Author Topic: ALS.TO - Altius Minerals  (Read 1314051 times)

linealdin

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Re: ALS.TO - Altius Minerals
« Reply #5890 on: Today at 12:21:15 PM »
The coal royalties are a very steady revenue stream, not subject to the ups and downs of the commodity markets. The best case is that they bring in C$16 million a year for the next 12 years.

The goal is to transform that C$16 million for 12 years coal revenue stream, by a kind of financial alchemy, into a stream of longer-lasting renewable energy royalties: let's say C$10 million to C$12 million in annual royalty revenues for the next 40 or 50 years (by which time some of those turbines or solar cells will start wearing out or become technologically obsolete).

The renewable royalties will also not be subject directly to the ups and downs of commodity prices. Altius obviously likes the steady, predictable royalty revenues from the power generation business. They are just switching energy sources, just like the rest of the industry.