Altona (LSE: REE), a resource exploration and development company focused on diversified critical raw materials in Africa, is pleased to announce its audited results for the year ended 30 June 2024, and give notice of its 2024 Annual General Meeting (AGM).
The Report and Accounts for the year ended 30 June 2024, are now available on the Company’s website at https://investors.altonare.com/, a copy will also shortly be made available on the FCA’s National Storage Mechanism (‘NSM’) in electronic format, as required under DTR obligations.
PERIOD HIGHLIGHTS
· Publication of the Group’s first JORC compliant Mineral Resource Estimate at Monte Muambe
· 13.6 million tons at 2.42% TREO(1) using a cut-off grade of 1.5% TREO – Includes 0.31% NdPrO(2) representing 42,500 contained tons NdPrO
· Increase in Altona’s holding in its Monte Muambe Rare Earths Project to 51%
· Mining Licence application lodged with Mozambique Government
· Advanced metallurgical studies ongoing on Monte Muambe, the results of which are expected to lead to a significant improvement of the project’s opex and capex
· Portfolio expansion and diversification started with the Kabompo South Copper project in Zambia and the Sesana Copper-Silver project in Botswana
· £1.3m fundraise through equity and debt and conversion of existing convertible loans
POST-PERIOD HIGHLIGHTS
· Exercise of option to acquire the Sesana Copper-Silver project
· Confirmation that Kabompo South is prospective for Iron Ore Copper Gold (“IOCG”) copper mineralisation
· Encouraging initial rougher flotation testing results for rare earths at Monte Muambe
· Assessment of potential short term fluorspar production from high-grade fluorspar veins at Monte Muambe
NOTICE OF AGM
The Company also hereby gives Notice of its 2024 Annual General Meeting (AGM), which will be held on 27 November 2024 at 11:00 am UK time at the office of Orana Corporate LLP, Eccleston Yards, 25 Eccleston Place, London SW1W 9NF, to transact the business as stated in the Notice of AGM. A copy of the Notice of AGM and related forms of proxy will be posted to shareholders shortly and will also be available on the Company’s website at https://investors.altonare.com/documents. The Company’s CEO Cedric Simonet, Chair Simon Charles and CFO Louise Adrian will be physically present and shareholders are encouraged to attend in person for an opportunity to interact with the Company’s executives.
The Company will simultaneously stream the meeting via the Investor Meet Company platform, to enable shareholders to follow the proceedings, but note that shareholders will not be able to vote online during the meeting. Therefore, to register to vote prior to the meeting shareholders will need to visit www.shareregistrars.uk.com and follow the on-screen instructions. Shareholders who wish to follow the proceedings online should use the following link to register their interest:
https://www.investormeetcompany.com/altona-rare-earths-plc/register
Shareholders are invited to submit questions for the Board to consider. Questions can be pre submitted via the Investor Meet Company Platform up until 9am the day before the meeting and can be submitted at any time during the AGM itself.
Please note that, as in prior years, printed copies of the Annual Report and Accounts will not be available as Altona focuses on a digital approach to investor communications in line with its environmental commitments.
Cedric Simonet, CEO of Altona, commented, “The financial year 2024 started with the completion of the Monte Muambe Phase 2 deliverables (the JORC MRE and the Scoping Study), which allowed the Company to meet the requirements to increase its holding in the project to 51%.
“The Scoping Study serves as an affirmative initial validation of the potential economic viability of the Monte Muambe project, provides a healthy foundation for its subsequent progression to the Prefeasibility Study stage and, importantly, underpins the solid value rapidly built by Altona since project inception in mid-2021 through focused exploration activities.
“The Company’s portfolio diversification strategy is taking shape nicely, with exciting copper exploration acquisitions in Botswana and Zambia, two highly regarded mining jurisdictions of Africa, which I look forward to advancing rapidly over the next months. The conceptual study for the potential short-term production of metallurgical grade fluorspar from high-grade fluorite veins at Monte Muambe is another important action of this strategy.”
Simon Charles, Chair of Altona, commented, “These results show continued progress for the Company in line with our asset acquisition and diversification strategy. I look forward to welcoming shareholders to our AGM on the 27th November.”
This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).
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Altona Rare Earths Plc
Cédric Simonet, CEO +44 (0) 7778 866 108
Louise Adrian, CFO +44 (0) 7721 492 922
About Altona Rare Earths Plc
Altona is a resource exploration and development company focused on critical raw materials in Africa. The Company is listed on the Main Market of the London Stock Exchange with the ticker “REE”. Rare Earths are a group of 17 chemical elements, many of which are critical to the World’s ongoing transition from carbon-based to renewable energies, and to the defence and communication sectors.
The Company is currently developing Monte Muambe, its flagship Magnet Rare Earths Project, located in Northwest Mozambique. The Project was acquired in June 2021, and the Company has so far drilled over 7,800m, and defined a maiden JORC Mineral Resource Estimate of 13.6 million tons at 2.42% TREO. A Competent Person Report including the Scoping Study for Monte Muambe was published on 18 October 2023. The Project is now at Prefeasibility Study stage, with a focus on metallurgical testing and process.
