Business
Half Year 2020 Trading Update
Half Year 2020 Trading Update.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \n \n RNS Number : 9507T\n Anglo Pacific Group PLC\n 24 July 2020\n \n \n \n \n \n \n \n \n \n \n News Release\n \n \n 24 July 2020\n \n \n \n \n \n Anglo Pacific Group PLC\n \n \n \n Half Year 2020 Trading Update\n \n \n \n \n \n \n \n \n \n Anglo Pacific Group PLC (\"Anglo Pacific\", the \"Company\" or the \"Group\") (LSE: APF, TSX: APY), is pleased to issue the following trading update. Unless otherwise stated, all unaudited financial information is for the quarter or half year ended 30 June 2020.\n \n \n \n \n \n This update is ahead of the release of the Group's audited half year results on 27 August 2020. \n \n \n \n \n \n Highlights\n \n \n \n · Portfolio contribution of £18.5 - £19.0m in H1 2020 compared to £25.5m in H2 2019 and £33.1m in H1 2019. The decrease is largely due to the recent softening of coal prices as a result of COVID-19, despite earlier resilience\n \n \n · Two instances of COVID-19 related disruption. EVBC was placed on care and maintenance for a two week period but resumed production in April; and Cigar Lake, which provides the throughput at the McClean Lake processing mill remains on care and maintenance and is working to determine a restart date. Overall, this is not material in the context of the Group's results\n \n \n · Despite iron ore prices holding up particularly well due to the supply issues persisting in Brazil, income from LIORC was lower due to planned capital expenditure at the underlying operation reducing the special dividend from what was a higher level in H1 2019\n \n \n · Termination of the Largo offtake arrangement with Glencore has resulted in a ~£1.0m adjustment to the previous royalties we received. We would expect that once the transition to the internal sales function has taken place, margins should increase resulting in a higher level of royalty income, subject to price\n \n \n · Further £5.7m investment in LIORC during Q1 2020, representing the reinvestment of dividend income, taking our total stake to 7.0%. We were pleased to see the share price of LIORC recovering significantly during Q2 2020\n \n \n · Tranche 1 financing of the Incoa project, the Group's most recent addition, has now been completed which should provide the Company with the opportunity to proceed with its US$20m Tranche 2 contributio...