- Royalty company Anglo Pacific Group said its royalty income more than doubled in the first quarter of year, led by strong sales at Kestrel.

In the first quarter of 2019, royalty income rose 2% quarter-on-quarter to £14.3m and was more than double the £6.7m reported a year earlier.

Total portfolio contribution rose 7% to £17.5m from the fourth quarter and 116% from the first quarter - a new quarterly record for the Group

'Income was once again driven by Kestrel, where strong sales volumes during the quarter resulted in a 15% increase in revenue. The volumes achieved during the first quarter indicate that the run rate being targeted by the new owners could be achieved,' the company said.

Labrador Iron Ore Royalty Corp was the second largest source of revenue for the group at £1.7m, up from £0.9m quarter-on-quarter, 'reflecting the continued strong performance in iron ore prices and high pellet premia,' it added.

The company said it continued to 'see meaningful revenue growth for the Group in 2019, even when factoring in the expected impact of the planned longwall changeouts at Kestrel and Narrabri during 2019.'

'Despite a background of economic uncertainty, our portfolio continues to deliver significant growth. With an encouraging start to the year from Kestrel, especially given its ambitions, we remain confident of delivering organic growth during 2019 whilst seeking to make additional quality investments.'

'Although we have not executed on any acquisitions during the first quarter of the year, we continue to appraise opportunities and maintain a disciplined approach. With a significant war chest, we remain in a strong position to add to our portfolio during the year.'

At 10:00am: [LON:APF] Anglo Pacific Group PLC share price was -3p at 204p

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