TIDMALS

RNS Number : 1268N

Altus Strategies PLC

27 May 2022

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

27 May 2022

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 months ending 31 March 2022. 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 31 March 2022 are as follows:

Corporate highlights

-- Second and final close of the royalties acquisition covering nine development and exploration stage assets located in Australia from Newcrest Mining Limited (ASX, TSX & PNGX; NCM) for consideration of US$4.0 million

-- 1.0% Gross Revenue Royalty ("GRR") generated on Toura Nickel-Cobalt project in Côte d'Ivoire through sale of interest in local subsidiary to Firering Strategic Minerals Plc (AIM: FRG) ("Firering") for EUR15,000

-- Joint venture agreement with Marvel Gold Limited (ASX: MVL) ("Marvel Gold") in Mali amended with the Company regaining a 100% interest in the Lakanfla licence in western Mali, located 5km east of the Company's Diba gold project, and its interest in the Tabakorole gold project in southern Mali moving to 30%; Altus retains a 2.5% Net Smelter Return ("NSR") royalty on the Tabakorole project

Operational highlights

-- Western Mali: Completion of 11,832m drilling programme at the Diba & Lakanfla gold project with latest results of up to 1.27 grams per tonne ("g/t") gold ("Au") over 127m from 21m on the Lakanfla Central prospect and 1.81 g/t Au over 10m from 256m at the Diba NW prospect (results are down-the-hole and not true widths)

Financial highlights

   --    Cash balance of GBP3.2m / C$5.3m as at 31 March 2022 

-- Cash outflow for operating activities of GBP0.4m / C$0.7m for three months ending 31 March 2022

   --    Listed equity holdings of GBP1.6m / C$2.7m as at 31 March 2022 

Post-period end

-- Award of a ten year (renewable) mining licence at the Agdz project in central Morocco covering an area of 34.36km(2) , representing the area of copper and silver mineralisation discovered to date

-- Award of a four year (renewable) 'small scale' mining licence at the Diba gold project in western Mali covering an area of 83.1km(2) , incorporating the Diba Deposit and other key prospects

-- Southern Mali: highly encouraging results from the Lone Wolf prospect at the Tabakorole gold project including 14m at 4.9 g/t Au from 33m and 10m at 1.9 g/t Au from 55m (results are down-the-hole and not true widths)

-- Further extension of the La Mancha loan facility to 31 December 2022 with the annualised interest rate remaining at 10% plus USD LIBOR

-- Completion of an agreement with AlphaStream Capital ("AlphaStream") for the sale of a 30.1% interest in Alpha 3 SPV Ltd ("Alpha 3") for US$5.3 million. Altus and AlphaStream will each own 50% of Alpha 3 which owns a portfolio of 23 mining royalties in Australia acquired from Newcrest

Steven Poulton, Chief Executive of Altus, commented:

"I am delighted to report on an outstanding start to 2022. Not only have we diligently advanced our royalty acquisition strategy, but our royalty generation programme continues to deliver excellent results from our diverse portfolio of projects, including those in Egypt, Mali and Morocco.

"In January 2022, the Company completed the second and final close of the transaction with Newcrest for the purchase of a portfolio of royalties in Australia. The second close covered nine of the 21 royalties on development and exploration stage projects in Australia that were included in the transaction, but which had been the subject of rights of first refusal by third parties, none of which was exercised. Consideration from Altus for the second close was US$4.0 million out of the total cash consideration of US$24.0 million. The transaction was undertaken through a strategic JV with AlphaStream, a specialist mining royalty and streaming company based in the United Arab Emirates.

"During the quarter, initial royalty revenue of GBP343,000 was received from two cash-paying royalties that formed part of the first close of the Newcrest transaction. Revenue comprised GBP333,000 from the Ballarat gold mine in Victoria and GBP10,000 from the South Kalgoorlie Operations ("SKO") gold mine in Western Australia relating to production in Q4 2021.

