Strategic Mining Interests

The Group invests in a number of strategic mining interests with a view to generating new royalty flows and maximising value for shareholders. These investments are never static or passive. It is the Group’s policy to actively support management with the necessary resources to create value.

Trefi Coal Project

The Group owns 15 coal exploration licences (across 7,337ha) over thermal coal in British Columbia, Canada, through its wholly-owned subsidiary, Trefi Coal Corp. On July 9, 2010, Anglo Pacific released NI 43-101 compliant Resources of weak coking coal saleable into either the thermal or PCI markets. The NI 43-101 report is dated March 18, 2010.

The coal Resource estimate is based on drilling and exploration undertaken by Gulf Canada between 1980 and 1982 and by Anglo Pacific in 2008 and 2009. The Resource estimate was prepared by Moose Mountain Technical Services, an independent consultancy based in Canada. The Resource is reported in accordance with the Australian JORC Code and Canadian National Instrument 43-101.

FlowStream

In October 2013, Anglo Pacific became a minority founding shareholder in FlowStream Commodities Ltd and simultaneously entered into a Strategic Co-Investment Agreement with the company. FlowStream Commodities Ltd is a privately owned streaming and royalty company focused on the oil and gas sector. Anglo Pacific is entitled to co-invest up to a 10% interest in a defined number of streaming and royalty projects in the oil and gas sector that FlowStream Commodities Ltd invests in from October 25, 2013.

Other

Anglo Pacific has a number of other smaller royalties and options over a variety of projects and claims, including in relation to the Crinum mine in Queensland, Australia, the Mount Ida magnetite iron ore project in Western Australia, the Engenho gold mine in Brazil, the Jogjakarta mine in Indonesia, the Bulqiza deposit in Albania, the Isua iron ore mine in Greenland, tenements in the Athabasca Basin in Saskatchewan, Canada and uranium properties owned by Uranium Resources Inc. in New Mexico, USA.

On October 16, 2014, London Mining PLC, the owner of the Isua mine, announced it had appointed administrators. As a result, the Company made a full provision against the value of its Isua royalty, resulting in the recognition of an impairment charge of £15.4 million. On January 8, 2015, the Government of Greenland announced that it had approved the transfer of all shares of London Mining Greenland (Jersey) (1) Ltd (‘London Mining Greenland’) to General Nice Development Limited (‘General Nice’). The Isua project licence is owned by London Mining Greenland A/S, a wholly-owned subsidiary of London Mining Greenland. On January 26, 2015, Anglo Pacific received official confirmation of this transfer from PricewaterhouseCoopers LLP, the administrator of London Mining PLC. Anglo Pacific intends to waive its rights to the repayment of the US$30m advanced to London Mining PLC in 2011 under the change of control provisions of the royalty financing agreement due to the inability of London Mining PLC to make this repayment. The indirect transfer of the licence means that the company structure of London Mining Greenland A/S remains the same and therefore the royalty will continue to apply to the project. With the Isua project under the ownership of General Nice, there is scope for recovery of value from this royalty in the future.