacific group plc  annual report and accounts 2013 56
apg01  ar13  31032014  back proof 7 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 forward
looking 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
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
anglo pacific group plc  annual report and accounts 2013 57
apg01  ar13  31032014  back proof 7
governance statement of directors’  
responsibilities
directors’ statement pursuant to the disclosure and  
transparency rules
each of the directors whose names and functions are listed in 
the management section of the directors’ report confirm that 
to the best of each person’s knowledge and belief
• the financial statements prepared in accordance with ifrss 
as adopted by the eu give a true and fair view of the assets 
liabilities financial position and profit of the group and 
company and
• the directors’ report contained in the annual report includes 
a fair review of the development and performance of the 
business and the position of the company and group together 
with a description of the principal risks and uncertainties that 
they face
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
bm wides
acting chairman 
march 27  2014
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 the directors are required 
to
• select suitable accounting policies and then apply them 
consistently
• make judgements and accounting estimates that are 
reasonable and prudent
• state whether applicable ifrss as adopted by the european 
union have been followed subject to any material departures 
disclosed and explained in the financial statements and
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company will 
continue in business
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
governance
anglo pacific group plc  annual report and accounts 2013 58
apg01  ar13  31032014  back proof 7 report of the independent auditor  
to the members of anglo pacific group plc
we have audited the financial statements of anglo pacific group 
plc for the year ended december 31 2013 which comprise the 
consolidated income statement the consolidated statement of 
comprehensive income the consolidated and company balance 
sheets the consolidated and company statements of changes 
in equity the consolidated and company cash flow statements 
and the related notes the financial reporting framework that 
has been applied in their preparation is applicable law and 
international financial reporting standards 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
this report is made solely to the 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
respective responsibilities of directors and auditor
as explained more fully in the directors’ responsibilities 
statement set out on  page 58 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 apb’s ethical standards for auditors 
scope of the audit of the financial statements
a description of the scope of an audit of financial statements  
is provided on the financial reporting council’s website at  
wwwfrcorgukapbscopeprivatecfm
auditor commentary
an overview of the scope of our audit
our audit scope included a full audit of the consolidated 
and parent company financial statements of anglo pacific 
group plc the group is currently organised into three principal 
operating divisions operating in australia the americas and 
europe the group financial statements are a consolidation 
of 25 subsidiaries comprising the group’s operating businesses 
within these divisions
in establishing the overall approach to the group audit we 
determined the work that needed to be performed at the 
reporting units by us as the group engagement team or 
component auditors operating under our instruction where 
the work was performed by component auditors we determined 
the level of involvement we needed to have in the audit work 
at those reporting units to be able to conclude whether sufficient 
appropriate audit evidence had been obtained as a basis for 
our opinion on the group financial statements as a whole 
the reporting units vary significantly in size and we identified 
19 subsidiaries that in our view due to their size or risk 
characteristics required a complete audit of their financial 
information providing 98 coverage of the group’s total assets 
specific audit procedures on certain balances and transactions 
were performed at a further three reporting units with the 
remaining reporting units subject to analytical procedures
our audit approach was based on a thorough understanding 
of the group’s business and is riskbased the audit approach 
included obtaining an understanding of and evaluating the 
group’s internal controls over key financial systems identified as 
part of our risk assessment reviewed the accounts production 
process and addressed critical accounting matters we 
undertook substantive testing on significant transactions 
balances and disclosures the extent of which was based on 
various factors such as our overall assessment of the control 
environment the effectiveness of controls over individual 
systems and the management of specific risk 
our audit approach included the use of the work of an auditor’s 
expert to assist with the audit we used the work of a mining 
valuations specialist to assist in the audit of investment 
valuations in particular challenging the reasonableness of both 
the valuation models used and the key assumptions made 
we have evaluated the adequacy of the work of this expert  
in respect of our audit
our application of materiality
we apply the concept of materiality in planning and performing 
our audit in evaluating the effect of any identified misstatements 
and in forming our opinion for the purpose of determining 
whether the financial statements are free from material 
misstatement we define materiality as the magnitude of a 
misstatement or an omission from the financial statements 
or related disclosures that would make it probable that the 
judgement of a reasonable person relying on the information 
would have been changed or influenced by the misstatement 
or omission for the group audit we established materiality for 
the group financial statements as a whole to be £26 million 
which is 1 of total assets for the financial information of the 
individual subsidiary undertakings we set our materiality based 
on a proportion of group materiality appropriate to the relative 
scale of each of the subsidiary undertakings
we have determined the threshold at which we communicate 
misstatements to the audit committee to be £01 million in 
addition we communicate misstatements below that threshold 
that in our view warrant reporting on qualitative grounds
our assessment of risk
without modifying our opinion we highlight the following 
matters that are in our judgement likely to be most important 
to users’ understanding of our audit our audit procedures 
relating to these matters were designed in the context of our 
audit of the group financial statements as a whole and not to 
express an opinion on individual transactions account balances 
or disclosures
financial reporting council review
in june 2013 the financial reporting council frc issued a 
letter to the company requesting additional information and 
explanation regarding the accounting treatment of the thresholds 
applied for significant or prolonged for impairment of financial 
instruments the classification of certain royalty instruments and 
the treatment of available for sale instruments as a result of the 
frc’s review the directors reconsidered the application of 
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 59
governance report of the independent auditor  
to the members of anglo pacific group plc
impairment review in accordance with ias 39 ‘financial 
instruments recognition and measurement’ impairment 
reviews and calculations performed by management are highly 
judgemental we therefore identified the impairment review 
as a significant risk requiring special audit consideration
our audit work included but was not restricted to an 
assessment of the policy for determining when an instrument 
was impaired and determined that the group had recorded 
any such impairment when the carrying value of any individual 
investment exceeded its fair market value we also evaluated 
and challenged the significant inputs and assumptions used in 
management’s discounted cash flow analyses that supported 
the carrying values of these investments including corroboration 
of those inputs to publicly available data the group’s accounting 
policies are outlined in note 2 and relevant disclosures included 
in notes 15 16 and 17
management override of financial controls
under isas uk  ireland for all our audits we are required to 
consider the risk of management override of financial controls 
due to the unpredictable nature of this risk we are required to 
assess it as a significant risk requiring special audit consideration
our audit work included but was not restricted to specific 
procedures relating to this risk as required by isa 240 ‘the 
auditor’s responsibilities relating to fraud in an audit of financial 
statements’ this included tests of journal entries the evaluation 
of judgements and assumptions in management’s estimates 
and tests of significant transactions outside the normal course 
of business
in particular our work on fair value calculations and impairment 
reviews addressed key aspects of isa 240
opinion on financial statements
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 2013 and of its profit for the year then ended
• the group financial statements have been properly prepared  
in accordance with ifrss as adopted by the european union 
• the parent company financial statements have been properly 
prepared in accordance with ifrs 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
other reporting responsibilities
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
• the information given in the strategic report and directors’ 
report for the financial year for which the financial statements 
are prepared is consistent with the financial statements and
certain accounting policies in the preparation of the financial 
statements we therefore identified the frc’s review into 
certain accounting treatments as a risk requiring special 
audit consideration 
our audit work included but was not restricted to understanding 
management’s existing and revised accounting policies in 
respect of the items listed above and challenging management’s 
judgements and assumptions further detail on our audit 
response is reflected in the reported audit risks classification 
of royalty instruments valuation of royalty instruments and 
impairment review below the group has revised certain 
accounting policies and made prior year adjustments as disclosed 
in note 214 
classification of royalty instruments
the group has significant investments in royalty instruments that 
are accounted for based on contractual provisions in accordance 
with ias 38 ‘intangible assets’ ias 39 ‘financial instruments 
recognition and measurement’ or ias 40 ‘investment property’ 
the process applied in determining the proper classification of 
each instrument is highly judgemental we therefore identified 
this activity as a significant risk requiring special audit 
consideration
our audit work included but was not restricted to an evaluation 
of the methodology by which the directors determine the proper 
classification for each instrument we compared management’s 
assessment of the instruments to the relevant accounting 
standards and challenged management’s assumptions on 
the contractual provisions of the royalty instruments we also 
reviewed management’s use of a third party expert with 
specialist skills on the classification of these instruments 
the group’s accounting policies are outlined in note 2 and 
relevant disclosures included in notes 15 16 and 17
valuation of royalty instruments
the group has significant investments in royalty instruments 
the determination of fair value of these instruments in 
accordance with ias 39 ‘financial instruments recognition  
and measurement’ or ias 40 ‘investment property’ involves 
significant management judgement we therefore identified  
the fair valuation of the royalty instruments as a significant risk 
requiring special audit consideration 
our audit work included but was not restricted to understanding 
the controls put in place over the calculation of fair value of the 
instruments we examined and assessed the appropriateness 
of the models used for the fair value challenging management’s 
key assumptions and the underlying forecasts this included 
using the work of our valuations specialist in respect of the 
reasonableness of the models and inputs used the group’s 
accounting policies are outlined in note 2 and relevant disclosures 
included in notes 15 16 and 17
impairment review
the group has significant investments in royalty instruments 
and mining and exploration interests accounted for under various 
accounting standards based on their classification in accordance 
with ias 36 ‘impairment of assets’ nonfinancial assets are 
subject to an impairment test when there is an indication that 
an asset may be impaired financial assets are subject to 
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 60 under the companies act 2006 we are required to report  
to you if in our opinion
• adequate accounting records have not been kept by the parent 
company or returns adequate for our audit have not been 
received from branches not visited by us or
• the parent company financial statements and the part of 
the directors’ remuneration report to be audited are not 
in agreement with the accounting records and returns or
• certain disclosures of directors’ remuneration specified  
by law are not made or
• we have not received all the information and explanations 
we require for our audit or
• a corporate governance statement has not been prepared 
by the company
under the listing rules we are required to review
• the directors’ statement set out on  page 69 in relation  
to going concern and
• the part of the corporate governance statement relating 
to the company’s compliance with the nine provisions of the 
uk corporate governance code specified for our review
grant thornton uk llp 
statutory auditor  
chartered accountants
grant thornton uk llp  
grant thornton house  
melton street euston square  
london nw1 2ep 
march 31 2014
grant thornton uk llp 
statutory auditor  
chartered accountants
grant thornton uk llp  
grant thornton house  
melton street euston square  
london nw1 2ep 
march 31 2014
• the information in the corporate governance statement set  
out on  page 42 with respect to internal control and risk 
management systems in relation to financial reporting 
processes and about share capital structures is consistent  
with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following
under the isas 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 group acquired  
in the course of performing our audit or
• is 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 were communicated to the audit committee which we 
consider should have been disclosed
in accordance with the requirement contained in national 
instrument 52107 we report below on the compatibility 
of canadian generally accepted auditing standards 
‘canadian gaas’ and international standard on auditing 
uk and ireland isas
we conducted our audits of the group’s financial statements for 
each of the two years ended december 31 2013 in accordance 
with isas if we had been required to conduct the audits of the 
group’s financial statements for each of the two years ended 
december 31 2013 in accordance with canadian gaas there 
would have been no material differences in the form or content 
of our audit reports
furthermore an auditors’ report prepared in accordance  
with reporting standards under canadian gaas on the 
aforementioned consolidated financial statements would  
not contain a qualification
report of the independent auditor to the directors of  
anglo pacific group plc in respect of compatibility with canadian gaas
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 61 consolidated income statement
for the year ended december 31 2013
notes
2013
£’000
restated  
2012
£ ’000
royalty related income 5 14731 15157
finance income 6 789 676
amortisation of royalties 17 854 1018
operating expenses 7a 3404 3633
operating profit 11262 11182
lossgain on sale of mining and exploration interests 5 6398 7347
impairment of mining and exploration interests 18 26321 11401
impairment of royalty intangibles 17 8313 –
revaluation of coal royalties 15 13568 9512
revaluation of royalty instruments 16 8689 767
other income 9 2012 2316
other losses 10 2881 152
lossprofit before tax 52896 18037
current income tax charge 11 715 5056
deferred income tax creditcharge 11 11114 1401
lossprofit attributable to equity holders 42497 11580
total and continuing earnings per share
basic lossearnings per share 12 3901p 1067p
diluted lossearnings per share 12 3901p 1067p
the notes on  pages 69 to 108 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 £25506000 2012 £1711000 restated
financial statements
