(MENAFN- ProactiveInvestors)- adds broker comment - Mining royalty specialist Anglo Pacific (LON:APF TSX:APY) increased its income in its latest quarter helped by coal mine Narribi's contribution. Royalty related income rose to £1.9mln in the three months to September up from £0.5mln a year ago and in spite of the slide in the price of coal and other commodities. Anglo has royalty agreements with the Narribri and Kestrel coal mines in Australia. Both are on track to hit production targets this year said Anglo even though the third quarter saw major long wall overhaul work at each of the mines. Anglo Pacific noted reports that Rio Tinto Kestrel's owner intends to close the mine unless it is granted a licence extension but believes this is part of the normal permitting process for an extension to cover the full extent of the mine plan. The extension plan also would not affect its royalty as it is largely outside of its area of interest. Kestrel's production should recover during this quarter as rates continue to improve towards nameplate long wall capacity of around 6Mtpa. At Narribri owner Whitehaven Coal has also applied to increase the production limit to higher than Anglo calculated when it acquired the royalty in March. Elsewhere an updated study at Berkeley Energy's Salamanca uranium project in Spain has indicated a value substantially ahead of its book value of A$4mln. Anglo has a 1% net smelter royalty over the project and 16.75% stake in Berkeley. For the first nine months royalty income totalled £5.7mln (£3.0mln). Net assets at the end of the period were £161.4mln (£171mln). Julian Treger chief executive said: "The increase in the group's royalty income is largely due to the royalty income received from the Narrabri royalty acquired in the first half of the year and has been achieved in a period where commodity prices have remained under significant pressure. "With long wall change-outs successfully completed at both Kestrel and Narrabri we are expecting a strong finish to 2015." Anglo Pacific has also now moved to a standard listing on London's Main Market from a premium listing previously. Broker SP Angel added that consensus numbers are revenues of £10mlm for the full year which is premised on a stronger final quarter. An 8p dividend looks high it added based on projected net income but is covered by cash on the balance sheet and arguably most of the falls in the commodities are priced in now. Shares rose 1% to 65p.
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