Author Topic: ALS.TO - Altius Minerals  (Read 1434946 times)

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6090 on: July 09, 2018, 06:43:35 AM »
wolfden drill results
https://ceo.ca/@newswire/wolfden-hits-high-grade-mineralization-in-deep-drilling

4.7 meters of 24% zinc, 10% lead, 0.9% copper, 267 g/t silver, 1.6 g/t gold. This is by far the richest mineralization Wolfden has drilled during its 2018 program.

Fairly deep at 530 meters but under Maine law only an underground mine can receive a permit. So there's no consideration of an open pit mine. It will all be extracted by underground methods anyway.


linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6091 on: July 09, 2018, 07:00:24 AM »
http://www.allegiancecoal.com.au/irm/PDF/1408_0/InvestorPresentation

New Allegiance presentation. Altius recently bought a 354k more shares of Allegiance to bring their total shareholding to 55,564,278. They are Citicorp Nominee PL on slide 3. They own 12% of Allegiance and are the largest shareholder, by a lot.

Tenas project will "almost" be the lowest cost producer on the global seaborne market for met coal at FOB US$55.8 per tonne. The current market price for the Tenas mid-volatile semi-soft coking coal product is US$133.45 per tonne. That's a good-looking margin.


netnet

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Re: ALS.TO - Altius Minerals
« Reply #6092 on: July 09, 2018, 01:52:27 PM »
Quote
Buying shares in a junior is a statistically terrible business. Unless there is some other source of upside, even if Dalton and Co are better than average I'd like to see that avoided. Just because you're smart doesn't mean you should pick something hard to do. Munger says to shoot fish in a barrel by first emptying the barrel of water. Royalties are shooting fish in an empty barrel, investing in juniors is like shooting fish in the ocean. It's very hard, so why do it. The bigger % of the value of ALS in that activity the less happy I am.
??? Huh?

Although you are not joking, you should be.  This is kind of definition of a false analogy.  Because you (and I) and 99% of everyone else can't intelligently invest in junior mining companies does not mean that this is not well within Dalton and Co. circle of competence. This is what they do, when they turn over prospect generating deals for goodness sakes; they evaluate mines and miners every day of the week. This is a mine field they traverse every day (he said tongue firmly planted in cheek.)


bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #6093 on: July 09, 2018, 01:59:32 PM »
Quote
Buying shares in a junior is a statistically terrible business. Unless there is some other source of upside, even if Dalton and Co are better than average I'd like to see that avoided. Just because you're smart doesn't mean you should pick something hard to do. Munger says to shoot fish in a barrel by first emptying the barrel of water. Royalties are shooting fish in an empty barrel, investing in juniors is like shooting fish in the ocean. It's very hard, so why do it. The bigger % of the value of ALS in that activity the less happy I am.
??? Huh?

Although you are not joking, you should be.  This is kind of definition of a false analogy.  Because you (and I) and 99% of everyone else can't intelligently invest in junior mining companies does not mean that this is not well within Dalton and Co. circle of competence. This is what they do, when they turn over prospect generating deals for goodness sakes; they evaluate mines and miners every day of the week. This is a mine field they traverse every day (he said tongue firmly planted in cheek.)

I think Dalton and Co. are very smart and do a good job. I very much look at this as them being investment managers managing my money in this space since I generally don't want to. (Although I'd meet the definition for a qualified person for signing reserve reports).

My point is that no matter how smart they are, prospect generation and royalties are structurally advantaged businesses, whereas buying shares in a junior isn't. If they have too much cash, I'd rather see them do buybacks (especially sub $13 CAD) and give me a bigger share of the Potash royalties.

If they make straight up purchases of shares  part of their model in a bigger way, I'll be happy to back up my opinion by selling you my shares.

mugwump

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Re: ALS.TO - Altius Minerals
« Reply #6094 on: July 10, 2018, 04:35:22 AM »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6095 on: July 10, 2018, 07:11:04 AM »
Altius hasnít added any random new names to the PG portfolio since itís been made public. All the equity purchases have been top-ups, royalty-related or special situation deals: ~$5 million in Champion shares after the debenture deal with Champion, C$1.2 million top-up to Evrim (extraordinary gains on those shares), $5 million taking the Alderon shares off of Liberty Metals, private placement with Canstar after 4 Altius royalty properties were farmed in, etc.

Altius is only supporting companies they have pre-existing relationships with.

(I donít understand how the Adventus and Aethon equity top-up investments arenít royalty-related. Both companies hold significant banks of Altius royalty land and have spent or will spend millions exploring that land. Adventus has spent over C$2.6 million between January 2017 and March 2018 exploring the Altius royalty land and theyíve found a farm-out partner who will spend at least a million drilling 3000 meters at Buchans in 2018. I expect the Irish properties will be drilled by a new funding partner in 2018, too. Adventus has done a great job directly advancing Altiusís royalty interests.)
« Last Edit: July 10, 2018, 07:25:25 AM by linealdin »

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #6096 on: July 10, 2018, 07:26:59 AM »


Altius is only supporting companies they have pre-existing relationships with.



Do they have a royalty on something owned by constantine?

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6097 on: July 10, 2018, 07:39:43 AM »


Altius is only supporting companies they have pre-existing relationships with.



Do they have a royalty on something owned by constantine?

No, but it is a pre-existing relationship. Constantine has been in the Altius PG portfolio forever. I have to assume Altius likes the flagship Palmer VMS project and CEM management. More importantly Constantine has secured a very deep-pocketed strategic investor in Electrum. Private equity can fund the building of a mine.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6098 on: July 10, 2018, 08:19:15 AM »
altius project generation update
https://ceo.ca/@businesswire/altius-provides-2nd-quarter-2018-project-generation-update

I like the bump up to C$60.3 million, especially since new investments were balanced by sales. Big moves up by Evrim and Alderon during the quarter.

The LIF debenture is worth C$13 million if converted, and the Altius portion of the Aethon shares worth another C$2.7 million. (Some small change in Revelo and EMU shares is also held by the 49% Altius-owned Chilean subsidiaries.)

C$76 million total, not including in-the-money warrants.

This portfolio is meant to fund all of Altius's project generation business expenses. A strict dividing line between the PG business and the royalties business.
« Last Edit: July 10, 2018, 08:49:59 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6099 on: July 10, 2018, 08:55:26 AM »
Altius has C$76 million in total PG-related equity and debenture (excluding value of LIF, which is meant to be a semi-permanent royalty).

And C$125 million in debt.

I'd like to see this "total" PG number surpass the debt in the near future.

« Last Edit: July 10, 2018, 08:57:55 AM by linealdin »