TIDMARCL
RNS Number : 8200W
Altus Resource Capital Limited
06 February 2012
Altus Resource Capital Limited
Half-Yearly
Financial Report
from 1 July 2011 to 31 December 2011 (Unaudited)
Contents
1. Summary Information
2. Financial Highlights
3. Chairman's Statement and Interim Management Report
4. Investment Manager's Report
5. Responsibility Statement
6. Directors
7. Unaudited Consolidated Financial Statements
8. Notes to Consolidated Financial Statements
9. Top 10 Investments
10. Advisors and Contact Information
Altus Resource Capital Limited
SUMMARY INFORMATION
Overview
Altus Resource Capital Limited ("ARC" or the "Company") is a
Guernsey authorised, closed-ended investment company incorporated
on 30 April 2009, which listed on the Specialist Fund Market of the
London Stock Exchange on 30 June 2009 and the Channel Islands Stock
Exchange on 22 December 2009.
The Company is managed by Altus Capital Limited (the "Investment
Manager") an FSA authorised and regulated wholly-owned subsidiary
of Altus Strategies Limited.
The Company issued 26,000,000 ordinary shares at GBP1.00 per
share on 30 June 2009 and a further 10,997,233 ordinary shares at
GBP1.33 per share on 22 December 2009. On 2 August 2010 a further
2,722,336 ordinary shares were issued at GBP1.40 per share.
The group comprises the Company and its subsidiary Altus Global
Gold Limited (the "Group") as detailed in note 7 to the
Consolidated Financial Statements.
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. They will typically be capitalised
at less than GBP500 million at the time of investment by the
Company.
Altus Resource Capital Limited
CHAIRMAN'S STATEMENT AND INTERIM MANAGEMENT REPORT
I have pleasure in presenting the Half-Yearly Financial Report
of the Company for the period between 1 July 2011 and 31 December
2011 (the "Period").
Against a backdrop of volatile financial markets and weak
investor sentiment, the dollar and the gold price made gains due to
their safe haven investment properties while many other asset
classes, including equities and industrial commodities, generally
weakened during the Period. Despite the relative strength of gold,
which rose 3.9% over the Period, major gold mining indices lost
value with the FTSE Gold Mines Index and the S&P/ TSX Gold
Index falling 6.4% and 5.1% respectively. Industrial commodities
and miners performed less well with the copper price and the FTSE
350 Mining Index losing 19.4% and 25.1% respectively.
The Company's unaudited Net Asset Value ("NAV") over the Period
lost 7.4% to GBP71.0 million or GBP1.79 per share over the Period.
The Company retains a strong cash position and significant gold
weighting and is therefore well-positioned to take advantage of
continuing volatility and depressed equity prices and to benefit
from further strength in the gold price.
During the Period the Company seed-financed Altus Global Gold
Limited, a Guernsey registered open-ended investment company
established and managed by Altus Capital Limited and admitted to
the Official List of the Channel Islands Stock Exchange (Mnemonic:
AGGL). The investment provides exposure to a concentrated portfolio
of primarily mid-tier gold equities and reflects the Investment
Manager's conviction that the fundamentals for the gold price
remain robust and that, following the significant divergence of
gold equities from the gold price, substantial returns can be
delivered from investing in quality gold producers.
A description of the important events that have occurred during
the Period and their impact on the condensed set of financial
statements is included in the Investment Manager's Report on pages
5 to 8, and includes a description of the principal risks and
uncertainties, along with Note 15 in the financial statements.
Details of all related party transactions are given in Note 16.
Other than the information set out in this report, 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.
Altus Resource Capital Limited
CHAIRMAN'S STATEMENT AND INTERIM MANAGEMENT REPORT
(continued)
On behalf of the Board of Directors, I thank all shareholders
for their support.
Nick Falla
Chairman
Altus Resource Capital Limited
INVESTMENT MANAGER'S REPORT
The second half of 2011 was dominated by fears of a global
economic collapse of a similar magnitude to that of 2008/2009
precipitated by the deepening Eurozone sovereign debt crisis.
Against this backdrop of fear and uncertainty, volatility was high
and investors sought safety in gold and the US dollar with both
gaining over the Period while the majority of other asset classes
lost value. Gold suffered from high volatility and significant
swings in investor sentiment, rising to an all-time high of over
US$1,900 per ounce in September before falling back to close at
US$1,564 per ounce, a gain 3.9% over the Period. Despite the rise
in the gold price, gold equities performed in line with the broader
equity markets and lost value over the Period with the FTSE Gold
Mines Index and the S&P/ TSX Gold Index falling 6.4% and 5.1%
respectively.
With fears of a slow-down in Chinese growth, industrial
commodities performed poorly with the CRB Commodities Index losing
10.4% and the CRB Metals Index falling 19.0% over the Period.
Copper lost 19.4% and demand for coal, iron ore and other bulk
materials also declined during the Period. As a result of this
weakness and weakness in equity markets, the FTSE 350 Mining Index
lost 25.1%.
Junior equities generally underperformed the larger caps. In the
gold sector the Market Vectors Gold Miners ETF fell 5.8% over the
Period whereas its junior counterpart, the Market Vectors Junior
Gold Miners ETF, lost 28.4%. The FTSE AIM Basic Resources Index and
the ASX Smaller Cap Resources Index, both diversified junior equity
indices, lost 18.0% and 15.0% over the Period respectively.
The Company's 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%
to a NAV of GBP71.0 million or GBP1.79 per share over the Period.
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.
In light of the Investment Manager's conviction that the
fundamentals for the gold price remain robust and that, following
the significant divergence of gold equities from the gold price,
substantial returns can be delivered from investing in quality gold
producers, Altus Global Gold Limited was established. The Guernsey
registered
Altus Resource Capital Limited
INVESTMENT MANAGER'S REPORT (continued)
open-ended investment company is managed by the Investment
Manager and provides exposure to a concentrated portfolio of
primarily mid-tier gold equities.
At the end of the Period the Company held 26 resource equities,
two gold backed ETFs and cash representing 20.8% of assets under
management.
Outlook
Many of the causes of the market volatility and weakness during
2011 are still at large at the beginning of 2012. 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. Markets are therefore expected to remain
volatile and dramatic shifts in investor sentiment are anticipated
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. While there
are fears of a hard-landing for the Chinese economy, relaxation of
credit policy appears to be averting this. The country continues to
dominate global demand for industrial commodities and may even have
surpassed India as the largest consumer of gold in the fourth
quarter of 2011.
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.