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anglo pacific group plc  annual report and accounts 2013 62 consolidated statement of comprehensive income 
for the year ended december 31 2013
notes
2013
£’000
restated  
2012
£ ’000
lossprofit for the year 42497 11580
other comprehensive income
items that will not be reclassified to profit or loss
revaluation of available for sale investments 3644 237
deferred tax relating to items that will not be reclassified 22 371 94
items that may be subsequently reclassified to profit or loss
available for sale investments
current year gainslosses 1031 5158
reclassification to income statement on disposal of available for sale investments 871 4666
reclassification to income statement on impairment 1587 1054
deferred tax relating to items that will be reclassified 22 129 4772
net exchange lossgain on translation of foreign operations 28923 3384
other comprehensive income for the year net of tax 33124 7713
total comprehensive expenseincome for the year 75621 3867
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
financial statements
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anglo pacific group plc  annual report and accounts 2013 63
financial statements consolidated balance sheet and company balance sheet 
as at december 31 2013
group company
notes
2013
£’000
restated 2012
£ ’000
restated 2011
£ ’000
2013
£’000
restated 2012
£ ’000
restated 2011
£ ’000
noncurrent assets
property plant and equipment 14 1989 2105 2152 846 854 875
coal royalties investment property 15 131434 170995 165967 – – –
royalty instruments 16 27847 41945 43127 12839 24032 24736
intangibles 17 37288 53495 50748 3050 3997 3997
mining and exploration interests 18 20072 55793 64551 13975 37001 56369
other receivables 20 8775 3141 – 31100 51884 42316
investments in subsidiaries 19 – – – 45475 33545 33545
deferred tax 22 11013 5812 496 8016 5758 496
238418 333286 327041 115301 157071 162334
current assets
trade and other receivables 20 5332 1958 12297 379 292 1922
cash and cash equivalents 21 15706 24036 32197 4106 2854 10394
21038 25994 44494 4485 3146 12316
total assets 259456 359280 371535 119786 160217 174650
noncurrent liabilities
deferred tax 22 41378 54344 54736 2244 3958 4897
41378 54344 54736 2244 3958 4897
current liabilities
income tax liabilities 465 1801 3731 465 1596 413
trade and other payables 23 762 2171 6896 696 721 694
1227 3972 10627 1161 2317 1107
total liabilities 42605 58316 65363 3405 6275 6004
capital and reserves attributable  
to shareholders
share capital 24 2218 2192 2184 2218 2192 2184
share premium 24 29328 26853 25539 29328 26853 25539
investment revaluation reserve 5570 9771 14100 5386 8949 12867
share based payment reserve 158 354 177 158 354 177
foreign currency translation reserve 8750 37673 41057 82 82 82
special reserve 26 632 632 632 632 632 632
investment in own shares 2601 2601 2601 – – –
retained earnings 27 172796 226090 225084 78577 114880 127165
total equity 216851 300964 306172 116381 153942 168646
total equity and liabilities 259456 359280 371535 119786 160217 174650
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
the financial statements of anglo pacific group plc registered number 897608 on  pages 63 to 108 were approved by the board  
and authorised for issue on march 31 2014 and are signed on its behalf by
brian wides  julian treger 
acting chairman chief executive officer
financial statements
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anglo pacific group plc  annual report and accounts 2013 64 consolidated statement of changes in equity
for the two years ended december 31 2013
share
capital
£ ’000
share
premium
£ ’000
coal
royalty
revaluation
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
balance at january 1 2012 
as previously reported – note 214 2184 25539 80285 4843 177 41614 632 2601 163185 306172 
impact of restatement – – 80285 18943 – 557 – – 61899 –
balance at january 1 2012 
as restated – note 214 2184 25539 – 14100 177 41057 632 2601 225084 306172 
profit for the year restated – – – – – – – – 11580 11580
other comprehensive income
availableforsale investments
valuation movement taken 
to equity – – – 5395 – 375 – – – 5770
transferred to income statement 
on disposal – – – 4666 – – – – – 4666
transferred to income statement 
on impairment – – – 1054 – – – – – 1054
deferred tax – – – 4678 – 57 – – – 4621
foreign currency translation – – – – – 2952 – – – 2952
total comprehensive expense – – – 4329 – 3384 – – 11580 3867
dividends – – – – – – – – 10579 10579
issue of ordinary shares 8 1314 – – – – – – – 1322
issue of share capital under 
sharebased payment – – – – 177 – – 5 182
total transactions with owners 
of the company 8 1314 – – 177 – – – 10574 9075
balance at december 31 2012 
restated 2192 26853 – 9771 354 37673 632 2601 226090 300964
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
financial statements
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anglo pacific group plc  annual report and accounts 2013 65
financial statements consolidated statement of changes in equity
for the two years ended december 31 2013
share
capital
£ ’000
share
premium
£ ’000
coal
royalty
revaluation
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
balance at january 1 2013 
restated 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 – – – 4675 – 665 – – – 5340
transferred to income statement 
on disposal – – – 871 – – – – – 871
transferred to income statement 
on impairment – – – 1587 – – – – – 1587
deferred tax – – – 242 – 185 – – – 57
foreign currency translation – – – – – 28443 – – – 28443
total comprehensive income – – – 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
balance at december 31 2013 2218 29328 – 5570 158 8750 632 2601 172796 216851
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
financial statements
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anglo pacific group plc  annual report and accounts 2013 66 company statement of changes in equity
for the two years ended december 31 2013
share
capital
£ ’000
share
premium
£ ’000
investment
revaluation
reserve
£ ’000
share based
payment
 reserve
£ ’000
foreign
 currency 
translation
 reserve
£ ’000
special 
reserve
£ ’000
retained
earnings
£ ’000
total
equity
£ ’000
balance at january 1 2012 
as previously reported – note 214 2184 25539 5268 177 82 632 145300 168646 
impact of restatement – – 18135 – – – 18135 –
balance at january 1 2012 
as restated – note 214 2184 25539 12867 177 82 632 127165 168646
changes in equity for 2012
availableforsale investments
valuation movement taken 
to equity – – 4721 – – – – 4721
transferred to income statement 
on disposal – – 4622 – – – – 4622
transferred to income statement 
on impairment – – 973 – – – – 973
deferred tax – – 4452 – – – – 4452
net income recognised direct into 
equity – – 3918 – – – – 3918
loss for the year – – – – – – 1711 1711
total recognised income 
and expenses – – 3918 – – – 1711 5629
dividends – – – – – – 10579 10579
issue of ordinary shares 8 1314 – – – – – 1322
issue of share capital under 
sharebased payment – – – 177 – – 5 182
balance at december 31 2012 2192 26853 8949 354 82 632 114880 153942
balance at january 1 2013 restated 2192 26853 8949 354 82 632 114880 153942
changes in equity for 2013
availableforsale investments
valuation movement taken to 
equity – – 3657 – – – – 3657
transferred to income statement 
on disposal – – 718 – – – – 718
transferred to income statement 
on impairment – – 1229 – – – – 1229
deferred tax – – 417 – – – – 417
net income recognised direct into 
equity – – 3563 – – – – 3563
loss for the year – – – – – – 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
balance at december 31 2013 2218 29328 5386 158 82 632 78577 116381
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
financial statements
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anglo pacific group plc  annual report and accounts 2013 67
financial statements consolidated cash flow statement and  
company cash flow statement
for the year ended december 31 2013
group company
notes
2013
£’000
restated
2012
£ ’000
2013
£’000
restated
2012
£ ’000
cash flows from operating activities
lossprofit before taxation 52896 18037 29441 1016
adjustments for
interest received 69 362 1521 1574 2060
depreciation of property plant and equipment 14 22 21 22 21
amortisation of intangibles – royalties 17 854 1018 – –
lossgain on disposal of mining and exploration interests 6398 7347 6618 6974
impairment of royalty intangible 17 8313 – 947 –
impairment of mining and exploration interests 18 26321 11401 16990 10842
revaluation of coal royalties 15 13568 9512 – –
revaluation of royalty instruments 16 8689 767 8689 767
effective interest on royalty instruments 9 1140 570 1140 570
forgiveness of loan to subsidiary undertaking – – 5500 –
intercompany dividends – – 8600 –
share based payment 8a 72 183 72 183
9839 12477 1917 1193
increasedecrease in trade and other receivables excluding amounts due 
from subsidiary companies 9008 7199 87 56
decreaseincrease in trade and other payables 1409 4725 25 27
cash generated from operations 578 14951 2029 1164
income taxes paid 3817 6186 1632 697
net cash used ingenerated from operating activities 4395 8765 3661 1861
cash flows from investing activities
proceeds on disposal of mining and exploration interests 5258 19280 4492 18543
purchases of mining and exploration interests 3118 23781 1032 11182
purchases of royalty interests – 2398 – –
purchases of property plant and equipment 14 – 14 –
exploration and evaluation expenditure 101 127 – –
interest received 362 1110 9 41
investments in subsidiaries – – 15772 –
loans granted to subsidiary undertakings – – 6574 9568
loan repayments from subsidiary undertakings – – 32368 3344
net cash generated fromused in investing activities 2387 5916 13477 1178
cash flows from financing activities
proceeds from issue of share capital 2501 – 2501 –
dividends paid 11065 10579 11065 10579
net cash used ingenerated from financing activities 8564 10579 8564 10579
net decreaseincrease in cash and cash equivalents 10572 7730 1252 7540
cash and cash equivalents at beginning of period 24036 32197 2854 10394
unrealised foreign currency lossgain 2242 431 – –
cash and cash equivalents at end of period 21 15706 24036 4106 2854
the notes on  pages 69 to 108 are an integral part of these consolidated financial statements
financial statements
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anglo pacific group plc  annual report and accounts 2013 68 notes to the consolidated financial statements
for the year ended december 31 2013
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 africa 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 17 hill street london w1j 5lj united 
kingdom registered number 897608
2 summary of 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 
21 basis of preparation
the consolidated financial statements of anglo pacific group plc have been prepared in accordance with international financial 
reporting standards ifrs and ifrs interpretations committee ifrs ic as adopted by the european union and the companies act 
2006 applicable to companies reporting under ifrs the consolidated financial statements have been prepared under the historical 
cost convention as modified by the revaluation of coal royalties investment property availableforsale financial assets and financial 
assets and financial liabilities including derivative instruments at fair value through profit or loss
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 4
211 going concern
after making enquiries and reviewing the group’s forecasts and projections the directors have a reasonable expectation that the 
group has adequate resources to continue in operational existence for the foreseeable future the group therefore continues to adopt 
the going concern basis in preparing its consolidated financial statements
212 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 2013 
and have a material impact on the group
• amendment to ias 1 ‘financial statement presentation’ regarding other comprehensive income
the main change resulting from these amendments is a requirement for entities to group items presented in ‘other comprehensive 
income’ oci on the basis of whether they are potentially reclassifiable to profit or loss subsequently reclassification adjustments 
• ifrs 13 ‘fair value measurement’
changes in relation to this standard relate to certain disclosures in the fair value hierarchy tables in note 3 this has no impact on the 
consolidated financial statements
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 2013 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 are not yet effective for annual periods beginning after 
january 1 2013 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’ – effective date pending
ifrs 9 ‘financial instruments’ addresses the classification measurement and recognition of financial assets and financial liabilities 
ifrs 9 was issued in november 2009 and october 2010 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 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 yet to assess 
ifrs 9’s full impact the group will also consider the impact of the remaining phases of ifrs 9 when completed by the international 
accountings standards board
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
financial statements
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anglo pacific group plc  annual report and accounts 2013 69 notes to the consolidated financial statements
for the year ended december 31 2013
213 financial reporting council
the conduct committee of the financial reporting council ‘frc’ wrote to the group during 2013 requesting information and 
explanations about a number of accounting and disclosure matters relating to the group’s 2012 annual report and accounts as part  
of their annual review of financial statements in the public domain 
the matters included coking coal royalties kestrel royalty interests currently accounted under ias 38 royalty instruments currently 
accounted for under ias 39 and the impairment policy with respect to its mining and exploration interests other than kestrel which 
has been restated as an investment property in accordance with ias 40 correspondence with the frc is ongoing with respect to the 
remaining areas 
the group sought external professional accountancy advice in relation to some of these matters once the advice has been shared 
with the frc the group acknowledges that the frc will need to consider this separately and that further changes are still possible 
until this process has been concluded the following is a summary of the matters resolved and those still open
the group acknowledged that the coal resources in the kestrel land are not used in the production or supply of goods and services  
and concluded that it could be inappropriate to treat them as in the scope of ias 16 without recognising depreciation the group is  
now applying ias 40 investment property to the land at kestrel the effect is that the valuation movements are now reflected in  
the income statement below operating profit rather than in other comprehensive income the balance sheet value is unchanged 
the following three matters remain open
royalty interests – intangibles 
the frc noted that the group applied ias 38 to some of its royalties royalty interests – intangibles and ias 39 to others royalty 
instruments the frc has asked why ias 39 is not relevant to all royalty assets
the group’s accounting policy in relation to intangible assets is set out in note 27b
royalty instruments – financial assets
the frc has questioned whether the financial asset accounting complies with the requirements for available for sale assets in  
ias 39 and specifically whether the group believes these assets to be either ias 39 available for sale debt or equity instruments 
impairment of mining and exploration interests 
the frc sought information on the criteria applied by the group in considering whether a decline in the value of its equity instruments 
was significant or prolonged such a decline requires previous reductions in fair value recognised in other comprehensive income to  
be recognised as impairment charges in the income statement 
the group acknowledges that although it has restated its prior year numbers to recognise a change in accounting policy in respect  
of impairment it has yet to agree the criteria with the frc
possible impact on the group’s financial statements
applying the ias 39 definition of available for sale financial asset to the group’s intangible and financial assets would significantly alter 
the presentation of the group’s financial statements at present the group’s royalty intangibles are carried at cost an impairment 
review determines whether this amount is recoverable through future cash flows accounting for these intangibles in accordance with 
ias 39 would require these assets to be carried at fair value with interest income recorded at an effective interest rate recognised in 
the income statement when considered a debt instrument
financial statements
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anglo pacific group plc  annual report and accounts 2013 70 214 prior period adjustment
