Anglo Pacific sees ‘mildly positive impact’ of coronavirus

Kestrel Mine is an underground operation located 40km north-east of Emerald in central Queensland, supplying world markets coking and thermal coal. (Image: Bernard S. Jansen| Wikimedia Commons.)

Immediate impact of the coronavirus has been mildly positive as Chinese steel smelters have continued producing while there has been a slowdown in domestic coal and iron ore production, said Anglo Pacific (LSE: APF, TSX: APY) chief executive officer Julian Treger on Tuesday.

The company has released a new corporate presentation for the BMO Capital Markets Metals and Mining conference in Miami.

Anglo Pacific said spot prices for its commodities have held up well in 2020. Coking coal, which makes up the the majority of earnings, is up 14%, with iron ore and pellets broadly unchanged and copper down around 7%.

The company said “very little” of the coking coal from Kestrel mine in Queensland and the thermal coal from Narrabri, New South Wales, goes to China.

“We continue to monitor the ever-evolving situation.” concluded Julian Treger.

On Monday, Anglo Pacific said it would no longer be investing in thermal coal assests, in a move to greener commodities.

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