Strong Year Of Progress For African Operator
Altus Strategies Plc (AIM: ALS, TSXV: ALTS) has unveiled its audited final results for the year ended December 31, 2020.
The Africa focussed miner turned in a number of Operational highlights during the period, including:
- Publishing an Independent Mineral Resource Estimate (MRE) on the Diba gold project, western Mali, comprising 4,834,000 tonnes at 1.39 g/t gold (Au) for 217,000 ounces in the Indicated category and 5,479,000 tonnes at 1.06 g/t Au for 187,000 ounces in the Inferred category
- Obtaining excellent results from metallurgical test work on oxide and sulphide samples at Diba, testing the amenability of ores to carbon-in-leach (CIL) and heap leach processing
- Publishing an updated Preliminary Economic Assessment (PEA) for Diba with a 32% increase in after-tax net present value (NPV) to US$107 million based on 10% discount rate and US$1,500/oz gold price
- Releasing results of an MRE for the Tabakorole gold project, southern Mali, comprising 1.2 g/t Au for 620,000 ounces in the Indicated category, 1.2 g/t Au for 290,000 ounces in the Inferred category, completed under the company’s joint venture with Marvel Gold Limited.
- Obtaining encouraging results from 70-hole 2,042m shallow aircore (AC) drilling at Tabakorole, defining 200m northwest extension to mineralisation
- Obtaining acceptance for Environmental Impact Assessment of the Agdz silver and copper project, eastern Morocco, by the Ministry of Interior, and generating new targets on the project using predictive mapping techniques
On the Corporate front highlights included:
- Signing a Definitive Purchase & Sale and Royalty agreements with Stellar AfricaGold Inc. in respect of the company’s 100% interest in the Prikro and Zenoula gold projects in Côte d’Ivoire for 2.5m Stellar shares, warrants to purchase a further 2.5m Stellar shares, milestone payments and a 2.5% Net Smelter Return (NSR) royalty on each project
Financial highlights included:
- Concluding a Strategic Investment Agreement with La Mancha, resulting in an investment by La Mancha of £6.5m / C$11.2m and La Mancha holding a 35.45% interest in the company
- Consolidation of the company’s ordinary shares on a five-for-one basis
- Initial 15 million shares with a value of £1.1m / C$1.9m in Canyon Resources Ltd received in accordance with agreement to terminate the JV on the Birsok bauxite project in central Cameroon
- Cash balance of £5.9m / C$10.3m as at December 31, 2020
- Cash outflow for operating activities of £2.3m / C$4.1m for the year
- Balance of listed equity holdings of £1.3m / C$2.3m as at December 31, 2020
“2020 has been a year of excellent progress across the Company, despite the challenging backdrop that the pandemic has presented,” CEO, Steven Poulton, said.
“During the period, we were delighted to announce the closing of a £6.5 million strategic investment by La Mancha, one of the sector’s most respected investment groups. La Mancha have acquired a 35% equity position and provided us with the capital to accelerate our royalty generation activities.
“We also now benefit from the business expertise of Karim Nasr, La Mancha’s CEO, who we have welcomed to the Altus Board. Following this investment and in line with our growth trajectory, we were delighted to announce the appointments of Sandra Bates as General Counsel, Alister Hume as Business Development Manager and Richard Belcher as VP Exploration. These high calibre individuals reinforce the strength of the Altus team and its capabilities.
“In line with our diversified strategy, Altus successfully completed a number of project and royalty transactions during the period that realised value for our shareholders. On the operational front, our ASX-listed JV partner Marvel Gold undertook a series of drilling and other programmes at the Lakanfla and Tabakorole projects in western and southern Mali which have generated very positive results.
“Also in Mali, we accelerated exploration at our 100% owned Diba gold project in western Mali, undertaking drilling and generating a new and larger resource, followed by a very compelling Preliminary Economic Assessment. Elsewhere, we continued our project generation activities in Cameroon, Morocco and Ethiopia, primarily exploring for gold, copper and silver deposits.
“Post-period, we announced that the company’s shares had begun trading on the OTCQX market in the United States, offering the Company enhanced exposure to current as well as potential investors and counterparties for project transactions.
“We also marked our entrance into Egypt, thanks to the award of a number of gold exploration licences in the Eastern Desert to our subsidiary, Akh Gold. In March 2021, the Company completed a private placement, raising £7.7 million before expenses.
“The placement has strengthened our balance sheet, allowing us to further accelerate our current programmes, particularly in respect of Egypt and Mali, as well as provide capital for potential accretive project and royalty acquisition opportunities.
“The year ahead is set to be even stronger and more exciting for Altus than 2020 as we look forward to generating new discoveries, growing the number of projects and royalties in our portfolio, undertaking new joint ventures and identifying and executing project and royalty transactions that offer significant potential to realise considerable value for our shareholders.”
