Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF, FRA:HGR), a natural resources royalty and streaming company, said Julian Treger wishes to step down as chief executive in due course and that it has started a search for his replacement.
Treger, who was instrumental in moving the group’s focus away from coal and towards 21st century commodities during his eight years in the role, will remain as CEO until 31 March 2022 to ensure a smooth transition, the company said.
“2021 has been truly transformational for Anglo Pacific, as we completed our largest ever acquisition in March of the Voisey’s Bay cobalt stream,” Treger said.
“The company has been transformed from predominantly a single producing royalty holder in 2013, which is when I took over, to a business with a stable revenue profile and exposure to commodities which should be key towards the transition away from fossil fuels and into cleaner energy and technology.”
About 53% of the group’s portfolio contribution is now derived from non-coal revenue.
“With an experienced management team in place, it now feels like the right time to hand over to somebody new and for me to pursue other business interests in due course,” Treger said.
The announcement was made on the same day as the group’s interim results, which were reported in US dollars for the first time as the majority of Anglo Pacific’s revenue is in that currency.
Portfolio contributions were US$23.0mln, down from US$24.1mln in the first half of 2020, as lower coking coal prices and volumes at both Kestrel and Narrabri, primarily in the first quarter, outweighed the maiden contribution from the Voisey’s Bay stream.
“The first-half results do not reflect what appears likely to be a strong year for Anglo Pacific,” said Treger.
“The recent increase in coking and thermal coal spot prices, currently at 52-week highs, accelerated at the beginning of June, lagging the increases which took hold for other commodities at the beginning of the year.
“Coking coal prices have increased 120% in the year to date, with 90% of this occurring in the last three months. Thermal coal is up by 102% year to date and 80% in the last three months. With stability now appearing to have returned to coal markets, we are cautiously optimistic that these price levels can be sustained through the second half of 2021.
“In addition to coal prices, cobalt has increased by 20% in the last three months, which looks set to benefit the transformational US$205m Voisey’s Bay stream acquisition completed at the end of Q1 21.
“The outlook for commodities in general continues to be well supported by significant infrastructure commitments outlined by some of the largest economies as a means to ensure no lasting damage caused by the COVID pandemic.
“Coupled with ongoing momentum in the development of decarbonisation technology, and the possibility of rising inflation, we see solid fundamentals for sustained pricing levels for commodities. As a result, we are confident that the second half will see a significantly higher outturn than that of the first six months of the year,” he concluded.