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Altus Strategies Plc / Index (EPIC): AIM (ALS) TSX-V (ALTS) OTCQX (ALTUF) / Sector: Mining


Altus Strategies Plc
(“Altus” or the “Company”) 
 

Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF) announces that it has published its unaudited financial results and its Management’s Discussion and Analysis for the three-month and nine-month periods ending 30 September 2021. These documents have been posted on the Company’s website at www.altus-strategies.com/investors/financials/ and are also available on SEDAR at www.sedar.com.

HIGHLIGHTS
Highlights for the three months ended 30 September 2021 are as follows:

Corporate highlights:

  • Acquisition of an effective 0.418% NSR royalty on the Caserones copper mine (“Caserones”) in northern Chile for US$34.1 million, expected to generate annual cash flow of US$3.2 million (post-tax) to Altus (projection assumes copper price of US$4.00 per pound and production in line with modelled mine plans (actual results may vary and remain subject, among other factors, to the copper price remaining stable and the mine achieving the modelled operating performance during the period – see “Forward Looking Information”)
  • Caserones royalty acquired via a strategic 50:50 partnership with TSX-V and NYSE American listed EMX Royalty Corp via a Chilean special purpose vehicle holding a combined effective 0.836% NSR interest on Caserones
  • US$29 million strategic acquisition loan facility provided by the Company’s largest shareholder La Mancha Fund SCSp (“La Mancha”)
  • Appointment of Mark Campbell as Non-Executive Chairman of 100% owned subsidiary Akh Gold Holdings Ltd and General Manager (Egypt)

 Operational highlights:

  • Western Mali: Initial results from reverse circulation (“RC”) drilling at the Company’s 100% owned Diba gold deposit in western Mali, including 8.50 grams per tonne (“g/t”) gold (“Au”) over 24m from 20m and 2.54 g/t Au over 30m from 36m (results are down-the-hole and not true widths)
  • Southern Mali: Significant increase in JV landholding at Tabakorole (by 100km2 to 292km2) with Australian Securities Exchange (“ASX”) listed Marvel Gold Limited (“Marvel Gold”)
  • Southern Mali: Encouraging diamond drilling (“DD”) results from first 19 drill holes at Tabakorole and discovery of significant new parallel zone of mineralisation
  • Egypt: Discovery of numerous hard rock artisanal gold workings from field reconnaissance at Gabal Om Ourada and Wadi Dubur projects in Egypt
  • Morocco: Discovery of high-grade copper and silver from reconnaissance exploration at recently granted Azrar, Izougza and Tata projects
  • Morocco: Grant of four new exploration licences totalling 148.5km2, targeting copper and silver

 Financial highlights:

  • Cash balance of £5.9 million / C$10.2 million as at 30 September 2021
  • Cash outflow for operating activities of £3.1 million / C$5.2 million for nine months ending 30 September 2021
  • Listed equity holdings of £1.6 million / C$2.7 million as at 30 September 2021

 Post period:

  • Receipt of maiden royalty income of US$1.34 million in respect of the Company’s NSR on the Caserones copper mine in northern Chile (before local Chilean and UK taxes)
  • Upgraded Mineral Resource Estimate (“MRE”) prepared for Tabakorole gold project in Southern Mali, resulting in a 24% increase in indicated ounces and a 7% increase in inferred ounces with 70% of MRE within 150m of the surface and preliminary high metallurgical recoveries
  • High grade intersections including 21.9 g/t Au over 10.2m from 28m from DD at Diba gold deposit (results are down-the-hole and not true widths)

Steven Poulton, Chief Executive of Altus, commented:
I am delighted to report on a significant and highly productive quarter for the Company, marked in particular by the closing of the US$34.1 million landmark acquisition of the cash-paying Caserones copper royalty in Chile. The acquisition, which has transitioned Altus into a revenue generating business, is a testament to the Company’s strategic vision and effective growth strategy. Altus has also continued to deliver excellent results on its work programmes across its portfolio of projects, including drilling in Mali and field exploration programmes in Egypt and Morocco.

“The acquisition of the NSR on the Caserones copper mine not only marked a major milestone in the development of the Company’s royalty strategy, but also further diversifies the Company’s portfolio outside of Africa and towards copper. The first cash instalment from Caserones was received shortly after the end of the quarter. Our largest shareholder, La Mancha, assisted Altus with the acquisition by providing a US$29 million strategic acquisition facility, underscoring their commitment to the long-term growth of Altus as well as the quality of the acquisition.

“Significant progress has been made at the Diba gold project in western Mali during the period, with initial results from reverse circulation drilling, including 8.50 g/t Au over 24m from 20m and 2.54 g/t Au over 30m from 36m. The AC and RC drilling programmes, which were paused due to the rainy season, recommenced after the period end and were augmented to include 1,300m of diamond drilling. A key objective in the next quarter will be to complete the drilling programmes at Diba with an updated independent MRE and Preliminary Economic Assessment on the project to follow.

