TIDMALS
RNS Number : 2405O
Altus Strategies PLC
09 June 2022
Altus Strategies Plc / Index (EPIC): AIM (ALS); TSX-V (ALTS);
OTCQX (ALTUF) / Sector: Mining
09 June 2022
Altus Strategies Plc
("Altus" or the "Company")
Record Quarterly Royalty Income from Caserones Copper Mine in
Chile
Substantial Increase in Caserones Mine Life
Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF)
announces that it has received record quarterly royalty income of
US$1.54 million (before tax) (+24.2% QoQ) for the first quarter of
2022 from its effective 0.418% net smelter return ("NSR") royalty
interest on the Caserones copper mine in Chile ("Caserones"). In
addition, the Company notes that the mine operator is now
forecasting a mine life of 28 years based on its most recent
declaration of reserves, representing an 11 year (65%) increase to
the previous mine life.
Highlights:
-- Record quarterly income of US$1.54 M (before tax) from the Caserones copper mine in Chile
-- 65% increase in mine life to 28 years (based on latest mine reserves only)
-- US$5.1M of Caserones royalty income (before tax) received by Altus since acquisition
-- Increase in royalty income linked to strong copper prices in the period and higher production
-- Royalty provides Altus with direct exposure to robust outlook for copper demand and price
-- Altus continues to examine revenue generating royalty acquisition opportunities globally
Steven Poulton, Chief Executive of Altus, commented:
"We are delighted to report that our royalty on the Caserones
copper mine in Chile has delivered record quarterly royalty income
to Altus of US$1.54 million (before tax). We are also pleased to
report that the mine operator is now forecasting the mine life of
Caserones to increase substantially from 17 years to 28 years.
Given that no exploration drilling has reportedly been undertaken
at Caserones since 2005, we believe the mine life could potentially
be extended even further in the future.
"Royalties shelter investors from inflation in operational and
capital costs, as well as limit exposure to falling commodity
prices, which each impact a mine's profitability. They also contain
embedded upside optionality which can add significant value at no
cost to the royalty owner. This optionality is typically associated
with mine life extensions, commodity price appreciation and
production increases.
"The royalty we own on Caserones has delivered strong income to
Altus of US$5.1 million and generated significant upside potential
in the very short timeframe since we acquired it in September 2021.
This performance not only reflects the quality of the Caserones
asset, but also validates our royalty acquisition strategy and
methodology. We continue to assess opportunities to grow our
royalty portfolio in line with this strategy and further enhance
our revenue streams. I look forward to providing further updates in
due course."
About the Caserones Mine
The Caserones mine is a large, open-pit copper-molybdenum
porphyry deposit, located within a 17,000 hectare land package at
an elevation of approximately 4,300m above sea level in the borough
of Tierra Amarilla, in the Atacama region of northern Chile. The
mine is owned and operated by SCM Minera Lumina Copper Chile SpA
("SCM"), an indirect 100% owned subsidiary of JX Nippon Mining
& Metals Corporation of Japan.
The mine has been in operation for five years, following a
capital investment of approximately US$4.2 billion. In 2021,
Caserones reported production of 94,846 tonnes of copper and 2,287
tonnes of molybdenum in concentrates, as well as 14,829 tonnes of
copper in cathodes. Caserones has an estimated 28 years of
operation remaining under its current mine plan (as announced in
the 2021 annual report of SCM), along with excellent exploration
potential. In a news release dated 9 November 2020, JX Nippon
announced plans for "stepping up exploration efforts in areas
around the mine" to potentially expand production and further
extend the mine life.
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 Tel: +44 (0) 20 3470 0471
Rob Rees Tel: +44 (0) 20 3470 0535
Shard Capital (Broker)
Isabella Pierre / Damon Heath Tel: +44 (0) 20 7186 9927
Yellow Jersey PR (Financial PR & Tel: +44 (0) 20 3004 9512
IR) E-mail: altus@yellowjerseypr.com
Charles Goodwin / Henry Wilkinson
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 29 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 expectations or estimates 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
may include, without limitation, risks and hazards associated with
mining at Caserones, including, but not limited to unusual or
unexpected geological and metallurgical conditions, slope failures
or cave-ins, flooding and other natural disasters, terrorism, civil
unrest or an outbreak of contagious disease; differences in actual
metal content or grade from that estimated by SCM; fluctuations in
currency exchange rates, metal prices, and worldwide and Chilean
economic activity; increases in operating, marketing and selling
costs; adverse regulatory, political or economic developments in
Chile; adverse changes in the ownership or control of SCM;
unforeseen operating and other technical difficulties; reduced
access to equity capital; and title, permit or license disputes
related to Caserones.
The forward-looking statements contained in this announcement
are based upon assumptions management believes to be reasonable,
including, without limitation: the ongoing operation of Caserones
by SCM consistent with past practice; the accuracy of public
statements and disclosures made by SCM and JX Nippon Mining &
Metals Corporation; no material adverse change in the market price
of copper and molybdenum; no material changes to existing tax
treatment; the expected application of tax laws and regulations by
taxation authorities; the expected assessment and outcome of any
audit by any taxation authority; no adverse development in respect
of Caserones; the accuracy of publicly disclosed expectations for
the development of underlying properties that are not yet in
production; and the absence of any other factors that could cause
actions, events or results to differ from those anticipated,
estimated or intended.
There can be no assurance that forward-looking statements will
prove to be entirely accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Readers are cautioned not to place undue reliance on the
forward-looking statements, which speak only as of the date of this
announcement and are not guarantees of future performance. 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
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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