TIDMALS

RNS Number : 2263W

Altus Strategies PLC

16 August 2022

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

16 August 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-month and six-month periods ending 30 June 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 .

Steven Poulton, Chief Executive of Altus, commented:

"We are delighted to have announced our highly accretive merger-of-equals with TSX-V listed Elemental Royalties. With complementary teams, supportive shareholders, diversified revenues and substantial royalty portfolios, the merger will forge a new and rapidly growing global gold royalty champion. Scale and liquidity are important considerations for investors. The enlarged entity is expected to benefit from enhanced access to capital markets and to high quality deal flow. I would like to thank shareholders for their past and continued support."

HIGHLIGHTS

Highlights for the three months ended 30 June 2022 are as follows:

Corporate highlights

-- Terms and conditions agreed of a recommended share-for-share merger of equals (the " Merger ") between the Company and TSXV listed Elemental Royalties Corp. (" Elemental ")

-- Under the terms of the Merger, each Altus shareholder will be entitled to receive 0.5940 Elemental shares for each Ordinary Share of Altus

-- Upon completion of the Merger, Elemental shareholders will own approximately 52.9% and Altus shareholders will own approximately 47.1% of the total issued share capital of the combined company

-- Altus will de-list from AIM and TSX-V and Elemental intends to change its name to Elemental Altus Royalties Corp. and continue to trade on TSX-V under the symbol ELE

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

Operational highlights

-- Discovery of multiple high grade gold prospects from reconnaissance sampling across the Company's four projects in Egypt

-- Award of two further gold exploration licences in Egypt totalling 349km(2) under a competitive bid round taking total land holding in Egypt to 1,914km(2)

-- Receipt of record quarterly royalty income of US$1.54 million (before tax) for Q1 2022 from Caserones copper mine in Chile linked to higher copper prices in the period as well as higher production

-- 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 83.10km(2) , incorporating the Diba Deposit and other key prospects

Financial highlights

-- Extension of the La Mancha loan facility to 31 December 2022 with annualised interest rate maintained at 10% plus the United States Dollar (" USD ") London Inter-bank Offered Rate (" LIBOR ")

   --    Cash balance of GBP6.9 million / C$10.8 million as at 30 June 2022 

-- Cash outflow for operating activities of GBP1.4 million / C$2.2 million for three months ending 30 June 2022

   --    Listed equity holdings of GBP0.8 million / C$1.3 million as at 30 June 2022 

Post-period end

-- Publication of an updated independent Mineral Resource Estimate (" MRE ") and Preliminary Economic Assessment (" PEA ") for the Diba & Lakanfla gold project in western Mali, showing 67% increase in the MRE in all categories and a US$150 million after-tax Net Present Value (" NPV ") for the oxide portion of the project

-- The Merger was approved by shareholders of Altus and Elemental at respective general meetings held on 8 August 2022 and by the High Court of Justice of England and Wales on 12 August 2022

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHSED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE LOSS

 
                                                 For the three         For the six months 
                                                 months ended 30          ended 30 June 
                                                      June 
                                                  2022       2021           2022       2021 
                                    Notes      GBP'000    GBP'000        GBP'000    GBP'000 
------------------------------  ------------  --------  ---------  ---  --------  --------- 
 Continuing operations 
 Revenue and costs recovered 
  from 
  joint venture partners                  2         63         23            406         23 
 Depletion of royalty assets                     (191)          -          (191)          - 
 
 Exploration costs expensed               3      (816)      (559)        (1,773)    (1,346) 
 
 Administrative expenses                  4      (337)      (254)          (693)      (473) 
 Listing and acquisition 
  related costs                           6      (464)        (3)          (478)        (7) 
 Foreign exchange gains/(losses)                   227         19            278       (10) 
 Share based payments                            (180)      (316)          (663)      (615) 
 Profit/(loss) from operations                 (1,698)    (1,090)        (3,114)    (2.438) 
 
 Interest receivable                                 -          0              -          0 
 Interest payable                                (565)        (1)        (1,023)        (2) 
 Other income/(costs)                          (1,578)        (0)        (2,143)          - 
 Gain/(loss) on disposal                           229          -            463          - 
 Fair value gain/(loss) on 
  investments                                    (741)         76          (829)         95 
 Share of profit of investments 
  accounted for using the 
  equity method                           7        428          -            428          - 
                                              --------  ---------       --------  --------- 
 Profit/(loss) before taxation                 (3,925)    (1,019)        (6,218)    (2,336) 
 Taxation                                            -          -              -          - 
                                              --------  ---------       --------  --------- 
 Profit/(loss) for the year                    (3,925)    (1,019)        (6,218)    (2,336) 
                                              ========  =========       ========  ========= 
 