“Altus’ JV partner, Marvel Gold, has continued to advance the Tabakorole gold JV project in southern Mali during the period, through a combination of RC and DD programmes, targeting both infill of and extensions to the existing deposit. Results included 2.4 g/t Au over 24m from 35m in the parallel zone and 3.6 g/t Au over 16.5m from 3.2m in the northwest zone. Shortly after the period Marvel announced an updated MRE for Tabakorole, comprising 17,300,000 tonnes at 1.2 g/t Au for 665,000 ounces in the Inferred category and 9,200,000 tonnes at 1.2 g/t Au for 360,000 ounces in the Indicated category. The updated MRE represented a 24% increase in indicated ounces and a 7% increase in inferred ounces. Approximately 70% of the MRE is situated within 150m of the surface. The MRE remains open in parallel zones and at depth.

“In Egypt, Altus is delighted to have welcomed Mark Campbell to the team as General Manager of the Company’s Egyptian branch and expanded its in-country geological and administrative teams. Initial reconnaissance was also completed on Gabal Om Ourada and Wadi Dubur in the Eastern Desert and, after the period end reconnaissance commenced at the Gabal Al-Shaluhl and Wadi Jundi licences.

“In Morocco, a high resolution, induced polarisation survey commenced at the Agdz copper-silver project. The results will be used to define and prioritise targets for trenching and drilling across four key prospects discovered to date at Agdz. In July, four further projects, totalling 148.5km2, were granted to the Company in the western anti-Atlas of Morocco, increasing the Company’s portfolio of projects in Morocco to 14 and its area of exploration to over 800km2.

"We look forward with confidence to another exciting quarter ahead for Altus. Alongside assessing further accretive royalty acquisition and other strategic opportunities, our focus during the quarter will be progressing our gold programmes in Mali and Egypt, as well as copper and silver programmes in Morocco. I look forward to keeping shareholders updated on our progress.”


INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2021

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE LOSS

   

For the three months ended 30 September

 

For the nine months ended
30 September

   

2021

2020

 

2021

2020

 

Notes

£

£

 

£

£

Continuing operations

           

Revenue and costs recovered from

joint venture partners

2

29,905

79,310

 

52,509

255,984

Exploration costs expensed

3

(717,308)

(293,145)

 

(2,063,096)

(882,128)

Administrative expenses

4

(331,079)

(225,776)

 

(803,893)

(530,289)

Listing and acquisition related costs

 

(167,842)

(14,507)

 

(175,335)

(61,372)

impairment of intangible asset

5

(519,777)

-

 

(519,777)

(3,798)

Foreign exchange gains/(losses)

 

(349,970)

(153,534)

 

(360,302)

(98,210)

Share based payments

 

(243,349)

(53,225)

 

(857,865)

(73,227)

Profit/(loss) from operations

 

(2,299,420)

(660,877)

 

(4,727,759)

(1,393,040)

             

Interest receivable

 

-

-

 

60

1,614

Interest payable

 

(253,996)

(1,537)

 

(256,447)

(5,202)

Other income/(costs)

 

57

249

 

57

1,109,250

Fair value gain/(loss) on investments

 

(468,077)

(299,094)

 

(373,232)

132,047

Share of profit of investments

accounted for using the equity method

6

653,610

-

 

653,610

-

Profit/(loss) before taxation

 

(2,367,826)

(961,259)

 

(4,703,711)

(155,331)

Taxation

 

-

71,209

 

-

-

Profit/(loss) for the year

 

(2,367,826)

(890,050)

 

(4,703,711)

(155,331)

             

Other comprehensive income

           

Items that may be reclassified to the income statement in subsequent periods

           

Foreign currency translation differences

 

29,818

-

 

29,818

-

Total comprehensive

(expense)/income for the year

 

(2,338,008)

(890,050)

 

(4,673,893)

(155,331)

             

Profit/(loss) for the quarter attributable to:

           

     - Owners of the parent company

 

(2,336,827)

(891,023)

 

(4,700,765)

(155,852)

     - Non-controlling interest

 

(999)

973

 

(2,946)

521

   

(2,367,826)

(890,050)

 

(4,703,711)

(155,331)

Total comprehensive profit/(loss) for the quarter attributable to:

           

     - Owners of the parent company

 

(2,337,010)

(891,023)

 

(4,670,947)

(155,852)

     - Non-controlling interest

 

(999)

973

 

(2,946)

521

   

(2,338,008)

(890,050)

 

(4,673,893)

(155,331)

             

Basic earnings per share (pence) attributable to the owners of the parent

13

(2.91)

(1.27)

 

(6.05)

