The Company expects to release its full year results on
Buoyed by continued strength in coking coal and cobalt prices, both trading at recent historical highs, the Company's portfolio generated
Importantly, both coking coal and cobalt prices have remained at recent record levels thus far in 2022 and so the outlook for short-term earnings looks encouraging. The royalty model provides exposure to this commodity price upside while offering greater protection against operating cost increases and capex over-runs being seen across the mining sector as a result of the current inflationary pressures.
Highlights
Total portfolio contribution for FY 21 increased to around
Cobalt prices currently 70% higher than at the time of the Voisey's Bay acquisition
Sales volumes at Kestrel were down 6% in Q4 21, which should benefit revenue in H1 22 at higher prices as these deferred volumes are recovered
Voisey's Bay generated a net contribution of
Cobalt prices in H2 21 trigger, subject to threshold production volumes being achieved, contingent consideration of up to
Current coking coal and cobalt prices of
Leverage ratio expected to decrease significantly, comfortably under 1.5x at
The Nomination Committee and Board are in the advanced stages of finalising the CEO succession, with an announcement expected to be made shortly
These record results are largely attributable to a prolonged increase in coking coal and cobalt prices. It is worth remembering that at this time last year the coking coal price was just above
The coking coal price has now been well in advance of
In addition, infrastructure disruption in
Sales volumes from Kestrel were lower than expected during 2021. This shortfall is expected to be recovered during the first half of 2022 and delays the period in which mining moves away from our private royalty land by a further quarter. With stronger coking coal prices at the beginning of this year compared to last, this bodes well for earnings in 2022.
The impact of this record level of quarterly contribution will allow very meaningful deleveraging during the first quarter of 2022 and provide us with greater access to liquidity from which to continue to add growth opportunities to what we believe is the highest quality portfolio of future facing base metal royalty and streaming assets in the market.
Finally, as this is my valedictory trading update, I would like to express my thanks to all our stakeholders for supporting the strategic pivot of the business from our coal legacy towards those 21st century commodities that will support a more sustainable world. I am proud of what has been achieved over the past eight years and the Company is in safe hands with a very talented and experienced management team capable of taking the business to the next level.'
Contact:
Tel: +44 (0) 20 3435 7400
Web: www.anglopacificgroup.com
About
Cautionary statement on forward-looking
statements and related information Certain statements in this announcement, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Group's expectations and views of future events. Forward-looking statements (which include the phrase 'forward-looking information' within the meaning of Canadian securities legislation) are provided for the purposes of assisting readers in understanding the Group's financial position and results of operations as at and for the periods ended on certain dates, and of presenting information about management's current expectations and plans relating to the future. Readers are cautioned that such forward-looking statements may not be appropriate other than for purposes outlined in this announcement. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, cash flow, requirement for and terms of additional financing, performance, prospects, opportunities, priorities, targets, goals, objectives, strategies, growth and outlook of the Group including the outlook for the markets and economies in which the Group operates, costs and timing of acquiring new royalties and making new investments, mineral reserve and resources estimates, estimates of future production, production costs and revenue, future demand for and prices of precious and base metals and other commodities, for the current fiscal year and subsequent periods. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'plans', 'believes', 'estimates', 'seeks', 'intends', 'targets', 'projects', 'forecasts', or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may', 'will', 'should', 'would' and 'could'. Forward-looking statements are based upon certain material factors that were applied in drawing a conclusion or making a forecast or projection, including assumptions and analyses made by the Group in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. The material factors and assumptions upon which such forward-looking statements are based include: the stability of the global economy; the stability of local governments and legislative background; the relative stability of interest rates; the equity and debt markets continuing to provide access to capital; the continuing of ongoing operations of the properties underlying the Group's portfolio of royalties, streams and investments by the owners or operators of such properties in a manner consistent with past practice; no material adverse impact on the underlying operations of the Group's portfolio of royalties, steams and investments from a global pandemic; the accuracy of public statements and disclosures (including feasibility studies, estimates of reserve, resource, production, grades, mine life and cash cost) made by the owners or operators of such underlying properties; the accuracy of the information provided to the Group by the owners and operators of such underlying properties; no material adverse change in the price of the commodities produced from the properties underlying the Group's portfolio of royalties, streams and investments; no material adverse change in foreign exchange exposure; no adverse development in respect of any significant property in which the Group holds a royalty or other interest, including but not limited to unusual or unexpected geological formations and natural disasters; successful completion of new development projects; planned expansions or additional projects being within the timelines anticipated and at anticipated production levels and maintenance of mining title.
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