TIDMALS
RNS Number : 2460J
Altus Strategies PLC
20 August 2021
Altus Strategies Plc / Index (EPIC): AIM (ALS) TSX-V (ALTS)
OTCQX (ALTUF) / Sector: Mining
20 August 2021
Altus Strategies Plc
("Altus" or the "Company")
Quarterly Report and Financial Statements
Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF)
announces that it has published its unaudited financial results and
its Management's Discussion & Analysis for the three-month and
six-month periods ending 30 June 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 June 2021 are as
follows:
Operational highlights:
-- Commencement of 17,500m Reverse Circulation ("RC") and Air
Core ("AC") drilling programme at Diba gold project in western
Mali
-- Grant of three new projects, as well as exploration licences
adjacent to existing projects, totalling 221km(2) in Morocco
-- Ground magnetic and soil sampling surveys at Tabakorole gold
project in southern Mali have defined numerous additional
targets
Corporate highlights:
-- Appointments to the senior management team, strengthening the
Company's corporate and technical capabilities across its key areas
of operation:
o Amilha Young as Company Secretary and Legal Counsel (UK);
o Boubacar Thera as Corporate Manager (Mali); and
o David Hall as Strategic Advisor (Egypt)
Financial highlights:
-- Cash balance of GBP10.8m / C$18.5m as at 30 June 2021
-- Cash outflow for operating activities of GBP1.2m / C$2.1m for six months ending 30 June 2021
-- Balance of listed equity holdings of GBP2.0m / C$3.5m as at 30 June 2021
Post period:
-- Agreement signed to acquire an effective 0.418% net smelter
return ("NSR") royalty on 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
-- Strategic 50:50 partnership with NYSE American and TSX-V
listed EMX Royalty Corp. ("EMX") via a Chilean special purpose
vehicle ("SPV") holding a combined effective 0.836% NSR interest in
Caserones
-- US$29 million acquisition loan facility provided by a
wholly-owned subsidiary of La Mancha Fund SCSp ("La Mancha")
-- Initial results from RC drilling at the Diba gold deposit in
western Mali, including 8.50 g/t gold ("Au") over 24m from 20m
(including 26.45 g/t Au over 7m) and 2.54 g/t Au over 30m from 36m
(results are down-the-hole and not true widths)
-- Discovery of high-grade copper and silver from reconnaissance
exploration at recently granted Azrar, Izougza and Tata projects in
Morocco
-- Significant increase in landholding at Tabakorole (by
100km(2) to 292km(2) ) under joint venture ("JV") with Australian
Securities Exchange ("ASX") listed Marvel Gold Limited ("Marvel
Gold")
-- Encouraging diamond drilling ("DD") results from the first 11
holes at Tabakorole, which are expected to be incorporated into an
updated Mineral Resource estimate ("MRE") in September 2021
-- Grant of new exploration licences totalling 148.5km(2) in
Morocco, targeting copper and silver
-- Appointment of Mark Campbell as Non-Executive Chairman of
100% owned subsidiary Akh Gold Holdings Ltd and General Manager
(Egypt)
Steven Poulton, Chief Executive of Altus, commented:
"I am delighted to report on another very active quarter for
Altus, during which Altus continued to deliver on its work
programmes across its portfolio of projects, including drilling at
our projects in Mali. With the receipt of GBP4.9m / C$8.5m at the
start of the quarter, being the balance of proceeds from the March
2021 private placement, the Company ended the quarter with a strong
cash balance of GBP10.8m / C$18.5m.
"Having completed a 10,000m RC drilling programme earlier in the
year at Diba, we commenced a follow up programme at the end of May,
incorporating RC and AC drilling. Of this programme, 7,500m will be
AC drilling and will target a high priority 4km long and northerly
striking zone, which may represent a potential extension of the
Diba NW prospect. Diba NW was discovered by the phase-1 RC
programme completed by Altus earlier in the year. Intersections
from Diba NW included 1.45 g/t Au over 22m and 1.87 g/t Au over 10m
(not true widths). The AC programme will also test the Diba Far
East prospect, which is defined by numerous artisanal gold
workings, with shafts reportedly dug up to 20m deep, coincident
with significant structural targets as identified by the Company's
ongoing ground magnetic survey.
