Proactiveinvestors United Kingdom Altus Strategies newswires

Altus Resource Capital NAV down at interim stage

Mon, 06 Feb 2012 10:29:00 +0000

Closed-ended investment company Altus Resource Capital (LON:ARCL) reported a sharp drop in its net asset value (NAV) at the end of the first half to December 2011.

In its results statement, ARC said its focus on the junior resources sector and spread of exposure to non-gold equities meant that it could not remain immune from the worst of the market turmoil and sustained a loss of 7.4 per cent to a NAV of £71 million or £1.79 per share as at December 31, compared with £76 million or 192.8 pence per share on June 30 2011.

“This loss in value was not as dramatic as in much of the junior resource sector due primarily to the company's weighting towards quality gold equities and significant cash position,” it said.

ARC is managed by Altus Capital Ltd which in turn is controlled by Altus Strategies. ARC listed on the Specialist Fund Market of the London Stock Exchange on June 30 2009 and the Channel Island Stock Exchange on December 22 2009 under ‘ARC’.

ARC invests in companies engaged in the exploration, development and/or mining of metals and minerals with a focus on companies that operate in the gold sector. Portfolio companies will be predominantly, but not exclusively, listed or quoted on either UK markets or other recognised stock exchanges including the Canadian and Australian markets.

They will typically be capitalised at less than £500 million at the time of investment.

ARC said today that, despite the relative strength of gold, which rose 3.9 per cent over the first half, major gold mining indices lost value with the FTSE Gold Mines Index and the S&P/ TSX Gold Index falling 6.4 per cent and 5.1 per cent, respectively. Industrial commodities and miners performed less well with the copper price and the FTSE 350 Mining Index losing 19.4 per cent and 25.1 per cent respectively.

ARC said the causes of the market volatility and weakness during 2011 have not gone away. A solution to the Eurozone sovereign debt crisis is yet to materialise and there is little clarity on the strength and sustainability of the global economic recovery. It expects markets to remain volatile over the next six to twelve months.

China's industrialisation and urbanisation continues apace albeit now at more sustainable levels following rigorous fiscal tightening to curb over-exuberant growth and inflation.

Gold demand from other emerging economies continues to grow both from central bank buying and retail investors.

The investment manager still expects further quantitative easing measures to be deployed by Western economies to alleviate their sovereign debt burdens, creating additional money supply which is inflationary and another driver of the gold price.

Altus Resource Capital positioned to "take advantage" of a strong gold price

Mon, 21 Nov 2011 10:20:00 +0000

Altus Resource Capital Ltd (LON:ARCL), which invests in mining equities, said its portfolio is positioned to take advantage of a strong gold price.

The firm released an interim management statement covering July 1 to November 18, in which it highlighted that the net asset value of the firm increased to £77.1 million in the period - a 0.7 per cent rise.

Moreover, this represents a 104.5 per cent rise since the firm's launch on June 30, 2009.

Altus Resource Capital (ARC) is managed by Altus Capital Ltd which in turn is controlled by Altus Strategies. It listed on the Specialist Fund Market of the London Stock Exchange on June 30, 2009 and the Channel Island Stock Exchange on December 22, 2009 under 'ARC'.

It invests in exploration and development firms focusing on those that operate in the gold sector.

As at the end of October this year, the firm's portfolio comprised 26 holdings in junior mining and exploration companies, exposure to gold via exchange traded funds (ETFs) and an investment in Altus Global Gold Ltd - an open-ended vehicle seeded by the company and focused on the mid-tier gold sector.

The firm said the period had been dominated by the Eurozone sovereign debt crisis and continued uncertainty of the global economic recovery.

"The gold price, which has also seen a dramatic increase in its volatility, has benefitted from the global economic uncertainty given its safe haven characteristics," it added.

It said the performance of its net asset value had been volatile, and Altus Capital Ltd had sought to increase the firm's exposure to quality gold equities taking the gold proportion of assets under management from 51 per cent to 66 per cent over the period.

Looking ahead, the firm said its portfolio was "positioned to take advantage of a strong gold price and a closing of the disconnect that has opened up between gold and gold equities".

"Further, the strong cash position will be maintained to allow the manager to take advantage of opportunities that these volatile markets may present," it said.