With the continued positive long-term outlook for commodity
prices, and in particular gold, but subdued equity markets,
alternate sources of finance including sovereign wealth funds and
corporate activity are becoming increasingly prominent. Over the
Period the Company benefitted from an investment in European
Goldfields which illustrates both elements well. The company
initially received an offer from sovereign wealth fund, Qatar
Holdings, for US$600 million to finance the development of its
Greek projects and subsequently agreed a friendly take-over by
Eldorado Gold Corp for C$2.5 billion during the Period. Further
financing or corporate deals are
Altus Resource Capital Limited
INVESTMENT MANAGER'S REPORT (continued)
anticipated and will drive value within the portfolio companies
and across the sector as a whole.
The Investment Manager intends to realise value over the coming
period by retaining a focus on gold equities and maintaining a
strong cash position to allow the Company to take advantage of
market volatility and depressed equity valuations whilst also
providing a buffer against adverse market movements.
Principal Risks and Uncertainties
The Company is focused on investing in junior resources
companies and is therefore subject to the risks associated with
concentrating its investments in this asset class. The performance
of the Company will be affected by the performance of the
securities of investee companies and is thus subject to the sharp
price volatility of shares of companies principally engaged in
activities related to metals and minerals. Historically the prices
of the commodities have fluctuated significantly and are affected
by numerous factors which the Company cannot predict or control.
Political and economic conditions in metal and mineral producing
countries may have a direct effect on the mining and production of
these metals and minerals, and consequently, on their prices. In
addition, the Company has invested, and will continue to invest in
companies with assets or operations in emerging or developing
markets and will consequently be exposed to various increased risks
associated with investing in such markets.
Altus Resource Capital Limited
INVESTMENT MANAGER'S REPORT (continued)
Investment allocation
At 31 December 2011, the Group's assets were allocated in the
following approximate proportions:
Asset Allocation by Development Stage % AUM
Production 35.0%
Development 24.5%
Exploration 12.2%
ETFs 4.9%
Cash 23.3%
Asset Allocation by Geography % AUM
Africa 33.5%
Europe 5.6%
North America 14.4%
South America 1.0%
Central Asia
& Russia 0.0%
South East Asia 5.1%
Australasia 5.1%
Other (ETFs) 11.9%
Cash 23.3%
Asset Allocation by Commodity % AUM
Gold 56.7%
Silver 2.5%
Bulk Minerals 3.6%
Base Metals 10.2%
Energy Minerals 3.5%
Platinum Group
Metals 0.0%
Diamonds 0.0%
Other 0.1%
Cash 23.3%
Source: Altus Capital Limited
Altus Resource Capital Limited
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE
FINANCIAL STATEMENTS
The Board of Directors jointly and severally confirm that, to
the best of their knowledge:
(a) The consolidated financial statements, prepared in
accordance with International Financial Reporting Standards, give a
true and fair view of the assets, liabilities, financial position
and profit or loss of the Company; and
(b) This Interim Management Report includes or incorporates by reference:
(i) an indication of important events that have occurred during
the first six months of the financial year and their impact on the
financial statements;
(ii) a description of the principal risks and uncertainties for
the remaining six months of the financial year;
(iii) confirmation that there were no related party transactions
in the first six months of the current financial year that have
materially affected the financial position or the performance of
the Company during that period; and
(iv) changes in the related parties transactions described in
the last annual report that could have a material effect on the
financial position or performance of the Company in the first six
months of the current financial year.
Signed on behalf of the Board of Directors on 3 February
2012.
Nick Falla Robert Milroy
Chairman Director
Altus Resource Capital Limited
DIRECTORS
Nicholas J Falla: Chairman (non-executive)
Nicholas Falla has had thirty years of experience in the finance
industry including fourteen years of experience in the commodity
markets. He is currently the Managing Director of Xocoatl Limited a
private investment company taking strategic proprietary positions
in the commodities markets, Finance Director of Pharma E Limited, a
private pharmaceutical supplier, and non-executive director of
Close Assets Funds Limited a closed-ended investment company which
provides a structured investment in the equities markets. Nick was
senior non-executive director of MW Tops Limited, a closed-ended
investment company listed on the London Stock Exchange which
entered into voluntary liquidation in September 2010, whilst
transferring its assets into another investment vehicle. From
1993-2000 Nick worked as the financial controller for Bank of
Bermuda (Guernsey) Limited and from 2000 to 2002 he was their
regional controller for Europe. In addition he has acted as an
interim financial director for the Guernsey banking operation of
Credit Suisse Guernsey Limited and has worked on various finance
and accounting based projects with companies such as KPMG (Channel
Islands) and the Blenheim Group. Nick trained as an accountant with
Turquands Barton Mayhew & Co in Guernsey.
David Gelber: Director (non-executive)
David Gelber began his career in trading in 1976 when he joined
Citibank in London. David has since held a variety of senior
trading positions, in derivatives in particular, working for
Citibank, Chemical Bank and HSBC, where he was Chief Operating
Officer of HSBC Global Markets. In 1994 David joined ICAP, an
inter-dealer broker, as COO and assisted in implementing two
mergers, first with Exco plc and then with Garban. David currently
serves as a Non-Executive Director on the boards of eSecLending LLC
in Boston, GlobeOp Financial Services SA in Luxembourg and Walker
Crips Group plc. David is also currently a Non Executive Director
of DDCAP Limited, a leading arranger of Islamic banking
transactions and of Exotix Limited, an investment banking boutique
specialising in illiquid assets. David is also currently a
Non-Executive Director of Intercapital Private Group Limited, a
holding company invested in ICAP plc and CityIndex Limited, a
spread-betting and contracts for difference provider. David has a
B.Sc in statistics and law from the University of Jerusalem and an
M.Sc in computer science from the University of London.
Altus Resource Capital Limited
DIRECTORS (continued)
Robert Milroy: Director (non-executive)
Robert Milroy is a Director of Corazon Fund Management Limited,
a division of Collins Stewart (CI) Limited, a Guernsey regulated
investment management and stock-broking company and was previously
the Managing Director and CIO of Corazon Fund Management Limited,
prior to its acquisition by Collins Stewart in 2010. He has over 40
years experience in the investment and mining and petroleum
industries having participated in various mining, oil exploration
projects and financings in Chile, Peru, Argentina, Ghana, Canada,
USA, Mexico, Australia and Greenland. In addition, he was the
Managing Director of Eagle Drilling Inc. for 13 years, a firm that
specialised in hard rock diamond core drilling in Central and
Western Africa. Robert is also a noted speaker and financial author
of various publications including the Standard & Poor's Guide
to Offshore Investment Funds. Robert graduated with a Bachelor of
Commerce (Honours) from the University of Manitoba and is a
Director on a number of Mining and Energy related companies. Robert
is also a Director of Altus Global Gold Limited.