"Marvel Gold continued to advance the Tabakorole JV project in
southern Mali during the period, with a drilling programme
targeting near-surface, high-grade intercepts that fall outside of
the previously modelled MRE. A 177-hole AC drilling programme
totalling 5,148m was completed during the quarter. This programme
has confirmed mineralisation approximately 3km southeast of the
main deposit. In addition to the drilling programmes, Marvel Gold
has collected 4,267 soil samples and completed 5,300 line
kilometres of high resolution ground magnetics, as part of its
ongoing regional exploration programme, which includes
Tabakorole.
"During the quarter, the Company conducted reconnaissance
exploration on three recently granted copper focused projects
totalling 221km(2) , located in the western anti-Atlas of Morocco;
namely Azrar, Izougza and Tata. Analysis has confirmed the presence
of prospective geological formations for stratiform sediment-hosted
deposits and multiple historic artisanal workings. After the
period, four further projects totalling 148.5km(2) were granted 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 800km(2) .
"After the quarter end, on 16 August 2021, the Company concluded
an agreement to acquire an effective 0.418% NSR royalty interest on
the Caserones copper mine in the Atacama region of Chile, for a
cash consideration of US$34.1 million. The NSR interest is expected
to generate approximately US$3.2 million (post-tax) per year
attributable to Altus. The Caserones mine is owned and operated by
JX Nippon Mining & Metals Corporation of Japan and has an
estimated 17 years of production remaining. The acquisition of the
NSR interest will be part-financed by a US$29 million acquisition
bridge loan facility ("Facility") provided by La Mancha, Altus'
largest shareholder. The provision of the Facility underscores La
Mancha's commitment to the long-term growth of Altus and the
quality of the acquisition. The Company formed a strategic
relationship with NYSE American and TSX-V listed EMX Royalty Corp.,
to acquire the NSR through the creation of a 50:50 owned Chilean
SPV company. Altus' partnership with EMX is strengthened by Michael
Winn, the Chairman of EMX, who is also a Non-Executive Director of
Altus.
"Also following the period, we were delighted to report on
excellent initial results from the current RC drilling programme at
the Company's 100% owned Diba gold project in Western Mali. These
included an exceptional intersection of 8.50 g/t Au over 24m from
20m downhole (not true width). The RC programme is designed to
expand and infill the existing Diba resource, as well as define a
maiden resource at the Diba NW prospect. Infill drilling within the
current deposit has improved our understanding of the high-grade
mineralisation that strikes northeast for approximately 550m
through the Diba Deposit.
