Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF) 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 Maracás Menchen, Mantos Blancos and EVBC royalties performed solidly in the third quarter, although there were issues at the Narrabri project.
"We are delighted to announce a record quarter of portfolio contribution from our royalty and streaming assets,” said Anglo Pacific’s chief executive Julian Treger.
“Having lagged the broader commodity basket, coking coal prices began to rebound significantly at the beginning of the third quarter, averaging around US$210 per tonne for the period in which our third quarter royalty was payable. Following the recent announcement of the sale of our thermal coal royalty, we continue to pursue our strategy of increasing our exposure to commodities that support a more sustainable world and expect the contribution from coking coal related assets to reduce to ~8% of group's total portfolio contribution by 2025.”