Unless otherwise stated, all unaudited financial information is for the quarter ended
Portfolio contribution of
Portfolio contribution in the quarter was 180% higher than Q3 20 and also ahead of that generated in the first six months of 2021
Results benefitted from very high coking coal prices being captured at Kestrel during the third quarter, resulting in revenue of
Current coking coal spot prices are
Cobalt prices were also higher during the third quarter, resulting in a net contribution of
Solid performance from the Group's Maracas Menchen, Mantos Blancos and EVBC royalties in the third quarter - with possible volume upside to come in the final quarter
Further well documented production and quality issues at Narrabri, impacting revenue in the third quarter
Strength of portfolio contribution generated in Q3 21 resulted in the Group's leverage ratio dropping below 2x at the end of the third quarter
Having lagged the broader commodity basket, coking coal prices began to rebound significantly at the beginning of the third quarter, averaging around
Elsewhere, we were pleased with the performance from Voisey's Bay, which has also benefitted from a higher cobalt price environment than what we anticipated for H2 21 at the time of the acquisition. Overall cobalt prices have increased by 13% since we acquired the stream.
The portfolio contribution from the third quarter has enabled the Group to meaningfully de-lever during the fourth quarter, with our leverage ratio now under 2x. The Group has
Following the recent announcement of the sale of our thermal coal royalty, we continue to pursue our strategy of increasing our exposure to commodities that support a more sustainable world and expect the contribution from coking coal related assets to reduce to 8% of Group's total portfolio contribution by 2025. To this end we are actively evaluating opportunities and are confident in our pipeline and ability to further diversify the business. We remain positive going into Q4 with the strong commodity fundamentals seen recently, looking broadly sustainable as well as strong volume performance expected from the portfolio.'
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