"We look forward to another exciting quarter ahead, including
the commencement of fieldwork in Egypt, further drilling programmes
in Mali and an expansion of our due diligence capabilities as we
accelerate the assessment of further cash paying royalty
acquisition opportunities. "
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHSED 30 JUNE 2021
CONDENSED CONSOLDIATED INTERIM STATEMENT OF COMPREHENSIVE
LOSS
For the three months For the six months
ended ended
30 June 30 June
2021 2020 2021 2020
GBP GBP GBP GBP
------------------------------- -------- ------------ ------------ ------------- ----------
Continuing operations
Revenue and costs recovered
from joint venture partners 22,604 16,860 22,604 176,674
Exploration costs expensed (559,089) (288,227) (1,345,788) (588,984)
Administrative expenses (254,437) (125,737) (472,814) (308,311)
Listing and acquisition
related costs (2,575) (39,758) (7,493) (46,864)
Foreign exchange gains/(losses) 19,261 72,054 (10,331) 55,324
Share based payments (315,758) - (614,516) (20,002)
------------ ------------ ------------ ----------------
Profit/(loss) from operations (1,089,994) (364,808) (2,428,338) (732,163)
Interest receivable 44 1,219 60 1,614
Interest payable (1,187) (1,769) (2,451) (3,665)
Other income/(costs) (106) - - 1,109,001
Fair value gain/(loss)
on investments 72,521 1,208,745 94,845 431,141
------------ ------------
Profit/(loss) before
taxation (1,018,722) 843,387 (2,335,884) 805,928
Taxation - (71,209) - (71,209)
Total comprehensive
profit/(loss) for the
quarter (1,018,722) 772,178 (2,335,884) 734,719
============ ============ ============ ================
Profit/(loss) for the
quarter attributable
to:
- Owners of the parent
company (1,016,988) 772,205 (2,333,937) 735,171
- Non-controlling interest (1,734) (27) (1,947) (452)
------------ ------------ ------------ ----------------
(1,018,722) 772,178 (2,335,884) 734,719
------------ ------------ ------------ ----------------
Total comprehensive
profit/(loss) for the
quarter attributable
to:
- Owners of the parent
company (1,016,988) 772,205 (2,333,937) 735,171
- Non-controlling interest (1,734) (27) (1,947) (452)
------------ ------------
(1,018,722) 772,178 (2,335,884) 734,719
============ ============ ============ ================
Basic earnings per share
(pence) attributable
to the owners of the
parent (1.26) 1.10 (3.08) 1.17
Diluted earnings per
share (pence) attributable
to the owners of the
parent (1.26) 1.02 (3.08) 1.07
----------------------------------- ---- ------------ ------------ ------------ --------------
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHSED 30 JUNE 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
As at 30 June As at 31 December
2021 2020
GBP GBP
------------------------------- -------------- ------------------
Non-current assets
Intangible assets 3,689,499 3,277,381
Property, plant and equipment 8,462 4,720
Leased assets 50,166 60,198
Investments 2,033,794 1,320,542
-------------- ------------------
5,781,921 4,662,841
Current assets
Trade and other receivables 288,474 853,629
Held-for-sale assets 86,554 86,765
Cash and cash equivalents 10,808,985 5,937,486
-------------- ------------------
11,184,013 6,877,880
-------------- ------------------
Total assets 16,965,934 11,540,721
Current liabilities
Trade and other payables (748,213) (1,144,754)
Held-for-sale liabilities (34,020) (34,020)
Provisions (15,000) (15,000)
-------------- ------------------
(797,233) (1,193,774)
Non-current liabilities
Trade and other payables (40,631) (45,848)
Total liabilities (837,864) (1,239,622)
Net assets 16,128,070 10,301,099
============== ==================
Equity
Share capital 4,019,576 3,504,580
Share premium 20,255,458 13,222,115
Translation reserve (82,579) (82,579)
Other reserves 6,973,529 6,359,013
Retained earnings (14,934,686) (12,600,749)
Total equity attributable to
owners of the parent 16,231,298 10,402,380
Non-controlling interest (103,228) (101,281)
Total equity 16,128,070 10,301,099
--------------------------------- -------------- ------------------
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHSED 30 JUNE 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
Share
Share premium Translation Other Retained Total Non-controlling
capital account reserve reserves earnings equity interest Total
Six months
ended 30 June
2020: GBP GBP GBP GBP GBP GBP GBP GBP
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)
