Altus Strategies (ALS ) has described the year ended 31 December 2020 as a period of “excellent progress” despite the challenging backdrop that the pandemic has presented.
In line with its diversified strategy, Altus noted that it had successfully completed a number of project and royalty transactions during the period that realised value for its shareholders.
Its ASX-listed JV partner Marvel Gold undertook a series of drilling and other programmes at the Lakanfla and Tabakorole projects in Mali which have generated ‘very positive results.’
Specifically, Altus received ‘encouraging results’ from the 70-hole 2,042m shallow aircore ("AC") drilling at Tabakorole which defined 200m northwest extension to mineralisation.
Altus accelerated the exploration of its 100% owned Diba gold project in western Mali, undertaking drilling and generating a new and larger resource. Altus received “excellent results” from metallurgical test work on oxide and sulphide samples at Diba, which tested the amenability of ores to carbon-in-leach ("CIL") as well as heap leach processing.
A Preliminary Economic Assessment followed which demonstrated a 32% rise in after-tax net present value to $107m based on a 10% discount rate and $1,500/oz gold price.
Shares in Altus Strategies have shed around 12% in value since the beginning of 2021. The stock was trading 2.07% lower this morning at 66.1p following the announcement.
Elsewhere, the Company continued its project generation activities in Cameroon, Morocco and Ethiopia throughout the period, primarily exploring for gold, copper and silver deposits.
On the corporate side, Altus unveiled the closing of a £6.5m strategic investment by La Mancha, one of the sector's most respected investment groups. La Mancha acquired a 35% equity position to provide capital to accelerate the Group’s royalty generation activities.
“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,” said CEO, Steven Poulton.
He added, “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.”
He said, “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."
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