LONDON (ShareCast) - Australia-based mining royalties company Anglo Pacific Group saw profits soar despite a decline in royalty income, as income from the sale of non-core interests virtually doubled.

Coal royalties in 2007 declined to £8.4m from £10.5m in 2006, due to production delays at its mines and diminishing returns at its Crinum mine. However, total income grew to £34.9m from £24.3m as the profit on the sale of mining and exploration interests jumped to £25.6m from £13.3m in the previous year.

The value of the group’s coal royalty interests increased to £61m at the end of 2007 from £48m at the beginning of the year, reflecting the sharp rise in the price of coal.

Profit before tax improved to £33.8m from £22.1m, and the company has bumped up the final dividend by 15% to 4.35p, making total dividends for the year 7.35p, also up 16%.

The group remains debt free and its cash pile at the end of 2007 had increased to £18.9m from £9.8m.

The group said its increased liquidity and active management policy leave it well placed to secure new royalty flows and to continue to develop its mining interests. To this end, the group is in the process of expanding its in-house mining and technical teams.

“The group is confident that recent higher prices for coal will be maintained for the medium term which should be reflected in the group's coal royalty receipts,” said PM Boycott, chairman.

• News Channel