David Netherway (non-independent non-executive)
David Netherway is a mining engineer with over 35 years of
experience in the mining industry and until the takeover by Gryphon
Minerals Limited, was the CEO of Shield Mining Limited., an
Australian listed exploration company. David has now joined the
Gryphon Board. David was involved in the construction and
development of the Iduapriem, Siguiri and Kiniero gold mines in
West Africa and has mining experience in Africa, Australia, China,
Canada, India and the Former Soviet Union. David served as the CEO
of Toronto listed Afcan Mining Corporation, a China focused gold
mining company that was sold to Eldorado Gold in 2005. David has
also held senior management positions in a number of gold mining
companies including Golden Shamrock Mines, Ashanti Goldfields and
Semafo Inc. He is currently the Chairman of Aureus Mining Inc,
Afferro Mining Inc and Kilo Goldmines Limited and a Non-Executive
Director of Crusader Resources Limited and Altus Global Gold
Limited. David is the current Non-Executive Chairman of Altus
Strategies Limited and is thus not considered an Independent
Director of the Company.
Altus Resource Capital Limited
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the period from 1 July 2011 to 31 December 2011
1 Jul 2011 1 Jul 2010
to 31 Dec to 31 Dec
2011 2010
Notes GBP GBP
Net movement in unrealised (depreciation)
/ appreciation on investments 8 (14,889,133) 36,482,672
Realised gains on investments 8 9,991,460 10,605,682
Operating income 3 105,448 169,345
Operating expenses 4 (859,086) (8,955,327)
-------------- ------------
Net (loss) / gain for the period (5,651,311) 38,302,372
Other comprehensive income - -
-------------- ------------
Total comprehensive income (5,651,311) 38,302,372
-------------- ------------
Attributable to:
Owners of the Company (5,621,773) 38,302,372
Non-controlling interest 13 (29,538) -
-------------- ------------
(5,651,311) 38,302,372
-------------- ------------
Earnings per ordinary share for
the period
- Basic and Diluted 6 (0.14) 0.98
-------------- ------------
There are no recognised gains or loss for the year other than
those disclosed above.
In arriving at the results for the financial period, all amounts
above relate to continuing operations.
The notes on pages 16 to 31 form an integral part of these
financial statements.
Altus Resource Capital Limited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2011
31 Dec 30 Jun 2011
2011
Notes GBP GBP
NON-CURRENT ASSETS
Financial assets designated as
at fair value through profit or
loss 8 54,714,084 59,605,055
CURRENT ASSETS
Cash and cash equivalents 16,951,360 23,083,865
Trade and other receivables 9 332,989 447,882
------------ ------------
17,284,349 23,531,747
TOTAL ASSETS 71,998,433 83,136,802
------------ ------------
CURRENT LIABILITIES
Trade and other payables 10 548,161 6,535,219
------------ ------------
548,161 6,535,219
NET ASSETS 71,450,272 76,601,583
------------ ------------
EQUITY
Share premium 12 42,602,254 42,602,254
Revenue reserve 28,377,556 33,999,329
------------ ------------
Equity attributable to owners of
the Company 70,979,810 76,601,583
Non-controlling interest 13 470,462 -
------------ ------------
TOTAL EQUITY 71,450,272 76,601,583
------------ ------------
Pence Pence
Net asset value per ordinary share
based on 39,719,569 (30 Jun 2011:
39,719,569) ordinary shares in
issue 178.70 192.85
------------ ------------
The unaudited consolidated financial statements were approved
and authorised for issue by the Board on 3 February 2012.
Nick Falla Robert Milroy
Chairman Director
The notes on pages 16 to 31 form an integral part of these
financial statements.
Altus Resource Capital Limited
CONSOLIDATED STATEMENT OF CASH FLOWS
for the period from 1 July 2011 to 31 December 2011
1 Jul 2011 1 Jul 2010
to 31 Dec to 31 Dec
2011 2010
Notes GBP GBP
OPERATING ACTIVITIES
Net (loss) / gain for the period attributable
to shareholders (5,651,311) 38,302,372
Net movement in unrealised depreciation
/ (appreciation) on investments 8 14,889,133 (36,482,672)
Interest received (105,448) (169,345)
(Decrease) / increase in payables (5,987,058) 9,374,962
Decrease / (increase) in receivables 114,893 (706,798)
Realised gains on investments 8 (9,991,460) (10,605,682)
------------- --------------
NET CASH FLOW FROM OPERATING ACTIVITIES (6,731,251) (287,163)
------------- --------------
INVESTING ACTIVITIES
Interest received 105,448 169,345
Purchase of investments 8 (35,637,479) (36,946,176)
Proceeds from non-controlling interest
on Subsidiary acquisition 500,000 -
Sale of investments 8 35,630,777 33,577,471
------------- --------------
NET CASH FLOW FROM INVESTING ACTIVITIES 598,746 (3,199,360)
------------- --------------
FINANCING ACTIVITIES
Proceeds from issue of shares - 3,818,894
Issue costs - (116,428)
------------- --------------
NET CASH FLOW FROM FINANCING ACTIVITIES - 3,702,466
------------- --------------
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 23,083,865 3,716,991
(Decrease) / Increase in cash and
cash equivalents (6,132,505) 215,943
------------- --------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD 16,951,360 3,932,934
------------- --------------
The notes on pages 16 to 31 form an integral part of these
financial statements.
Altus Resource Capital Limited CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY for the period from 1 July 2011 to 31 December 2011
Share Share Premium Accumulated Total Non-controlling Total
Capital Profits interest
GBP GBP GBP GBP GBP GBP
Balance as at 1 July
2011 - 42,602,254 33,999,329 76,601,583 - 76,601,583
Acquisition of Subsidiary - - - - 500,000 500,000
Net loss for the period - - (5,621,773) (5,621,773) (29,538) (5,651,311)
Share issue proceeds - - - - - -
Issue costs - - - - - -
---------- -------------- ------------ ------------ ---------------- ------------
Balance as at 31 December
2011 - 42,602,254 28,377,556 70,979,810 470,462 71,450,272
---------- -------------- ------------ ------------ ---------------- ------------
Share Share Premium Accumulated Total Non-controlling Total
Capital Profits interest
GBP GBP GBP GBP GBP GBP
Balance as at 1 July
2010 - 38,899,788 10,783,059 49,682,847 - 49,682,847
Net gain for the year - - 23,216,270 23,216,270 - 23,216,270
Share issue proceeds - 3,818,894 - 3,818,894 - 3,818,894
Issue costs - (116,428) - (116,428) - (116,428)
---------- -------------- ------------ ----------- ---------------- -----------
Balance as at 30 June
2011 - 42,602,254 33,999,329 76,601,583 - 76,601,583
---------- -------------- ------------ ----------- ---------------- -----------
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the period from 1 July 2011 to 31 December 2011
1 GENERAL INFORMATION
The consolidated financial statements incorporate the financial
statements of Altus Resource Capital Limited (the "Company) and
Altus Global Gold Limited (the "Subsidiary") together known as (the
"Group").
