What we own

Anglo Pacific has a 2% NSR royalty on all mineral products sold from the area of the Maracás Menchen project to which the royalty interest relates. The project is located 250km south-west of the city of Salvador, the capital of Bahia State, Brazil and is 99.97% owned and operated by TSX Venture Exchange listed Largo Resources Limited (‘Largo’).

Performance

Revenue from Maracás Menchen was impacted by the noticeable decline in the vanadium price which began in Q4 2018 and persisted through 2019. As a result, revenue from the Maracás Menchen royalty decreased by 54% in the year to £2.7m despite a 4.5% increase in sales. Production benefitted from the successful expansion project completed in December 2019 which was designed to achieve a 20% increase in throughput at the processor. As a result, total production in 2019 was 10.6kt, an 8% increase on 2018 production. This included a record 3kt produced in Q4 2019, suggesting that its expansion targets are well on track to achieve 12kt of annual production going forward. The increased efficiency and output have also had a positive impact on their unit cost, which averaged US$3.21 per pound, a ~20% improvement on 2018