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Anglo Pacific impacted by softer coal prices in 2020, and also by their subsequent recovery

Anglo Pacific has a diverse portfolio of royalty assets

Anglo Pacific Group PLC -

A softer market for coal has resulted in a lower portfolio contribution for Anglo Pacific Group PLC (LON:APF)(TSE:APY), although the drop is also set against the context of a record year in 2019.

The 2020 portfolio contribution rebounded strongly in the final quarter as commodity markets started to recover, particularly iron ore and copper which rallied during the second half of 2020 and coking coal prices which continue to recover in 2021, currently trading at around US$156 per tonne.

That price represents an increase of 50% in the year to date.

The operations underlying the company’s producing royalty-related assets remained largely unaffected by coronavirus, with the exception of the McClean Lake Mill which was placed back on care and maintenance at the start of January 2021, following suspension of operations at the Cigar Lake uranium mine during Q4 2020.

Net debt at the year end stood at £24.4mln.

Total dividends for 2020 will amount to 9p.

"While I am pleased to report that the operations underlying the Group's portfolio were largely unaffected by the Covid-19 pandemic, commodity prices and in particular softer coal prices have resulted in a drop in portfolio contribution for 2020, in what has been a challenging period for all,” said chief executive Julian Treger.

“A large fall off in prices during the second quarter of 2020 affected the results for the full year, however there was a strong rebound in iron ore and copper in the second half of 2020 and it is encouraging that coking coal is one of the best performing commodities of 2021, up almost 50% year to date, which could drive a more positive portfolio contribution in 2021.”

Quick facts: Anglo Pacific Group PLC

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Price: 121 GBX

Market Cap: £258.67 m

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