Altona is presently diversifying its portfolio by acquiring a limited number of critical raw material projects to complement Monte Muambe. The acquisition of the Kabompo South copper project in Zambia and of the Sesana copper-silver project in Botswana represent the first steps towards the implementation of this expanded strategy.
CHAIRMAN’S STATEMENT
Our Company’s results for the year ended 30 June 2024 cover a period of further change, development and progress for our Company, consistent with our strategy.
Having listed on the Official List in June 2023, we believe this step has improved our standing in the eyes of potential partners and counterparties. It has enabled us to access the capital markets more effectively.
We have undertaken fundraises to support the plan for Monte Muambe, and we have welcomed new shareholders on to our register. Progress has occurred at Monte Muambe, with our interest having increased to 51% and our formal application having been made for a 25 year mining concession for that project. The scoping study results were encouraging and positive.
2023/2024 saw output for rare earths rise globally, demand for rare earth elements softened due to the global economic downturn, and competition in production has brought further pressure on producers. The equity markets have been difficult for junior miners, especially for those of us still in the exploration phase. Nonetheless, we take a long term view, and believe our strategy to create and to nurture a diversified portfolio of mineral assets in Africa to be the right one.
During the period under review, we acquired a copper project in the Mufumbe district in Zambia, and entered into an option to acquire a copper and silver exploration licence in Botswana – the Sesana project. These acquisitions are consistent with our strategy, and we continue to look for appropriate acquisition opportunities.
We face the future with determination to deliver on our strategy, with a focus on its implementation, and with resolve to generate value for our shareholders. Your board is cohesive, aligned, and single minded about delivering results. Our work continues.
Simon Charles
Chair
Altona Rare Earths Plc
CEO’S STATEMENT
The Financial Year 2024 was a year of significant value building for Altona.
The Company’s focused exploration approach at the Monte Muambe rare earths and fluorspar project led to the production of a maiden JORC mineral resource estimate (“MRE”) and of a positive scoping study barely 2 years after the acquisition of the project. With 13.6 million tons at 2.42% TREO, out of which almost 60% is already in the Indicated category, this MRE forms a solid base for further increase and for a future ore reserve statement. As a result of the completion of this milestone, Altona’s ownership of this important rare earths resource increased from 20% to 51%. The project is now at prefeasibility study level.
According to Adamas Intelligence[1], the global consumption of NdBeB magnets rose by 13.3% in 2023. This largely reflects the increasing permanent magnets demand for electric vehicles drive trains, and wind turbines, driven by the green energy transition. The same analyst forecasts the demand to grow at a compound annual growth rate (“CAGR”) of 8.7% from 2024 through 2040, whereas the supply is expected to grow at a CAGR of 5.1% over the same period. This underpins strong long-term market fundamentals, pushed by both decarbonisation and robotics applications, the latter being expected to become the largest global demand driver for permanent magnets by 2040.
Rare earths prices, however, after a peak in 2021 and 2022, have failed to meet analysts’ previsions and fell to their current level (about USD 75 per kg for Neodymium-Praseodymium alloy). Such prices have delayed or hindered the development and funding of many rare earths projects.
Cognisant of these facts, in early 2024, the Company announced and started to implement an expansion and diversification strategy in order to mitigate its exposure to rare earths only, and to build a portfolio of critical raw materials projects which we hope will open opportunities for early monetisation of these assets. The Board defined clear selection criteria covering a limited number of commodities in tier 1 African jurisdictions and narrowing down on low acquisition cost and low initial exploration cost opportunities.
The acquisition of the Kabompo South copper project in Zambia in March 2024 and the option to acquire the Sesana copper-silver project in Botswana in April 2024, (this option being exercised post year end in July 2024) marked the start of this strategy’s implementation.
The Sesana project, located in the heart of the emerging Kalahari Copper Belt (“KCB”), and in a jurisdiction widely regarded as the most mining-friendly in Africa, is particularly exciting. The Sesana licence covers a well identified geological feature, the D’Kar – Ngwako Pan formations contact, which is known to host copper mineralisation in the KCB. It is located just about 25km from MMG’s Khoemacau Zone 5 underground copper-silver mine, where production capacity is currently being increased.
As part of the implementation of this strategy, Altona has also initiated a review of the fluorspar production potential of Monte Muambe. This includes the possibility of rapidly putting the low-tonnage / high-grade (50% to 70% CaF2) fluorspar veins located in the Western part of the intrusion into production, thus generating much needed cash flow for the Company. I am particularly excited by this opportunity to turn an existing asset into a profit centre in the short term.
Fluorspar is a little-known but very important critical raw material. Fluorspar demand and prices have been steadily increasing over recent years and are expected to increase further as green energy transition applications such as the manufacturing of electric vehicles batteries require significant amounts of fluorspar. High-grade fluorspar veins lend themselves to the production of metallurgical grade fluorspar through simple extraction, comminution and gravity concentration methods.
In the meantime, the Company will continue derisking the Monte Muambe rare earths project in order to unlock the tremendous value it created through 3 years of investment in this project. This will be done through focused spending on priority activities such as securing a 25 year mining concession (which is expected to be granted before the end of this year) and on-going metallurgical testing, as well as continuing to seek a strategic investor involved in the rare earths supply chain.
Dr Cédric Simonet
CEO
Altona Rare Earths Plc