The Company is a closed-ended investment company incorporated in
Guernsey on 30 April 2009, which listed on the Specialist Fund
Market of the London Stock Exchange on 30 June 2009 and on the
Channel Islands Stock Exchange ("CISX") on 22 December 2009.
The principal activity of the Group is to realise capital growth
from a concentrated portfolio of junior resource equities and to
generate a significant capital return to shareholders.
2 ACCOUNTING POLICIES
The significant accounting policies adopted by the Group are as
follows:
(a) Basis of Preparation
The consolidated financial statements have been prepared in
conformity with International Financial Reporting Standards
("IFRS") as adopted by the EU which comprise standards and
interpretations approved by the International Accounting Standards
Board ("IASB") and International Financial Reporting
Interpretations Committee ("IFRIC"), together with applicable
Guernsey law. The financial statements have been prepared on a
historical cost basis except for the measurement at fair value of
certain financial instruments.
The following Standards or Interpretations have been adopted in
the current period. Their adoption has not had any impact on the
amounts reported in these financial statements and is not expected
to have any impact on future financial positions:
IAS 1 Presentation of Financial Statements (annual
amendments)
IFRS 7 Financial Instruments: Disclosures (annual
amendments)
IAS 24 Related Party Disclosures (annual amendments)
IAS 34 Interim Financial Reporting (annual amendments)
The following Standards or Interpretations have been issued by
the IASB but not yet adopted by the Group:
IFRS 7 Financial Instruments: Disclosures effective for annual
periods beginning on or after 1 July 2011.
IFRS 9 Financial Instruments: Classification and Measurement
effective for annual periods beginning on or after 1 January
2015.
IFRS 9 Financial Instruments: Accounting for financial
liabilities and derecognition effective for annual periods
beginning on or after 1 January 2015
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
2 ACCOUNTING POLICIES (continued)
(a) Basis of Preparation (continued)
IFRS 13 Fair Value Measurement effective for annual periods
beginning on or after 1 January 2013.
IAS 1 Presentation of Financial Statements effective for annual
periods beginning on or after 1 July 2012.
IAS 32 Financial Instruments: Presentation effective for annual
periods beginning on or after 1 January 2014.
The Directors have considered the above and are of the opinion
that these Standards and Interpretations are not expected to have
an impact on the Group's financial statements except for the
presentation of additional disclosures and changes to the
presentation of components of the financial statements. These items
will be applied in the first financial period for which they are
required.
(b) Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its Subsidiary. The Company owns
90.91% of the shares in the Subsidiary and has the power to govern
the financial and operating policies of the Subsidiary so as to
obtain benefits from their activities.
Intra-group balances and transactions, and any unrealised income
and expenses arising from intra-group transactions are eliminated
in preparing the consolidated financial statements.
Non-controlling interests in the Subsidiary are identified
separately from the Group's equity therein. The interests of
non-controlling shareholders are initially measured at the
non-controlling interest's proportionate share of the fair value of
the acquiree's identifiable net assets. Subsequent to acquisition,
the carrying amount of non-controlling interest is the amount of
the interest at initial recognition plus the non-controlling
interest's share of subsequent changes in equity. Total
comprehensive income is attributed to non-controlling interest even
if this results in the non-controlling interest having a deficit
balance.
(c) Going concern
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Directors
believe the Group is well placed to manage its business risks
successfully despite the current economic climate. Accordingly, the
Directors have adopted the going concern basis in preparing the
financial information.
(d) Taxation
The Company and its Subsidiary have been granted exemption under
the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989 from
Guernsey Income Tax, and each entity is charged an annual fee of
GBP600.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
2 ACCOUNTING POLICIES (continued)
(e) Expenses
All expenses are accounted for on an accruals basis.
(f) Interest income
Interest income is accounted for on an accruals basis.
(g) Cash and cash equivalents
Cash at bank and short term deposits which are held to maturity
are carried at cost. Cash and cash equivalents are defined as call
deposits, short term deposits and highly liquid investments readily
convertible to known amounts of cash and subject to insignificant
risk of changes in value. For the purposes of the Statement of Cash
Flows, cash and cash equivalents consist of cash and deposits at
bank.
(h) Share issue costs
The share issue costs borne by the Company are recognised in the
Statement of Changes in Equity, as the Company's ordinary shares
have no fixed redemption date.
(i) Investments
All investments and derivative financial instruments have been
designated as financial assets "at fair value through profit and
loss". Investments are initially recognised on the date of purchase
at cost, being the fair value of the consideration given, excluding
transaction costs associated with the investment. After initial
recognition, investments are measured at fair value, with
unrealised gains and losses on investments and impairment of
investments recognised in the Statement of Comprehensive Income.
When a share exchange takes place, the fair value of the original
holding is carried over to the new holding as the original holding
is deemed to be disposed. Commissions paid on the sale or purchases
of investments are recognised in the Statement of Comprehensive
Income as incurred.
Fair value is the amount for which the financial instruments
could be exchanged, or a liability settled, between knowledgeable
willing parties in an arms length transaction. Fair value also
reflects the credit quality of the issuers of the financial
instruments.
For investments actively traded in organised financial markets,
fair value is determined by reference to Stock Exchange quoted
market bid prices as at the close of business on the reporting
date. If no quoted market bid price is available as at the close of
business on the reporting date, the last available market bid price
is used.
Valuations of unquoted trade investments and warrants are based
on valuations provided to the Group by Altus Capital Limited (the
"Investment Manager"). These valuations are intended to be an
indication of the fair value of those investments, using valuation
techniques designed to reflect the best estimation of the price at
which they could be sold, even though there is no guarantee that a
willing buyer might be found if the Group chose to sell the
relevant investment.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
2 ACCOUNTING POLICIES (continued)
(i) Investments (continued)
The indicative fair values of the investments are based on an
approximation of the market value of the investments. As the
investments are not traded in an active market, the indicative fair
value is determined by using valuation techniques. The Investment
Manager uses a variety of methods and makes assumptions that are
based on market conditions existing at the reporting date.
Different assumptions regarding these factors, combined with
different valuation techniques and models used, could lead to
different valuations of the financial instruments by different
parties.