as mentioned in note 213 above the group has made certain accounting policy changes at december 31 2013 the reasons for 
these changes along with the impact of the changes on what was reported in 2012 are discussed below there is no impact on the 
previously reported net asset values
a coal royalties
the group’s entitlement to its coking coal royalty is a function of its freehold ownership of certain substratum lands in queensland 
australia the group previously accounted for this asset as land in accordance with ias 16 and adopted the revaluation method of 
subsequent measurement it did not previously depreciate this land the group acknowledges that there are instances whereby  
it would be appropriate to depreciate land the group has decided to change its accounting policy and account for kestrel as an 
investment property in accordance with ias 40 an investment property is defined in ias 40 as ‘property held to earn rentals or for 
capital appreciation’ the royalty income earned from owning the land is akin to rental income and as such ias 40 is now considered  
a more appropriate accounting standard to adopt
previously under ias 16 the revaluation movement and deferred tax was recognised in the revaluation reserve going forward this  
will be reflected in the income statement the balance sheet value will be the same as would have been derived under ias 16
b royalty instruments
following a thorough review of its royalty instruments during the year the group has determined that it has two different types  
of financial asset debt and equity in accordance with ias 39 these are categorised as available for sale financial assets and the 
accounting treatment is discussed in further detail in note 29e
i evbc
the group’s evbc debenture instrument falls under the classification of an equity financial asset as it differs from other debt assets in 
that there is no stipulated interest rate maturity or minimum payment terms as such all receipts from this royalty represent a return 
on investment and are presented in the income statement previously royalty receipts offset the principal balance going forward all 
receipts will be reflected in the income statement the value of the royalty on the balance sheet remains unchanged as this is carried  
at fair value at each reporting date
ii jogjakarta
the group’s remaining instrument jogjakarta is recognised as a debt financial asset as it displays certain characteristics which are 
more similar to financing agreements such as interest rates and minimum payments although there is a contracted interest rate of 
8 the group recognises that it should have applied an effective interest rate to the future expected cashflows although the valuation 
remains unchanged a portion of this should be recognised as interest the remainder as the valuation movement previously the entire 
valuation was recognised in other comprehensive income in accordance with ias 39 any subsequent valuation movement caused by 
changes to the estimated future cash profiles and not to do with changes to the effective interest rate should be recognised in the 
income statement this has retrospectively been applied in the current financial statements and will form the basis for accounting 
going forward
c isua
the group’s isua royalty was previously accounted for in accordance with ias 38 ‘intangibles’ and is now accounted for as an available 
for sale debt instrument in accordance with ias 39 the group is entitled to receive its initial investment back should the operator fail  
to achieve commercial production by a predefined date this right to receive cash is considered to fall within the definition of an ias 39 
financial asset similar to jogjakarta the group will apply an effective interest rate where material the royalty is still carried at cost as 
this does not materially differ to its fair value should this become material an effective interest rate will be recognised in the income 
statement along with any associated valuation movement
d impairment of mining and exploration interests held at fair value
the group’s mining and exploration interests are held at fair value at each reporting date any unrealised loss or gain is reflected in  
the revaluation reserve up to the point when the absolute unrealised loss is considered ‘significant’ or ‘prolonged’ in accordance with 
ias 39 at which point these investments would be deemed impaired and the losses transferred to retained earnings via the income 
statement
the group recognised an impairment charge during the year as it considered that the unrealised losses in its mining and exploration 
interests were significant in the context of the group’s impairment policy and ias 39 this policy is explained further in note 29d 
one of the considerations is the relative decline in value of the portfolio compared to relevant industry indices which by definition 
changes at each reporting date
as the equities are always carried on the balance sheet in accordance with market price the change in the trigger point for assessing 
impairment does not alter the balance sheet value this is therefore not deemed a change in estimate by default ias 8 implies that 
this must be a change in accounting policy and therefore requires a retrospective assessment had the group’s impairment thresholds 
not changed an impairment charge of £588m would have been recognised in 2013
financial statements
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anglo pacific group plc  annual report and accounts 2013 71 notes to the consolidated financial statements
for the year ended december 31 2013
impact
in accordance with ias 8 the prior periods financial statements are restated to reflect what the position would have been had these 
been reflected in the financial statements in previous years the following tables reconcile the restated position to that previously 
reported
consolidated income statement year ended december 31 2012
adjustment
restated
£ ’000
original
£ ’000
adjustment
£ ’000
royalty related income bi 15157 13267 1890
operating profit 11182 9292 1890
impairment of mining and exploration interests d 11401 4013 7388
loss on revaluation or royalty instruments bii 767 – 767
other income effective interest income on royalty instruments bii 570 – 570
gain on revaluation of coal royalties a 9512 – 9512
profit before tax 18037 14220 3817
current income tax bi 5056 4163 893
deferred income tax charge a b d 1401 – 1401
profit attributable to equity holders 11580 10057 1523
basic earnings per share 1067p 927p
diluted earnings per share 1067p 927p
consolidated statement of comprehensive income year ended december 31 2012
adjustment
restated
£ ’000
original
£ ’000
adjustment
£ ’000
profit for the year 11580 10057 1523
other comprehensive income
net gain on revaluation of coal royalties a – 9339 9339
net loss on revaluation of available for sale instruments d 6330 10308 3978
net exchange loss on translation of foreign operations 3327 4482 1155
deferred tax 5556 3927 1629
net income recognised directly in equity 7479 8533 1054
transferred from income statement on disposal of available for sale investments 4666 4666 –
transferred to income statement on impairment 1054 – 1054
total comprehensive income for the financial period 3867 3867 –
financial statements
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anglo pacific group plc  annual report and accounts 2013 72 consolidated balance sheet december 31 2012 december 31 2011
adjustment
restated
£ ’000
original
£ ’000
adjustment
£ ’000
restated
£ ’000
original
£ ’000
adjustment
£ ’000
royalty instruments c 41945 24032 17913 43127 24736 18391
intangibles c 53495 71408 17913 50748 69138 18390
deferred tax asset d 5812 – 5812 496 – 496
deferred tax liability d 54344 48532 5812 54736 54240 496
coal royalty revaluation reserve a – 86721 86721 – 80285 80285
investment revaluation reserve bii d 11828 14204 26032 16157 4843 21000
foreign currency translation reserve 37673 38349 676 41057 41614 557
retained earnings 224033 162668 61365 223027 163185 59842
total equity 300964 300964 – 306172 306172 –
consolidated statement of cash flows year ended december 31 2012
adjustment
restated
£ ’000
original
£ ’000
adjustment
£ ’000
cash flows from operating activities
profit before taxation 18037 14220 3817
receipts from royalty interests bi – 2898 2898
interest payments 1521 1723 202
gain revaluation of coal royalties a 9512 – 9512
impairment of mining and exploration interests d 11401 3207 8194
loss on revaluation of royalty instruments bii 767 – 767
effective interest on royalty instruments bii 570 – 570
overall there is no change to the net asset value of the group at december 31 2012 and december 31 2011
22 consolidation
subsidiaries
subsidiaries are all entities including special purpose entities over which the group has the power to govern the financial and 
operating policies generally accompanying a shareholding of more than one half of the voting rights 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
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anglo pacific group plc  annual report and accounts 2013 73 notes to the consolidated financial statements
for the year ended december 31 2013
23 segment reporting
operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker 
the chief operating decisionmaker who is responsible for allocating resources and assessing performance of the group’s operating 
segments has been identified as the executive committee which makes the strategic decisions for the group
24 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 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
a assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet
b income and expenses for each income statement are translated at average exchange rates and
c  all resulting exchange differences are chargedcredited to other comprehensive income and recognised in the currency translation 
reserve in equity
on consolidation exchange differences arising from the translation of the net investment in 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
25 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 under ‘producing 
assets’ together with any amount transferred from ‘exploration and evaluation costs’ note 27a
property plant and equipment is depreciated over its useful life or over the remaining life of the mine if shorter the major categories 
of property plant and equipment are depreciated on a units of production andor straight line basis as follows
producing assets  units of production
coal tenures   units of production
fixtures and equipment  4 to 10 years
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
financial statements
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anglo pacific group plc  annual report and accounts 2013 74 26 coal royalties investment property
the group owns a royalty entitlement to the output from the kestrel and crinum underground mines in queensland australia 
excluding the output from crown areas by virtue of its ownership of the substratum land including the right to the minerals contained 
within the group holds this land in order to earn a return which is based on the royalty income received from mining activity carried 
out within the land the group accounts for this land and royalty as an investment property in accordance with ias 40 carrying it at  
fair value at each reporting date the coal royalties are valued at fair value based on future discounted royalty cash flows receivable  
as calculated on a quarterly basis by an independent external consultant see note 15 for further details management consider the 
valuation on a quarterly basis for any indications of possible impairment considering factors such as pricing and production forecasts
any movement in the valuation of the royalties is recognised in the income statement
27 intangibles
a exploration and evaluation costs
exploration and evaluation expenditure comprises costs that are directly attributable to
• researching and analysing exploration data
• conducting geological studies exploratory drilling and sampling
• examining and testing extraction and treatment methods andor
• compiling prefeasibility and feasibility studies
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 amortisation of capitalised exploration and evaluation 
costs does not commence until the underlying project commences commercial production
the carrying values of capitalised amounts are reviewed twice per annum by management and the results of these reviews are 
reported to the audit committee in the case of undeveloped projects there may be only inferred resources to form a basis for the 
impairment review the review is based on a status report regarding the group’s intentions for development of the undeveloped 
project
subsequent recovery of the resulting carrying value depends on successful development or sale of the undeveloped project if a 
project does not prove viable all irrecoverable costs associated with the project net of any related impairment provisions are written  
off to the income statement for developments that are considered viable and move to commercial production these are transferred  
to producing assets
b royalty interests
royalty interests represent the net smelter return royalties acquired on the four mile project in south australia the salamanca uranium 
project in spain the black thor black label and big daddy chromite projects in northern ontario canada and a number of tenements 
in the athabasca basin region of canada together with the gross revenue royalties covering the amapá iron ore system in brazil the 
mount ida magnetite iron ore project in western australia and three exploration licences including the railway iron ore deposit in the 
central pilbara region of western australia
most of the royalties listed above have been preexisting royalties acquired by the group these royalties mainly exist by way of the 
sale of land or certain prospecting rights with the retention of a royalty for any future discoveries of economically viable resources 
upon acquisition the group effectively assumes the position of the original holder who will usually have had an interest in the 
underlying mineral at some point these royalties should survive any change in ownership of the asset or bankruptcy of the operator
these royalties although entitling the group to cash upon the commencement of production are not considered to fall within the 
definition of financial assets in accordance with ias 39 the group considers amongst the characteristics listed in the above 
paragraph that they do not contain an absolute right to receive cash as the group cannot force the operator to produce and 
furthermore the counterparty can avoid the payment of cash by deciding not to produce this is in contrast to the group’s royalty 
interests structured as financing arrangements
the group does not own the physical rights to the minerals contained within these deposits the royalties receivable from the interests 
held are derived from the rights attached to the underlying mineral resources in line with ias 38 ‘intangible assets’ these royalties are 
recognised at cost 
the useful life of the royalty interests will be determined by reference to planned mine life on commencement of mining and the cost 
of the royalty contract will be amortised on a systematic 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
financial statements
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anglo pacific group plc  annual report and accounts 2013 75 notes to the consolidated financial statements
for the year ended december 31 2013
28 impairment of nonfinancial assets
intangible assets are reviewed for impairment at each reporting date and the assessment includes variables such as the production 
profiles commodity prices and management representations
the group changed its method of assessing impairment during the year although the value in use is still assessed based on 
discounted net present value of expected future cash flows using a narrow range of discount rates of between 7 and 10 the 
outcome of this calculation is then risk weighted to reflect management’s current assessment of the overall likelihood of each project 
coming into production and royalty income arising this assessment is impacted by news flow relating to the royalty in the period in 
conjunction with management’s assessment of the economic viability of the project based on commodity price projections this is a 
change in the basis of estimation had the method been applied previously it would not have resulted in an impairment charge in prior 
years 
an impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount which is the 
higher of fair value less costs to sell or valueinuse 
property plant and equipment is tested for impairment whenever events or changes in circumstances indicate that the carrying 
amount may not be recoverable
29 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 most other receivables fall into this category of financial instruments
individually significant receivables are considered for impairment when they are past due or when other objective evidence is received 