 Other comprehensive income 
 Items that may be reclassified 
  to the income statement 
  in subsequent periods 
 Foreign currency translation 
  differences                                       71          -          (135)          - 
                                              --------  ---------       --------  --------- 
 Total comprehensive 
  (expense)/income for the 
  year                                         (3,854)    (1,019)        (6,353)    (2,336) 
                                              ========  =========       ========  ========= 
 
 Profit/(loss) for the quarter 
  attributable to: 
     - Owners of the parent 
      company                                  (3,924)    (1,017)        (6,217)    (2,334) 
     - Non-controlling interest                    (1)        (2)            (1)        (2) 
                                              --------  ---------       --------  --------- 
                                               (3,925)    (1,019)        (6,218)    (2,336) 
                                              --------  ---------       --------  --------- 
 Total comprehensive profit/(loss) 
  for the quarter attributable 
  to: 
     - Owners of the parent 
      company                                  (3,853)    (1,017)        (6,352)    (2,334) 
     - Non-controlling interest                    (1)        (2)            (1)        (2) 
                                              --------  ---------       --------  --------- 
                                               (3,854)    (1,019)        (6,353)    (2,336) 
                                              --------  ---------       --------  --------- 
 
 Basic earnings per share 
  (pence) attributable to 
  the owners of the parent                15    (3.28)     (1.26)         (5.41)     (3.08) 
 Diluted earnings per share 
  (pence) attributable to 
  the owners of the parent                15    (3.28)     (1.26)         (5.41)     (3.08) 
--------------------------------------  ----  --------  ---------  ---  --------  --------- 
 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHSED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 
                                          As at 30    As at 31 
                                              June    December 
                                              2022        2021 
                                  Notes    GBP'000     GBP'000 
-------------------------------  ------  ---------  ---------- 
 Non-current assets 
 Intangible assets                  5       16,443      16,994 
 Property, plant and equipment                 128          30 
 Leased assets                                  90         104 
 Investment in associate            7       23,688      25,367 
 Investments                        8          840       1,721 
                                         ---------  ---------- 
                                            41,189      44,216 
 Current assets 
 Trade and other receivables        9          224         622 
 Held-for-sale assets                          130         118 
 Cash and cash equivalents                   6,884       6,355 
                                         ---------  ---------- 
                                             7,238       7,095 
                                         ---------  ---------- 
 Total assets                               48,427      51,311 
 Current liabilities 
 Trade and other payables          10        (671)       (986) 
 Borrowings                        11     (21,462)    (18,349) 
 Held-for-sale liabilities                    (34)        (34) 
 Provisions                                   (15)        (15) 
                                         ---------  ---------- 
                                          (22,182)    (19,384) 
 Non-current liabilities 
 Trade and other payables                     (73)        (65) 
                                         ---------  ---------- 
 Total liabilities                        (22,255)    (19,449) 
                                         ---------  ---------- 
 Net assets                                 26,172      31,862 
                                         =========  ========== 
 
 Equity 
 Share capital                     12        5,866       5,866 
 Share premium                     12       37,556      37,556 
 Share based payment reserve                 2,276       1,613 
 Other reserves                              5,723       5,723 
 Other comprehensive income                   (58)           - 
 Retained earnings                        (25,085)    (18,791) 
 
 Total equity attributable 
  to owners of the parent                   26,278      31,967 
 Non-controlling interest                    (106)       (105) 
 Total equity                               26,172      31,862 
-------------------------------  ------  ---------  ---------- 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHSED 30 JUNE 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 
 Six months ended 
 30 June 
 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               -         -         -          -               -    (2,334)   (2,334)               (2)   (2,336) 
 Other 
 comprehensive 
 income 
 Foreign currency 
 translation 
 differences               -         -         -          -               -          -         -                 -         - 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  income/(expense)         -         -         -          -               -    (2,334)   (2,334)               (2)   (2,336) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Issue of shares         514     7,013         -          -               -          -     7,527                 -     7,527 
 Exercise of 
  warrants                 1        20         -          -               -          -        21                 -        21 
 Share based 
  payment charge           -         -       615          -               -          -       615                 -       615 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  transactions 
  with 
  owners, 
  recognised 
  directly in 
  equity                 515     7,033       615          -               -          -     8,163                 -     8,163 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 30 
  June 2021            4,019    20,255     1,146      5,745               -   (14,935)    16,231             (103)    16,128 
                    ========  ========  ========  =========  ==============  =========  ========  ================  ======== 
 
