TIDMARCL
RNS Number : 4001S
Altus Resource Capital Limited
18 November 2011
ALTUS RESOURCE CAPITAL LIMITED
Interim Management Statement for the period 1 July 2011 to 18
November 2011 (the "Period").
Overview
Altus Resource Capital Limited (LSE:ARCL) (the "Company") is a
Guernsey registered, closed-ended investment company which listed
on the Specialist Fund Market of the London Stock Exchange on 30
June 2009 and the Channel Island Stock Exchange on 22 December
2009.
The Company announces that the unaudited net asset value at the
end of the Period was GBP77.1 million, representing a gain of 0.7%
over the Period and a rise of 104.5% since the Company's launch on
30 June 2009.
Investment Objectives and Policy
The Company's objective is to realise capital growth from a
concentrated portfolio of junior resource equities and to generate
a significant capital return to shareholders.
The Company invests in companies engaged in the exploration,
development and 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.
Financial Highlights and Investment Review by Altus Capital
Limited
The unaudited net asset value of the Company increased to
GBP77.1 million over the Period, showing a 0.7% rise since the
beginning of the Period and a 104.5% rise since the Company's
launch on 30 June 2009.
At the end of October 2011, the Company'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 Limited which is an open-ended vehicle seeded by the
Company and focused on the mid-tier gold sector. The Company has
acquired its positions in the market and through participating in
new equity issues.
The Period has been dominated by the Eurozone sovereign debt
crisis and continued uncertainty of the global economic recovery.
Government bond yields in a number of European countries have risen
to record levels. The crisis has been focused on Greece and Italy
where, in recent weeks, bond yields have reached levels seen as
unsustainable by many commentators and the prime ministers of both
countries have been replaced by unelected leaders in attempt to
contain the escalating situation.
In line with this economic uncertainty, volatility has increased
significantly with the Chicago Board Options Exchange Volatility
Index (VIX) almost doubling to an average of 33.6% since the middle
of July relative to the 17.6% over the preceding three month
period. 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. The gold price rose to an
all-time intra-day high of US$1,920 per ounce in early September,
fell back to US$1,533 per ounce later in September but has risen
steadily since then to close the Period at US$1,725 per ounce.
Against this backdrop the performance of the Company's net asset
value has been volatile. The Manager has sought to increase the
Company's exposure to quality gold equities taking the gold
proportion of assets under management from 51% to 66% over the
Period. Significant investments have been made in Detour Gold which
is fully financed to develop its 15 million ounce project in
Canada. In addition, the Company seeded Altus Global Gold Limited,
an open-ended investment company which is managed by Altus Capital
and focused on mid-tier gold equities. This investment represented
6.5% of the Company's assets at the end of October 2011. The launch
of Altus Global Gold and investment by the Company reflects the
Manager's conviction that the fundamentals for the gold price
remain robust and that the disconnect that has opened between the
gold price and gold equities will begin to close. It will give the
Company an added generic exposure to slightly larger capitalisation
gold mining companies.
The Company retains a strong cash position at 15.1% of assets
under management at the end of the Period.
Outlook - As provided by the Investment Manager, Altus Capital
Limited
The outlook for the global economy and the Eurozone in
particular remains uncertain. Further bailouts of Eurozone
countries seem inevitable and a "soft landing" for the Chinese
economy is not yet assured. Markets are therefore expected to
remain extremely volatile and the Manager does not rule out the
risk of a severe market correction triggered perhaps by a
disorderly Eurozone default.
Against this backdrop the Manager remains convinced that the
fundamentals for gold as a safe haven investment remain intact.
While performance of the Company's net asset value will be
volatile, the portfolio is 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.
Investment Allocation
At 31 October 2011, the Company's assets were allocated in the
following approximate proportions:
Asset Allocation by Commodity Asset Allocation by Geography
Gold (& Silver) 66.4% Africa 37.9%
Bulk Minerals 3.8% Europe 9.0%
Base Metals 9.2% North America 11.1%
Energy Minerals 4.3% South America 0.2%
Platinum Group Metals 1.1% Central Asia & Russia 4.6%
Diamonds 0.0% South East Asia 4.9%
Other 0.0% Australasia 5.5%
Cash 15.1% Other (ETFs) 11.9%
Cash 15.1%
Asset Allocation by Development
Stage
Production 41.3%
Development 29.4%
Exploration 8.7%
ETF 5.4%
Cash 15.1%
Material events
Other than the information set out above, the Board is not aware
of any events during the Period, which would have had a material
impact on the financial position of the Company.
Investor Information
The latest available information on the Company can be accessed
via www.altrescap.com.
This document has been issued by, and is the sole responsibility
of, Altus Resource Capital Limited (the "Company") and is for
information purposes only. It is not, and is not intended to be an
invitation, inducement, offer, or solicitation, to deal in the
shares of the Company. The price of shares in the Company and the
income from them may go down as well as up and investors may not
get back the full amount invested on disposal of shares in the
Company. An investment in the Company should be considered only as
part of a balanced portfolio of which it should not form a
disproportionate part. Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before
making any investment decision.
By order of the Board
Altus Resource Capital Limited
Administrative Enquiries: Investment Manager: Shareholder
Enquiries:
Anson Fund Managers Limited Altus Capital Limited Nimrod Capital
LLP
Tel: +44 (0) 1481 722 260 Tel: +44 (0) 1235 511767 Tel: +44 (0)
20 3355 6855
info@altus-cap.com info@nimrodcapital.com
E&OE - In Transmission
END OF ANNOUNCEMENT
This information is provided by RNS
The company news service from the London Stock Exchange
END
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