Anglo Pacific Group PLC (LON:APF, TSX:APY) has today released a new corporate presentation (Click here) for the BMO Capital Markets Metals and Mining conference in Miami. This contains a summary of the following trading update.
Anglo Pacific is closely monitoring the evolving Coronavirus crisis and its potential effects. Whilst it is too soon to say what the overall impact this will have on Chinese economic growth, which often determines the pricing of the commodities that Anglo Pacific is exposed to. What we have witnessed so far in 2020 is:
· Spot prices of the commodities which we are exposed to have held up well in the year to date
· Coking coal prices, the source of the majority of our earnings, are up 14%; high quality iron ore and pellets prices are broadly unchanged; copper is down around 7%
· Very little of the output from Kestrel and Narrabri goes to China
· We remain in a strong financial position and are positive regarding this year’s prospects for volume growth
We will provide a further update with our full year results due to be published on 25 March 2020.
Julian Treger, Chief Executive Officer of Anglo Pacific Group said:
“Whilst it is too early to form a view as to how events and markets will evolve for the year as a whole, the immediate impact of the Coronavirus on the commodities we are exposed to has been mildly positive as Chinese steel smelters have continued producing whilst there has been a slowdown in domestic coal and iron ore production. We continue to monitor the ever-evolving situation.”