The London market is far behind the Canadians and Americans, so the only listed option is Anglo Pacific (APF). Happily, it has performed strongly in recent years and has good near-term prospects through the Kestrel coal operation in Queensland. This is because of high prices and the fact Rio Tinto sold the underground coking coal mine in Queensland to EMR Capital and Adaro Energy last year, and the new owner decided to ramp up production in the area covered by Anglo Pacific’s royalty.
Even before this, its revenue from the project has climbed from £5m in the March quarter last year to £11.8m in the three months to 31 March 2019. Anglo Pacific’s dividend yield is 3.7 per cent, coming in ahead of Franco’s.
Doing it all
The North American royalty companies mostly offer investment opportunities to precious-metal bulls, while Anglo Pacific has a mixed bag that should appeal to anyone bullish on steel – thanks to its coking coal, iron ore and vanadium holdings. Mr Stoner said he could see Anglo Pacific adding to its battery metal exposure.
Anglo Pacific Group (LON:APF) has a diverse portfolio of assets in low-risk jurisdictions and is the only listed company on the London Stock Exchange focused on royalties connected with the mining of natural resources.