Anglo Pacific pivots towards battery metals as world turns green

Anglo Pacific Group PLC is a global natural resources royalty and streaming company.

The company’s strategy is to become a leading natural resources company through investing in high quality projects in preferred jurisdictions with trusted counterparties, underpinned by strong ESG principles.

It is a continuing policy of the company to pay a substantial portion of these royalties and streams to shareholders as dividends.

(, , ) has turned in a record third quarter, as its royalty portfolio generated income of US$23.6mln on the back of strong coal and cobalt prices.

The company’s royalty on the Kestrel coal mine in Australia generated US$11.7mln, but with current coking coal spot prices at around US$390 per tonne it looks like fourth-quarter income could be even higher.

Cobalt prices were also higher during the third quarter, resulting in a net contribution of US$5.2mln from Voisey’s Bay and, with spot prices in excess of US$27per pound, the outlook for the remainder of the year looks promising.

The company’s Maracas Menchen, Mantos Blancos and EVBC royalties performed solidly in the third quarter, although there were issues at the Narrabri project.

(, , ) has agreed to sell its 1% gross revenue royalty over the Narrabri mine in Australia to the operator, (), for up to US$36mln (GBP26mln), marking its exit from thermal coal.

The sale improves the group’s carbon footprint with a remaining portfolio of assets now increasingly weighted towards cobalt, vanadium, copper and nickel – commodities which will be essential to decarbonise energy generation in the years ahead, it said.

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.

“We’ve been looking for a big transformational acquisition for some time,” says Julian Treger of Anglo Pacific Group PLC (LON:APF).

“And this is it.”

(, , )’s (LON:APF, ) Chief Financial Officer Kevin Flynn talks to Proactive London’s Katie Pilbeam about turning a record third quarter.

Its royalty portfolio generated income of US$23.6mln on the back of strong coal and cobalt prices.

The company’s royalty on the Kestrel coal mine in Australia generated US$11.7mln, but with current coking coal spot prices at around US$390 per tonne it looks like fourth quarter income could be even higher as Flynn explains.