JOHANNESBURG (miningweekly.com) – LSE- and TSX-listed Anglo Pacific expects its royalty income for the full 2016 financial year to be significantly higher than the £8.7-million earned in 2015.
The company noted in a trading update on Wednesday that royalty income for the first quarter of the year, ended March 31, was £1.9-million, lower than the £2.3-million earned in the first quarter of 2015 and the £3-million earned in the fourth quarter of 2015.
This was, however, in line with expectations, as the majority of royalty income was likely to be received in the second half of the year.
The company has 11 royalty assets on five continents, covering coking and thermal coal, iron-ore, gold, uranium and vanadium.
The producing assets on which it earns a royalty are the Kestrel coking coal mine, the Narrabri thermal coal mine and the Four Mile uranium mine, in Australia, as well as the Maracás vanadium mine, in Brazil, and the El Valle-Boinàs gold, copper and silver mine, in Spain.
“We are pleased to finally see the price of coking coal show some signs of recovery. We believe the price risk relating to coking coal should be to the upside,” said CEO Julian
Treger.
He added that Anglo Pacific had also been encouraged by the first £200 000 in receipts from its Four Mile uranium royalty during the first quarter of this year.
“Uranium is a commodity we continue to believe in.”