Author Topic: ALS.TO - Altius Minerals  (Read 1745577 times)

gurjot

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Re: ALS.TO - Altius Minerals
« Reply #270 on: July 08, 2011, 09:49:23 AM »
hi,
probably no converence call.  email them and they respond promptly.


thanks


goldfinger

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Re: ALS.TO - Altius Minerals
« Reply #271 on: July 09, 2011, 12:25:41 PM »
Indian iron ore consumption projected to be steel strong over the next few years on infrastructure spending:
http://www.financialsense.com/contributors/frank-holmes/2011/07/09/india-demand-for-iron-ore-made-of-steel

 :)

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #272 on: July 13, 2011, 04:14:57 AM »

http://www.mbironoreindex.com/

Iron ore real contracts have been up now for 9 days in row....China had record demand in june at a 25% increase over May. They are building !0 million social housing untis for 2011!!! Yes 10 million.

With gold hitting record highs and iron ore looking like it will hold for the forseeable future...Altius may be in the right place right time when the market figures out what they own.

Dazel.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #273 on: July 13, 2011, 06:20:39 AM »

Altius Gold holdings

They own 529,229 Royal Gold shares...these are hitting new 52 week highs daily. We also know that the Voisey bay royalty will greatly improve Royal golds cashflows with the recent strike ending. It was the primary reason for the their purchase. They also own a piece Las Cruses in spain (leucadia developed) that has recently come on stream...and of course the gold roylalties are going up daily with gold at a new record highs. This investment is part of their highly liquid assets but it is far outperfroming the cash equivalent that the market gives it credit for.

Milrock, viking and the rest of the potential royalties may get great interest in the coming year as gold hits new highs...if anyone on the board has greater detail on these individual royalties in would be great if you could post it.

Cranberry Capital
Their $25 million investment with Paul Van Eeden could also prove very profitable if the junior mining sector was to awaken in the next year. We are seeing a lot of action in junior gold miners as of late.

I rarely discuss this side of their asset base as we value it as a call option like the NLRC...but it shows a another forgotten asset at Altius that could have large potential.

Dazel.

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #274 on: July 13, 2011, 07:03:55 AM »
Thanks for posting, Dazel. I quite like this side of their business because I figure they are much better at investing in metals & commodities than I am. I love what they own directly, but I also like that they're opportunistic about going elsewhere and investing in good people and good projects.
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #275 on: July 14, 2011, 05:28:06 AM »


Liberty good point.

We made very good money on Leucadia stock when hit it $50 range back in 2007...we did not understand fortescue or inmet well enough to make direct investments but we cashed in by trusting the intelligent investing of Leucadia. We also felt Leucadia's other investments created a large enough margin of safety to buy the stock. A we know fortescue and inmet became home runs and they took Leucadia stock thorugh the roof. The situation with Altius is similar...

Dazel.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #276 on: July 18, 2011, 07:27:59 AM »

Royal Gold hit another 52 week high today..at $66.62

It looks like Altius has a gain of about $13m since they took delivery of the Royal gold shares in the IRC deal.
I would interested to see their Cranberry capital partnership small caps they own with what in going on in junior gold miners right now.

Dazel.

jjsto

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Re: ALS.TO - Altius Minerals
« Reply #277 on: July 24, 2011, 08:56:00 PM »
So, I have a hypothetical question:  Suppose you were given the choice between receiving one of the two following gifts today: 1) A stock option to purchase 32.3 million shares of Alderon @ 3.50 that can't be exercised until production begins; or 2) the 3% gross sales royalty altius owns.  Which one would you choose?  Anyone have any thoughts?

value-is-what-you-get

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Re: ALS.TO - Altius Minerals
« Reply #278 on: July 25, 2011, 06:02:19 AM »
So, I have a hypothetical question:  Suppose you were given the choice between receiving one of the two following gifts today: 1) A stock option to purchase 32.3 million shares of Alderon @ 3.50 that can't be exercised until production begins; or 2) the 3% gross sales royalty altius owns.  Which one would you choose?  Anyone have any thoughts?

The 3% Gross Sales Royalty.  I think that judging by Consolidated Thompson's path to production that we're certainly in for some dilution which would undermine the value of the option.  They'd both ultimately pay off, the question for me is how much grief along the way.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #279 on: July 25, 2011, 08:48:46 AM »

I have written about this in the past. So if you check the thread you will get more detail.

Here is how we look at it. We also know that Altius has publically stated they have been in China over the last 10 months looking at deals. They are in a lock up postion with regards to their ownership of Alderon until September.

We think that the NPV of the royalty is worth more than the value of the shares they own. The market has given them a value of less than 0 for the NPV of the royalty.

However, where it gets very interesting is the fact that they can control their destiny with regards to the Royalty.  This could perhaps give them both a premium in their postion in Alderon since they are the majority owners. This could become "strategic" to a buyer who wants control of Alderon.

Do you want to sell to Rio Tinto who may take longer to develop the mine and delay the royalty payments? Or do you go to Rio Tinto and say we will sell you control of Alderon but you will have to throw in another $200m for the royalty now rather than later.

Or do you sell to a company from China now and collect on the royalty sooner as they will fast track develpment?

Either way we see Altius in a great postion and we do not think the market has figured this out...

As far as dilution...Altius is "full" of cash so they have the option to do many things that would avoid dilution...this also gives them negotiating power with any potential suitors. They do not "have" to do anything.

Dazel.