"At the Company's 100% owned Diba & Lakanfla gold project, a phase-2 drilling programme covering both licences was completed. The programme comprised 9,040m of reverse circulation ("RC") drilling and 1,433m of air core ("AC") drilling. Results from the Diba NW prospect included intersections of 4.76 g/t Au over 12m from 102m and 8.74 g/t Au over 7m from 119m (results are down-the-hole and not true widths). These high-grade intersections indicate the presence of potentially enriched zones, or sub vertical mineralised structures which will be the subject of follow-up exploration. Results from the Lakanfla Central prospect returned 1.23 g/t Au over 127m from 21m, including 2.53 g/t Au over 14m from 46m. The results extended the mineralised strike of Lakanfla Central by approximately 200m to approximately 750m, with mineralisation remaining open to the northeast and at depth, and confirmed the presence of a broad gold mineralised package at Lakanfla Central. Altus' JV partner, Marvel Gold, continued with its RC and AC drilling programmes at Tabakorole. The programme included 5,000m RC drilling to infill the north-west extension of the deposit and to test priority proximal targets.

"The Company's royalty generation team focused on Egypt during the quarter, with reconnaissance work undertaken on the Gabal Om Ourada (346km(2) ) and Wadi Dubur (175km(2) ) licences. The team mapped numerous hard rock gold workings, collected samples that were sent for laboratory analysis and identified a number of targets for further exploration work. The Company continued to scale up its operations in Egypt with the recruitment of additional local and well trained geologists.

"The Company's discovery team in Morocco continued to explore the 10 new battery metals focused projects in the Anti-Atlas Mountains that were awarded to the Company during 2021. Rock chip samples were collected and sent for laboratory analysis. The Company's Moroccan projects are proposed to be vended to London AQSE Growth Market-listed Eastinco Mining and Exploration plc (AQSE: EM.P), subject to the satisfaction of certain conditions precedent, including the admission to trading of Eastinco's entire issued share capital to the Official List of the FCA (Standard Segment) and to trading on the LSE's Main Market for listed securities.

"During the quarter, the Company executed a Sale and Purchase Agreement with Firering for the sale of the Toura nickel-cobalt exploration licence application in western Côte d'Ivoire. Consideration for the sale was EUR15,000 in cash and a GRR of up to 1.0% on nickel and cobalt sales from the project.

"Following the end of the quarter, the Company undertook a rebalancing of the Australian royalty portfolio it acquired from Newcrest, with the sale to AlphaStream of a 30.1% interest in Alpha 3 SPV Ltd for US$5,267,500. The transaction resulted in AlphaStream and the Company each owning a 50% interest in Alpha 3. The Company and AlphaStream each already owned a 50% interest in Alpha 2 SPV Ltd, which owns a 4.5% capped NSR royalty on the Bonikro gold mine in Côte d'Ivoire, which was also acquired from Newcrest. Following the transaction, both Altus and AlphaStream have each invested a total of approximately US$18,750,000 to own a 50% interest in both Alpha 3 and Alpha 2. No material gain or loss was made on the rebalancing and the proceeds will be applied to further royalty generation and acquisition activities.

"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 Egypt and Mali, as well as continuing to create value from our portfolio of projects in Morocco and Cameroon. I look forward to keeping shareholders updated on our progress."

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHSED 31 MARCH 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE LOSS

 
                                                                    For the three months 
                                                                            ended 
                                                                          31 March 
                                                                          2022        2021 
                                    Notes                              GBP'000     GBP'000 
------------------------------  ------------  -------  -------  ---  ---------  ---------- 
 Continuing operations 
 Revenue and costs recovered 
  from 
  joint venture partners                  2                                343           - 
 
 Exploration costs expensed               3                              (957)       (787) 
 
 Administrative expenses                  4                              (356)       (218) 
 Listing and acquisition 
  related costs                           6                               (14)         (5) 
 Foreign exchange gains/(losses)                                            51        (29) 
 Share based payments                                                    (483)       (299) 
                                                                     ---------  ---------- 
 Profit/(loss) from operations                                         (1,416)     (1,338) 
 
