Author Topic: ALS.TO - Altius Minerals  (Read 1459568 times)

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5830 on: May 15, 2018, 01:10:29 PM »
Some of this skepticism about Blue Sky is anti-renewables bias. I’m guilty of that. I think wind power is retarded. Baseload power like hydro and geothermal I love, however.

If Altius were partnering with a deep pocketed US private equity firm to invest in, say, oil royalties? We’d all be thrilled.

But the reality is the competition for traditional oil & gas royalty packages is fierce. Even Franco-Nevada is buying oil royalties. The returns are low. The well lives are short. The competition for financing renewable royalty deals? Nil, at the moment. That should mean higher returns are possible. And the royalties should pay for as long as the turbines turn and the solar cells last.

All in theory, of course. They must show us what is possible.
« Last Edit: May 15, 2018, 01:23:08 PM by linealdin »


Gamecock-YT

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Re: ALS.TO - Altius Minerals
« Reply #5831 on: May 15, 2018, 07:09:41 PM »
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The key for Blue Sky will obviously be execution. Financing the right projects, avoiding projects that are opposed by locals, choosing developers that can technically execute on budget. There will be many, many billions of capex for renewable projects that needs to be financed over the next 20 years in North America. A good renewable energy project can obtain $1 billion in capex financing (unlike a certain Labrador iron ore project). Governments want to be spend on these projects, international finance groups are chasing these projects.

Blue Sky just needs to carve out the right royalty stakes from that deal flow.

This is true, green bonds and social impact funds are getting to be very popular these days. But I guess my question to Altius would be part of what is Altius' foundation is being counter-cyclical, we all know and love the cycle chart they put in every presentation...basically proving capital when it's in short supply and spinning out projects when demand is there...It seems like these alternative energy projects would be darlings in terms of ease of getting capital for new project now based on the popularity mentioned before, so why is now the right time to do this? Just tough to wrap my head around how this works from beginning to end of a deal.
« Last Edit: May 15, 2018, 07:12:02 PM by Gamecock-YT »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5832 on: May 16, 2018, 03:40:11 AM »
The market dynamics for renewables are different than for traditional commodities. But these are the counter-cyclical aspects of the Blue Sky deal:

1) Royalty financing of renewable energy projects basically doesn’t exist. Altius and Great Bay are out there negotiating and closing the first deals. They are inventing the field by writing legally enforceable agreements. In 10 years this may all be different. A good renewable project in 10 years seeking royalty financing could be running an auction process with multiple deep-pocketed bidders.

Right now Blue Sky has first mover advantage. Franco Nevada had first mover advantage in the gold royalties field. Silver Wheaton invented streaming. Both companies enjoyed the advantage.

2) Renewables compete against traditional commodities for their share of the power generation pie. Natural gas has had a good market share in North America because it is cleaner than coal and because it is so cheap. But what if this is the bottom for the natural gas price (it is certainly not the top)? As natural gas prices rise renewables should become a more attractive alternative.

Oil just jumped from $45 to $70 in a few months. Will gas, uranium, and coal prices follow oil and rise out of their deep bear markets? The market dynamics are complex but renewables should be able to find more financing and sign better power supply contracts in a rising energy price environment.
« Last Edit: May 16, 2018, 03:43:11 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5833 on: May 16, 2018, 04:00:40 AM »
Altius had its first flirtation with renewable energy in 2005. Its royalty financing proposal for the Lower Churchill hydropower station was short-listed but finally rejected. They’ve been thinking about and researching renewable royalties for a long time.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5834 on: May 16, 2018, 05:11:27 AM »
http://www.evrimresources.com/s/news-releases.asp?ReportID=825758

Evrim reveals plans for its $1.5 million Phase 3 program at Cuale: soil sampling, a fancy sounding audio-magnetic survey, and 650 meters of trenching in May and June. Then after drill targets are created a 3000 meter drill program in July.

Additional staking has increased the size of the project to the north. Now 232 square kilometers, or 59% larger. They found similar color soil anomalies as in the La Gloria discovery zone.

Much work seems to be going towards establishing that the mineralization is in a much larger area than the La Gloria trenching zone. More La Gloria-type mineralization hiding under thin cover?

http://www.evrimresources.com/i/pdf/ppt/2018-05-16-cuale-tcp-49cmHn.pdf

This is the technical presentation for Cuale. Slide 21 has all the expansion targets from the La Gloria zone: the North Dome, the quartz ribs etc.

This is quite an audacious claim: "La Gloria is a small erosional window into the mineralized part of system."
« Last Edit: May 16, 2018, 06:51:04 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5835 on: May 16, 2018, 07:24:15 AM »
https://www.greatbayrenewables.com/company/

The Great Bay Renewables website gives a preview of the investment parameters Blue Sky will have:

Target size of royalty investments per project: $5 million to $100 million. From very small to quite large.

Will consider the full spectrum of proven renewable technologies: solar, wind, hydroelectric, geothermal, biomass and energy storage.

Will buy royalties at any stage of project development, from permitting/design to construction and operations.

North America focus.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5836 on: May 16, 2018, 05:19:40 PM »
http://aethonminerals.com/news/122491

Aethon Minerals signs an option deal to acquire the Llanos de Llahuin copper/gold project in Chile. Super cheap option deal; will only cost $100K for the first 6 months.

Aethon plans an aggressive exploration program in that 6 month period including mapping, channel and chip sampling, magnetics, IP survey, and a 1000 meter drill program. The plan is for four 250-meter holes space 300 meters apart. Trying to see if the supergene enrichment that's interpreted to be there actually is there. See presentation below.

If results are bad, then only $100K in option costs have been spent. They can cut bait at that point.

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https://www.asx.com.au/asxpdf/20150513/pdf/42yjy3rtt91z2c.pdf

This presentation from another company explains the Llanos de Llahuin project, including the Gomila prospect, and how it relates to the two deposits on either side of it. The 3 deposits are within 7km of each other.

I think Aethon's goal could be to sell the deposit to Hudbay if they make a discovery. Area has to be consolidated somehow. The deposits are very close to each other.
« Last Edit: May 16, 2018, 05:36:33 PM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5837 on: May 16, 2018, 07:13:53 PM »
http://shmining.com.au/images/SUH_110515_Gomila.pdf

There are 4 current and historical artisanal mining operations on the property Aethon just optioned. Lots of disseminated copper, gold and silver mineralization in the host rocks. Rich enough to attract the artisanal miners. Looks like a good acquisition.

I’m impressed how quickly Aethon management closed a deal. They’ve been working hard the last couple of months as the company was being set up.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5838 on: May 17, 2018, 04:10:53 AM »
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvTDYC6w28zRSZpfpske92GA%3D%3D

EMU claims they’ve discovered a significant high sulphidation epithermal gold/silver system at Vidalita. The company drilled an impressive 5451 meters this season. No assays yet to support their claim but they’ve drilled the same types of rock that they found at surface with good gold and silver values.

I guess this is visual confirmation of the drill core? No lengths of intercepts or grades, of course. A curious press release.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5839 on: May 17, 2018, 07:48:55 AM »
http://www.adventuszinc.com/news/122502

Adventus reports on its Irish properties:

Seismic survey leads to new geological interpretation of Rathkeale and Lismore. 630 square kilometers staked to southwest of existing claims. Adventus will give up the Gaine River, Shrule and Moyvore blocks.

6 drill ready targets identified at Rathkeale. 2 drill targets at Lismore. A phase 2 diamond drilling program is being formulated.