Anglo Pacific Group PLC (LON:APF, TSX:APY), a natural resources royalty and streaming company, said all of the producing assets in its portfolio are now back in operation, following the resumption of activities at the McClean Lake Mill after a period of COVID-19 related care and maintenance.
The company saw its first-quarter total portfolio contribution drop 40% from the preceding quarter to £6.8mln mainly due to the previously announced disposal of about 75% of its holding in LIORC to partially finance a transformational Voisey’s Bay acquisition.
The group has received its first deliveries under the cobalt stream from Voisey’s Bay and will record its first revenue in the second quarter, it said in a trading update.
“The first quarter of 2021 has started satisfactorily for Anglo Pacific with the completion of the transformational acquisition of the Voisey’s Bay cobalt stream and the resumption of activity at McClean Lake returning the group’s portfolio of producing assets to full operation,” said chief executive Julian Treger.
“Despite volumes across the portfolio being lower in Q1 2021, royalty income was only 13% lower than Q4 2020 following a recovery in the commodity prices underlying the group’s producing assets.
“Copper has been a standout performer in the year to date, with strong supply demand fundamentals set to underpin prices in the near to medium term. We have also seen gains in the vanadium price which, along with a higher portion of vanadium sales to the battery market, should result in increased revenue from our Maracás Menchen royalty.”
Anglo Pacific said it remains in a strong financial position to pursue growth opportunities with liquidity of about US$70mln available.
“We continue to assess opportunities to further diversify the portfolio and we look forward to the remainder of 2021 with cautious optimism for our portfolio and for commodities in general,” concluded Treger.