Voisey’s Bay cobalt production stream a ‘transformational acquisition’, says Anglo Pacific boss

Anglo Pacific Group’s recent US$205 million deal for a 70% interest in a stream on cobalt production from the Voisey’s Bay mine in Canada has been described as the ‘transformational acquisition’ that the company has been looking for by its CEO Julian Treger.

The LSE and TSX-listed royalties business has historically favoured a portfolio of coking and thermal coal assets, but recently decided to shift towards ‘21st century commodities that support a more sustainable world’.

On a pro forma basis, the new cobalt stream has boosted Anglo Pacific’s royalty and streaming portfolio to a 61% weighting towards battery metals. “We’ve been looking for a big transformational acquisition for some time, and this is it,” said Treger.

The company has significant exposure to vanadium through a 2% royalty on a project in Brazil, and nickel – a key commodity for electric vehicle batteries – through another Brazilian royalty project, which incidentally contains cobalt.

Cobalt is one of the few metals that hasn’t joined the broader upturn in the commodities market during the past year. But Treger believes that when the cobalt price does move, Anglo Pacific will benefit from its exposure to the production stream at Voisey’s Bay.

“We’ve now changed the agenda. We’ve moved away from coal and stabilised our earnings profile for the future,” Treger added.

@RGNonline