ABOUT US ROYALTIES INVESTORS & MEDIA OUR CONTRIBUTION CONTACT Divestment of Narrabri thermal coal royalty for consideration of up to $36 million October 14, 2021Anglo Announcements No Comments Anglo Pacific Group PLC (“Anglo Pacific” the “Company” or the “Group”) (LSE: APF, TSX: APY) is pleased to announce its exit from thermal coal by entering into an agreement to sell its 1% gross revenue royalty over the Narrabri mine to the operator, Whitehaven Coal Limited (“Whitehaven”) for consideration of up to $36 million. The consideration is structured as fixed payments totalling $21.6 million, along with contingent payments which could generate a further $14 million. The transaction is expected to close on 31 December 2021, with no material conditions precedent to closing. Anglo Pacific will continue to receive royalties from Narrabri until the end of the current calendar year. This transaction significantly improves the Group’s carbon footprint with a remaining portfolio of assets now increasingly weighted towards cobalt, vanadium, copper and nickel – commodities which will be essential to decarbonise energy generation in the years ahead. HIGHLIGHTS $21.6 million fixed consideration, to be received in instalments until 31 December 2026, of which ~$13 million will be received within 18 months of the transaction close date Contingent consideration of a further estimated $14 million depending on future coal price levels, Narrabri sales volumes and the successful permitting of the Narrabri South extension H2 2021 Narrabri royalty income estimated at $1 – 2 million to be paid to Anglo Pacific, a period which is seeing elevated thermal coal prices Increases Anglo Pacific’s portfolio contribution from 21st century commodities that support a more sustainable world Provides Anglo Pacific with the opportunity to redeploy capital into further acquisitions ANGLO PACIFIC CEO, JULIAN TREGER, COMMENTED: “I am delighted to announce that we have entered into an agreement to sell the Narrabri thermal coal royalty, which is aligned with our strategy and represents a further step in focusing on the investment in 21st century commodities supporting a more sustainable world. This transaction is consistent with our stated strategy of moving away from carbon-based energy exposure, as demonstrated by our investments in copper, nickel, vanadium, uranium and most recently the transformational $205 million Voisey’s Bay cobalt stream acquired earlier this year. Whitehaven was selected as the preferred bidder following a competitive sales process, on the basis of an offer which we considered to provide maximum value to Anglo Pacific shareholders. We intend to deploy the proceeds from this transaction into further acquisitions, including to partially fund the upcoming $20 million Incoa calcium carbonate financing which is likely to occur in H1 2022.” THE TRANSACTION Anglo Pacific has entered into an agreement to sell its Narrabri thermal coal royalty to a subsidiary of Whitehaven. The transaction is expected to close on 31 December 2021 with no material conditions precedent to closing, and the Group will continue to be entitled to receive H2 2021 Narrabri royalty income, estimated at $1 – 2 million. Anglo Pacific will receive $21.6 million in fixed payments, of which ~$13 million is due within 18 months of the transaction close date. The remainder will be received in annual instalments until the end of 2026. Contingent payments totalling $5 million, payable in instalments, will become receivable upon the approval of the Narrabri South extension project by state and federal authorities in Australia, prior to 31 December 2026. In addition, Anglo Pacific is entitled to receive bi-annual contingent payments linked to future realised Narrabri coal prices ranging from $0.05/t if realised prices exceed $90/t to $0.25/t if realised coal prices exceed $150/t up to the end of calendar year 2026. Assuming Narrabri ROM production of 4.3-5.0 million tonnes for fiscal year 2022 and 7.0-8.5 million tonnes per annum in the southern panels, the Company would be entitled to receive approximately $9 million in price linked contingent payments, were realised Narrabri coal prices to be in excess of $150/t. HISTORY Anglo Pacific acquired the Narrabri royalty for $65 million in March 2015. As at 31 December 2021, the Narrabri royalty is expected to have a carrying value of approximately $45 million based on amortised cost. Since its acquisition, Anglo Pacific has received approximately $32 million in royalty income, with a further $1 – 2 million expected before year-end 2021. For a full copy of this release please click here For a copy of the presentation please click here Archives Archives Select Month October 2021 September 2021 August 2021 July 2021 June 2021 May 2021 April 2021 March 2021 February 2021 December 2020 November 2020 October 2020 September 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 December 2017 November 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 September 2016 August 2016 July 2016 June 2016 May 2016 April 2016 March 2016 February 2016 January 2016 December 2015 November 2015 October 2015 September 2015 August 2015 July 2015 June 2015 May 2015 April 2015 March 2015 February 2015 January 2015 December 2014 November 2014 October 2014 September 2014 August 2014 July 2014 June 2014 May 2014 March 2014 February 2014 January 2014 December 2013 November 2013 October 2013 September 2013 August 2013 May 2013 April 2013 March 2013 February 2013 January 2013 December 2012 October 2012 September 2012 August 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 June 2011 May 2011 April 2011 March 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 August 2007 July 2007 June 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 August 2006 June 2006 Proactive Investors NEWS AND ARTICLES MarketWatch.com – Top Stories Project Syndicate: This former central banker says stop throwing fuel on the inflation fire with easy-money policies December 1, 2021 MarketWatch: Match settles lawsuit with former Tinder employees for $441 million December 1, 2021 Economic Report: U.S. economy added 534,000 private-sector jobs in November, ADP says December 1, 2021 Need to Know: The liquidity wave carrying stocks will continue even after the Powell Pivot, this analyst argues. Here’s why. December 1, 2021 Metals Stocks: Gold futures edge higher, but dollar and yield moves hem in precious metal’s price December 1, 2021 Popular Searches Acquisition AGMs Annual Reports Directors' Share Dealings Dividend General Joint Venture Results Royalties Royalty Share Placings Substantial Shareholding Total Voting Rights Tel: +44 (0) 20 3435 7400 Legal Disclaimer By using this form you agree with the storage and handling of your data by this website. © 2021 Anglo Pacific Group. | All rights reserved | Site Designed & Developed by luketom.com