and total
comprehensive
profit/(loss)
for the
period - - - - 646,137 646,137 (452) 645,685
---------- ----------- ------------ ---------- ------------- ------------ ---------------- -----------
Issue of
shares 1,402,296 5,803,746 - - - 7,206,042 - 7,206,042
Expiry of
share warrants - - - - - - - -
---------- ----------- ------------ ---------- ------------- ------------ ---------------- -----------
Total
transactions
with owners,
recognised
directly in
equity 1,402,296 5,803,746 - - 646,137 7,852,179 (452) 7,851,725
---------- ----------- ------------ ---------- ------------- ------------ ---------------- -----------
Balance at 30
June 2020 3,504,580 13,182,115 (82,579) 5,755,070 (9,878,177) 12,481,009 (98,779) 12,382,230
========== =========== ============ ========== ============= ============ ================ ===========
Six months
ended 30 June
2021:
Balance as 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)
and total
comprehensive
profit/(loss)
for the
period - - - - (2,333,937) (2,333,937) (1,947) 2,335,884
---------- ----------- ------------ ---------- ------------- ------------ ---------------- -----------
Issue of
shares 513,333 7,013,435 - - - 7,526,768 - 7,526,768
Exercise of
warrants 1,663 19,908 - - - 21,571 - 16,812
Share based
payment
charge - - - 614,516 - 614,516 - 298,758
Total
transactions
with owners,
recognised
directly in
equity 514,996 7,033,343 - 614,516 (2,333,937) 5,828,918 (1,947) 5,826,971
---------- ----------- ------------ ---------- ------------- ------------ ---------------- -----------
Balance at 30
June 2021 4,019,576 20,255,458 (82,579) 6,973,529 (14,934,686) 16,231,298 (103,228) 16,128,070
========== =========== ============ ========== ============= ============ ================ ===========
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHSED 30 JUNE 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
Period ended 31 March Three months Six months
2021 2020 2021 2020
GBP GBP GBP GBP
------------------------------- ------------ ------------ ------------ ------------
Cash flows from operating
activities
Profit/(loss) for the period
after taxation (1,018,722) 772,178 (2,335,884) 734,719
Adjustments for:
Net interest (received)/paid 1,143 2,166 2,391 3,665
Share based payments 315,758 - 614,516 20,002
Impairment of non-current
assets - - - 3,798
Bad debt provision - - 10,875 10,875
Depreciation of property,
plant and equipment 5,278 6,076 12,481 12,469
Receipt of shares in investee - (1,614) - (1,110,613)
Fair value (gain)/loss
on investments (73,350) (1,234,996) (95,674) (457,392)
Other gains/(losses) - (5,548) - 38,952
Movements in working capital:
(Increase)/decrease in
trade and other receivables (167,396) 100,263 (63,088) 84,189
Increase/(decrease) in
trade and other payables (313,810) (54,799) (391,959) (477,603)
------------ ------------ ------------ ------------
Cash flows used in operating
activities (1,251,099) (416,274) (2,246,342) (1,136,939)
Investing activities
Purchase of intangible
assets (257,782) (31,729) (412,118) (60,301)
Purchase of property plant
and equipment (4,792) (1,131) (6,190) (4,027)
Net interest received/(paid) 24 (2,167) 60 (1,915)
------------ ------------ ------------ ------------
Net cash used in investing
activities (262,550) (35,027) (418,248) (66,243)
Financing activities
Proceeds from issue of
shares 4,917,650 - 7,548,339 6,483,561
Principal element of lease
payments (4,958) (4,492) (9,799) (8,866)
Interest element of lease
payments (1,167) (1,633) (2,451) (3,384)
------------ ------------ ------------ ------------
Net cash generated from
financing activities 4,911,525 (6,125) 7,536,089 6,471,311
Net increase/decrease in
cash and cash equivalents 3,397,876 (457,426) 4,871,499 5,268,129
------------------------------- ------------ ------------ ------------ ------------
Cash and cash equivalents
at beginning of the period 7,411,109 7,938,197 5,937,486 2,212,642
Cash and cash equivalents
at the end of the period 10,808,985 7,480,771 10,808,985 7,480,771
------------------------------- ------------ ------------ ------------ ------------
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 Tel: +44 (0) 1235 511 767
Steven Poulton, Chief Executive 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) Tel: +44 (0) 20 3004 9512
Charles Goodwin / Henry Wilkinson 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.
**END**
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