Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF) reported a record portfolio contribution in the second quarter - a fourth consecutive quarterly record for the natural resources royalty and streaming company.
The portfolio contribution of US$49.2mln was 13% higher than the previous record of US$43.6mln achieved in the first quarter of the year.
It takes the total portfolio contribution for the first half to US$92.8mln, exceeding the US$85.6mln generated for the whole of 2021.
However, it said that the quarter to end-June was expected to be the strongest quarter of the year due to weaker commodity prices so far in the second half and the gradual step down in volumes at the Kestrel coking coal mine likely to start at the end of the year.
“These record levels of income are not expected to be sustained in the second half of the year as commodity prices have pulled back, although the increase in the Queensland royalty rates will offset some of the impact of lower coking coal prices at Kestrel,” said chief executive Marc Bishop Lafleche.
READ: Anglo Pacific eyes 75% uplift in Kestrel revenues as Queensland ups coal royalty rate
“The recent volatility in commodity prices across the board may also present opportunities for us to pursue further value-enhancing acquisitions and with over US$160mln of firepower we remain well capitalised to transact."
Anglo Pacific recently announced it had agreed to buy a portfolio of royalties over advanced development stage copper and nickel projects from South32 Royalty Investments Pty Ltd.
Anglo Pacific to buy portfolio of copper and nickel royalties from South32 for initial US$185mln
The purchase, largely financed from record portfolio contributions, is designed to replace Kestrel mid-decade.