(0.24)

Diluted earnings per share (pence) attributable to the owners of the parent

13

(2.91)

(1.27)

 

(6.05)

(0.24)

               

 

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2021

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 

     

As at 30 September

 

As at 31 December

     

2021

 

2020

 

Notes

 

£

 

£

Non-current assets

         

Intangible assets

5

 

3,169,722

 

3,277,381

Property, plant and equipment

 

 

25,179

 

4,720

Leased assets

 

 

45,150

 

60,198

Investment in associate

6

 

24,959,232

 

-

Investments

7

 

1,561,431

 

1,320,542

     

29,760,714

 

4,662,841

Current assets

 

       

Trade and other receivables

8

 

315,283

 

853,629

Held-for-sale assets

 

 

86,462

 

86,765

Cash and cash equivalents

   

6,486,641

 

5,937,486

     

6,888,386

 

6,877,880

Total assets

 

 

36,649,100

 

11,540,721

           

Current liabilities

 

       

Trade and other payables

9

 

(22,537,212)

 

(1,144,754)

Held-for-sale liabilities

 

 

(34,020)

 

(34,020)

Provisions

 

 

(15,000)

 

(15,000)

 

 

 

(22,586,232)

 

(1,193,774)

Non-current liabilities

 

       

Trade and other payables

 

 

(29,458)

 

(45,848)

Total liabilities

 

 

(22,615,690)

 

(1,239,622)

           

Net assets

 

 

14,033,410

 

10,301,099

           

Equity

 

       

Share capital

10

 

4,019,576

 

3,504,580

Share premium

10

 

20,255,458

 

13,222,115

Translation reserve

   

(52,761)

 

(82,579)

Other reserves

   

7,216,878

 

6,359,013

Retained earnings

   

(17,301,514)

 

(12,600,749)

           

Total equity attributable to owners of the parent

   

14,137,637

 

10,402,380

Non-controlling interest

   

(104,227)

 

(101,281)

Total equity

   

14,033,410

 

10,301,099

 

 INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED 30 SEPTEMBER 2021

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

Share capital

Share premium account

Translation reserve

Other reserves

Retained earnings

Total equity

Non-controlling interest

Total

Nine months ended 30 September 2020

£

£

£

£

£

£

£

£

Balance at 1 January 2020

2,102,284

7,378,369

(82,579)

5,755,070

(10,524,314)

4,628,830

(98,327)

4,530,503

Profit/(loss) for the period

-

-

-

-

(155,852)

(155,852)

521

(155,331)

Other comprehensive income

               

Foreign currency translation differences

-

-

-

-

-

-

-

-

Total comprehensive income/(expense)

-

-

-

-

(155,852)

(155,852)

521

(155,331)

Issue of shares

1,402,296

5,803,746

-

-

-

7,206,042

-

7,206,042

Share based payment charge

-

-

-

53,225

-

53,225

-

53,225

Total transactions with owners,

recognised directly in equity

1,402,296

5,803,746

-

53,225

(155,852)

7,103,415

521

7,103,936

Balance at 30 September 2020

3,504,580

13,182,115

(82,579)

5,808,295

(10,680,166)

11,732,245

(97,806)

11,634,439

                 

Nine months ended 30 September 2021

               

Balance at 1 January 2021

3,504,580

13,222,115

(82,579)

6,359,013

(12,600,749)

10,402,380

(101,281)

10,301,099

Profit/(loss) for the period

-

-

-

-

(4,700,765)

(4,700,765)

(2,946)

(4,703,711)

Other comprehensive income

               

Foreign currency translation differences

-

-

29,818

-

-

29,818

-

29,818

Total comprehensive income/(expense)

-

-

29,818

-

(4,700,765)

(4,670,947)

(2,946)

(4,673,893)

Issue of shares

513,333

7,013,435

-

-

-

7,526,768

-

7,526,768

Exercise of warrants

1,663

19,908

-

-

-

21,571

-

21,571

Share based payment charge

-

-

-

857,865

-

857,865

-

857,865

Total transactions with owners,

recognised directly in equity

514,996

7,033,343

-

857,865

-

8,406,204

(2,946)

4,297,213

Balance at 30 September 2021

4,019,576

20,255,458

(52,761)

7,216,878

(17,301,514)

14,137,637

(104,227)

14,033,410

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2021

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

Period ended 30 September

Three months

 

Nine months

 

2021

2020

 

2021

2020

 

£

£

 

£

£

Cash flows from operating activities

         

Profit/(loss) for the period after taxation

(2,338,008)

(890,050)

 

(4,673,893)

(155,331)

Adjustments for:

         

Net interest (received)/paid

253,996

(77)

 

256,387

3,588

Share based payments

243,349

53,225

 

857,865

73,227

Impairment of non-current assets

519,777

-

 

