Author Topic: ALS.TO - Altius Minerals  (Read 1433572 times)

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6530 on: September 14, 2018, 07:29:59 AM »
http://www.vale.com/EN/investors/information-market/quarterly-results/QuarterlyResultsDocs/PREPORT2T18_i%20-%20vf.pdf

“Production from the Voisey’s Bay source reached 9,500 t in 2Q18, in line with 1Q18 and 35.8% lower than in 2Q17. The decrease compared to 2Q17 was mainly due to the strategic decision to decrease production output to extend the mine lifespan in support of the investment schedule.”

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Q2 2018 Voisey’s Bay royalty revenue of C$286K is NOT representative of the long-term potential. Vale made a strategic decision to decrease production (35.8% lower than in Q2 2017). Long Harbour is still ramping up and they wanted to extend the open pit mine life so that the underground mine could be financed and built without a work stoppage.

We will see higher revenue when Long Harbour is processing at full capacity.
« Last Edit: September 14, 2018, 07:31:33 AM by linealdin »


nostradamus

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Re: ALS.TO - Altius Minerals
« Reply #6531 on: September 14, 2018, 07:39:13 AM »

Q2 2018 Voisey’s Bay royalty revenue of C$286K is NOT representative of the long-term potential. Vale made a strategic decision to decrease production (35.8% lower than in Q2 2017). Long Harbour is still ramping up and they wanted to extend the open pit mine life so that the underground mine could be financed and built without a work stoppage.

We will see higher revenue when Long Harbour is processing at full capacity.
Thanks linealdin, very helpful.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6532 on: September 14, 2018, 07:46:25 AM »

Q2 2018 Voisey’s Bay royalty revenue of C$286K is NOT representative of the long-term potential. Vale made a strategic decision to decrease production (35.8% lower than in Q2 2017). Long Harbour is still ramping up and they wanted to extend the open pit mine life so that the underground mine could be financed and built without a work stoppage.

We will see higher revenue when Long Harbour is processing at full capacity.
Thanks linealdin, very helpful.

Production at Voisey’s Bay could be 40.4% higher. Q2 Long Harbour production at annualized rate of 35,600 tonnes versus full design capacity of 50,000 tonnes annually.

40.4% upside is meaningful.

wachtwoord

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Re: ALS.TO - Altius Minerals
« Reply #6533 on: September 14, 2018, 07:55:41 AM »
Does anyone understand this settlement? Sound like Vale getting 100% what they want while Altius' case seemed really strong.

Sets a terrible precedent of Altius chickening out as well ....
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

ALS.TO - MRCR - FELP - PDER - NVTR - SODI - ADDC - FFH.TO - ELF.TO - WWIB.OL -  JD - HNFSA - IPO.TO - BONL - GNW -  BWEL - DC.A - POE.V - DAAT - NYRT

mikek

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Re: ALS.TO - Altius Minerals
« Reply #6534 on: September 14, 2018, 08:07:58 AM »
I agree 100 percent with wachtwood, not sure what in the world Altius is doing here. Was the contract worded very badly and Altius messed up on the contract when the original deal happened? What a complete joke. Vale underpays for many years, stops paying for a couple years and now gets 50 percent of the prior royalty?? What are our other royalties really worth? Why wouldn't our other counterparties just stop paying and take the chance? Not sure how anyone can put a positive spin on this. All I see from Altius management is surprises to the downside. This trial was also in their own backyard. If you can't protect your assets in this case - wow..... I would love to hear a real response from Altius on this and to tell shareholders why they believe their current royalties have value if they are willing to completely get screwed over in a case where it looked like they had the upper hand. Very disappointed. Anyone putting a positive spin on this has lost their mind unless we are missing a lot of undisclosed information. I'm being serious here, how can Altius shareholders have any confidence in the current royalties unless we are missing something completely here.
« Last Edit: September 14, 2018, 08:14:46 AM by mikek »

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6535 on: September 14, 2018, 08:14:48 AM »
Does anyone understand this settlement? Sound like Vale getting 100% what they want while Altius' case seemed really strong.

Sets a terrible precedent of Altius chickening out as well ....

Have to remember that Vale was doing shady stuff with low-priced intercompany transfers over the whole period the royalty was paid. The settlement eliminates that nonsense, which was probably cutting 30% off the market price already.

Now Altius gets a full market price for the commodities Vale sells, while tying the royalty percentage coverage to the commodity price. In a high commodity price scenario Altius receives close to the full 0.3% royalty, at the full market price, with no inter-company transfer pricing.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6536 on: September 14, 2018, 08:19:14 AM »
I agree 100 percent with wachtwood, not sure what in the world Altius is doing here. Was the contract worded very badly and Altius messed up on the contract when the original deal happened? What a complete joke. Vale underpays for many years, stops paying for a couple years and now gets 50 percent of the prior royalty?? What are our other royalties really worth? Why wouldn't our other counterparties just stop paying and take the chance? Not sure how anyone can put a positive spin on this. All I see from Altius management is surprises to the downside. This trial was also in their own backyard. If you can't protect your assets in this case - wow..... I would love to hear a real response from Altius on this and to tell shareholders why they believe their current royalties have value if they are willing to completely get screwed over in a case where it looked like they had the upper hand. Very disappointed. Anyone putting a positive spin on this has lost their mind unless we are missing a lot of undisclosed information. I'm being serious here, how can Altius shareholders have any confidence in the current royalties unless we are missing something completely here.

One factual correction: Altius had nothing to do with the original royalty contract’s wording. It was signed between the prospectors who discovered the deposit and Diamond Fields.
« Last Edit: September 14, 2018, 08:24:26 AM by linealdin »

mikek

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Re: ALS.TO - Altius Minerals
« Reply #6537 on: September 14, 2018, 08:20:14 AM »
Seriously Linealdin? I like you man but I'm not sure how you can try to put a positive spin on this. Where is the back payment? These guys stole money for many years and stopped paying for two years and no back payment? Altius got punched in the face, they punched their mother in the face and Altius just took it, smiled and even thanked them for their kindness.

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #6538 on: September 14, 2018, 08:21:06 AM »
I don't mind this from a current value perspective, because I think the savings on legal fees, reduction in uncertainty, and getting the payments started now (present value) probably offsets the lost money somewhat.

I do agree that knuckling under doesn't set a good precedent.  I would comment that ALS only owns 10% of this royalty, so it may have been Royal Golds decision more than theirs.

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #6539 on: September 14, 2018, 08:24:04 AM »
Seriously Linealdin? I like you man but I'm not sure how you can try to put a positive spin on this. Where is the back payment? These guys stole money for many years and stopped paying for two years and no back payment? Altius got punched in the face, they punched their mother in the face and Altius just took it, smiled and even thanked them for their kindness.

The cash component is usually not press released for confidential legal settlements. We should see something in the upcoming financials for Royal Gold and Altius.