 Interest receivable                                                         -           0 
 Interest payable                                                        (458)         (1) 
 Other income/(costs)                                                    (565)           0 
 Gain/(loss) on disposal                                                   234           - 
 Fair value gain/(loss) on 
  investments                                                             (88)          22 
 Share of profit of investments 
  accounted for using the 
  equity method                           7                                  -           - 
                                                                     ---------  ---------- 
 Profit/(loss) before taxation                                         (2,293)     (1,317) 
 Taxation                                                                    -           - 
                                                                     ---------  ---------- 
 Profit/(loss) for the year                                            (2,293)     (1,317) 
                                                                     =========  ========== 
 
 Other comprehensive income 
 Items that may be reclassified 
  to the income statement 
  in subsequent periods 
 Foreign currency translation 
  differences                                                            (206)           - 
                                                                     ---------  ---------- 
 Total comprehensive 
  (expense)/income for the 
  year                                                                 (2,499)     (1,317) 
                                                                     =========  ========== 
 
 Profit/(loss) for the quarter 
  attributable to: 
     - Owners of the parent 
      company                                                          (2,293)     (1,317) 
     - Non-controlling interest                                            (0)         (0) 
                                                                     ---------  ---------- 
                                                                       (2,293)     (1,317) 
                                                                     ---------  ---------- 
 Total comprehensive profit/(loss) 
  for the quarter attributable 
  to: 
     - Owners of the parent 
      company                                                          (2,499)     (1,317) 
     - Non-controlling interest                                            (0)         (0) 
                                                                     ---------  ---------- 
                                                                       (2,499)     (1,317) 
                                                                     ---------  ---------- 
 
 Basic earnings per share 
  (pence) attributable to 
  the owners of the parent                15                            (1.95)      (1.86) 
 Diluted earnings per share 
  (pence) attributable to 
  the owners of the parent                15                            (1.95)      (1.86) 
--------------------------------------  ----  -------  -------  ---  ---------  ---------- 
 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHSED 31 MARCH 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 
                                          As at 31    As at 31 
                                             March    December 
                                              2022        2021 
                                  Notes    GBP'000     GBP'000 
-------------------------------  ------  ---------  ---------- 
 Non-current assets 
 Intangible assets                  5       20,592      16,994 
 Property, plant and equipment                 194          30 
 Leased assets                                  87         104 
 Investment in associate            7       24,149      25,367 
 Investments                        8        1,633       1,721 
                                         ---------  ---------- 
                                            46,655      44,216 
 Current assets 
 Trade and other receivables        9          339         622 
 Held-for-sale assets                          120         118 
 Cash and cash equivalents                   3,202       6,355 
                                         ---------  ---------- 
                                             3,661       7,095 
                                         ---------  ---------- 
 Total assets                               50,316      51,311 
 Current liabilities 
 Trade and other payables          10      (1,002)       (986) 
 Borrowings                        11     (19,354)    (18,349) 
 Held-for-sale liabilities                    (34)        (34) 
 Provisions                                   (15)        (15) 
                                         ---------  ---------- 
                                          (20,405)    (19,384) 
 Non-current liabilities 
 Trade and other payables                     (65)        (65) 
                                         ---------  ---------- 
 Total liabilities                        (20,470)    (19,449) 
                                         ---------  ---------- 
 Net assets                                 29,846      31,862 
                                         =========  ========== 
 
 Equity 
 Share capital                     12        5,866       5,866 
 Share premium                     12       37,556      37,556 
 Share based payment reserve                 2,096       1,613 
 Other reserves                              5,723       5,723 
 Other comprehensive income                  (129)           - 
 Retained earnings                        (21,161)    (18,791) 
 
