What we own

The Group has a 1% life of mine GRR on all iron ore and other non-precious minerals produced from the Amapá Iron Ore System (‘Amapá’) in northern Brazil, owned and operated by Zamin Ferrous Limited (‘Zamin’). Amapá consists of the mine in Pedra Branca do Amapári and the port in Santana, which are linked by a railway. The mine has not resumed commercial production since it was suspended in mid-2013 following the port incident. Prior to production being suspended, it was producing a mix of sinter feed, pellet feed and spiral concentrates.


The Group has a 1% life of mine GRR on all iron ore and other non-precious metals (other than copper) produced from the Tucano project, owned by ASX-listed Beadell Resources Limited (‘Beadell’). Tucano was acquired by Beadell in 2010 and is located adjacent to Amapá in northern Brazil. Tucano is focused on gold mining, with first gold being poured in 2012. However, it also has the capacity to produce an iron ore concentrate from the tailings created by its gold processing plant. Any iron ore produced can be sold to Zamin pursuant to an off-take agreement for 500Ktpa of ~65% Fe concentrate. The Group is also entitled to royalties over a number of concessions governed by a joint exploration arrangement between Zamin and Beadell.

Performance Operations at Amapá remained suspended throughout 2015, with Zamin attempting to restructure its finances to fund the rebuilding of the Santana port. In light of the continued suspension of operation at Amapá, together with further declines in iron ore prices, the Directors have recognised a further impairment charge of £2.8m during 2015, reducing the carrying value of the Amapá royalty to £1.8m as at December 31, 2015.
Valuation The Amapá and Tucano royalties are classified as royalty intangible assets on the balance sheet. As such, these assets are carried at cost less amortisation and impairments. Royalty intangible assets are amortised when commercial production commences, on a straight line basis over the expected life of the mine.