25th Feb 2020 11:51
(Alliance News) - Anglo Pacific Group PLC on Tuesday said the coronavirus has not yet had any negative impact on the company's operations.
Anglo Pacific, which invests in mining royalties, has investments in a number of commodities such as coal, vanadium, uranium, iron ore, and copper. On Monday, it said it would no longer be investing in thermal coal assets amid a move to greener commodities.
The company said spot prices for its commodities have held up well so far in 2020. Coking coal, which makes up the majority of earnings, is up 14% so far in the year, with iron ore and pellets broadly the same and copper down around 7%.
Anglo Pacific said "very little" of the coking coal from the Kestrel mine in Queensland and the thermal coal from Narrabri, New South Wales, goes to China.
Chief Executive Julian Treger commented: "Whilst it is too early to form a view as to how events and markets will evolve for the year as a whole, the immediate impact of the coronavirus on the commodities we are exposed to has been mildly positive as Chinese steel smelters have continued producing whilst there has been a slowdown in domestic coal and iron ore production.
"We continue to monitor the ever-evolving situation."
Shares were 1.0% higher on Tuesday in London shortly before midday at 150.50 pence each.
By George Collard; [email protected]
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