 Total equity attributable 
  to owners of the parent                   29,951      31,967 
 Non-controlling interest                    (105)       (105) 
 Total equity                               29,846      31,862 
-------------------------------  ------  ---------  ---------- 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE MONTHSED 31 MARCH 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 
                                           Share 
                                 Share     based                      Other 
                       Share   premium   payment      Other   comprehensive   Retained     Total   Non-controlling 
                     capital   account   reserve   reserves          income   earnings    equity          interest     Total 
 Three months 
 ended 31 March 
 2021                GBP'000   GBP'000   GBP'000    GBP'000         GBP'000    GBP'000   GBP'000           GBP'000   GBP'000 
------------------  --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 1 
  January 2021         3,505    13,222       531      5,745               -   (12,601)    10,402             (101)    10,301 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Profit/(loss) for 
  the period               -         -         -          -               -    (1,317)   (1,317)               (0)   (1,317) 
 Other 
 comprehensive 
 income 
 Foreign currency 
 translation 
 differences               -         -         -          -               -          -         -                 -         - 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  income/(expense)         -         -         -          -               -    (1,317)   (1,317)               (0)   (1,317) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Issue of shares         514     7,013         -          -               -          -     7,527                 -     7,527 
 Exercise of 
  warrants                 1        16         -          -               -          -        17                 -        17 
 Share based 
  payment charge           -         -       299          -               -          -       299                 -       299 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  transactions 
  with 
  owners, 
  recognised 
  directly in 
  equity                 515     7,029       299          -               -          -     7,843                 -     7,843 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 31 
  March 2021           4,019    20,251       830      5,745               -   (13,918)    16,927             (101)    16,826 
                    ========  ========  ========  =========  ==============  =========  ========  ================  ======== 
 
 Three months 
 ended 31 March 
 2022 
------------------  --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 1 
  January 2022         5,866    37,556     1,613      5,723              77   (18,868)    31,967             (105)    31,862 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Profit/(loss) for 
  the period               -         -         -          -               -    (2,293)   (2,293)               (0)   (2,293) 
 Other 
 comprehensive 
 income 
 Foreign currency 
  translation 
  differences              -         -         -          -           (206)          -     (206)                 -     (206) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  income/(expense)         -         -         -          -           (206)    (2,293)   (2,499)               (0)   (2,499) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Share based 
  payment charge           -         -       483          -               -          -       483                 -       483 
 Total 
  transactions 
  with 
  owners, 
  recognised 
  directly in 
  equity                   -         -       483          -               -          -       483                 -       483 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 31 
  March 2022           5,866    37,556     2,096      5,723           (129)   (21,161)    29,951             (105)    29,846 
                    ========  ========  ========  =========  ==============  =========  ========  ================  ======== 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED 31 MARCH 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 
 Period ended 31 March                            Three months ended 
                                                      2022       2021 
                                                   GBP'000    GBP'000 
---------------------------------------   ---   ----------  --------- 
 Cash flows from operating 
  activities 
 Total comprehensive loss for 
  the period                                       (2,499)    (1,317) 
 Adjustments for: 
 Net interest (received)/paid                          458          1 
 Share based payments                                  483        299 
 Bad debt provision                                      -         11 
 Depreciation of property, plant 
  and equipment                                         24          9 
 Gain/loss on disposal                               (251)          - 
 Fair value (gain)/loss on investments                  88       (22) 
 Movements in working capital: 
 (Increase)/decrease in trade 
  and other receivables                                402        102 
 Increase/(decrease) in trade 
  and other payables                                   449       (78) 
 Other working capital movements                      (33)          - 
                                                ----------  --------- 
 Cash flows used in operating 
  activities                                         (879)      (995) 
 
 Investing activities 
 Purchase of intangible assets                     (3,010)      (155) 
 Purchase of property plant 
  and equipment                                      (171)        (1) 
 Sale of subsidiary                                     12          - 
 Distribution from associate                           901          - 
 Net interest received/(paid)                            -          0 
                                                ----------  --------- 
 Net cash used in investing 
  activities                                       (2,268)      (156) 
 
 Financing activities 
 Proceeds from issue of shares                           -      2,631 
 Principal element of lease 
  payments                                             (5)        (5) 
 Interest element of lease payments                    (1)        (1) 
                                                ----------  --------- 
 Net cash generated from financing 
  activities                                           (6)      2,625 
 
 Net increase/decrease in cash 
  and cash equivalents                             (3,153)      1,474 
----------------------------------------------  ----------  --------- 
 Cash and cash equivalents at 
  beginning of the period                            6,355      5,937 
 Cash and cash equivalents 
  at the end of the period                           3,202      7,411 
----------------------------------------------  ----------  --------- 
 

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 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 an income generating mining royalty company, with a diversified portfolio of production, pre-production and discovery stage 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. Altus has established a global portfolio comprising 33 royalty interests and 27 project interests across nine countries and nine metals. 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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