TIDMALS
RNS Number : 2029A
Altus Strategies PLC
01 February 2022
Altus Strategies Plc / Index (EPIC): AIM (ALS); TSX-V (ALTS);
OTCQX (ALTUF) / Sector: Mining
1 February 2022
Altus Strategies Plc
("Altus" or the "Company")
Completion of Newcrest Gold Royalty Portfolio Acquisition
Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF)
announces it has completed the second and final closing ("Second
Close") of the recently announced acquisition (the "Acquisition")
of a portfolio of 24 royalties and royalty interests (each a
"Royalty" and together the "Royalties") from Newcrest Mining Ltd
and certain of its group companies (together "Newcrest") (see Altus
news releases dated 13 and 21 December 2021). The Royalties have
been acquired through a strategic joint venture with AlphaStream
Limited ("AlphaStream"), a specialist mining royalty and streaming
company. Total consideration for the Acquisition was US$ 37.5
million ("Consideration") with the aggregate amount paid by Altus
being US$ 24.0 million.
The Second Close provided a period for certain pre-emptive
rights to be exercised on nine of the exploration stage royalties
in Australia. None of these rights were exercised in the designated
time period and, accordingly, Altus and AlphaStream have paid the
remaining balance of US$ 5,037,500 to Newcrest (of which US$
4,035,037 was paid by Altus).
Highlights:
-- Acquisition of the Royalties from Newcrest now complete after final closing
-- Portfolio includes royalties over two producing gold mines,
one near producing gold mine and 21 development and exploration
stage assets
-- Potential annual revenues to Altus of up to US$ 3.5 million
(post-tax) from the Royalties, based on a forecast 10-year average
(also see Cautionary Note Regarding Forward-Looking Statements and
Altus Assumptions)
-- The Company's entire royalty portfolio is estimated to
generate up to US$ 6.4 million in post-tax revenue for 2022
-- Royalties acquired by Altus from Newcrest comprise an effective:
o 80.1% economic interest in the Australian royalty portfolio
including:
-- a 2.5% net smelter return ("NSR") royalty on the producing
Ballarat gold mine in Victoria
-- a A$ 10/ounce royalty from certain licences at the producing
South Kalgoorlie Operations in Western Australia
-- various royalties on 21 development and exploration stage
assets
o 50% economic interest in a 4.5% NSR royalty over Push Back 5
(capped at 560,000 ounces of gold) from the near-production Bonikro
gold mine in Côte d'Ivoire
-- Second Close cash consideration of US$ 5,037,500 paid by
Altus and AlphaStream, of which US$ 4,035,037 was paid by Altus
-- First Close payment of US$ 32,462,500 was made on 21 December 2021
-- Further royalty opportunities under review in parallel with exploration in Mali and Egypt
Steve Poulton, Chief Executive of Altus, commented:
"We are delighted to close the Newcrest gold royalty
Acquisition, which represents another landmark transaction
completed by Altus. The Company has now paid US$ 24.0 million as
its portion of the total US$ 37.5 million Consideration. Following
the completion of the Acquisition, our global portfolio now
comprises 33 royalties and 27 project interests, across nine
countries and nine different metals.
"The Newcrest portfolio is heavily weighted towards Australia
and comprises royalty interests over two producing mines, one-near
production mine, 15 development stage projects and six exploration
stage assets. Many of these royalties are located on assets in
known gold mining districts, including the Eastern Goldfields, the
Pilbara, the Mt Isa Inlier, and the Lachlan Fold Belt. The
operators of the projects include numerous high quality precious
and base metal companies who are well known to the market.
"The Acquisition provides Altus with immediate cash flow and is
estimated to generate up to US$ 3.5 million in post-tax annual
revenue to Altus, based on a forecast 10-year average. The
consolidated royalty portfolio is estimated to generate up to US$
6.4 million in annual (post-tax) royalty revenue for 2022.
"Altus continues to build on its growing track record of
identifying and acquiring high quality royalty assets and we are
actively reviewing a number of such opportunities. I look forward
to updating shareholders on these activities in due course."
Altus Assumptions
Pursuant to the Acquisition, Altus now owns an effective 50%
economic interest in the royalty on the Bonikro gold mine and an
effective 80.1% economic interest in the Australian royalty
portfolio. The Acquisition is estimated to generate attributable
after-tax revenue to Altus of up to US$ 3.5 million per annum over
the next 10 years based on internal assumptions. This is based on
production forecasts provided by Newcrest and a sliding scale gold
price based on consensus pricing as at September 2021 ("Altus
Assumptions") of:
US$ 1,879/oz
* 2022
US$ 1,765/oz
* 2023
US$ 1,712/oz
* 2024
US$ 1,599/oz
* 2025+
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 Corporate Finance LLP (Nominated
Adviser) Tel: +44 (0) 20 3470 0470
Richard Morrison / Adam Cowl
SP Angel Corporate Finance LLP (Broker)
Grant Barker Tel: +44 (0) 20 3470 0471
Rob Rees Tel: +44 (0) 20 3470 0535
Shard Capital Partners LLP (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 success of development and mining programmes by
the mine operators, fluctuations in metal markets and currency
exchange rates. 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. Upon publication
of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR.
**END**
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