Q1 2022 Trading Update Record $43.6m portfolio contribution in first quarter - Anglo Pacific Group

Anglo Pacific Group PLC (LSE: APF, TSX: APY), issues the following trading update for the period 1 January 2022 to 26 April 2022. Unless otherwise stated, all unaudited financial information is for the quarter ended 31 March 2022.


  • Record portfolio contribution of $43.6m, (Q1 2021: $4m), a third consecutive quarterly record – 14.4% higher than the previous record of $38.3m in Q4 2021
  • The portfolio continues to benefit from strong cobalt and coking coal prices, with spot cobalt currently trading at ~$40/lb (FY21 average: $24/lb) and coking coal at ~$500/t (FY21 average: $221/t)
  • Pro-forma net debt at 30 April 2022 expected to be ~$45m, with Q2 2022 cashflow expected to drive rapid deleveraging
  • Leverage ratio has been significantly reduced, ~0.6x at 31 March 2022 (31 Dec 2021: 1.2x)
  • Shareholders continue to benefit from top line commodity price exposure without operating cost pressures – a highly attractive dynamic in the current inflationary environment
  • The Group received a favourable decision on the Four Mile legal dispute. Parties have now submitted orders that they contend should be made to the Judge. The Company calculates from the start of production to the date of the decision the amount owed to Anglo Pacific is ~A$6m (interest and legal costs to be determined)
  • ~$120m+ of liquidity available to finance further growth initiatives 

Portfolio Contribution:

    Q1 2022



QoQ %

Q4 2021


Q1 2021


Kestrel   33.5 29% 26.0 4.7
Voisey’s Bay   6.7 2% 6.6 n/a
Mantos Blancos   1.5 7% 1.4 1.3
Maracás Menchen   0.7 (22%) 0.9 0.6
Four Mile   0.5 400% 0.1
Narrabri (disposed of on 31 December 2021)   n/a n/a 1.7 0.8
Royalty income   42.9 17% 36.7 7.4
Dividends – LIORC & Flowstream   0.5 (50%) 1.0 0.8
Interest – McClean Lake   0.6 0.6 0.6
Royalty related revenue   44.0 15% 38.3 8.8
EVBC*   0.6 (25%) 0.8 0.6
Principal repayment – McClean Lake   0.5 (38%) 0.8
Metal streams cost of sales   (1.5) (6%) (1.6)
Total portfolio contribution   43.6 14% 38.3 9.4
* Following the application of IFRS 9, the royalties received from EVBC are reflected in the fair value movement of the underlying royalty rather than recorded as royalty income.

Marc Bishop Lafleche, Chief Executive Officer of the Company, commented:

“I am delighted to report a third consecutive quarterly record in my maiden trading update since my appointment as CEO. Driven primarily by metallurgical coal and cobalt prices at record or near record levels, the first quarter of 2022 generated over 50% of the total portfolio contribution realised during the entire 2021 period.

“We will continue to direct cashflows to rapidly reduce borrowings and, subject to our disciplined approach to evaluating growth opportunities, look to recycle windfall Kestrel metallurgical coal royalty proceeds into the acquisitions of royalties and streams that will enhance the Group’s growth profile as well as increase its exposure to 21st century commodities in line with our stated strategy.”

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