 Three months 
 ended 30 June 
 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               -         -         -          -               -    (6,217)   (6,217)               (1)   (6,218) 
 Other 
 comprehensive 
 income 
 Foreign currency 
  translation 
  differences              -         -         -          -           (135)          -     (135)                 -     (135) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Total 
  comprehensive 
  income/(expense)         -         -         -          -           (135)    (6,217)   (6,352)               (1)   (6,353) 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Share based 
  payment charge           -         -       663          -               -          -       663                 -       663 
 Total 
  transactions 
  with 
  owners, 
  recognised 
  directly in 
  equity                   -         -       663          -               -          -       663                 -       633 
                    --------  --------  --------  ---------  --------------  ---------  --------  ----------------  -------- 
 Balance at 30 
  June 2022            5,866    37,556     2,276      5,723            (58)   (25,085)    26,278             (106)    26,172 
                    ========  ========  ========  =========  ==============  =========  ========  ================  ======== 
 

ALTUS STRATEGIES PLC

INTERIM UNAUDITED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHSED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 
                                            Three months         Six months 
                                            ended 30 June       ended 30 June 
                                             2022      2021      2022      2021 
                                          GBP'000   GBP'000   GBP'000   GBP'000 
---------------------------------------  --------  --------  --------  -------- 
 Cash flows from operating 
  activities 
 Total comprehensive loss for 
  the period                              (3,854)   (1,018)   (6,353)   (2,336) 
 Adjustments for: 
 Net interest (received)/paid                   -         1         -         2 
 Share based payments                         180       316       663       615 
 Bad debt provision                             -         -         -        11 
 Depreciation of property, plant 
  and equipment                                 4         5         9        12 
 Gain/loss on disposal                          -         -     (251)         - 
 Fair value (gain)/loss on investments        747      (73)       835      (96) 
 Share of profit of associate               (428)         -     (428)         - 
 Movements in working capital: 
 (Increase)/decrease in trade 
  and other receivables                      (15)     (167)       387      (63) 
 Increase/(decrease) in trade 
  and other payables                        1,893     (314)     2,819     (392) 
 Other working capital movements               33         -         -         - 
                                         --------  --------  --------  -------- 
 Cash flows used in operating 
  activities                              (1,440)   (1,251)   (2,319)   (2,246) 
 
 Investing activities 
 Purchase of intangible assets                190     (258)   (2,820)     (412) 
 Sale of intangible assets                  3,959         -     3,959         - 
 Purchase of property plant 
  and equipment                                78       (5)      (93)       (6) 
 Sale of subsidiary                             -         -        12         - 
 Sale of investments                           46         -        46         - 
 Distribution from associate                  855         -     1,756         - 
 Net cash used in investing 
  activities                                5,128     (263)     2,860     (418) 
 
 Financing activities 
 Proceeds from issue of shares                  -     4,918         -     7,548 
 Principal element of lease 
  payments                                    (6)       (5)      (11)      (10) 
 Interest element of lease payments             -       (1)       (1)       (2) 
                                         --------  --------  --------  -------- 
 Net cash generated from financing 
  activities                                  (6)     4,911      (12)     7,536 
 
 Net increase/decrease in cash 
  and cash equivalents                      3,682     3,398       529     4,871 
---------------------------------------  --------  --------  --------  -------- 
 Cash and cash equivalents at 
  beginning of the period                   3,202     7,411     6,355     5,937 
 Cash and cash equivalents 
  at the end of the period                  6,884    10,809     6,884    10,809 
---------------------------------------  --------  --------  --------  -------- 
 

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 plc (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 26 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**

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR UNVVRUKUWAAR

(END) Dow Jones Newswires

August 16, 2022 12:04 ET (16:04 GMT)

Altus Strategies (LSE:ALS)
Historical Stock Chart
From Sep 2022 to Oct 2022 Click Here for more Altus Strategies Charts.
Altus Strategies (LSE:ALS)
Historical Stock Chart
From Oct 2021 to Oct 2022 Click Here for more Altus Strategies Charts.