that a specific counterparty will default receivables that are not considered to be individually impaired are reviewed for impairment in 
groups which are determined by reference to the industry and region of a counterparty and other available features of shared credit  
risk characteristics the percentage of the write down is then based on recent historical counterparty default rates for each identified 
group impairment of trade receivables are presented within ‘other losses’
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 either availableforsale or as assets at fair value through profit 
or loss depending on the characteristics of the particular instrument and its purpose
interests classified as availableforsale are measured at subsequent reporting dates at their fair value for availableforsale 
investments 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 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 
for those mining and exploration interests which contain an embedded convertible option these embedded derivatives are separated 
and recognised at fair value through profit or loss with gains and losses arising from changes in fair value being recognised directly in 
the income statement the fair values of such instruments are assessed with reference to the relevant factors which include inter alia 
equity prices in active markets commodity prices production profiles and management representations these assets are reviewed 
regularly to ensure that the initial classification remains correct given the asset characteristics and the group’s investment policies 
these assets may be initially recognised using transaction price as the best evidence of fair value at acquisition see note 18 options 
can be carried at cost if they are linked to unquoted equities where fair value cannot be reliably measured
financial statements
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anglo pacific group plc  annual report and accounts 2013 76 d impairment of mining and exploration interests
all mining and exploration interests held as available for sale are assessed for impairment at least at each reporting date the directors 
initially compare any absolute decline in the value of the portfolio compared to the decline in relevant junior mining indices for an 
indication of underperformance against the wider industry if underperformance exists the directors then consider the absolute 
decline in value for each instrument and this assessment includes variables such as the progress made by the operator in the period to 
advance its project towards development the instrument’s valuation in active markets the quality of the company’s underlying assets 
as well as any potential for economic mineral development within the relevant company’s licences 
impairment charges arise when the outcome of this assessment indicates a ‘significant’ or ‘prolonged’ fall in value of the interest in 
accordance with ias 39 ias 39 requires the directors to use judgement in order to define the parameters of ‘significant’ and ‘prolonged’ 
and there is little available guidance as to what has become best practice the directors have been of the view that higher tolerance can 
be accepted in relation to junior mining instruments one of the most volatile sectors over the last number of years the directors have 
considerable experience of investing in this sector over many economic cycles when commodities have both out and underperformed 
at december 31 2012 the group’s mining and exploration interests when taken as a whole were 43 below cost the executive 
directors and the audit committee did not consider this to be ‘significant’ in the context of investments in the junior mining sector 
and these declines were not out of line with what similar companies were experiencing at this point a decline in value of 60 would 
have been considered ‘significant’ the further decline in value during 2013 resulted in the absolute decline being considered ‘significant’
in addition to being ‘significant’ an impairment charge must be made if the decline in value is considered ‘prolonged’ regardless of 
how ‘significant’ the decline is again the directors have used their considerable experience in order to determine what period of 
decline would be considered ‘prolonged’ in the context of investing in the junior mining sector the ultimate value of the equity is likely 
to be achieved once the underlying project achieves commercial production as long as the operator is advancing the project towards 
production then the directors tolerate a longer timeframe this is usually between three to five years the time in which an operator 
should have made sufficient progress with their operations
regardless of the judgment exercised by the directors in defining ‘significant’ or ‘prolonged’ the net assets of the group remain 
unchanged as the equities are carried at fair value at each reporting date the point at which an impairment charge is made does  
not impact net assets as the unrealised loss in the investment revaluation reserve is transferred to retained earnings via the income 
statement and interest will only be recognised at the discount rate used to measure the impairment unless the asset has been  
fully impaired 
this is one area which remains subject to review by the frc particularly the group’s definitions of ‘significant’ and ‘prolonged’
e 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 give the group a right to future cash flows and are recognised as availableforsale financial assets in accordance 
with ias 39 these royalties are different to the group’s intangible royalties as there is a means to securing future cash flows 
irrespective of the success of the underlying project royalty instruments are classified as either debt or equity instruments depending 
on the nature of the individual agreement considerations such as contractual interest rates defined repayment terms and the means 
to recover initial investment distinguish whether the financial asset is debt or equity some royalty contracts include clauses relating to 
the possibility of conversion to equity in the company granting the royalty these clauses are treated as embedded derivatives and are 
classified as fair value through profit or loss
similar to the group’s royalty intangibles these assets are assessed for impairment at each reporting date for equity financial assets 
any cumulative loss previously recognised in equity is reclassified in the income statement for the period for debt financial assets the 
impairment charge reverses previous gains reflected in the income statement and no further effective interest will be recognised
financial statements
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anglo pacific group plc  annual report and accounts 2013 77 notes to the consolidated financial statements
for the year ended december 31 2013
i evbc
the group’s royalty instrument relating to the evbc royalty has been classified as an equity financial asset as it does not have a contracted 
interest rate there is no contractual requirement to develop the mine there are no predefined repayment terms there is no maturity date 
the royalty continues into perpetuity and the ultimate flow of cash is wholly dependent on the success of the project which then 
determines royalty payments the return is related to performance which is a riskier type of return involving more than just credit risk
the substance of the royalty is similar to that of an ordinary equity instrument as ultimately both can only be of value if the project is 
successful any income received represents a return on investment and is recognised in the income statement the asset is carried at 
fair value determined by discounting the estimated future cash flows the discount rate applied is 9 reflecting the nature of the 
asset quality of resource track record and the experience of management the change in estimated future cash flows is determined 
by reference to the guidance published by the operator which is considered nonobservable market data any valuation movement is 
recognised in the investment revaluation reserve other than a significant or prolonged fall in value in fair value below cost which would 
be accounted for as an impairment
ii jogjakarta
jogjakarta is considered to be an available for sale debt financial asset in accordance with ias 39 the key differential in respect to this 
royalty instrument is the right to receive cash and the ability to enforce this furthermore jogjakarta has a contracted interest rate of 
8 pa payable quarterly along with predefined contracted minimum payments which the operator must make regardless of what the 
royalty equivalent would be
at initial recognition an effective interest rate is computed based on the estimated future cash flows expected future cash flows  
are based on nonobservable market data generally management’s latest expectation of future royalty income determined based  
on commodity price forecast and estimated production profiles the difference between this value and cost is recognised in other 
comprehensive income the effective interest is recognised in the income statement in each period any subsequent valuation 
movement caused by changes to the effective interest rate is recognised in other comprehensive income valuation movements 
caused by changes to expected future cash flows are recognised in the income statement 
the recognition of effective interest rate is recorded in the income statement during the period in which the income is earned  
the cash receipt of interest would reduce the carrying value of the asset as it is received
the asset is carried on the balance sheet at fair value based on a risk weighted net present value of future cash flows at each reporting 
date the risk assessment takes into account the probability of the mine coming into production
the jogjakarta royalty contains an embedded derivative this derivative is separated and measured as an asset at fair value through 
profit or loss with gains and losses arising from changes in fair value recognised directly in the income statement the fair values of 
such derivatives are assessed with reference to the relevant factors which include inter alia equity prices in active markets 
production profiles commodity prices and management representations these assets are reviewed regularly to ensure that the initial 
classification remains correct given the asset characteristics and the group’s investment policies these assets may be initially 
recognised using transaction price as the best evidence of fair value at acquisition however embedded derivatives are valued at 
acquisition and are recognised separately from the host royalty instrument see note 16
iii isua
isua although displaying very similar characteristics to the group’s royalty intangibles allows for the full recovery of the initial investment 
subject to various predefined milestones prior to the commencement of commercial production the key remaining milestone is that 
production has to be achieved by june 20 2017 should this not be achieved the group has the right to demand full repayment of 
monies advanced the operator has the option to settle this by either cash or equivalent equity if production is achieved the right  
to recover the initial investment ceases to be available to the group and royalty payments are receivable over the life of the mine 
the mechanism to recover the initial investment is considered to be a contractual right to receive cash and falls within the definition  
of an available for sale debt like financial asset as there is a predefined ‘maturity’ although there is no contractual interest rate ias 39 
requires an effective interest rate to be calculated and recognised in the income statement when material as this is a noncash measure 
in relation to assets with varying risk profiles the group only applies this interest rate when material
the fair value of isua is calculated based on the discounted expectation of the receipt in 2017 of the original funds invested discounted 
by reference to the effective interest rate calculated the difference between this value and cost has been determined to be immaterial 
and as such the asset is carried at cost any expected future changes in value caused by revisions to future cash flow will be 
recognised in the income statement along with any effective interest rate
financial statements
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anglo pacific group plc  annual report and accounts 2013 78 f 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
g 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
h equity instruments
equity instruments issued by the company are recorded at the proceeds received net of direct issue costs
210 current and deferred income tax
income tax expense represents the sum of the tax currently payable and deferred 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 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 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
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 is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled 
deferred tax is charged or credited in the income statement except when it relates to items credited or charged directly to equity  
in which case the deferred tax is also dealt with in equity
211 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
financial statements
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anglo pacific group plc  annual report and accounts 2013 79 notes to the consolidated financial statements
for the year ended december 31 2013
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
the grant by the company of options over its equity instruments to employees of subsidiary undertakings in the group is treated as  
a capital contribution the fair value of employee services received measured by reference to the grant date fair value is recognised 
over the vesting period as an increase to investment in subsidiary undertakings with a corresponding credit to equity
212 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 
expenses of the share issue
• ‘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 25
• ‘retained earnings’ represents retained profits
213 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 the royalty income becomes receivable on extraction and sale of the relevant minerals at which point the revenue is 
recognised
disposals of mining and exploration interests are disclosed net of any commissions and foreign exchange
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
214 leases
rentals payable under operating leases where substantially all of the benefits and risks of ownership are not transferred to the lessee 
are charged against profits on a straight line basis over the term of the lease
215 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
3 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 interest rate 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
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 the year end there was no debt outstanding and the company with its strong balance sheet had good access to capital markets if 
required the addition of a twelvemonth us15m revolving credit facility signed in february 2014 adds further flexibility and liquidity  
to the group’s cash balances
financial statements
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anglo pacific group plc  annual report and accounts 2013 80 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
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 where possible the group has registered its interests against the relevant 
mining titles for the royalties it has acquired in addition the group is generally entitled to full reconciliations of amounts paid and retains 
the right to audit the royalty returns and verify the calculations
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 16 where the future contractual right to cash flow from these instruments is reflected in their fair value
the credit risk on bank deposits is limited because the counterparties have high credit ratings assigned by international credit rating 
agencies the group has no significant concentration of credit risk with exposure spread over a large number of currencies and 
counterparties
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
foreign currency denominated financial assets and liabilities translated into pound sterling at the closing rate are as follows
2013 2012
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 1 20385 21996 4180 16371 6 1 37928 30514 3117 3191 6
financial liabilities – – – – – – – – – – – –
short term exposure 1 20385 21996 4180 16371 6 1 37928 30514 3117 3191 6
the following table illustrates the sensitivity of the net result for the year and equity in regards to the group’s financial assets and 
financial liabilities and the australian dollarpound sterling and the canadian dollarpound sterling exchange rate
it assumes a  10 change of the pound sterlingaustralian dollar exchange rate for the year ended december 31 2013 2012 10 
a  10 is considered for the pound sterlingcanadian dollar exchange rate 2012 10 the sensitivity analysis is based on the 
