Mining royalty company Anglo Pacific Group started off the first quarter of this year with a strong cash flow of £13.3m following on from its record year 2017.
Anglo Pacific Group has reported royalty income doubling each year since 2015, and today announced that its cash flow had remained stable at £13.3m, compared to first quarter of 2017 when it was £13.4m.
The total contribution from its royalty portfolio was, however, slightly down from last year at £7.9m compared to £8.2m the year before.
Why it's important
The company stands out from other mining royalty companies in the sense that it does not focus exclusively on the precious metals gold and silver, which makes up the minority of the market, but focuses instead on metals such as coal, iron, nickel and vanadium.
According to chief executive of the company Julian Treger, although the first quarter was as expected, the company will see the majority of its growth in the second half of this year, but will most likely not double as it has done in previous years.
What Anglo Pacific Group said
The mining sector is improving and we are seeing growth in our commodities… We continue to generate significant cash from our portfolio, have immediate access to $65m and are currently in the process of upsizing out bank facility.
The focus for the year is firmly on growth and we continue to work very hard on exploring, evaluating and appraising new opportunities
The company expects to grow for the remaining three quarters of the year although not as sharp a rate as it has seen in previous years.