(j) Trade date accounting
All "regular way" purchases and sales of financial assets are
recognised on the "trade date", i.e. the date that the entity
commits to purchase or sell the asset. Regular way purchases or
sales are purchases or sales of financial assets that require
delivery of the asset within the time frame generally established
by regulations or convention in the market place.
(k) Segmental reporting
The Directors are of the opinion that the Group is engaged in a
single segment of business, being investment business and operates
solely from Guernsey, therefore no segmental reporting is
provided.
3 OPERATING INCOME
1 Jul 2011 1 Jul 2010
to 31 Dec to 31 Dec
2011 2010
GBP GBP
Bank interest 75,156 36,778
Dividend income 30,292 -
Loan interest income - 24,750
Sundry income - 107,817
----------- -----------
105,448 169,345
----------- -----------
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
4 OPERATING EXPENSES
1 Jul 2011 1 Jul 2010
to 31 Dec to 31 Dec
2011 2010
GBP GBP
Investment Manager's fees* 298,486 342,080
Performance fees - 8,408,628
Accountancy fees 3,008 3,024
Administrator's fee 29,923 25,445
Registrar's fee 3,750 3,024
Directors' fees 54,333 33,629
Custody fees 15,514 12,617
Audit fees 14,754 15,074
Directors' and Officers' insurance 3,427 2,722
Annual fees 12,098 8,906
Printing and stationery 3,640 756
Bank interest and charges 4,525 4,161
Commissions paid 126,637 89,456
Corporate and Shareholder
Adviser fees 52,674 61,291
Legal and professional fees 13,212 -
Sundry costs 45,924 59,727
(Profit) / loss on foreign
exchange 177,181 (115,213)
----------- -----------
859,086 8,955,327
----------- -----------
*No fee was charged on the Company's investment in the
Subsidiary in the period and future fees payable will be
waived.
5 DIRECTORS' REMUNERATION
The Directors of the Company are paid GBP20,000 per annum (Dec
2010: GBP15,000). In addition to GBP20,000 per annum, Nicholas
Falla receives an additional fee of GBP5,000 (Dec 2010: GBP3,750)
as Chairman and Robert Milroy receives an additional fee of
GBP3,000 as Chairman of the audit committee.
The Chairman of the Subsidiary receives a fee of GBP18,000 per
annum. Each other Director of the Subsidiary receives a fee of
GBP15,000 per annum.
6 EARNINGS PER SHARE
Earnings per Ordinary Share is calculated by dividing the net
loss for the period attributable to holders of ordinary shares of
the Company ("Shareholders") of GBP5,651,311 (31 Dec 2010: gain
GBP38,302,372) by the weighted average number of ordinary shares in
issue during the period (39,719,569 (31 Dec 2010: 39,231,324)).
There are no dilutive instruments and therefore basic and diluted
earnings per ordinary share are identical.
7 SUBSIDIARIES
The Company owns 90.91% of the Subsidiary. The Subsidiary is an
authorised open-ended investment company with registered number
54069. The Subsidiary was incorporated on 10 October 2011 and
listed on CISX on 1 November 2011. The financial year end of the
Subsidiary is 30 June, which is co-terminus with the financial year
end of the Company.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
8 INVESTMENTS
TOTAL TOTAL
31 Dec 2011 30 Jun 2011
GBP GBP
Opening portfolio cost 49,337,815 40,901,786
Additions - cost 35,637,479 65,078,350
Sales (35,630,777) (81,949,089)
Realised gains on investments 9,991,460 25,306,768
Unrealised appreciation on
valuation brought forward 10,267,240 6,487,763
Unrealised (depreciation) /
appreciation on valuation for
the period (14,889,133) 3,779,477
-------------- -------------
Closing valuation 54,714,084 59,605,055
-------------- -------------
Unrealised (depreciation) /
appreciation on valuation carried
forward (4,621,893) 10,267,240
-------------- -------------
IFRS 7 requires the fair value of investments to be disclosed by
the source of inputs, using a three-level hierarchy as detailed
below:
Quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1);
Inputs other than quoted prices included in Level 1 that are
observable for the asset or liability, either directly (as prices)
or indirectly (derived from prices) (Level 2);
Inputs for the asset or liability that not based on observable
market data (unobservable inputs) (Level 3).
Investments held by the Group have been classified as Level 1,
for those investments that are quoted and are valued using quoted
market bid prices and Level 2, for those unquoted investments that
are valued using standard modelling techniques by the Investment
Manager using observable inputs and Level 3 for the private equity
investments that are valued at purchase price, after taking account
of foreign exchange movements. This is in accordance with the fair
value hierarchy.
Details of the value of each classification are listed in the
table below. Values are based on the market value of the
investments as at the reporting date:
Market Value Market Value
31 Dec 2011 30 Jun 2011
GBP GBP
Level 1 51,063,596 54,276,800
Level 2 117,981 2,213,572
Level 3 3,532,507 3,114,683
------------- -------------
Total 54,714,084 59,605,055
------------- -------------
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
8 INVESTMENTS (continued)
The following table shows a reconciliation of all movements in
the fair value of financial instruments categorised within Level 3
between the beginning and the end of the reporting period:
31 Dec 2011 30 Jun 2011
GBP GBP
Opening portfolio cost 3,105,976 -
Additions - cost 322,373 3,105,976
Sales (44,701) -
Realised gain on investments 7,429 -
Unrealised appreciation on
valuation brought forward 8,707 -
Unrealised appreciation on
valuation for the period /
year 132,723 8,707
------------ ------------
Closing valuation 3,532,507 3,114,683
------------ ------------
There have been no transfers between Level 1 and Level 2 of the
fair value hierarchy during the period under review.
9 TRADE AND OTHER RECEIVABLES
31 Dec 2011 30 Jun 2011
GBP GBP
Accrued income 32,993 25,459
Prepayments 8,250 9,655
Broker debtors 291,746 412,768
------------ ------------
332,989 447,882
------------ ------------
The above carrying value of receivables is equivalent to its
fair value.
10 TRADE AND OTHER PAYABLES
(amounts falling due within 31 Dec 2011 30 Jun 2011
one year)
GBP GBP
Accrued expenses 175,840 6,535,219
Broker creditors 330,009 -
Other creditors 42,312 -
548,161 6,535,219
------------ ------------
The above carrying value of payables is equivalent to its fair
value.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
11 SHARE CAPITAL
Authorised SHARES GBP
Unlimited number of shares Unlimited -
of no par value
------------ ----
Issued
Date of issue SHARES GBP
29 June 2009 26,000,000 -
21 December 2009 10,997,233 -
3 August 2010 2,722,336 -
Ordinary shares in issue as -
at 30 June 2011 and 31 December 39,719,569 -
201
------------ ----
Holders of ordinary shares are entitled to receive, and
participate in, any dividends out of income; other distributions of
the Company available for such purposes and resolved to be
distributed in respect of any accounting period; or other income or
right to participate therein.