group’s foreign currency financial instruments held at reporting date
if the pound sterling had weakened against the australian dollar and the canadian dollar by 10 this would have had the following 
impact
2013 2012
gbp
£’000
aud
£’000
cad
£’000
usd
£’000
nok
£’000
eur
£’000
gbp
£ ’000
aud
£ ’000
cad
£ ’000
usd
£ ’000
nok
£ ’000
eur
£ ’000
net result for the year – 720 47 20 1 – – 765 1267 – – –
equity – 2039 2200 418 1637 1 – 3793 3051 312 319 1
if the pound sterling had strengthened against the australian dollar and the canadian dollar by 10 this would have had the following 
impact
2013 2012
gbp
£’000
aud
£’000
cad
£’000
usd
£’000
nok
£’000
eur
£’000
gbp
£ ’000
aud
£ ’000
cad
£ ’000
usd
£ ’000
nok
£ ’000
eur
£ ’000
net result for the year – 720 47 20 1 – – 765 1267 – – –
equity – 2039 2200 418 1637 1 – 3793 3051 312 319 1
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
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anglo pacific group plc  annual report and accounts 2013 81 notes to the consolidated financial statements
for the year ended december 31 2013
interest rate risk
the group is exposed to interest rate risk in respect of the cash balances held with banks and other highly rated counterparties if  
the interest rates the group received had increased by 1 during the year the net result for the year would have been increased by 
£95000 2012 £537000 if the interest rates the group received had decreased by 1 during the year the net result for the year 
would have been reduced by £95000 2012 £387000 there would have been no impact on equity going forward the group is 
exposed to interest rate risk on any portion of its revolving credit facility which is drawn
weighted 
average 
effective 
interest rate
fixed  
interest  
rate 
£’000
non  
interest 
bearing 
£’000
total 
£’000
2013
assets
cash 043 14957 749 15706
trade receivables – – –
other receivables 70 2895 8704 11599
total financial assets 17852 9453 27305
financial liabilities
trade payables – 43 43
other payables – 425 425
total financial liabilities – 468 468
net financial assets 17852 8985 26837
weighted 
average 
effective 
interest rate
fixed  
interest  
rate 
£ ’000
non  
interest 
bearing 
£ ’000
total 
£ ’000
2012
assets
cash 072 21463 2573 24036
trade receivables – – –
other receivables 70 3141 1219 4360
total financial assets 24604 3792 28396
financial liabilities
trade payables – 106 106
other payables – 1724 1724
total financial liabilities – 1830 1830
net financial assets 24604 1962 26566
other price risk
the group is exposed to other price risk in respect of its mining and exploration interests which include listed and unlisted equity 
securities and any convertible instruments
a sensitivity analysis based on a 49 increase or decrease in listed equity prices has been performed 2012 30 if the quoted stock 
price for these securities had increased or decreased by this percentage the net result for the year would have been increasedreduced 
by £26m 2012 £58m equity would have changed by £78m 2012 £154m
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
the group’s mining and exploration interests are held for the purposes of generating additional royalties and are considered longterm 
strategic investments 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
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
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 82 capital management and procedures 
the group’s capital management objectives when managing capital are to safeguard the group’s ability to continue as a going concern 
in order to increase the value of the assets of the group and to enhance shareholder value in the company and returns to shareholders
the achievement of these objectives is undertaken by managing the group’s existing portfolio of royalty interests together with its 
investments mining and exploration interests and indentifying new royalty opportunities during the year the group advanced us10m 
under an existing royalty financing agreement which is expected to yield royalty revenue in the future in addition the group realised 
£53m in cash from the sale of certain mining and exploration interests where royalty opportunities were no longer identifiable
subsequent to year end the group entered into a us15m unsecured twelvemonth revolving credit facility which in addition  
to the group’s current cash balances provides further means to finance future royalty acquisitions 
the directors continue to monitor the capital requirements of the group by reference to expected future cash flows capital for  
the reporting periods under review is summarised in the consolidated statement of changes in equity 
the optimal capital structure for the group is to have no longterm structured debt unless the income profile of the group were  
to change significantly the group is currently achieving this objective
financial assets
the group and company held the following investments in financial assets
2013 restated 2012 restated 2011
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
group 
£ ’000
company 
£ ’000
availableforsale
royalty instruments 27847 12839 41945 24032 43127 24736
mining and exploration interests 20072 13975 55545 36753 64303 56121
fair value through profit or loss
royalty instruments – – – – – –
mining and exploration interests – – 248 248 248 248
trade and other receivables 11599 31295 4360 51884 10111 42316
cash at bank and in hand 15706 4106 24036 2854 32197 10394
cash and cash equivalents comprise cash and shortterm deposits held by the group treasury function the carrying amount of these 
assets is approximately their fair value
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 groups financial assets and liabilities into three levels based on the significance of 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 2013 december 31 
2012 restated and december 31 2011 restated
2013
group note
level 1 
£’000
level 2
£’000
level 3 
£’000
total 
£’000
assets
coal royalties investment property a – – 131434 131434
royalty 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
total 16018 4054 159281 179353
net fair value 16018 4054 159281 179353
financial statements
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anglo pacific group plc  annual report and accounts 2013 83 notes to the consolidated financial statements
for the year ended december 31 2013
restated 2012
group note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
coal royalties investment property a – – 170995 170995
royalty instruments b – – 41945 41945
mining and exploration interests – quoted c 51547 – – 51547
mining and exploration interests – unquoted d – 3518 – 3518
mining and exploration interests – royalty options e – 728 – 728
total 51547 4246 212940 268733
net fair value 51547 4246 212940 268733
restated 2011
group note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
coal royalties investment property a – – 165967 165967
royalty instruments b – – 43127 43127
mining and exploration interests – quoted c 62389 – – 62389
mining and exploration interests – unquoted d – 1434 – 1434
mining and exploration interests – royalty options e – 728 – 728
total 62389 2162 209094 273645
net fair value 62389 2162 209094 273645
the following tables present the company’s assets and liabilities that are measured at fair value at december 31 2013 december 31 
2012 restated and december 31 2011 restated
2013
company note
level 1 
£’000
level 2
£’000
level 3 
£’000
total 
£’000
assets
royalty 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
total 13646 329 12839 26814
net fair value 13646 329 12839 26814
restated 2012
company note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
royalty instruments b – – 24032 24032
mining and exploration interests – quoted c 35102 – – 35102
mining and exploration interests – unquoted d – 1171 – 1171
mining and exploration interests – royalty options e – 728 – 728
total 35102 1899 24032 61033
net fair value 35102 1899 24032 61033
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 84 restated 2011
company note
level 1 
£ ’000
level 2
£ ’000
level 3 
£ ’000
total 
£ ’000
assets
royalty instruments b – – 24736 24736
mining and exploration interests – quoted c 54656 – – 54656
mining and exploration interests – unquoted d – 985 – 985
mining and exploration interests – royalty options e – 728 – 728
total 54656 1713 24736 81105
net fair value 54656 1713 24736 81105
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 altered slightly compared to the previous 
reporting period the group 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 previously this risk was factored 
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 15 for further details all unobservable inputs are obtained from third parties
b royalty instruments
the group’s royalty instruments have been classified as available for sale with value on initial recognition being calculated as the total 
cost of the agreement less the valuation of the option to convert to shares at the reporting date the royalty streams have been valued 
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 16 details the discount rates used this is the only unobservable input determined by management 
all other unobservable inputs are obtained from third parties
the option to convert to shares has been treated as fair value through profit or loss as designated on initial recognition at the date of 
acquisition and has been valued at december 31 2013 utilising an option model the key assumptions in addition to those utilised in 
the royalty stream valuations such as mine life and expected cash flows include the price volatility of the projects listed equity and 
where applicable the conversion price and redemption value of redeemable shares
c mining and exploration interests – quoted
all the quoted mining and exploration interests have been issued by publicly traded companies in australia canada the uk and 
norway 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 where fair value cannot be reliably determined 
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
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
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 85 notes to the consolidated financial statements
for the year ended december 31 2013
fair value measurements in level 3
the group’s financial assets classified in level 3 uses 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 2013
availableforsale financial assets £’000
at january 1 2013 restated 212940
revaluation gains or losses recognised in
other comprehensive income 2458
income statement 22257
foreign currency translation 28898
receipts from royalty instruments 46
at december 31 2013 159281
the following table presents the changes in level 3 instruments for the year ended december 31 2012
availableforsale financial assets £ ’000
at january 1 2012 restated 209094
revaluation gains or losses recognised in
other comprehensive income 63
income statement 8745
foreign currency translation 4962
at december 31 2012 restated 212940
the following table presents the changes in level 3 instruments for the year ended december 31 2011
availableforsale financial assets £ ’000
at january 1 2011 restated 205191
additions 18391
revaluation gains or losses recognised in
other comprehensive income 4605
income statement 2398
impairment of royalty instruments 1563
foreign currency translation 10718
at december 31 2011 restated 209094
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
management has not undertaken detailed analysis of the impact of using alternative discount rates on the fair value of the royalty 
streams or the optionality embedded in the royalty instruments as the risk weighting applied to the discounted present value of 
expected future cashflows more than offsets any valuation downside by applying higher discount rates
4 critical accounting estimates and judgements
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
41 critical accounting estimates and assumptions
the group makes estimates and assumptions concerning the future the resulting accounting estimates and assumptions will by 
definition seldom equal the related actual results the estimates and assumptions that have a significant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below
a  review of asset carrying values and impairment charges and reversals – note 26 note 27 note 28 note 29 note 15 note 16 
note 17 and note 18
b  recoverability of deferred tax assets – note 210 and note 22 the calculation of deferred tax for investment property is on  
a continuing use basis rather than sale
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 86 42 critical judgements in applying the group’s accounting policies
areas of judgement that have the most significant effect on the amounts recognised in the financial statements are
a  classification of mining and exploration interests – note 29 and note 18
b  classification of royalty instruments and royalty interests
  the directors review each royalty acquired to determine whether there is a contractual right to receive cash which would meet  
the definition of a financial asset or if the royalty receivable for the interest acquired is derived from the rights attached to the 
underlying assetmineral resource in the latter case these are treated as an intangible asset – note 27b and note 17 
 key differing characteristics between intangible and financial assets
 i primary or secondary royalties
   generally speaking any secondary royalties which the group acquires are likely to be intangible assets which have historically 
originated from the sale of land to a developer whilst the seller has retained an interest to benefit from any reserve expansion 
the group in this instance has not provided finance to the operator but has acquired an indirect interest in the underlying 
mineral 
   primary royalties tend to be negotiated as financing agreements between the group and the operator directly and are much 
more likely to fall within the definition of ias 39
 ii interest in the underlying mineral
   quite often the group will have a registered interest in the underlying mineral the nature of secondary royalties is often such 
that they are considered interests in the underlying land as the group effectively assumes the role of the original counterparty
   with financial assets although there may be security in place over the assets of the counterparty this does not constitute an 
interest in the underlying mineral
 iii limited rights to enforce the receipt of cash
   intangible royalties are structured such that there is no means for the royalty holder to force the operator to produce therefore 
there is no contractual right to receive cash as the operator can avoid this obligation by refusing to produce cash is payable 
upon the successful commercial production at the underlying mine there is no recourse to amounts invested nor any 
production milestones the receipt of future cash flow is solely dependent on production commencing at the mine
   with financial assets there is usually a contracted interest rate maturity date or milestones which need to be achieved 
conditions of default and security these are all characteristics of debt instruments and ensure the contractual right or means 
of recourse where breaches occur to future cash a key differential is that there is a right to receive cash regardless of the 
success of the underlying operation 
 iv bankruptcychange in control
   generally a royalty may often survive any change in control of the mine or bankruptcy of the developer in the latter there  
is no recourse to funds invested
   where there is a sale of a mine which the group has financed it would be expected that the group would have the right to 
carry its royalty across if this is not possible then the financial asset will be repaid in events of bankruptcy the group will  
seek to recover its financial asset through the courts
  key differing characteristics between available for sale debt versus equity financial assets
  upon determining that a royalty interest is a financial asset the next step is to determine whether it is a debt instrument or an 
equity interest
debt financial asset equity financial asset
timebased interest charge on outstanding principal payable quarterly no interest rate
defined maturity date no maturity date continues into perpetuity
minimum payment terms irrespective of the development of the mine payment is not dependent upon the successful development of the mine
enforceable security no provision for the return of principal
  equity instruments can sometimes display characteristics similar to debt however their return is related solely to performance 
which is a riskier type of return involving more than just credit risk
 other judgements in relation to royalty interests
  where a royalty agreement contains a convertible option within it the contracts are reviewed to determine whether the assets 
should be classified as a derivative at fair value through profit or loss or can be classified as an available for sale financial asset  
with an embedded derivative – note 29 and note 16
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 87 notes to the consolidated financial statements