519,777

3,798

Bad debt provision

-

-

 

(10,875)

-

Depreciation of property, plant and equipment

6,822

5,679

 

19,303

18,148

Receipt of shares in investee

-

1,614

 

-

(1,108,999)

Fair value (gain)/loss on investments

472,363

322,493

 

376,689

(134,899)

Share of profit of associate

(653,610)

-

 

(653,610)

-

Revaluation of associate

508,093

-

 

508,093

-

Other gains/(losses)

-

(71,581)

 

-

(21,754)

Movements in working capital:

         

(Increase)/decrease in trade and other receivables

(4,967)

(117,100)

 

(68,054)

(32,911)

Increase/(decrease) in trade and other payables

695,655

984

 

325,447

(476,619)

Cash flows used in operating activities

(296,530)

(694,813)

 

(2,542,871)

(1,831,752)

           

Investing activities

         

Purchase of intangible assets

-

(15,801)

 

(412,118)

(76,102)

Purchase of property plant and equipment

(18,524)

-

 

(24,714)

(4,027)

Investment in associate

(6,203,429)

-

 

(6,203,429)

-

Loan granted to associate

(18,610,286)

-

 

(18,610,286)

-

Net interest received/(paid)

(256,447)

77

 

(256,387)

(1,838)

Net cash used in investing activities

(25,088,686)

(15,724)

 

(25,506,934)

(81,967)

           

Financing activities

         

Proceeds from issue of shares

-

-

 

7,548,338

6,483,561

Loan granted by related party

21,068,997

-

 

21,068,997

-

Principal element of lease payments

(5,425)

(4,607)

 

(15,224)

(13,473)

Interest element of lease payments

(700)

(1,518)

 

(3,151)

(4,902)

Net cash generated from financing activities

21,062,872

(6,125)

 

28,598,960

6,465,186

           

Net increase/decrease in cash and cash equivalents

(4,322,344)

(716,662)

 

549,155

4,551,467

Cash and cash equivalents at beginning of the period

10,808,985

7,480,771

 

5,937,486

2,212,642

Cash and cash equivalents at the end of the period

6,486,641

6,764,109

 

6,486,641

6,764,109

Qualified Person
The technical disclosure in this regulatory announcement has been approved by Steven Poulton, Chief Executive of Altus. A graduate of the University of Southampton in Geology (Hons), he also holds a Master's degree from the Camborne School of Mines (Exeter University) in Mining Geology. He is a Fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration and is a Qualified Person under the AIM rules and NI 43-101.

For further information you are invited to visit the Company’s website www.altus-strategies.com or contact:

 

Altus Strategies Plc

Steven Poulton, Chief Executive

Tel: +44 (0) 1235 511 767

E-mail: info@altus-strategies.com

SP Angel (Nominated Adviser)

Richard Morrison / Adam Cowl

 

Tel: +44 (0) 20 3470 0470

SP Angel (Broker)

Grant Barker / Richard Parlons

 

Tel: +44 (0) 20 3470 0471

Shard Capital (Broker)

Isabella Pierre / Damon Heath

 

Tel: +44 (0) 20 7186 9927

Yellow Jersey PR (Financial PR & IR)

Charles Goodwin / Henry Wilkinson

Tel: +44 (0) 20 3004 9512

E-mail: altus@yellowjerseypr.com

About Altus Strategies Plc
Altus Strategies (AIM: ALS, TSX-V: ALTS & OTCQX: ALTUF) is a mining royalty company generating a diversified and precious metal focused portfolio of assets. The Company’s differentiated approach of generating royalties on its own discoveries in Africa and acquiring royalties globally through financings and acquisitions with third parties, has attracted key institutional investor backing. The Company engages constructively with all stakeholders, working diligently to minimise its environmental impact and to promote positive economic and social outcomes in the communities where it operates. For further information, please visit www.altus-strategies.com.

Cautionary Note Regarding Forward-Looking Statements
Certain information included in this announcement, including information relating to future financial or operating performance and other statements that express the expectations of the Directors or estimates of future performance constitute "forward-looking statements". These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, the completion of planned expenditures, the ability to complete exploration programmes on schedule and the success of exploration programmes. Readers are cautioned not to place undue reliance on the forward-looking information, which speak only as of the date of this announcement and the forward-looking statements contained in this announcement are expressly qualified in their entirety by this cautionary statement.

Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. The forward-looking statements contained in this announcement are made as at the date hereof and the Company assumes no obligation to publicly update or revise any forward-looking information or any forward-looking statements contained in any other announcements whether as a result of new information, future events or otherwise, except as required under applicable law or regulations.

TSX Venture Exchange Disclaimer
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organisation of Canada accepts responsibility for the adequacy or accuracy of this release.

Market Abuse Regulation Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.


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