Anglo Pacific’s strategy is to expand its royalty portfolio in order to increase royalty related income, to diversify its portfolio and ensure that it will be able to replace revenues from its current royalty properties as they reach the end of their mine lives. This will be achieved through both direct acquisition of primary and secondary royalties and investment in projects at the development and production stage. It is a continuing policy of Anglo Pacific to pay a substantial proportion of these royalty revenues to shareholders as dividends.

Anglo Pacific is mainly focused on producing or near-term producing long-life assets in established natural resources jurisdictions.

The Group’s directors and management have both corporate finance and real-world mining experience and take an active approach to each royalty investment to achieve better returns at reduced risk.

Primary Royalties / Streams

Potential Drivers for Engaging with Anglo Pacific

  • Specialist investor seeking to deploy capital to the mining sector
  • Can be less dilutive than equity
  • Less restrictive than debt
  • Scope can be limited to a single asset or by-product

Secondary Royalties / Streams

Potential Drivers for Engaging with Anglo Pacific

  • Opportunity to monetise illiquid asset
  • If privately held, risk can be highly concentrated
  • Residual exposure possible via Anglo Pacific shares

Approach to Royalty / Stream Acquisitions

Anglo Pacific’s primary focus is to acquire royalties over producing or near production mines, although the Group is also seeking to acquire royalties over highly prospective earlier stage projects that could provide significant upside.

Targeted Commodities

  • Base metals (copper, zinc, nickel) and other commodities used to manufacture electric batteries (cobalt, vanadium and other)
  • Bulk materials, fertilisers, uranium
  • Anglo Pacific will opportunistically consider other commodities on a case-by-case basis

Asset Specific Considerations

  • Management’s operating track record
  • Profit margin & position on the industry cost curve
  • Counterparty risk
  • Jurisdictional risk
  • Compliance with the Group’s Corporate Social Responsibility policy

Valuation Considerations

  • Attractive risk adjusted returns
  • Stage of development (producing vs. development)
  • Site visits by technical team and independent technical advisors
  • Production assumptions based on existing mineable reserves, resources conversion assumptions evaluated on case-by-case basis
  • Consider other factors such as geology, infrastructure and permitting, which could impact production volumes or mine life