for the year ended december 31 2013
  judgement is also applied in conducting a review for impairment at each reporting date in many cases there will not have been 
any updates in the period in relation to production scheduling or reserve estimates in the absence of such observable market data 
and an active secondary market for the group’s royalties the directors risk weight the expected future cash flows in order to apply 
a probability based approach to the value of each the royalty this applies a much higher weighting to the probability of the operator 
achieving commercial production 
c  review of assumptions underlying the independent coal industry advisors’ valuation of the kestrel and crinum coal royalty – note 15
d  review of assumptions underlying the valuation of royalty instruments and their associated embedded derivatives – note 16
  the directors review the latest available mine plans and obtain independent foreign exchange and commodity price forecasts to 
determine each of the royalty instruments carrying value at reporting date in the absence of any published production guidance 
the directors use a probability risk weighted method to the expected discounted future cash flows as described in b above
e  review of asset carrying values and impairment charges and reversals – note 26 note 27 note 28 note 29 note 15 note 16 
note 17 and note 18
f  recognition of deferred tax liabilities and the continued application of relevant exemptions – note 210 note 11 and note 22 
the group has deferred tax assets in relation to unrealised revaluation losses the availability of these assets will depend of 
the recovery of value of similar assets in future periods or the realisation of gains on similar assets the directors consider there 
to be opportunities to acquire warrants as part of future royalty financing which should result in profits which can utilise any 
losses currently unrealised
g  treatment of unrealised losses on mining and exploration interests – note 18
  as noted in note 29 considerable judgement is used by the directors in determining the meaning of ‘significant’ and ‘prolonged’  
in the context of the impairment of mining and exploration interests in accordance with ias 39 although this has no impact on net 
asset value as the mining and exploration interests are carried at fair value it does impact the point at which the unrealised losses 
are extracted from the investment revaluation reserve and recognised in the income statement
5 segment information
management has determined the operating segments based on the reports reviewed by the executive committee that are used  
to make strategic decisions
the committee considers the group’s undertakings from a business perspective this has resulted in the group being organised into 
two operating segments – royalties and mining and exploration interests
the royalties segment encompasses all group activities relating directly to the royalties received from mining operations the mining 
and exploration interests segment encompasses all group activities relating directly to the acquisition disposal and continued 
monitoring of the group’s investments in listed and unlisted entities operating in mining and mineral exploration the segment 
information provided to the executive committee for the reportable segments for the year ended december 31 2013 is as follows
australia americas europe
royalty
£ ’000
mining
interests
£ ’000
royalty
£ ’000
mining
interests
£ ’000
royalty
£ ’000
mining
interests
£ ’000
all other
segments
£ ’000
total
£ ’000
royalty income 9941 – 749 – 4041 – – 14731
finance income – – – – – – 789 789
loss on sale of mining and 
exploration interests – 337 – 1424 – 4637 – 6398
other income – 441 – – – 267 1304 2012
total segment income 9941 104 749 1424 4041 4370 2093 11134
profit before tax 6766 10469 3478 5832 3094 15710 13735 52896
amortisation – – 854 – – – – 854
impairment of nonfinancial assets 3139 10573 4227 4408 947 11340 – 34634
income tax expense 5995 – 133 – – – 4537 10399
total assets 147577 10227 22827 5025 28692 3498 41610 259456
total assets include
additions to noncurrent assets 
other than financial instruments 
and deferred tax assets – – – – – – – –
total liabilities 35676 – – – 2244 – 4685 42605
 
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 88 the segment information for the year ended december 31 2012 is as follows
australia americas europe
royalty
£ ’000
mining
interests
£ ’000
royalty
£ ’000
mining
interests
£ ’000
royalty
£ ’000
mining
interests
£ ’000
all other
segments
£ ’000
total
£ ’000
royalty income restated 11038 – 2229 – 1890 – – 15157
finance income – – – – – – 676 676
gain on sale of mining and  
exploration interests – 7021 – 337 – 11 – 7347
other income – 678 – – – 1047 591 2316
total segment income 11038 7699 2229 337 1890 1036 1267 25496
profit before tax restated 20549 3237 2229 4227 1890 1339 4302 18037
amortisation – – 1018 – – – – 1018
impairment of nonfinancial assets – 4462 – 4564 – 2375 – 11401
income tax expense 4564 – 310 28 – – 1555 6457
total assets 191410 24550 30100 10804 35993 9076 57347 359280
total assets include
additions to noncurrent assets  
other than financial instruments  
and deferred tax assets 3720 – – – – – – 3720
total liabilities 50395 – – – 2745 – 5176 58316
the amounts provided to the executive committee with respect to total 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
investments in mining and exploration interests classified as availableforsale financial assets or financial assets at fair value through 
profit or loss held by the group are classified by geographic segment by reference to the country of the investee’s primary listing for 
quoted investments or the country of operations for unquoted investments
the amounts provided to the executive committee with respect to total 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 income in australia of £9941000 2012 £11038000 is derived from a single coal royalty
6 finance income
2013
£’000
2012
£ ’000
group
interest on bank deposits 94 387
interest on royalty instruments 474 202
interest on longterm receivables 221 87
789 676
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 89 notes to the consolidated financial statements
for the year ended december 31 2013
7a expense by nature
2013
£’000
2012
£ ’000
group
employee benefit expense note 8a 2044 1783
listing fees 153 178
operating lease payments 167 164
other expenses 1040 1508
3404 3633
7b auditor’s remuneration
2013
£’000
2012
£ ’000
group
fees payable to company’s auditor for the audit of parent company and consolidated financial statements 77 73
fees payable to the company’s auditor and its associates for other services
the audit of company’s subsidiaries pursuant to legislation 9 6
other services pursuant to legislation 17 18
103 97
8a employee benefits expense
group company
2013
£’000
2012
£ ’000
2013
£’000
2012
£ ’000
wages and salaries 1763 1404 1680 1312
sharebased awards to directors and employees 72 183 72 183
social security costs 174 155 172 153
other pension costs 35 41 35 41
2044 1783 1959 1689
8b 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 £35000 2012 £41000 represents contributions payable to these schemes by the group at rates 
specified in the rules of the schemes as at december 31 2013 contributions of £5000 2012 £5000 due in respect of the current 
reporting period had not been paid over to the schemes
8c average number of people employed
2013 2012
group
number of employees 13 11
2013 2012
group
average number of people including executive directors employed
executive directors 4 4
administration 9 7
13 11
company
the average number of administration staff employed by the company during the year including executive directors was 13 2012 11
directors’ salaries are shown in the directors’ remuneration report on  pages 51 to 55 including the highest paid director
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 90 9 other income
2013
£’000
restated 
2012
£ ’000
group
dividends received from mining and exploration interests 441 678
fixed income from mining and exploration interests 267 1047
effective interest income on royalty instruments 1140 570
other income 164 21
2012 2316
other income includes a credit for the noncash effective interest associated with the group’s available for sale debt financial assets in 
accordance with ias 39
10 other lossesgains – net
2013
£’000
restated 
2012
£ ’000
group
net foreign exchange lossgain 2835 958
lossrecovery on impairment of royalty instruments note 16 46 806
2881 152
11 income tax expense
2013
£’000
restated 
2012
£ ’000
group
total corporation tax charge 715 5056
deferred tax creditcharge to income – current year note 22 11114 1401
tax creditcharge on lossprofit on ordinary activities 10399 6457
2013
£’000
restated 
2012
£ ’000
group
factors affecting the tax charge for the year
lossprofit on activities before tax 52896 18037
prima facie tax creditpayable at uk rate of 235 2012 245 and australian rate of 30 2012 30 10943 5508
adjustment for tax exempt income 1013 712
utilisation of losses brought forward 49 78
capital losses carried forward 1555 –
nondeductible expenses 51 55
reassessment of 2010 income tax return – 1060
foreign controlled profits – 468
total income tax expense 10399 6457
refer to note 22 for information regarding the group’s deferred tax assets and liabilities
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 91 notes to the consolidated financial statements
for the year ended december 31 2013
12 lossearnings per share
lossearnings per ordinary share is calculated on the group’s loss after tax of £42497000 2012 profit £11580000 restated 
and the weighted average number of shares in issue during the year of 108932340 2012 108540723
lossearnings 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 2013
2013
£’000
restated 
2012
£ ’000
net profit attributable to shareholders
earnings – basic 42497 11580
earnings – diluted 42497 11580
2013 2012
weighted average number of shares in issue
ordinary shares in issue 108932340 108540723
employee share option scheme – 4160
108932340 108544883
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
earnings – basic and diluted for the year ended december 31 2013 42497 3901p 3901p
adjustment for
impairment of mining and exploration interests 26321
loss on sale of mining and exploration interests 6398
revaluation of coal royalties 13568
impairment of intangibles – royalties 8313
amortisation of intangibles – royalties 854
revaluation of royalty instruments 8689
effective interest income on royalty instruments 1140
tax effect of the adjustments above 11370
adjusted earnings – basic and diluted for the year ended december 31 2013 9136 839p 839p
earnings
£ ’000
earnings 
per share 
p
diluted 
earnings 
per share 
p
net profit attributable to shareholders
earnings – basic and diluted for the year ended december 31 2012 restated 11580 1067p 1067p
adjustment for
impairment of mining and exploration interests 11401
profit on sale of mining and exploration interests 7347
revaluation of coal royalties 9512
impairment of intangibles – royalties –
amortisation of intangibles – royalties 1018
revaluation of royalty instruments 767
effective interest income on royalty instruments 570
tax effect of the adjustments above 2096
adjusted earnings – basic and diluted for the year ended december 31 2012 restated 9433 869p 869p
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 92 13 dividends
on february 5 2013 an interim dividend of 445p per share was paid to shareholders in respect of the year ended december 31 2012 
on august 7 2013 a final dividend of 575p per share was paid to shareholders to make a total dividend for the year of 102p per share 
total dividends paid during the year were £1107m 2012 £1058m
on february 4 2014 an interim dividend of 445p per share was paid to shareholders in respect of the year ended december 31 2013 
this dividend has not been included as a liability in these financial statements the directors propose that a final dividend of 575p per 
share be paid to shareholders on august 7 2014 to make a total dividend for the year of 102p 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 2013 is payable to all shareholders on the register of members on june 6 2014 the total estimated 
dividend to be paid is £63m at the present time the board has resolved not to offer a scrip dividend alternative
14 property plant and equipment
group
producing
assets
£’000
coal
tenures
£’000
equipment
and
fixtures
£’000
total 
£’000
gross carrying amount
at january 1 2013 821 1251 175 2247
additions – – 14 14
disposals – – 60 60
foreign currency translation – 108 – 108
at december 31 2013 821 1143 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 817 1143 29 1989
group
producing
assets
£ ’000
coal
tenures
£ ’000
equipment
and
fixtures
£ ’000
total 
£ ’000
gross carrying amount
at january 1 2012 821 1277 175 2273
foreign currency translation – 26 – 26
at december 31 2012 821 1251 175 2247
depreciation and impairment
at january 1 2012 2 – 119 121
depreciation – – 21 21
at december 31 2012 2 – 140 142
carrying amount december 31 2012 819 1251 35 2105
coal tenures relate to the trefi and panorama coal projects in british columbia canada as both projects are not yet in production there 
was no depreciation during the period 
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 93 notes to the consolidated financial statements
for the year ended december 31 2013
company
producing
assets
£’000
equipment
and
fixtures
£’000
total 
£’000
gross carrying amount
at january 1 2013 821 175 996
additions – 14 14
disposals – 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
company
producing
assets
£ ’000
equipment
and
fixtures
£ ’000
total 
£ ’000
gross carrying amount
at january 1 2012 821 175 996
at december 31 2012 821 175 996
depreciation and impairment
at january 1 2012 2 119 121
depreciation – 21 21
at december 31 2012 2 140 142
carrying amount december 31 2012 819 35 854
the group’s property plant and equipment are carried at cost less depreciation with the exception of leases relating to the talc deposit 
on shetland scotland held by the parent company the producing asset on shetland is included at a directors’ valuation of £08m 
2012 £08m plus additions which are carried at cost 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
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 94 15 coal royalties investment property
group 
£ ’000
at january 1 2011 restated 169304
foreign currency translation restated 711
revaluation of coal royalties restated 4048
at december 31 2011 restated 165967
foreign currency translation restated 4484
revaluation of coal royalties restated 9512
at december 31 2012 restated 170995
foreign currency translation 25993
revaluation of coal royalties 13568
at december 31 2013 131434
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
as discussed in note 26 the group had previously accounted for this as land in accordance with ias 16 and elected to revalue the land 
at each reporting date the group now accounts for this land as freehold investment property in accordance with ias 40 although the 
balance sheet value remains unchanged applying ias 40 results in the valuation movement previously recognised in the revaluation 
reserve now being recognised in the income statement 
the coal royalty was valued during december 2013 at £1314m a2444m 2012 £1710m and a2666m by resource management 
international pty ltd independent coal industry advisors 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 
the group reviews the independent valuation carefully and reconciles it against its own estimates of future cash flow as there 
is some uncertainty with regard to production forecasts in the valuation model the group carefully monitors the estimated future 
cashflow reported by its independent consultant against actual cash flows received where the results differ the audit committee 
seeks detailed explanations from the consultant the other key variable is coking coal price and the prices used by the independent 
consultant are compared against those of other forward consensus models the audit committee is satisfied that the price used 
is relatively conservative finally the future cash flows are discounted at a rate of 7 bearing in mind that this is a high quality 
coking coal mine with an impressive track record by a world class operator who have recently invested heavily in the mine’s expansion 
the audit committee considers this to be an appropriate discount rate which should ensure the asset is represented fairly on the 
balance sheet
were the coal royalty to be realised at the revalued amount there are £20m a31m 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 2012 £02m the directors do not presently have any intention to dispose of the coal royalty
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 95 notes to the consolidated financial statements
for the year ended december 31 2013
16 royalty 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 instruments 
are summarised below
project commodity
cost 
‘000 royalty rate
2
escalation
option 
price
discount 
rate
royalty 
valuation 
£ ’000
option 
valuation 
£›000
engenho
