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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