Copper Mine Payments Exceed Expectations By 18%
Altus Strategies Plc (AIM: ALS, TSXV: ALTS, OTCQX: ALTUF) has received its first quarterly royalty payment of US$1.34M before tax (US$0.94M after tax), from its effective 0.418% net smelter return royalty (NSR) interest on the Caserones copper mine in Chile.
This payment is in respect of Altus’ royalty on production for the second quarter ending 30 June 2021 (Q2) and exceeded the company’s expectations by 18%, primarily due to strong copper prices during the period.
Highlights:
- Next Caserones NSR royalty payment expected in November 2021 for Q3 production
- Caserones in operation since 2015, with an estimated 17 years of production remaining
- Global copper price outlook remains strong
Steven Poulton, Chief Executive of Altus, commented:
“We are delighted to have received our first royalty income from our NSR royalty on the Caserones copper mine in Chile, having completed the final closing of the acquisition last month,” Chief Executive, Steven Poulton, said.
“The income is a landmark event for Altus, as we have now transitioned into a revenue generating business. The payment relates to the royalty for the second quarter of 2021 at Caserones and, given the strong copper prices during the period, the Q2 2021 royalty payment was the highest quarterly royalty payment since production commenced at Caserones in 2015. The next royalty payment is expected as soon as November 2021.
“Altus is on a strong growth trajectory and has significant momentum and I look forward to updating shareholders on the results from our current activities in due course.”
About the Caserones Mine
The Caserones mine is a large, open-pit porphyry copper-molybdenum deposit, located within a 17,000 hectare land package at an elevation of approximately 4,300m above sea level in the borough of Tierra Amarilla, in the Atacama region of northern Chile, approximately 800km north of the capital, Santiago.
The mine is owned and operated by Minera Lumina Copper Chile SpA, an indirect 100% owned subsidiary of JX Nippon Mining & Metals Corporation of Japan. It produces copper and molybdenum concentrates from a conventional crusher, mill and flotation plant, as well as copper cathodes from a dump leach, solvent extraction and electrowinning plant.
Caserones has been in operation for five years, following a capital investment of approximately US$4.2 billion. In 2020 Caserones reported production of 104,917 tonnes of copper and 2,452 tonnes of fine molybdenum in concentrates, as well as 22,056 tonnes of fine copper in cathodes. Caserones has an estimated 17 years of operation remaining under its current mine plan, along with excellent exploration potential. In a news release dated 9 November 2020, JX Nippon announced plans for “stepping up exploration efforts in areas around the mine” in an effort to expand production and further extend the mine life.
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