1
gold a4000 25 – a035 – – –
evbc gold c7500 25
3 
us1100oz c0958 9 10439 –
isua iron ore a28000 1 – – 10 15008 –
jogjakarta iron sands a5000 2 –
a010 
a050 10 2400 –
27847 –
1
 engenho royalty instrument was fully provided for as at december 31 2011
2
 see page 21 and 28 for further details on the royalty rate
a available for sale
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 available for sale financial assets in accordance with ias 39 and are carried at fair value when the financial asset is considered 
to be an equity instrument changes in valuation are reflected in the investment revaluation reserve and any income is treated as a 
return on investment and recognised in the income statement for financial assets which are considered debt instruments any initial 
valuation movement caused as a result of the difference between an effective interest rate and actual interest is reflected in other 
comprehensive income when material any subsequent valuation adjustment caused by changes in estimated cash flow is reflected 
in the income statement when considered material any effective interest credit is recognised in the income statement should the 
valuation fall beneath cost an impairment charge will be recognised in the income statement see note 29 for further details
group 
£ ’000
company 
£ ’000
fair value
at january 1 2011 28061 28061
additions 18391 –
impairment of royalty instruments 1563 1563
gain on revaluation of royalty instruments recognised in the income statement 2843 2843
loss on revaluation of royalty instruments recognised in equity 4605 4605
at december 31 2011 43127 24736
foreign currency translation 478 –
loss on revaluation of royalty instruments recognised in the income statement 767 767
gain on revaluation of royalty instruments recognised in equity 63 63
at december 31 2012 41945 24032
foreign currency translation 2905 –
impairment of royalty instruments 46 46
loss on revaluation of royalty instruments recognised in the income statement 8689 8689
loss on revaluation of royalty instruments recognised in equity 2458 2458
at december 31 2013 27847 12839
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 96 b fair value through profit and loss
the group’s option to convert the outstanding balance of the debentures into common shares of the grantors is an embedded 
derivative requiring a separate valuation to the nsr royalty as at december 31 2012 and december 31 2013 the directors considered 
the likelihood of the options being exercised to be remote and therefore assessed the fair value of the options to be nil the options are 
classified as fair value through profit and loss with gains and losses arising from changes in fair value directly recognised in the income 
statement as detailed below
group 
£ ’000
company 
£ ’000
fair value
at december 31 2011 december 31 2012 and december 31 2013 – –
2013 2012 2011
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
group 
£ ’000
company 
£ ’000
total royalty instruments 27847 12839 41945 24032 43127 24736
17 intangibles
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 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
group
exploration 
and evaluation 
costs 
£ ’000
royalty 
interests 
£ ’000
total 
£ ’000
gross carrying amount
at january 1 2012 restated 804 52135 52939
additions 127 3720 3847
acquisition costs returned – 82 82
at december 31 2012 restated 931 55773 56704
amortisation and impairment
at january 1 2012 – 2191 2191
amortisation charge – 1018 1018
at december 31 2012 – 3209 3209
carrying amount december 31 2012 restated 931 52564 53495
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 97 notes to the consolidated financial statements
for the year ended december 31 2013
group
exploration 
and evaluation 
costs 
£ ’000
royalty 
interests 
£ ’000
total 
£ ’000
gross carrying amount
at january 1 2011 restated 696 42130 42826
additions 108 10715 10823
acquisition costs returned – 710 710
at december 31 2011 restated 804 52135 52939
amortisation and impairment
at january 1 2011 – 85 85
impairment charge – 1088 1088
amortisation charge – 1018 1018
at december 31 2011 – 2191 2191
carrying amount december 31 2011 restated 804 49944 50748
company
2013 
£’000
2012 
£ ’000
royalty interests
at january 1 3997 3997
impairment charge 947 –
at december 31 3050 3997
the exploration and evaluation costs comprise expenditure that is directly attributable to the trefi and panorama coal projects in british 
columbia canada
royalty interests represent the nsr royalties acquired on the four mile project in south australia the salamanca uranium project in 
spain the black thor black label and big daddy chromite projects in northern ontario canada and a number of tenements in the 
athabasca basin region of canada together with the grrs covering the amapá iron ore system in brazil the mount ida magnetite iron 
ore project in western australia and three exploration licences including the railway iron ore deposit in the central pilbara region of 
western australia
the nsr on the exploration licences in the athabasca basin region of canada remain impaired as a result of the inherent uncertainty 
of these licences entering commercial production and have a carrying value of nil 2012 nil the group will continue to review the 
development of these licences on an annual basis see note 27b and 42b for further information
the amapá royalty interest is the only producing 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
as described in note 27 and 28 an annual impairment review is carried out to determine whether the future expected cashflows 
exceed cost this has resulted in the directors determining that three of the group’s intangible royalties were impaired at december 31 
2013 as outlined below see note 28 for the impairment methodology applied
ring of fire
the operator cliffs natural resources inc announced the placing of its chromite asset on indefinite care and maintenance although 
the group believes that this is too important a project to all stakeholders in the absence of any other publically 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 
£40m in the year
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 98 bulqiza
the directors have taken a view that this project is no longer the principal focus of the owner of the licences in the absence of a sale 
during the year the directors have changed the probability of future production such that the estimated future cashflows is less than 
the acquisition cost this was a relatively small investment made by the group in 2010 this has resulted in an impairment charge of 
£09m in the year
mount ida
the group acquired the mount ida royalty in 2012 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 this has resulted in 
an impairment charge of £33m in the year
the remaining royalties were assessed for impairment on the same basis no further impairment charges were made
18 mining and exploration interests
a available for sale
group 
£ ’000
company 
£ ’000
fair value
at january 1 2011 128231 107865
additions 28101 27488
disposals 41458 30406
impairment taken directly to the income statement 25120 24753
revaluation adjustment 25214 24073
foreign currency translation 237 –
at january 1 2012 64303 56121
additions 23781 11182
disposals 16659 16195
impairment taken directly to the income statement 10346 9869
revaluation adjustment 5159 4486
foreign currency translation 375 –
at december 31 2012 55545 36753
additions 3118 4575
disposals 8452 7859
impairment taken directly to the income statement 24734 15761
revaluation adjustment 4694 3733
foreign currency translation 711 –
at december 31 2013 20072 13975
the group’s mining and exploration interests are acquired as part of the group’s strategy to acquire new royalties and are not held for 
the purpose of trading gains may be realised where it is deemed appropriate 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 3
the group’s impairment policy is outlined in note 29 in line with this policy the absolute decline in value in the group’s mining and 
exploration interests is now considered significant in the context of ias 39 as such all unrealised losses recognised in the revaluation 
reserve are transferred to retained earnings via the income statement in the period any recovery of value will not reverse this 
impairment charge instead will be reflected in the revaluation reserve
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 99 notes to the consolidated financial statements
for the year ended december 31 2013
b fair value through profit and loss
group 
£ ’000
company 
£ ’000
at january 1 2011 248 248
additions – –
disposals – –
at december 31 2011 248 248
additions – –
disposals – –
at december 31 2012 248 248
conversion to intangible – royalty 248 248
at december 31 2013 – –
a nonrepayable convertible instrument was acquired by the group in 2007 the convertible instrument was designated as fair value 
through profit or loss this convertible instrument was created to provide finance to a listed mining development company and is 
convertible into equity in the company or royalties over the company’s properties at the group’s option for a period of up to five years 
the instrument was initially recognised using cost as fair value could not be reliably determined prior to the instrument’s expiration in 
november 2012 the group notified the underlying company of its intention to convert the instrument to royalties the conversion was 
completed in the first quarter of 2013
2013 2012 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
total mining and exploration interests 20072 13975 55793 37001 64551 56369
total mining and exploration interests at december 31 are represented by
2013 2012 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
quoted investments 16018 13646 51547 35102 62389 54656
unquoted investments 3896 171 3518 1171 1434 985
royalty options 158 158 728 728 728 728
20072 13975 55793 37001 64551 56369
number of investments 29 26 37 31 42 33
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 100 19 investments in subsidiaries
£ ’000
company
cost
at january 1 2012 and december 31 2012 33890
capital injection into existing subsidiaries 15772
at december 31 2013 49662
impairment of investment in subsidiary
at january 1 2012 and december 31 2012 345
impairment of investment in subsidiary 3842
at december 31 2013 4187
net book value
at january 1 2012 and december 31 2012 33545
at december 31 2013 45475
the group’s full listing of subsidiaries is provided in note 31
20 trade and other receivables
2013 restated 2012 restated 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
current
income tax receivable 2292 – – – – –
prepayments and accrued income 100 87 136 123 158 146
royalty receivables 2824 195 1219 – 10111 –
other receivables 116 97 603 169 2737 2485
provision for nonrecovery of interest receivable – – – – 709 709
5332 379 1958 292 12297 1922
trade and other receivables principally comprise amounts relating to royalties receivable for the final quarter in each year the directors 
consider that the carrying amount of trade and other receivables is approximately their fair value 
2013 restated 2012 restated 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
noncurrent
other receivables 8775 – 3141 – – –
amounts due from subsidiaries – 31100 – 51884 – 42316
8775 31100 3141 51884 – 42316
on august 13 2012 the group provided laramide resources ltd with an interest bearing facility of c5m 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 us15m the facility bears interest at a rate of 7 per annum payable quarterly in arrears
on december 18 2012 the group entered into a royalty financing agreement with hummingbird resources plc under which the 
group was to provide a noninteresting bearing advance of us15m in three tranches of us5m subject to the satisfaction of various 
conditions precedents during the year the group advanced two of the three tranches
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
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 101 notes to the consolidated financial statements
for the year ended december 31 2013
21 cash and cash equivalents
cash and cash equivalents include the following for the purposes of the statement of cash flows
2013 restated 2012 restated 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
cash at bank and on hand 15501 3902 23083 1903 31116 9317
trading deposits with brokers 205 204 953 951 1081 1077
cash and cash equivalents 15706 4106 24036 2854 32197 10394
22 deferred tax
the movement in the year in the group’s net deferred tax position was as follows
2013 2012 2011
group
£’000
company
£’000
group
£ ’000
company
£ ’000
group
£ ’000
company
£ ’000
at january 1 48532 1800 54240 4401 59824 9479
released to income for the year 10744 2216 591 1416 2411 1416
creditcharge to equity for the year 234 1756 5003 4785 3397 3662
foreign currency translation 7657 – 1296 – 224 –
at december 31 30365 5772 48532 1800 54240 4401
the following are the major deferred tax liabilitiesassets recognised by the group and the movements thereon during the period
coal royalties availablefor saleinvestments
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
total 
£ ’000
at january 1 2011 50277 945 4895 4849 – 748 59824
released to income for the year note 11 1218 – – 1514 – 321 2411
creditcharge to equity for the year – 225 2 3624 – – 3397
foreign currency translation 213 4 – 13 – 28 224
at december 31 2011 49272 724 4897 302 – 1097 54240
released to income for the year note 11 2854 – – 1402 – 861 591
creditcharge to equity for the year – 101 939 4165 – – 5003
foreign currency translation 1345 19 – 57 – 27 1296
at december 31 2012 50781 604 3958 5812 – 209 48532
released to income for the year note 11 4071 – 2220 2845 2249 641 10744
chargecredit to equity for the year – 8 371 129 – – 234
foreign currency translation 7798 99 – 158 – 116 7657
at december 31 2013 38912 513 2109 8628 2249 734 30365
this provision represents the group’s full potential liability to deferred taxation this may be reduced by tax losses available to the 
group australian capital losses are disclosed in note 15 temporary differences arising in connection with interests in associates and 
joint ventures are insignificant
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 102 the following are the major deferred tax liabilities recognised by the company and the movements thereon during the period
availablefor sale investments
company
revaluation
of royalty
instruments
£ ’000
revaluation
of mining
interests
£ ’000
total 
£ ’000
at january 1 2012 4897 496 4401
released to income for the year – 1416 1416
charge to equity for the year 939 3846 4785
at december 31 2012 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
23 trade and other payables
2013 2012
group 
£’000
company 
£’000
group 
£ ’000
company 
£ ’000
other taxation and social security payable 147 99 121 117
trade payables 43 40 106 103
other payables 425 424 1724 291
accruals and deferred income 146 133 220 210
762 696 2171 721
the average credit period taken for trade purchases is 26 days 2012 22 days the directors consider that the carrying amount of trade 
and other payables is approximately their fair value all amounts are considered shortterm and none are past due
24 share capital and share premium
group and company
number of 
ordinary  
2p shares
share capital 
£ ’000
share premium 
£ ’000
total 
£ ’000
at january 1 2012 109189215 2184 25539 27723
issue of share capital under sharebased payment 416161 8 1314 1322
at december 31 2012 109605376 2192 26853 29045
issue of share capital under private placing 1282049 26 2475 2501
at december 31 2013 110887425 2218 29328 31546
25 share basedpayments
following the approval at the 2010 agm the group operates two equitysettled share based compensation plans as follows
• the hmrc approved company share ownership plan the ‘csop’ and
• the jsop operated through the anglo pacific group employee benefit trust
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 mid market 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 ten years the group has no legal or constructive obligation to 
repurchase or settle the options in cash
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 103 notes to the consolidated financial statements
for the year ended december 31 2013
movements in the number of share options outstanding and their related weighted average exercise prices are as follows
2013 2012
options price £ options price £
outstanding at january 1 76928 27406 67463 26681
granted during the year – – 19622 29446
exercised during the year – – – –
surrendered during the year – – – –
forfeited during the year 24048 24950 10157 29535
outstanding at december 31 52880 27406 76928 27406
out of the 52880 outstanding options 2012 76928 nil options 2012 nil were exercisable
share options outstanding at the end of the year have the following expiry date and exercise prices
shares
expiry date
exercise price 
in £ per share 2013 2012
2019 24950 24048 48096
2021 32570 9210 9210
2022 33043 9079 9079
2022 28454 10543 10543
52880 76928
there were no grants made during 2013 the weighted average fair value of options granted during 2012 determined using the 
