25th Aug 2021 14:26
(Alliance News) - Anglo Pacific Group PLC on Wednesday said 2021 is "likely to be a strong year for the company" despite lacklustre first half results, as eight-year chief executive Julian Treger steps down.
For the six months that ended June 30, the London-based investor in natural resource production reported royalty and stream revenue of USD22.2 million, slipped from USD22.4 million with a year prior. It swung to a pretax profit of USD11.8 million from a loss of USD19.5 million.
Coal royalties, property, plant and equipment all brought in less income compared to the year-end and the first half of 2020, while mining, exploration and metal streams brought in more.
The company was aided by a 90% increase in coking coal and an 80% increase in thermal coal prices, both of which now stand at 52-week highs. The company said these were its "strongest performing commodities within the period" and it hopes these will drive second-half revenue upwards.
At present, 53% of Anglo Pacific's portfolio contribution is derived from non-coal revenue, compared to 29% at June 30, 2020.
Anglo Pacific declared interim dividend of 1.75 pence.
"With stability now appearing to have returned to coal markets, we are cautiously optimistic that these price levels can be sustained through the second half of 2021," said Chief Executive Julian Treger.
Treger on Wednesday revealed he plans to step down from his position after eight years. He will stay chief executive until March 31 and plans to support management in finding his replacement.
Under Treger's leadership, the company in March completed its largest acquisition of 70% net interest in Voisey's Bay mine's cobalt stream in Canada. The stream drove royalty related income of GBP3.1 million in the half-year.
"The outlook for commodities in general continues to be well supported by significant infrastructure commitments outlined by some of the largest economies as a means to ensure no lasting damage caused by the Covid-19 pandemic," added Treger.
"Coupled with ongoing momentum in the development of decarbonisation technology, and the possibility of rising inflation, we see solid fundamentals for sustained pricing levels for commodities.
"As a result, we are confident that the second half will see a significantly higher outturn than that of the first six months of the year."
Shares were down 3.7% to 125.00 pence in London on Wednesday afternoon.
By Josie O'Brien; [email protected]
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