On a winding up, Shareholders are entitled to the surplus assets
remaining after payment of all the creditors of the Company.
Shareholders also have the right to receive notice of and to
attend, speak and vote at general meetings of the Company and each
Member being present in person or by proxy or by a duly authorised
representative at a meeting shall upon a show of hands have one
vote and upon a poll each such holder present in person or by proxy
or by a duly authorised representative shall have one vote in
respect of every ordinary share held by him.
12 SHARE PREMIUM
GBP
Premium on shares issued 29 June 2009 26,000,000
Premium on shares issued 21 December
2009 14,667,020
Premium on shares issued 3 August 2010 3,818,894
Issue costs (1,883,660)
Share premium as at 30 June 2011 and
31 December 2011 42,602,254
------------
Under IAS 32 'Financial Instruments: Presentation', transaction
costs of an equity transaction are accounted for as a deduction
from equity to the extent they are incremental costs directly
attributable to the equity transaction that otherwise would have
been avoided.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
13 NON-CONTROLLING INTEREST
As detailed in Note 7 above, the Subsidiary has a 9.09%
non-controlling interest.
GBP
Balance as at 1 July 2011 -
Acquisition of Subsidiary 500,000
Share of loss for the period (29,538)
---------
Balance as at 31 December 2011 470,462
---------
14 FINANCIAL INSTRUMENTS
The Group's main financial instruments comprise:
(a) Cash and cash equivalents that arise directly from the Group's operations; and
(b) Quoted and unquoted investment securities.
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The main risks arising from the Group's financial instruments
are market price risk, credit risk, liquidity risk, interest rate
risk, foreign exchange risk and capital management risk. The Board
regularly review and agrees policies for managing each of these
risks and these are summarised below:
(a) Market Price Risk
Market price risk arises mainly from uncertainty about future
prices of financial instruments held. It represents the potential
loss the Group might suffer through holding market positions in the
face of price movements. The Investment Manager actively monitors
market prices and reports to the Board as to the appropriateness of
the prices used for valuation purposes. A list of the top 10
investments held by the Group is shown in the Schedule of Top 10
Investments on page 32.
If the value of the Group's investment portfolio were to
increase by 30%, it would represent a gain of GBP16,414,225 (30 Jun
2011: GBP17,881,517). This would cause the net asset value of the
Group to rise by 22.97% (30 Jun 2011: 23.34%).
If the value of the Group's investment portfolio were to
decrease by 30%, it would represent a decrease of GBP16,414,225 (30
June 2011: GBP17,881,517). This would cause the net asset value of
the Group to fall by 22.97% (30 Jun 2011: 23.34%).
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(b) Credit Risk
Credit risk is the risk that an issuer or counterparty will be
unable or unwilling to meet a commitment that it has entered into
with the Group. The Directors receive financial information on a
regular basis which is used to identify and monitor risk.
It is Group policy not to invest more than 20% of the gross
assets of the Group in the securities of any one company or group
at the time the investment is made.
The Group has no significant concentration of credit risk, with
exposure spread over a large number of investments. At 31 December
2011 the Group's largest exposure to a single investment
counterparty was GBP5,113,882 (30 Jun 2011: GBP5,529,295), which
represents 9.35% (30 Jun 2011: 9.28%) of the total market value of
the Group's investments.
Investors should be aware that the prospective returns to
Shareholders mirror the returns under the investments held or
entered into by the Group and that any default by an issuer of any
such investment held by the Group would have a consequential
adverse effect on the ability of the Group to pay some or all of
the entitlement to Shareholders. Such a default might, for example,
arise on the insolvency of an issuer of an investment.
The Group's financial assets exposed to credit risk are as
follows:
31 Dec 30 Jun 2011
2011
GBP GBP
Investments in equities / warrants 54,714,084 59,605,055
Cash and cash equivalents 16,951,360 23,083,865
Trade and other receivables 332,989 447,882
----------- ------------
71,998,433 83,136,802
----------- ------------
The Group is exposed to credit risk in respect of its cash and
cash equivalents, arising from possible default of the relevant
counterparty, with a maximum exposure equal to the carrying value
of those assets. The credit risk on liquid funds is limited because
the counterparties are banks with high credit ratings assigned by
international credit-rating agencies. The Group monitors the
placement of cash balances on an ongoing basis.
The Group invests its cash and cash equivalents with Royal Bank
of Canada (Channel Islands) Limited, Barclays Private Clients
International Limited and Lloyds TSB Offshore Limited.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(b) Credit Risk (continued)
The investments of the Group are held in custody by Anson
Custody Limited or Royal Bank of Canada (Channel Islands) Limited
("RBCCI"). Bankruptcy or insolvency of the Custodians may cause the
Group's rights with respect to investments held by the Custodian to
be delayed. Investments held with Anson Custody Limited are held in
a Crest account maintained by Anson Registrars Limited in a
sub-account designated exclusively for the Group. This ensures that
the investments are ring fenced and will be protected should Anson
Custody Limited become bankrupt or insolvent.
RBCCI mitigate risk by using a subcustodian network comprising
top-rated and well respected counterparties. The custodian network
is monitored on an ongoing basis to ensure that each one continues
to meet RBCCI's stringent criteria.
(c) Liquidity Risk
Liquidity risk is the risk that the Group will encounter
difficulty in realising assets or otherwise raising funds to meet
financial commitments. The Group's main financial commitment is its
ongoing operating expenses.
The Investment Manager ensures that the Group has sufficient
liquid resources available to fulfil its operational plans and to
meet its financial obligations as they fall due.
The table below details the residual contractual maturities of
financial liabilities:
As at 31 December 2011 1-3 months Over 1 year
GBP GBP
Accrued expenses 175,840 -
Broker creditors 330,009 -
Other creditors 42,312 -
----------- ------------
548,161 -
----------- ------------
As at 30 June 2011 1-3 months Over 1 year
GBP GBP
Accrued expenses 6,535,219 -
Broker creditors - -
Other creditors - -
6,535,219 -
----------- ------------
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(d) Interest Rate Risk
The Group holds cash in several bank accounts, the return on
which is subject to fluctuations in market interest rates.
Other than cash and cash equivalents, none of the assets or
liabilities of the Group, attract or incur interest.
