Anglo Pacific maintains quarterly rate

The group’s business model is attractive because it enables it earn from the sale of natural resources without being burdened by the usual capital-intensive considerations of the extractive industries.

That does not mean, however, that it is immune to the vagaries of commodity pricing, especially when aggregate industrial demand falls off a cliff. Anglo Pacific has also suffered because a lop-sided portfolio. Receipts from its key investment – the Kestrel coking coal mine in Queensland – contracted by 47 per cent during the first half, yet they still account for around two-thirds of the group total.

Matters were not helped by a one-off charge of around £1.0m at the Maracás Menchen Vanadium mine in Brazil, upon termination of the Glencore offtake agreement, while revenues from the Canadian LIORC iron-ore arrangement were constricted by planned capex investments.

Anglo continues in its efforts to diversify away from coal, particularly the thermal variety, with revenues from Kestrel earmarked for non-coal royalty streams that fall within the group’s socially responsible investment guidelines. However, even with the green tilt, it may take a while before the over-reliance on Kestrel is no longer in evidence.

Consensus estimates compiled by FactSet are for adjusted EPS in 2020 of 14.93p, rising to 20.97p next year.