What we own

Anglo Pacific has a 2.5% life of mine NSR royalty on the El Valle-Boinàs/Carlés (‘EVBC’) gold, copper and silver mine owned by TSX-listed Orvana Minerals Corp (‘Orvana’). EVBC is located in the Rio Narcea Gold Belt of northern Spain.

Performance

Income from the EVBC royalty totalled £2.3m, a 5% increase on the £2.2m of royalty income received in 2019. This is based on sales of 51.5koz of gold and 6.76Mlbs of copper. This compares
to sales of 61.5koz of gold and 4.53Mlbs of copper reported to Anglo Pacific in 2019.

COVID-19 impacted the EVBC operation which suffered a 10-day shutdown in March 2020 imposed by the Spanish authorities as part of their efforts to curtail the spread of the virus. Production at the mine restarted in early April and the mine is currently running at normal levels.

Quarterly production rates during 2020 ran below targeted guidance levels of 15.0kt to 16.5kt of gold production per quarter. This has been attributed to lower grade oxide ore being mined
and fed through the process plant, although this has been partially offset by higher throughput following mill expansion works over the past few years.

Orvana also reported in December 2020 that it had completed an updated Mineral Resource and Mineral Reserve estimate (‘MRMR’) and life-of-mine plan (‘LOMP’) on the EVBC operation
in accordance with National Instrument 43-101. The independent NI 43-101 Technical Report was completed by Roscoe Postle Associates, (now part of SLR Consulting). The key highlights
of the MRMR and LOMP are:

• The LOMP includes oxide and skarn ore from the El Valle Boinás and Carlés mines at an average annual rate of 686,000 tonnes, for an extended mine life of five years
• The total production schedule estimates 3.4Mt of ore, containing an estimated 307koz of gold, 756koz of silver, and 27.6Mlbs of copper
• Proven and Probable Reserves total 3.4Mt containing 307koz of gold, 27.6Mlbs of copper and 756koz of silver
• Inferred Mineral Resources total approximately 3.4Mt containing 410koz of gold, 24.8Mlbs of copper and 934koz of silver, providing potential opportunities to further extend mine life