Author Topic: ALS.TO - Altius Minerals  (Read 1666754 times)

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6920 on: December 26, 2018, 03:06:14 AM »
Champion C$10 million convertible debenture matures on December 31st but is now out of the money for Altius (Altius can convert at $1 per share but Champion is trading at 92 cents). Options:

1) Altius takes the C$10 million principal back in cash on the 31st. Currently a target rich environment for investment in new royalties.

2) Altius allows the debenture, paying 8% interest, to be extended for another 6 months.

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Despite the stock price dropping Champion is fundamentally a successful company. They are hitting their production targets and making a lot of cash (iron ore premiums are intact). There’s no problem
paying Altius the C$10 million back.


linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6921 on: December 26, 2018, 03:30:36 AM »
Andre Gaumond, Altius director, bought around 25K shares on Christmas Eve. Smart man.

I can guarantee Altius has also been buying back close to its maximum daily allowance (10,558 shares) under the NCIB in the last few weeks. The mandatory filing showing the buybacks will be early in the new year.

Altius had C$33.784 million in cash at the end of September. I want to see another C$10 million deployed to buy LIF shares and C$5 million to buybacks. Now’s the time to be aggressive.
« Last Edit: December 26, 2018, 03:41:09 AM by linealdin »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6922 on: December 26, 2018, 05:51:56 AM »
http://explorationmidland.com/en/MediaHandler.ashx?MediaId=432e14db-5136-40a0-b878-a2df501c94e1

Midland has done a couple of private placements recently: flow through shares for C$4.1 million and regular shares for C$200K.

In this press release they announce they are using the placement fund a drill program at Mythril in 2019.

Gino Roger, CEO of Midland, has confirmed to me that Mythril is a designated Altius JV project (Altius 1% royalty), though that fact isn’t noted yet on either company’s website or filings.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6923 on: December 26, 2018, 07:30:06 AM »
I estimate C$80.2 million in 2019 royalty revenue. Total revenue for Altius, including project generation revenue, will be around C$82 million for 2019. Altius will earn fees for managing exploration programs for Adia, New Found Gold, Canstar etc.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6924 on: January 02, 2019, 02:58:39 AM »
https://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvSDYL4gy6yxf1v%2FRw%2FrFiGug%3D

Altius converted the C$10 million Champion Iron debenture to Champion shares at $1 per share on December 31st. Champion closed at C$1.07 on the 31st. Not much of a discount.

Altius received C$1.2 million in interest from the debenture. The interest was always paid in advance (interest for the first 6 months was paid to Altius on the day the debenture closed) which increased the effective interest rate. Champion also paid Altius’s expenses in relation to the execution of the debenture.

I estimate Altius now holds about 15 million Champion shares. They participated in Champion’s pre-construction equity raise at 90 cents per share.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6925 on: January 07, 2019, 05:58:01 AM »
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/551-tsx-venture/wlf/56615-wolfden-announces-mineral-resource-estimate-for-pickett-mtn-project.html

Wolfden establishes 4.08 million tonnes of resources at around 20% zinc equivalent. Ultra-rich. Altius owns a 1.35% royalty on that 4.08 million tonnes.

My belief is that if this deposit reaches 5 million tonnes at 20% zinc equivalent it will eventually become a mine. Wolfden has to find a couple more VMS lenses.

The rule of thumb is a deposit of 10 million tonnes at 10% zinc equivalent is likely economic.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6926 on: January 10, 2019, 03:09:06 AM »
Altius bought back 104,000 shares in December. Share count down to 42.85 million.

The current NCIB only allows them to repurchase 814,972 shares. They’ve used about half of that allocation. Once they hit the max they can institute a new NCIB. Buybacks continue in January.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6927 on: January 10, 2019, 03:16:39 AM »
https://www.alderonironore.com/news/2019/515-alderon-enters-strategic-partnership-with-schneider-electric-to-develop-its-premium-quality-kami-iron-ore-project

Alderon signs partnership with equipment supplier. Equipment financing loans will certainly be part of any construction financing package (see equipment financing deals by Champion and Tacora).

Alderon also claims this partnership will help secure Export Credit Agency financing. Schneider manufactures equipment in Asia, therefore Asian credit agencies will help finance Kami as a big customer for Schneider equipment?

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #6928 on: January 10, 2019, 06:19:09 AM »
Altius bought back 104,000 shares in December. Share count down to 42.85 million.

The current NCIB only allows them to repurchase 814,972 shares. They’ve used about half of that allocation. Once they hit the max they can institute a new NCIB. Buybacks continue in January.

So they bought back 0.2% of shares... Let's have a look at share count over time:

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linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6929 on: January 11, 2019, 02:23:05 AM »
http://altiusminerals.com/uploads/2018-01-10-Project-Generation-update-Q4-and-Year-End-2018-FINAL-.pdf

“During the quarter, Altius completed transactions covering its entire Australian minerals land holdings which included the vending of 7 properties to a private Australian company which intends to seek a public listing in 2019, in exchange for 3.5 million shares and a 1% gross revenue royalty interest. Three other properties (Dajarra) were dealt to a leading diversified mining company active in the Mt. Isa district under an option to earn a 75% interest in the projects by expending $2.5 million AUD over the next 4 years, with Altius retaining a 1% gross revenue royalty.”

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The “leading diversified mining company” is likely Teck. Besides the exploration spending requirement there will likely be significant direct cash payments to Altius in order for the diversified mining company to earn 100% interest in the properties. Altius has mostly stayed away from these types of deal with majors (West Cork sold to First Quantum is the other one), instead focusing on receiving large equity positions in juniors and spinouts.

The deal with the private Australian company seeking an IPO is similar to the Aethon Minerals deal. Sweeping up early stage properties from 1 country into a public vehicle. Altius should exit the IPO with around 35% of the equity. The Australian equity markets are still able to raise money (investors being rich from the iron ore boom).