The following table details the Group's exposure to interest
rate risks:
As at Floating Fixed Non-interest Total
31 December 2011: Less than 3 months bearing
1 month -
6 months
GBP GBP GBP GBP
Assets
Designated as at
fair value through
profit or loss on
initial recognition:
Investments - - 54,714,084 54,714,084
Loans and receivables:
Accrued income - - 32,993 32,993
Prepayments - - 8,250 8,250
Brokers debtors - - 291,746 291,746
Cash and cash equivalents 16,951,360 - - 16,951,360
----------- ---------- ------------- -----------
Total Assets 16,951,360 - 55,047,073 71,998,433
----------- ---------- ------------- -----------
Liabilities
Financial liabilities
measured at amortised
cost:
Accrued expenses - - 175,840 175,840
Broker creditors - - 330,009 330,009
Other creditors - - 42,312 42,312
----------- ---------- ------------- -----------
Total Liabilities - - 548,161 548,161
----------- ---------- ------------- -----------
Total interest sensitivity
gap 16,951,360 -
----------- ----------
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(d) Interest Rate Risk (continued)
As at Floating Fixed Non-interest Total
30 June 2011: Less than 3 months bearing
1 month -
6 months
GBP GBP GBP GBP
Assets
Designated as at
fair value through
profit or loss on
initial recognition:
Investments - - 59,605,055 59,605,055
Loans and receivables
Accrued income - - 25,459 25,459
Prepayments - - 9,655 9,655
Broker debtors - - 412.768 412,768
Cash and cash equivalents 23,083,865 - - 23,083,865
----------- ---------- ------------- -----------
Total Assets 23,083,865 - 60,052,937 83,136,802
----------- ---------- ------------- -----------
Liabilities
Financial liabilities
measured at amortised
cost:
Accrued expenses - - 6,535,219 6,535,219
Broker creditors - - - -
Other creditors - - - -
------------ --- ---------- ----------
Total Liabilities - - 6,535,219 6,535,219
------------ --- ---------- ----------
Total interest sensitivity
gap 23,083,865 -
------------ ---
Interest rate sensitivity
If interest rates had been 25 basis points higher and all other
variables were held constant, the Group's net loss attributable to
Shareholders for the period ended 31 December 2011 would have
decreased by approximately GBP21,189 (30 Jun 2011: GBP57,710) or
0.03% (30 Jun 2011: 0.08%) of Net Assets due to an increase in the
amount of interest receivable on the bank balances.
If interest rates had been 25 basis points lower and all other
variables were held constant, the Group's net loss attributable to
Shareholders for the period ended 31 December 2011 would have
increased by approximately GBP21,189 (30 Jun 2011: GBP57,710) or
0.03% (30 Jun 2011: 0.08%) of Net Assets due to a decrease in the
amount of interest receivable on the bank balances.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(e) Foreign Exchange Risk
A substantial proportion of the Group's portfolio is invested in
overseas securities and movements in exchange rates can
significantly affect their Sterling value. The Group does not
normally hedge against foreign currency movements affecting the
value of the investment portfolio, but takes account of this risk
when making investment decisions.
The Group undertakes certain transactions denominated in foreign
currencies. Hence, exposures to exchange rate fluctuations arise.
Exchange rate exposures are managed by minimising the amount of
foreign currency held at any one time.
The carrying amounts of the Group's foreign currency denominated
monetary assets at the reporting date are as follows:
31 Dec 30 Jun 2011
2011
GBP GBP
Australian Dollar 18,012,542 19,038,982
Canadian Dollar 26,523,972 30,678,201
US Dollar 10,029,192 4,353,339
----------- ------------
54,565,706 54,070,522
----------- ------------
(f) Capital Management
The investment objective of the Group is to provide shareholders
with attractive long term returns, expected to be in the form of
capital, through a diversified portfolio.
As the Company's ordinary shares are traded on the SFM, the
ordinary shares may trade at a discount to their Net Asset Value
per share on occasion. However, in structuring the Group, the
Directors have given detailed consideration to the discount risk
and how this may be managed.
The Group monitors capital on the basis of the carrying amount
of equity as presented on the face of the Statement of Financial
Position.
16 RELATED PARTY TRANSACTIONS AND DIRECTORS BENEFICIAL INTERESTS
The Group is managed by the Investment Manager, a wholly-owned
FSA authorised and regulated subsidiary of Altus Strategies Limited
("ASL"). ASL owns 150,000 ordinary shares (0.38%) in the Company
and 500,000 Ordinary Shares (9.09%) in the Subsidiary.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
16 RELATED PARTY TRANSACTIONS AND DIRECTORS BENEFICIAL INTERESTS (continued)
The Director David Netherway is a Non-Executive Chairman of ASL,
which as mentioned above, owns 150,000 shares (0.38%) in the
Company. David Netherway is also Non-Executive Chairman of Kilo
Goldmines Limited, whose equities and warrants are invested in by
the Group. The total investment in Kilo Goldmines Limited
represents 4.57% of the market value of the Group's investments.
David Netherway is a Director of Gryphon Minerals Limited, whose
equity was invested in by the Group. The total investment in
Gryphon Minerals Limited represents 4.02% of the market value of
the Group's investments.
The Director Nick Falla holds 20,000 ordinary shares (0.05%) in
the Company.
The Director David Gelber holds 50,000 ordinary shares (0.13%)
in the Company. This is held as part of a nominee trust holding in
the Company.
The Director Robert Milroy holds 20,000 ordinary shares (0.05%)
in the Company.
Under the Investment Management Agreement between the Investment
Manager and the Company, the Investment Manager is entitled to
receive fees of the greater of 0.85% per annum of the Company's Net
Asset Value or GBP150,000 per annum.
Under the Investment Management Agreement between the Investment
Manager and the Subsidiary, the Investment Manager is entitled to
receive fees of 1.5% per annum of the Subsidiary's Net Asset Value,
subject to the Total Expense Ratio not exceeding 2%. Any fee
incurred on the Company's investment in the Subsidiary will be
waived.
During the period, the Group incurred GBP298,486 (Dec 2010:
GBP342,080) of fees, of which GBP150,414 (Jun 2011: GBP162,332) was
outstanding at the period end as shown in accrued expenses.
During the period, the Group was charged travel expenses
totalling GBP39,622 (Dec 2010: GBP48,065) by the Investment
Manager.
The Investment Manager is also entitled to receive a performance
fee (the "Performance Fee") from both the Company and the
Subsidiary. The first component of the Performance Fee is
calculated for the first time in respect of the financial
accounting period first ending following the second anniversary of
the date of Admission (the "Calculation Period"). The fee is equal
to 20% of the excess of the NAV per share as at the end of the
financial accounting period (adjusted to account for dividends and
returns of capital paid out during the period and in respect of
which the Investment Manager has been paid or is to be paid the
second component of the Performance Fee) over the basic performance
hurdle, this being an amount equal to the Issue Price increased by
10% of the Issue Price per annum up to the end of the relevant
performance period.
