Shard Capital has initiated coverage of Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF), the mining royalty company, with a 120p price target – about twice the current level.
Shard said the company has “a unique portfolio of exploration assets and mining royalties, focused on highly prospective belts in Africa”.
Although the diversified exploration portfolio is weighted towards gold in Africa, it has exposure to seven countries and nine metals through its investments in 30 or so projects.
“The strategy provides comprehensive leverage to low-cost discovery upside and long-term royalty income with most royalties generated organically, minimizing capital outlay and dilution,” said Shard, which is one of Altus’s house brokers.
“Altus is a coming-of-age story that should not be missed, a compelling hybrid with the best attributes of both a junior explorer and an emerging royalty company,” Shard declared.
SP Angel, the company’s NOMAD (nominated adviser), recently raised its target price to 125p from 118p after the company acquired an effective 0.418% net smelter revenue royalty on the producing Caserones copper-molybdenum mine in Chile.
“The team offers a unique and risk diversified business model involving organic royalty generation strategy with exposure to a potential discovery leveraging the company’s expertise and proven ability to identify and advance prospective early-stage projects as well as external royalty generation process including acquiring royalties from third parties or securing royalties in exchange for funding of development/production opportunities,” SP Angel said.