Anglo Pacific Group PLC (“Anglo Pacific”, the “Company”, the “Group”) (LSE: APF) (TSX: APY) announces half year results for the six months ended 30 June 2022 which are available on both the Group’s website at www.anglopacificgroup.com and on SEDAR at www.SEDAR.com.

Highlights:

Record portfolio contribution in H1 2022 of $92.8m, 303% higher than H1 2021 ($23.0m) and 8.4% higher than the whole of FY 2021 ($85.6m)
Adjusted earnings per share of 28.08c per share reflecting strong commodity prices and portfolio contribution
Net debt as at 30 June 2022 reduced to $20.5m (31 December 2021: $90.0m). Net debt increased to $49.8m at the end of July 2022 following the acquisition of a portfolio of advanced development stage copper and nickel royalties from South32
Queensland Government added new tiers to the statutory royalty regime, significantly increasing royalty revenue from the Group’s Kestrel royalty entitlement at prices above A$175/tonne from 1 July 2022
Brazilian Nickel announced first nickel production from the small scale PNP1000 plant at the Piauí nickel and cobalt project in Brazil
Cameco announced plans to operate the Cigar Lake mine at 75% of licensed capacity in 2024, which would reduce the volumes of ore toll milled at the McClean Lake mill
Post period end, agreed with the Group’s lending syndicate to maintain the $150m revolving credit facility and add a $50m accordion feature
~$180m of liquidity available to finance further growth opportunities, including the residual LIORC stake of ~$23m and ~$7m of treasury shares
Next quarterly dividend payment of 1.75p to be paid on 31 August 2022 to shareholders on the register at 16 June 2022
The Board plans to rename the Company to reflect the evolution of the portfolio, from which 90% of its contribution is expected to come from future-facing commodities by 2026. We will be making a further announcement on this in the coming weeks
Marc Bishop Lafleche, Chief Executive Officer, commented:

“We are pleased to announce another record period with the portfolio contribution generated in the first half of 2022 exceeding the entirety of 2021. The outstanding financial performance has enabled us to significantly reduce debt and strengthen our balance sheet, providing the financial flexibility to pursue further growth.

“The portfolio is underpinned by attractive near and medium term organic growth prospects. These were further enhanced by the post period end acquisition of a portfolio of advanced stage development royalties from South32 marking the continued execution of the Company’s strategy to be the leading future-facing commodities royalty and streaming company.”

Results

HY 2022 HY 2021 FY2021
$m YoY% $m $m
Kestrel 70.9 638% 9.6 48.1
Voisey’s Bay 13.9 348% 3.1 16.5
Narrabri n/a n/a 1.1 3.4
Mantos Blancos 3.1 11% 2.8 5.7
Maracás Menchen 2.0 43% 1.4 3.3
Four Mile 0.8 700% 0.1 0.3
Royalty and stream income 90.7 401% 18.1 77.3
Dividends – LIORC & Flowstream 1.3 (55%) 2.9 5.6
Interest – McClean Lake 1.2 – 1.2 2.4
Royalty related revenue 93.2 319% 22.2 85.3
EVBC* 1.3 (19%) 1.6 3.0
Principal repayment – McClean Lake 1.5 n/a – 1.3
Less:
Metal streams cost of sales (3.2) (0.8) (4.0)
Total portfolio contribution 92.8 303% 23.0 85.6
* Under IFRS 9, the royalties received from EVBC are reflected in the fair value movement of the underlying royalty rather than recorded as royalty income.
Analyst presentation

There will be an analyst presentation webcast at 9:30am (BST) today (25 August 2022). The presentation will be hosted by Marc Bishop Lafleche (CEO) and Kevin Flynn (CFO).

Please join the event 5-10 minutes prior to the scheduled start time. When prompted, provide the confirmation code or event title.