Higher coal and cobalt prices drive Anglo Pacific’s results upwards
Anglo Pacific Group (APG), a leading natural resources investment company, today published encouraging third quarter results after it saw its highest-ever portfolio income contribution of $23.6m.
Its record portfolio income results were 180 per cent high than the same period last year, and a fraction ahead of the firm’s interim results of $23.04m.
APG’s results were largely driven by its royalty and streaming assets, which generated the majority of portfolio income in the three months to 30 September, at $21.60m.
The firm said its results also benefitted from very high coking coal prices being captured at Kestrel during the quarter, which resulted in revenue of $11.7m.
After the company completed its largest-ever acquisition in the first half of the year, picking up Voisey’s Bay cobalt stream for $205m, the unit generated $6.81m income in the third quarter, up 119 per cent on the previous quarter.
APG said the unit’s performance benefitted from higher cobalt prices than it had anticipated for the second half, which have increased 13 per cent since the acquisition.
Julian Treger, who has been Chief Executive Officer of Anglo Pacific for eight years and last quarter announced he would be stepping down, said the firm was “delighted” with the revenue and streaming results.
“Having lagged the broader commodity basket, coking coal prices began to rebound significantly at the beginning of the third quarter, averaging around $210/t for the period in which our Q3 royalty was payable,” Treger said.
“Prices have continued to increase since and are now at ~$390/t which suggests that the fourth quarter could provide a very strong finish to the year for the Group.”
After the encouraging third quarter portfolio performance, the Group said it would be able to “meaningfully de-lever” during the fourth quarter, with its leverage ratio now under 2x.