Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF) reported record income for the third consecutive quarter as the royalty company continued to benefit from strong cobalt and metallurgical coal prices.
It posted a first-quarter portfolio contribution of US$43.6mln, more than four times higher than year-earlier figure of US$9.4mln and 14% above the previous record of U$38.3mln in the fourth quarter of 2021.
"I am delighted to report a third consecutive quarterly record in my maiden trading update since my appointment as CEO,” said chief executive Marc Bishop Lafleche.
“Driven primarily by metallurgical coal and cobalt prices at record or near record levels, the first quarter of 2022 generated over 50% of the total portfolio contribution realised during the entire 2021 period.”
The company expects pro-forma net debt to be about U$45mln at the end of April and that cashflow in the second quarter will rapidly reduce its debt.
"We will continue to direct cashflows to rapidly reduce borrowings and, subject to our disciplined approach to evaluating growth opportunities, look to recycle windfall Kestrel metallurgical coal royalty proceeds into the acquisitions of royalties and streams that will enhance the group's growth profile," said Bishop Lafleche.
Last week, the company announced a favourable ruling on the Four Mile legal dispute.
READ: Anglo Pacific hails favourable legal ruling in Four Mile royalty dispute
Anglo said today that it estimates it is owed about A$6mln (£3.4mln) (excluding interest and legal costs) covering the start of production to the date of the legal decision.