(Alliance News) - A significant volume increase at the Kestrel mine has helped Anglo Pacific Group PLC to "another record year", the mining royalty company said Monday.
London-based Anglo Pacific gets royalties from the Kestrel coking coal mine in Queensland, Australia. It has a number of investments across Australia, Europe, and the Americas, in commodities such as coal, iron ore, uranium, and vanadium.
The company has guided for GBP57 million to GBP59 million in royalties for 2019, which would be 16% to 20% higher year-on-year. In 2018, royalties were just GBP3.5 million.
Kestrel did well during the year, Anglo Pacific said, as did Labrador Iron Ore Co of Canada. Anglo Pacific also received maiden royalties from the Mantos Blancos copper mine in Peru.
The company will be paying a dividend of at least 9 pence per share for 2019, compared to 8p the year before. This 2019 payment will include the 4.875p already paid or declared by Anglo Pacific.
"We are pleased to report yet another record year of income for Anglo Pacific, the second year in a row in which we have done so," said Chief Executive Julian Treger.
"Our income benefited mainly from volume increases in the year, somewhat offset by the softening in commodity prices, particularly coal and vanadium, during second-half 2019. We anticipate further volume growth to come in 2020, with increases expected at Kestrel, Narrabri and Maracas."
"It is likely the extractive industry will face further headwinds in 2020 and accessing capital will be more difficult. This should create opportunities for Anglo Pacific, and we will prioritise those commodities essential to deliver the technology required to achieve environmental and climate change targets in the years ahead," Treger continued.
Anglo Pacific will release full-year results on March 25. Shares were 0.6% higher on Monday morning in London at 183.00p each.
By George Collard; georgecollard@alliancenews.com
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