blackscholes valuation model was £1649 per option granted in march 2012 and £1318 per option granted in september 2012 the 
significant inputs into the model were weighted average share price of £3286 and £2668 at the grant date in march and september 
2012 respectively exercise price shown above volatility of 40 expected option life of three years and an annual riskfree interest rate 
of 11 and 08 for the options granted in march and september 2012 respectively see note 8a for the total expense recognised  
in the income statement for share options granted to directors and employees
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 three year vesting period as determined by 
the remuneration committee at the time of making the award
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
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 104 jsop awards made during the year were as follows
shares
grant price in  
£ per share
hurdle price in 
£ per share 2013 2012 expiry date
outstanding at january 1 2480 3150 866610 678746 2014
awarded in march 2011 3260 4225 – – 2015
awarded in september 2011 2919 4625 – – 2015
awarded in march 2012 3320 4500 – 205420 2016
awarded in september 2012 2668 3692 – 71227 2016
surrendered during the year 338700 –
forfeited during the year 250553 88783
outstanding at december 31 277357 866610
no shares were awarded under the jsop during 2013 the weighted average fair value of shares awarded during 2012 determined 
using the monte carlo valuation model was £075 per share granted in march 2012 and £057 per share granted in september 2012 
the significant inputs into the model were weighted average share price of £332 and £267 at the grant date in march and september 
2012 respectively share price hurdle shown above volatility of 40 expected option life of four years and an annual riskfree interest 
rate of 11 and 08 for the shares granted in march and september 2012 
in accordance with the terms of the jsop  mr theobald and mr orchard surrendered their awards upon their resignation on 
october 21 2013 see note 8a for the total expense recognised in the income statement for share options granted to directors 
and employees
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 2013 this reserve remains unavailable for distribution 
group
£ ’000
company 
£ ’000
at january 1 2013 and december 31 2013 632 632
27 retained earnings
group 
£ ’000
company 
£ ’000
balance at january 1 2011 restated 223111 120608
surrender of options from sharebased payment 19 19
dividends paid 8978 8978
profit for the financial year restated 10932 15516
balance at december 31 2011 restated 225084 127165
surrender of options from sharebased payment 5 5
dividends paid 10579 10579
profit for the financial year restated 11580 1711
balance at december 31 2012 restated 226090 114880
surrender of options from sharebased payment 268 268
dividends paid 11065 11065
profit for the financial year 42497 25506
balance at december 31 2013 172796 78577
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 105 notes to the consolidated financial statements
for the year ended december 31 2013
28 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
2013 
£’000
2012 
£ ’000
group
within one year 168 168
in the second to fifth years inclusive 100 218
after five years 75 171
343 557
the annual commitments for leases expiring after five years total £50000 per annum
capital commitments
at the year end the group had capital commitments of £nil 2012 £nil in respect of purchases of quoted investments the group’s 
share of capital commitments of joint ventures at the balance sheet date amounted to £nil 2012 £nil
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
29 related party transactions
during the year group companies entered into the following transactions with subsidiaries
subsidiaries
2013 
£’000
restated  
2012 
£ ’000
net financing of related entities 31294 6224
management fee 2166 2176
amounts owed by related parties at year end 31100 51884
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 on  pages 51 to 55
2013 
£’000
2012 
£ ’000
shortterm employee benefits 1098 841
postemployment benefits 17 22
sharebased payment – 120
1115 983
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 106 directors’ transactions
during the year the directors received dividends as ordinary shareholders of the company totalling
2013 
£
2012 
£
pm boycott
1
119792 263102
ac orchard
2
11226 10731
mr potter
3
– –
j theobald
4
4117 3935
ja treger
5
– –
bm wides 298468 285300
mh atkinson 757 724
wm blyth
6
403 –
pnr cooke
7
912890 –
rh stan
8
– –
jg whellock 1335 1276
ah yadgaroff 17897 16788
1366885 581856
1
 mr pm boycott ceased to be a director on january 7 2014
2
 mr ac orchard resigned as a director on october 21 2013
3
 mr mr potter was appointed as a director on october 21 2013
4
 mr j theobald resigned as a director on october 21 2013
5
 mr ja treger was appointed as a director on october 21 2013
6
 mr wm blyth was appointed as a director on march 20 2013
7
 mr pnr cooke was appointed as a director on december 10 2012 after the payment of the interim and final dividend in 2012
8
 mr rh stan was appointed as a director on february 19 2014
30 events occurring after year end
on march 13 2014 the group made its final advance of us5m in relation to the royalty financing agreement entered into with 
hummingbird resources plc in december 2012
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 107 notes to the consolidated financial statements
for the year ended december 31 2013
shareholder statistics
31 principal subsidiaries
country of registration  
and operation principal activity
proportion of shares held at 
december 31 2012
starmont holdings pty ltd australia
intermediate  
holding company 100
indian ocean resources 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 investments 100
apg aus no 2 pty ltd australia investments 100
apg aus no 3 pty ltd australia investments 100
apg aus no 4 pty ltd australia investments 100
apg aus no 5 pty ltd australia investments 100
apg aus no 6 pty ltd australia investments 100
anglo pacific finance ltd ireland treasury 100
anglo pacific group employee benefit trust guernsey
administering group  
incentive plans 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 tenures 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 
a size of holding at march 24 2014
category uk and canada
number of 
shareholders 
number of 
shares 
1 – 1000 716 3093 390211 035
1001 – 5000 977 4220 2445253 220
5001 – 10000 231 998 1726762 156
10001 – and over 391 1689 106325199 9589
2315 10000 110887425 10000
b the percentage of total shares held by or on behalf of the twenty largest shareholders as at march 24 2014 was 5744
financial statements
apg01  ar13  31032014  back proof 7
anglo pacific group plc  annual report and accounts 2013 108 apg01  ar13  28032014  cover art apg01  ar13  28032014  cover art
 
01
  
group overview
 01 the vision 
 02 the opportunity
 04 anglo pacific at a glance
 05 our principal royalties
 06 chairman’s statement
 
09
  
strategic report
 09 chief executive officer’s statement
 10 market overview
 12 our strategic objectives
 14 our business model
 16 key performance indicators
 17 principal risks and uncertainties
 21 our portfolio
 22 business review  
 29 financial review
 33 corporate social responsibility report
 
35
  
governance
 35 directors’ report
 38 corporate governance report
 43 directors’ remuneration report
 56 important notices
 58 statement of directors’ responsibilities 
 
59
  
financial statements
 59 report of the independent auditor
 62 consolidated income statement
 63 consolidated statement  
  of comprehensive income
 64 consolidated and company  
  balance sheets
 65 consolidated statement  
  of changes in equity
 67 company statement of  
  changes in equity
 68 consolidated and company  
  cash flow statements
 69 notes to the consolidated  
  financial statements
 1 0 8 s h a r e h o l d er st a t i st ic s
 109 directors and advisers
contents
printed in the uk by cpi commercial print ltd  
on amadeus primo silk fsc
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 certified paper
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using ecf pulp is manufactured according to  
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designed and produced by boone design
directors
executive
bm wides 
acting chairman
ja treger 
chief executive officer
mr potter  
chief investment officer
nonexecutive
mh atkinson 
senior independent director
wm blyth
pnr cooke
rh stan
jg whellock
ah yadgaroff
secretary
ptj mason
head office
17 hill street  
london w1j 5lj
registered office
17 hill street  
london w1j 5lj
registered in england  
no 897608
auditors
grant thornton uk llp
grant thornton house 
melton street 
london nw1 2ep
bankers
barclays bank plc
business banking larger 
business
27th floor 
churchill place
london e14 5hp 
registrars
equiniti registrars limited
aspect house
spencer road
lancing
west sussex bn99 6da
transfer agent
equity transfer  trust 
company
suite 400
200 university avenue
toronto
ontario m5h 4h1
stockbrokers
liberum capital limited
ropemaker place
12th floor
25 ropemaker street
london ec2y 9ly
bmo capital markets limited
1st floor
95 queen victoria street
london ec4v 4hg
listings
london stock exchange
full listing 
symbol apf
toronto stock exchange
secondary listing
symbol apy
website
wwwanglopacificgroupcom
directors and advisers
financial statements apg01  ar13  28032014  cover art apg01  ar13  28032014  cover art
anglo pacific group plc  annual report  accounts 2013
anglo pacific group plc
annual report  accounts 2013
anglo pacific group plc 
17 hill street 
mayfair 
london w1j 5lj 
united kingdom 
t  44 020 3435 7400  
f  44 020 7629 0370
e  infoanglopacificgroupcom 
w  wwwanglopacificgroupcom
a strong 
foundation  
for growth


Summary:
 apg01  ar13  31032014  front proof 13
group overview 
chairman’s statement
despite the current challenges facing the global mining industry anglo pacific 
continued its underlying profitability during the period we have maintained our total 
dividend for the year despite the headline loss reported as we view the potential 
outlook for the business as being one where we expect to see future growth 
we are pleased to welcome julian treger and mark potter as the company’s new chief executive 
officer and chief investment officer respectively julian and mark joined late in 2013 from audley 
capital advisors llp an investment advisory firm managing valueorientated special situations 
investment strategies through hedge fund and coinvestment vehicles both have a strong track record  
of investing in the mining sector and a level of financial expertise that we believe will be of considerable 
benefit to anglo pacific’s current portfolio of royalty investments and also to future acquisitions  
in particular they bring with them new avenues for acquiring and creating royalties and opportunities 
for a wider spectrum of new investors in the company julian and mark invested £25m in new anglo 
pacific shares and the expectation is for them to increase their shareholding as the company grows 
we believe that there is increasing demand for alternative financing in the base metals and bulk 
materials sector this should provide many opportunities to acquire valueaccretive royalties increasing 
and diversifying the group’s revenue sources
our ambitions to expand are underpinned by our cornerstone asset the kestrel royalty the completion 
of rio tinto’s us2bn capex program on its new kestrel south mine underlines its commitment to  
the kestrel operations rio tinto’s production update for q4 2013 reflects substantial increases across 
both its coking coal and thermal coal operations and further strengthens our conviction in kestrel’s 
ability to meaningfully contribute to ebitda growth for the group in the mediumterm
our adjusted profit refer to page 30 of £91m 2012 £94m restated which excludes noncash 
impairment and valuation items and their associated tax impact demonstrates that the underlying 
business of the group remains profitable the group’s strategic equity investments currently 
representing 77 of its assets amount to £201m as at december 31 2013 despite difficulties in  
the junior mining markets during the year the group realised £53m in cash from the sale of equities 
where a royalty was no longer considered achievable the group plans to retain a select group of 
strategic equity investments which is hoped will enable future royalty discussions
in november 2013 the group was pleased to announce the signing of a coinvestment agreement  
with flowstream commodities ltd ‘flowstream’ an oil  gas streaming and royalty company  
anglo pacific was also a founding shareholder in this venture the agreement entitles the group to 
participation in flowstream’s first five investments 
appointment of julian treger  
and mark potter as ceo and cio
total dividend for 2013 maintained  
at 102p 
anglo pacific group plc  annual report  accounts 2013 06 apg01  ar13  31032014  front proof 13
cornerstone asset commences production  
at kestrel south following completion  
of rio tinto us2bn capex program 
impairment has been widespread across the international mining industry amidst falling commodity 
prices and continued tightening in the capital markets we believe that anglo pacific is well placed to 
endure these challenges and the underlying business of the group has remained profitable we have  
not escaped our own impairments particularly in our strategic equity investments most of which  
are junior mining equities however as these are carried at market value at each reporting date this  
has had little impact on the balance sheet there have also been impairment charges in relation to  
some of the group’s long dated royalties where macroeconomic conditions may delay the eventual 
production expected from them
the company is pleased to recommend a final dividend for 2013 of 575p per share maintaining a total 
dividend of 102p per share equalling the level paid out to shareholders for the year ended december 
31 2012 this reflects our confidence in future production from kestrel and our other producing royalties 
as well as our ability to acquire additional cashproducing royalties in the nearterm
board
it was with great sadness that on january 7 2014 peter boycott passed away peter had served as 
chairman of the board of the company since 1997 he stepped down as chairman in august 2012  
for health reasons but was still able to participate actively at board meetings and to chair the annual 
general meeting ‘agm’ in may 2013 with his tireless energy and business skills peter made an 
enormous contribution to the company’s recovery and growth over the past decade transforming it  
into the successful mining royalty company it is today as i took on the role of acting chairman due to 
peter’s ill health i will be stepping down from this intermediary position and will not be offering myself 
for reelection at the next agm i will be handing over to mike blyth who will succeed me as non
executive chairman with effect from april 1 2014 john whellock and michael atkinson will also be 
stepping down from the board at the next agm i would like to thank both john and michael for their 
contribution to the company over the years and have every confidence in mike and the rest of the  
team in leading anglo pacific through a new period of growth
finally i am pleased to welcome robert stan onto the board robert is a canadian national with a 
prominent background in the mining industry most recently serving as ceo for grande cache coal 
corporation until the company was sold in 2012 for us1bn his extensive knowledge and experience  
in the mining industry makes him a strong addition and his particular focus on the coal sector should 
provide valuable insights to the group’s bulk materials royalties his considerable network of contacts 
within the canadian investment community will also prove beneficial as the company seeks to  
expand its north american investor base
renewed focus on nearterm  
cashproducing royalties
anglo pacific group plc  annual report  accounts 2013 07
group overview apg01  ar13  31032014  front proof 13
outlook
the group enters 2014 with cautious optimism the mining majors appear to be focused on increasing 
returns to their shareholders which they are trying to achieve through renewed focus on the efficiency  
of their existing operations cutbacks have been announced for many new projects which over  
the medium and longterm should positively affect the supplydemand balance across commodities
in the meantime opportunities continue to arise for alternative financing in the base metals and bulk 
materials sector the group is currently assessing a number of suitable opportunities and we look 
forward to updating shareholders as and when these materialise 
in conclusion i would like to thank all my colleagues for their considerable energy and unstinting 
dedication to the running of our company throughout the year 
on behalf of the board
bm wides 
acting chairman
march 31 2014
group overview 
chairman’s statement
anglo pacific group plc  annual report  accounts 2013 08