Anglo Pacific expects stronger second-half performance
LSE- and TSX-listed natural resources royalty and streaming company Anglo Pacific Group expects the second half of the year to be stronger than the first half, as demand gradually recovers, driving improved commodity pricing.
CEO Julian Treger says that, although the group has experienced limited Covid-19 operational disruptions at its main producing assets, it has been impacted through a softer pricing environment in the second quarter of this year, particularly in relation to metallurgical and thermal coal caused by a combination of Indian import restrictions and weaker economic activity in China during the first quarter.
“Both events have resulted in a supply surplus which has impacted on prices.”
Anglo Pacific holds royalties over the Kestrel and Narrabi coal operations in Australia.
Anglo Pacific's portfolio contributions fell from £25.5-million in the second half of 2019, to between £18.5-million and £19-million in the six months ended June 30, mainly as a result of the recent softening of coal prices as a result of Covid-19.
Meanwhile, the company reports in a trading update, that two instances of Covid-19-related disruptions had resulted in the El Valle-Boinàs/Carlés gold, copper and silver mine, in Spain, being placed on care and maintenance for a two-week period, with production having resumed in April.
Further, the Cigar Lake uranium mine, in Canada, remains on care and maintenance.
Despite iron-ore prices having held up well as a result of the supply issues persisting in Brazil, income from Labrador Iron Ore Royalty Corp, in Canada, had been lower as a result of planned capital expenditure at the underlying operation.
In Africa, Anglo Pacific has a royalty on Aim-listed Hummingbird Resources' Dugbe 1 gold project, in Liberia.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation