TIDMALS
RNS Number : 1630S
Altus Strategies PLC
12 November 2021
Altus Strategies Plc / Index (EPIC): AIM (ALS) TSX-V (ALTS)
OTCQX (ALTUF) / Sector: Mining
12 November 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 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% net smelter return ("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 which means 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" in Management's Discussion and
Analysis)
-- Caserones royalty acquired via a strategic 50:50 partnership
with TSX Venture 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, 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 joint venture ("JV")
landholding at Tabakorole (by 100km(2) to 292km(2) ) with
Australian Securities Exchange 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
-- Morocco: Discovery of high-grade copper and silver from
reconnaissance exploration at the recently granted Azrar, Izougza
and Tata projects
-- Morocco: Grant of four new exploration licences totalling
148.5km(2) , targeting copper and silver
Financial highlights:
-- Cash balance of GBP5.9 million / C$10.2 million as at 30 September 2021
-- Cash outflow for operating activities of GBP3.1 million /
C$5.2 million for nine months ending 30 September 2021
-- Listed equity holdings of GBP1.6 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 royalty 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 the deposit subject to the MRE within 150m of the
surface
-- High grade intersections including 21.9 g/t Au over 10.2m
from 28m from DD at Diba gold deposit in western Mali (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 royalty 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 Air Core 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 - See Altus' news release "Gold Resource
Exceeds One Million Ounces at Tabakorole in Southern Mali" dated 05
October 2021. 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 deposit 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 we
have expanded our in-country geological and administrative teams.
Initial reconnaissance was also completed on Gabal Om Ourada and
Wadi Dubur in the Eastern Desert with numerous hard rock artisanal
gold workings discovered 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 148.5km(2) , 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 800km(2) . The Company is actively examining
potential transactions with third parties on its portfolio of
Moroccan assets that are held by its 100% owned subsidiary Aterian
Resources Ltd.
"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 continuing to create value from our portfolio of
projects in Morocco. I look forward to keeping shareholders updated
on our progress."
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHSED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
LOSS
For the three months For the nine months
ended 30 September ended
30 September
2021 2020 2021 2020
Notes GBP GBP GBP GBP
------------------------------ ----------- ------------ ---------- ------------ ------------
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 6 (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 7 653,610 - 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 14 (2.91) (1.27) (6.05) (0.24)
Diluted earnings per share
(pence) attributable to
the owners of the parent 14 (2.91) (1.27) (6.05) (0.24)
-------------------------------------- --- ------------ ---------- ------------ ------------
INTERIM UNAUDITED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHSED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
As at 30 September As at 31 December
2021 2020
Notes GBP GBP
------------------------------- ------ ------------------- ------------------
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 7 24,959,232 -
Investments 8 1,561,431 1,320,542
------------------- ------------------
29,760,714 4,662,841
Current assets
Trade and other receivables 9 315,283 853,629
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 10 (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 11 4,019,576 3,504,580
Share premium 11 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 MONTHSED 30 SEPTEMBER 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
Nine months ended
30 September
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) 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 MONTHSED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
Period ended 30 September Three months Nine months
2021 2020 2021 2020
GBP GBP GBP GBP
--------------------------------------- ------------- ---------- ------------- ------------
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 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.
****
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