Altus Resource Capital Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
for the period from 1 July 2011 to 31 December 2011
16 RELATED PARTY TRANSACTIONS AND DIRECTORS BENEFICIAL INTERESTS (continued)
Thereafter this fee shall be paid on an annual basis in respect
of each financial period subject to the basic performance hurdle
and a high watermark having been exceeded. The high watermark is
the NAV at the end of the financial period in respect of which the
last Performance Fee was paid. If, however, the high watermark is
not exceeded for any consecutive period of three years it shall be
re-based to a value equal to the NAV as at the end of the third
financial period. The basic performance hurdle, as described above,
must however still be exceeded in order for this component of the
performance fee to be payable.
The first component of the Performance Fee will be paid on a per
share basis, multiplied by the time weighted average of the number
of shares in issue in the relevant performance period (or since
Admission in the first performance period). In the event that there
is a further issue of shares, a redemption of shares or other
capital reorganisation of the Company or Subsidiary, the
calculation of the Performance Fee will be adjusted
appropriately.
The second component of the Performance Fee is an amount equal
to 20% of the sum of all dividends, distributions and other returns
of capital paid out to Shareholders of the Company and Subsidiary
during the relevant performance period (but excluding redemptions
and share buy backs that are deemed distributions under the
Companies Law), subject to the performance hurdle having been
satisfied.
The performance hurdle is the requirement that the NAV on the
relevant calculation date must exceed an amount equal to the Issue
Price increased by 10% of the Issue Price per annum up to the end
of the relevant performance period.
At 30 June 2011, a Performance Fee was due in respect of the
Company and during the period, the Company paid to the Manager 80%
of the Performance Fee, being an amount of GBP5,055,901. No
Performance Fee provision has been made for the Company for the
period as the performance hurdle has not been met. No Performance
Fee provision has been made for the Subsidiary for the period as
the Calculation Period has not yet begun.
Nimrod Capital LLP is the Company's Corporate and Shareholder
Adviser and is entitled to receive fees of 0.15% of the Company's
Net Asset Value per annum. In addition, during the period, Nimrod
Capital LLP received the remaining 20% of the Performance Fee
relating to the year ended 30 June 2011, being an amount of
GBP1,263,975. During the period the Group incurred GBP52,674 (Dec
2010: GBP61,291) of costs, of which GBP26,544 (Jun 2011: GBP28,647)
was outstanding at the period end as shown in accrued expenses.
Altus Resource Capital Limited
TOP 10 INVESTMENTS IN SECURITIES AS AT 31 DECEMBER 2011
Investment* Cost Market 31 Dec 2011
Value Unrealised
profit /
(loss)
GBP GBP GBP
Endeavour Mining Corporation ** 5,253,661 5,113,882 (139,779)
Nevsun Resources 3,416,124 4,301,956 885,832
Detour Gold Corporation 4,743,619 4,094,883 (648,736)
Perseus Mining Limited 3,959,918 4,068,442 108,524
Cuco Resources Limited 3,391,077 3,532,507 141,430
Griffin Mining Limited 3,054,338 2,843,225 (211,113)
European Goldfields
Com 1,398,173 2,923,699 1,525,526
SPDR Gold Trust 2,784,555 2,777,511 (7,044)
Kilo Goldmines 3,291,043 2,502,926 (788,117)
Gryphon Minerals Limited 2,652,412 2,198,833 (453,579)
33,944,920 34,357,863 412,943
----------- ----------- ------------
*Each line represents the amalgamated holdings in an entity if
the Group has holdings in more than one share class in the same
company.
**Note that during the period a share exchange took place and
the Group received 2,871,985 shares in Endeavour Mining Corporation
in exhange for 14,917,142 shares in Adamus Resources Limited. The
exchange took place at the fair value of the shares in Adamus
Resources Limited on the date of the transaction and the fair value
has been used as the initial cost of the Endeavour Mining
Corporation shares.
Altus Resource Capital Limited
TOP 10 INVESTMENTS IN SECURITIES AS AT 30 JUNE 2011
Investment* Cost Market 30 Jun 2011
Value Unrealised
profit /
(loss)
GBP GBP GBP
Adamus Resources Limited 3,165,769 5,529,295 2,363,526
Nevsun Resources 3,212,096 4,657,290 1,445,194
European Goldfields 2,932,676 4,419,217 1,486,541
Kenmare Resources 779,952 3,382,287 2,602,335
Perseus Mining Limited 2,548,220 3,378,175 829,955
Griffin Mining Limited 3,054,338 3,360,175 305,837
Banro Corporation 2,158,124 3,336,265 1,178,141
Minera IRL Limited 3,899,341 3,196,369 (702,972)
Cuco Resources Limited 3,105,976 3,114,683 8,707
Bathurst Resources
Limited 928,161 2,818,128 1,889,967
25,784,653 37,191,884 11,407,231
----------- ----------- ------------
*Each line represents the amalgamated holdings in an entity if
the Group has holdings in more than one share class in the same
company.
Altus Resource Capital Limited
ADVISORS & CONTACT INFORMATION
Key Information
Exchange Specialist Fund Market of the LSE/ CISX
Ticker ARCL/ ARC
Listing Date 30 June 2009/22 December 2009
Fiscal Year End 30 June
Base Currency GBP
ISIN GG00B54BPN15
SEDOL B54BPN1
Country of Incorporation Guernsey - Registration number 50318
Management and Administration
Registered Office
Altus Resource Capital Limited
Anson Place
Mill Court
La Charroterie
St Peter Port
Guernsey GY1 1EJ
Investment Manager
Altus Capital Limited
14 Station Road
Didcot
Oxfordshire OX11 7LL
Placing and Corporate and Shareholder Advisory Agent
Nimrod Capital LLP
4 The London Fruit and Wool Exchange
Brushfield Street
London E1 6HB
Secretary and Administrator
Anson Fund Managers Limited
P.O. Box 405, Anson Place
Mill Court
La Charroterie
St Peter Port
Guernsey GY1 3GF
Registrar
Anson Registrars Limited
P.O. Box 426, Anson Place
Mill Court, La Charroterie
St Peter Port
Guernsey GY1 3WX
Auditor
Deloitte LLP
Regency Court
Glategny Esplanade
St Peter Port
Guernsey GY1 3HW
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DXLFBLLFEBBE
Altus Res. (LSE:ARCL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Altus Res. (LSE:ARCL)
Historical Stock Chart
From Jul 2023 to Jul 2024