Altus Resource Capital full-year NAV rises 43.6 pct in a year to £1.93

Fri, 16 Sep 2011 12:44:00 +0100

Closed-ended investment company Altus Resource Capital Ltd (LON:ARCL) said the net asset value at the end of the year to June 31 2011 stood at £76.6 million, or £1.93 per share, a 103 percent rise since the company's launch on June 30 2009 and a 43.6 percent rise over the preceding twelve months.

Gold performed well over the year with the price rising 21 percent to close the period at US$1,500 per ounce. Other metals and minerals performed even more strongly with copper, rising 45 percent to close the year at US$9,414 per tonne and silver, which traditionally trades broadly in line with gold on a 60:1 ratio, rising 86 percent to close at US$34.69 per ounce, a ratio of 43:1.

ARC is managed by Altus Capital Ltd which in turn is controlled by Altus Strategies. ARC listed on the Specialist Fund Market of the London Stock Exchange on June 30 2009 and the Channel Island Stock Exchange on December 22 2009 under ‘ARC’.

ARC invests in companies engaged in the exploration, development and/or mining of metals and minerals with a focus on companies that operate in the gold sector. Portfolio companies will be predominantly, but not exclusively, listed or quoted on either UK markets or other recognised stock exchanges including the Canadian and Australian markets.

The fund is planning minor changes to its investment policy and strategy, following its success and growth and to ensure it is appropriately positioned to take advantage of market opportunities and to reflect favourable market conditions within the junior resource sector.

Among other things, it will amend the definition of junior resource equities to those with market capitalisations of less than £500 million at the time of investment or companies that are at an exploration or development stage.

With an active approach to portfolio management and a strong cash position - 22 percent of assets under management – ARCsaid is well positioned to deliver further NAV growth over the coming year.

On outlook, ARC said the investment manager anticipates that the gold price will remain robust, driven by the ongoing uncertainty over sovereign debt levels and the economic recovery of Western economies coupled with the continued strong demand for gold as a safe haven investment asset and, particularly in emerging economies, as a hedge against inflation and store of newly created wealth.

Given the disconnect that has opened up between the gold price and gold equities and the anticipated strength of the gold price, the Investment Manager intends to maintain the focus on gold equities and anticipates strong performance from the gold equities within the portfolio over the next twelve to twenty four months as the disconnect is closed.

Demand for raw materials from emerging economies has driven other commodity prices higher, with supply deficits forecast in a number of major industrial metals and minerals over the coming two to three years.

Corporate M&A activity is expected to continue and be a further driver of equity valuations in the junior and mid-tier sector, ARC added.

Altus Resource Capital reports 71.9 pct NAV growth in H1

Wed, 23 Feb 2011 13:32:00 +0000

Altus Resource Capital (LON:ARCL), a closed-ended investment company run by Altus Strategies, reported strong net asset value (NAV) growth as a result of strengthening gold and commodity prices.

In the six months ended 31 December 2010 the fund's NAV increased by 71.9 percent to £91.7 million - which equates to £2.31 per share.

The fund is currently outperforming both the gold price and major indices.

Altus highlighted that gold prices reached all-time highs during the period and it closed up 14.3 percent, while the FTSE Gold Mines Index and the FTSE 350 Mining Index gained 16.3 percent and 46.2 percent respectively.

“With the continued strength of gold and other commodity prices, the outlook for the company remains positive,” Altus said.

The also emphasised that it has continued to benefit from it selective investment strategy in the junior resources sector.

Altus’ investment manager is expecting more significant growth in the next 12 to 24 months.

According to Altus this will be driven by the continued strength of gold and commodity prices, active portfolio management, selected investments, profit taking and reinvesting in portfolio companies.

Furthermore Altus belies the ‘value gap’ that was created during the 2008-2009 financial crisis and increasing merger and acquisition activity will also boost the portfolio, as larger companies look to replenish their reserves.

Altus Resource Capital takes 3.45 pct stake in Minera IRL

Tue, 07 Dec 2010 14:19:00 +0000

Altus Resource Capital (LON:ARCL) has taken a 3.45 percent stake in Minera IRL (LON:MIRL, TSX:IRL, BVL:MIRL).

ARC is closed-ended investment company that listed on the Specialist Fund Market of the London Stock Exchange on June 30 2009 and the Channel Island Stock Exchange on December 22 2009 under ‘ARC’.

