Mining royalty company Anglo Pacific Group expects continuing growth
Mining royalty company Anglo Pacific Group started off the first quarter of this year with a strong cash flow of £13.3m following on from its record year 2017.
The figures
Anglo Pacific Group has seen royalty income double each year since 2015 and announced that the cash flow had remained stable at £13.3m, compared to first quarter of 2017 when it was £13.4m.
The total contribution from its royalty portfolio was, however, slightly down from last year ending up at £7.9m compared to £8.2m the year before.
Read more: Anglo Pacific boosts portfolio in $65m Whitehaven royalty deal
Why it's important
The company stands out from other mining royalty companies in the sense that it does not focus exclusively on the precious metals gold and silver, which makes up the minority of the market, but focuses instead on metals such as coal, iron, nickel and vanadium.
According to chief executive of the company Julian Treger, although the first quarter was as expected, the company will see the majority of its growth in the second half of this year, but will most likely not double as it has done in previous years.
Anglo Pacific Group has seen rapid growth and had a record year in 2017 with royalty income reaching £37.4m which was a 90 per cent increase from 2016.
What Anglo Pacific Group said
Treger said:
“The mining sector is improving and we are seeing growth in our commodities … We continue to generate significant cash from our portfolio, have immediate access to $65m and are currently in the process of upsizing out bank facility.”
“The focus for the year is firmly on growth and we continue to work very hard on exploring, evaluating and appraising new opportunities,” he said.
In short
The company expects to grow for the remaining three quarters of the year although not at a rate as sharp as it has seen in previous years.
Read more: Caledonia Mining profit boost in first quarter supported by gold prices
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