Shares in Anglo Pacific Group plc (LON:APF) hit a three-year high in the second week of January, spiking at 164p before giving up a modest amount of ground. For those who only read front page headlines, it might seem a little counter-intuitive that a company which has long relied on coal for cash flow should be so popular with investors.
But to Julian Treger, Anglo Pacific’s chief executive, it makes a lot of sense.
Mining, he argues, is a perfect way for investors to mix the old with the new: As enthusiasm for the latest fad, ebbs and flows there’s always one element of certainty, that the materials for whatever it is that’s being made will have to be mined.
Hence, there’s been a boom in the lithium mining sector in response to hype about electric car batteries, with cobalt slipstreaming along behind. Copper has enjoyed some benefit from this narrative too, as the thinking is that more wiring will be needed in electric vehicles than in petrol-powered ones.