‘It’s A Very Big Investable Universe For Us’ – Anglo Pacific And Streaming Decarbonization Metals

It’s “mind-boggling” how many new mines will be required for energy transition, said Anglo Pacific CEO, Mark Lafleche.

Lafleche spoke to Kitco on Thursday. Battery metals will be needed to build electric vehicles and renewable power. Demand for graphite, nickel and cobalt may increase 20-fold, and lithium could increase as much as 40-fold, according to Pallinghurst Group.

Anglo Pacific (TSE: APY) is a royalty and streaming company with a focus on metals needed for decarbonization. Metals in the company’s portfolio include cobalt, copper, nickel, vanadium and uranium. The company has been exiting its coal business. Last year Anglo Pacific sold its thermal coal interest, a 1% gross revenue royalty over the Narrabri mine, to Whitehaven Coal for approximately $36 million.

The company got a lift from high commodity prices. In its 2021 year-end, the company touted a year-on-year increase of 80%. The total portfolio contribution was $85.57 million, with coal and cobalt prices significantly higher.

Traditionally streaming and royalty businesses are associated with the precious metal space, where companies like Franco Nevada and Wheaton Precious Metals take a by-product metal in exchange for financing. However, lithium, nickel and other energy transition metals are often a miner’s primary metal.

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