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 349km2 under a competitive bid round taking total land holding in Egypt to 1,914km2

·    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 34.36km2, 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 83.10km2, 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 £6.9 million / C$10.8 million as at 30 June 2022

·    Cash outflow for operating activities of £1.4 million / C$2.2 million for three months ending 30 June 2022

·    Listed equity holdings of £0.8 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 MONTHS ENDED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE LOSS

 


 

For the three months ended 30 June

 

For the six months

ended 30 June

 


2022

2021

 

2022

2021

 

Notes

£'000

£'000

 

£'000

£'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 MONTHS ENDED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

 




As at 30 June

 

As at 31 December

 



2022

 

2021

 

Notes


£'000

 

£'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 MONTHS ENDED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

 

 

Share capital

Share premium account

Share based payment reserve

Other reserves

Other comprehensive income

Retained earnings

Total equity

Non-controlling interest

Total

Six months ended 30 June 2021

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'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

1,146

-

(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 MONTHS ENDED 30 JUNE 2022

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

 

 

Three months

ended 30 June

 

Six months

ended 30 June

 

2022

2021

 

2022

2021

 

£'000

£'000

 

£'000

£'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

Steven Poulton, Chief Executive

Tel: +44 (0) 1235 511 767

E-mail: info@altus-strategies.com

SP Angel Corporate Finance LLP (Nominated Adviser)

Richard Morrison / Adam Cowl

 

Tel: +44 (0) 20 3470 0470

SP Angel Corporate Finance LLP (Broker)

Grant Barker

Rob Rees

 

Tel: +44 (0) 20 3470 0471

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)

Charles Goodwin / Henry Wilkinson

Tel: +44 (0) 20 3004 9512

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.

 

 

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