| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.27 | -99 |
Altus Strategies plc (LSE: ALS) is a UK-based mineral exploration and development company focused on acquiring and advancing high-potential mining projects across Africa. The company's diversified portfolio includes gold, bauxite, copper, iron ore, zinc, nickel, and other base and precious metal projects in Mali, Egypt, Cameroon, Morocco, Ethiopia, Liberia, and Côte d'Ivoire. Altus operates with a discovery-driven business model, leveraging its regional expertise to identify and develop mineral assets, often through joint ventures or strategic partnerships. As a junior mining company in the Basic Materials sector, Altus plays a crucial role in early-stage resource identification in underdeveloped African mining jurisdictions. The company's multi-commodity approach mitigates single-project risk while maintaining exposure to gold and critical minerals demand. With projects ranging from the Korali Sud gold prospect in Mali to copper-silver targets in Morocco, Altus represents a high-risk, high-reward opportunity in frontier mining markets.
Altus Strategies presents a speculative investment proposition with significant exploration upside but substantial operational and jurisdictional risks. The company's FY2021 financials show a net loss of £6.8 million with negative operating cash flow, typical of an exploration-stage miner burning through capital. With £6.4 million in cash against £18.5 million in debt, the balance sheet appears strained, though common for junior explorers. The 1.18 beta indicates slightly higher volatility than the market. Investors must weigh the potential of Altus's African project pipeline against the challenges of frontier market operations, including political risk, infrastructure deficits, and funding requirements for advancement. The lack of producing assets and dividends makes this suitable only for risk-tolerant investors bullish on African mineral development.
Altus Strategies competes in the crowded junior mining exploration space, differentiating itself through its pan-African multi-commodity portfolio and local partnerships. The company's competitive position hinges on its first-mover advantage in certain African jurisdictions and technical team's exploration expertise. Compared to single-asset explorers, Altus's diversification across 12+ projects provides more shots on goal but dilutes capital allocation. The company lacks the scale and operational capabilities of intermediate producers, remaining dependent on external financing and potential M&A for value realization. Its Morocco copper-silver projects compete with established operators like Managem, while West African gold assets face competition from well-funded juniors. Altus's UK listing provides access to capital markets but may lack the valuation premiums of Canada or Australia-listed peers. The competitive landscape requires Altus to continuously prove up resources to attract partners or acquirers, with success contingent on exploration results and commodity price trends.