It is managed by Altus Capital which in turn is controlled by Altus Strategies.

ARC bought just over 3 million shares on Monday and it subsequently holds 4.15 million shares, representing 3.45 percent of the company.

Minera IRL has a operating gold mine, Corihuarmi, which produced just under 24,000 ounces of gold in the 9 months ending 30 September 2010.

It also has two high impact exploration and development projects - Ollachea and Don Nicholas.

It has been making rapid progress at the Ollachea project in Peru. In recent weeks its shares have rallied strongly as the gold project continues to provide positive newsflow

Just last week it upgraded the resource of the Ollachea project in Peru, with a massive 80 percent of the resource being converted into the indicated category and it found potentially economic gold mineralisation at the recently discovered Concurayoc zone.

ARC has also had a good few months.

In November it revealed a 35.5 percent rise in net asset value (NAV) in a four month period - from July 1 to October 31 2010.

It ended October with NAV at £72.1 million.

ARC invests in companies engaged in the exploration, development and/or mining of metals and minerals with a focus on companies that operate in the gold sector.

Portfolio companies will be predominantly, but not exclusively, listed or quoted on either UK markets or other recognised stock exchanges including the Canadian and Australian markets.

Altus Resource Capital NAV rises 35.5 pct in 4 months to end-October 2010

Fri, 19 Nov 2010 13:14:00 +0000

Closed-ended investment company Altus Resource Capital Ltd (LON:ARCL) reported that its net asset value has risen 35.5 percent over the four months from July 1 to October 31 2010 to £72.1 million.

ARC is managed by, Altus Capital which in turn is controlled by Altus Strategies. ARC listed on the Specialist Fund Market of the London Stock Exchange on June 30 2009 and the Channel Island Stock Exchange on December 22 2009 under ‘ARC’.

In an interim management statement, the fund said the end-October NAV represents a 91.2 percent rise since the launch on LSE in June last year.

ARC invests in companies engaged in the exploration, development and/or mining of metals and minerals with a focus on companies that operate in the gold sector. Portfolio companies will be predominantly, but not exclusively, listed or quoted on either UK markets or other recognised stock exchanges including the Canadian and Australian markets.

At the end of October 2010, ARC’s portfolio comprised 29 holdings in junior mining and exploration companies and a single investment in a commodity exchange traded fund (ETF). The company has acquired its positions in the market and through participating in new equity issues. It has benefited from its exposure to junior mining equities with metal prices generally rising over the reviewed period.

At the end of the period the ARC held a cash position of 17.4 percent of assets under management following profit-taking in many positions. However it has already taken two new positions in November 2010 and is continuing to look for further opportunities.

Investment Manager Altus Capital was cited as saying: “The outlook for the company (ARC) remains positive with further strength anticipated in metals prices and related junior mining equities.

“It is anticipated that the gold price will remain strong for at least the next eighteen months, given continued concerns over the speed of the global economic recovery, further quantitative easing in the US and fears over Euro-zone sovereign debt.”

In addition, central banks have become net buyers of gold and retail investment demand continues to rise particularly in Asia and the Middle East.

Altus Capital believes other commodities also have a positive outlook. The primary driver behind this outlook is the continued strong demand for raw materials from China and other developing economies. Chinese groups have made significant investments over recent years in industrial metal and mineral projects, and particularly in iron ore, copper and coal assets, but also increasingly in Western gold companies.

Uranium has also become an increasingly attractive commodity with the price rising over 10 percent in recent weeks to US$58.5 per pound. As with other commodities, much of this interest is being driven by demand from China.

Rare earth elements, which are essential for many emerging and high-tech applications including the permanent magnets used in electric and hybrid cars, have also seen significant price gains in recent months. This price gain has again been influenced by China which controls over 90 percent of supply of rare earths and has been reducing export quotas.

The platinum group metals market is also dominated by a single country with South Africa accounting for over 80 percent of global supply of platinum. Demand for platinum group metals is set to increase, driven by the rapid increase in the number of new cars in China and developing economies as well as an anticipated increase in the use of diesel engines (which require larger amounts of platinum) in the US.

Merger and acquisition activity across the whole mining sector is increasingly becoming a driver of value, Altus Capital added.