Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) expects to receive its first royalty income payment this month from its effective 0.418% net smelter return royalty interest on the Caserones copper mine in Chile.
The royalty receivable is projected to be in excess of US$1mln before tax for the quarter ending 30 June 2021.
Due to strong copper prices during the period, it is believed this may represent the highest quarterly royalty payment from Caserones since production commenced in 2015.
Altus’ interest in the Caserones NSR was acquired in August 2021 for US$34.1mln. The mine has been in operation since 2015, with an estimated 17 years of production remaining.
“Having only recently closed the acquisition of the NSR on the Caserones copper mine in Chile, we are delighted to already be advising shareholders that the first royalty payment is expected imminently,” said Steven Poulton, chief executive of Altus.
“The payment will relate to the receivable royalty for the second quarter of 2021 and, being our first royalty income, will represent a landmark event for Altus. Given strong copper prices during the period, the royalty is expected to be the highest on record, since production commenced at Caserones in 2015.”
Altus expects demand for copper to remain strong in the years ahead, as the global economy seeks to decarbonise in parallel with continued infrastructure development, urbanisation and wealth creation in emerging markets.
The company is currently assessing a number of other potential royalty acquisitions globally.