In March 2015, the Group acquired a royalty interest in the Narrabri coal project, a major thermal coal and Pulverised Coal Injection (‘PCI’) coal mine located in New South Wales, Australia operated by Australian Stock Exchange listed Whitehaven Coal Limited (‘Whitehaven’). The Narrabri Royalty entitles the holder to royalty payments equal to 1% of gross revenue on all coal produced from within the area.
Total revenue from Narrabri increased by 14% in 2019 to £4.0m (A$7.4m). This was due to increased levels of production offset somewhat by lower prices.Total production for the year was 20% higher at 5.7Mt. Due to successful mining through the fault area during the year, Whitehaven beat their production guidance for their FY 2019 (ended 30 June 2019), achieving 6.4Mt of ROM compared to guidance of 5.6-6.0Mt. Anglo Pacific’s royalty is paid based on cash received during the quarter. Due to working capital and higher stock levels on hand at the beginning of 2019, the Group received royalties based on sales volumes of 6.2Mt in 2019, a 48% increase compared to 2018.