Author Topic: ALS.TO - Altius Minerals  (Read 1907521 times)

Thrifty3000

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Re: ALS.TO - Altius Minerals
« Reply #7330 on: March 31, 2020, 04:11:20 PM »
Altius management award themselves almost 400k options at c$7.39 per share - near ten year lows.

Share price   1 /1 /2019     c$11.69
Share price  31/12/2019     c$10.71

Considering the material underperformance in the share price of Altius in 2019, as well as in previous years, it is perplexing that management think themselves deserving of any award - let alone options near ten year lows. This is, in my opinion, a slap in the face to long suffering shareholders and clear evidence that management are not aligned with them.

Altius's year end presentation references c$9m in "Shareholder return" relating to share buybacks. Most of these buybacks were done around c$11 per share. Let's hope their next presentation highlights the negative shareholder return they have created with their generous options.

This award is ill considered and ill timed - especially given last week's press release concerning Alderon's deadline today.

Management doesn’t control the share price. They do, however, influence intrinsic value.


Gregmal

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Re: ALS.TO - Altius Minerals
« Reply #7331 on: March 31, 2020, 04:19:07 PM »
Any management team, in any industry, if they can not show a positive total over any trailing 5 year period should mandatorily be shown the door for cause. If somehow it s a trailing 10 like these guys, there should be financial penalties as well. Straight hucksters.

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #7332 on: March 31, 2020, 04:24:08 PM »
They noted in their PR that they had sold ~0.9 MM LIF shares. The price wasn't disclosed (and I couldn't back into it easily) but the text indicated they were raising cash due to market based uncertainty. I hope they were sellers in the first half of the quarter and not toward the end of March...

I'd be disappointed if they were selling LIF at these prices.

TwoCitiesCapital

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Re: ALS.TO - Altius Minerals
« Reply #7333 on: March 31, 2020, 04:51:00 PM »
I for one am ok with Altius' award. 400k is peanuts even for Altius.

Also, I don't blame them for the share price. I think since 2013 they've moved from a company that made $3M per year and $200M in cash to a company that generates $78 million per year .

While the per share figures have not improved as dramatically, they've improved dramatically and I don't hold Altius responsible for the lack of share price movement as frustrating as that has been.

The fact that you can buy this company where it's at will likely prove to be a boon for shareholders 5-10 years from now - just like looking at the price at the trough in 2016 looked ridiculous and we could have shouted @ management, but you had the opportunity for a 3x flip if you bought the shares instead.

I'm a buyer here.

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #7334 on: March 31, 2020, 05:00:22 PM »
I for one am ok with Altius' award. 400k is peanuts even for Altius.

Also, I don't blame them for the share price. I think since 2013 they've moved from a company that made $3M per year and $200M in cash to a company that generates $78 million per year .

While the per share figures have not improved as dramatically, they've improved dramatically and I don't hold Altius responsible for the lack of share price movement as frustrating as that has been.

The fact that you can buy this company where it's at will likely prove to be a boon for shareholders 5-10 years from now - just like looking at the price at the trough in 2016 looked ridiculous and we could have shouted @ management, but you had the opportunity for a 3x flip if you bought the shares instead.

I'm a buyer here.

I agree with this sentiment. The fact that this thread has gotten remarkably more negative is probably a good sign as well.

mikek

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Re: ALS.TO - Altius Minerals
« Reply #7335 on: March 31, 2020, 05:05:32 PM »
I agree about the options, not a huge deal on that. I am disappointed about the 0.9 million shares of LIF that were sold, I am pretty sure they were sold in that 15 range which wouldn't have been a very good price. I would guess they wanted more cash so that they can purchase the rest of the renewable royalties which will be 16 million US. They are definitely making a big bet on the renewables royalty segment. I have mixed feelings about that. On one hand you see how the renewable royalty segment can get an outsized valuation but they have also outsourced these decisions to a new team. You are betting that the new team knows what they are doing. On the positive side, it does seem it will help when they go to renew their loans, they will no longer be looked at as a coal royalty company. Lenders just do not want to deal with that. ESG has become a real rage these days. The one good thing about this whole commodity downturn is that I would guess that BHP will no longer proceed with the Jansen potash build, this would be very good for Altius long term.
« Last Edit: March 31, 2020, 05:10:27 PM by mikek »

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #7336 on: April 07, 2020, 10:49:22 AM »
Quote
The market value of the junior equities portfolio at March 31, 2020 was $34 million, including two private company investments at book value, compared to $54.1 million at December 31, 2019. The decline in the portfolio value during the quarter is consistent with market value decreases that have been experienced within the broader junior mining sector related to the COVID-19 pandemic. During the quarter, net cash proceeds of $982,000 were generated from the sales of certain equities, with no new equity purchases
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Williams406

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Re: ALS.TO - Altius Minerals
« Reply #7337 on: April 07, 2020, 12:06:15 PM »
They noted in their PR that they had sold ~0.9 MM LIF shares. The price wasn't disclosed (and I couldn't back into it easily) but the text indicated they were raising cash due to market based uncertainty. I hope they were sellers in the first half of the quarter and not toward the end of March...

I'd be disappointed if they were selling LIF at these prices.

Anglo Pacific reported 2019 results today indicating they have built up their LIF stake to 7.0%. Initial 4.3% stake bought in 2018, 2% in 2019, and the balance in 1Q 2020.

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #7338 on: April 07, 2020, 12:46:35 PM »
I have been buying LIF as well. Iron ore prices are holding up, and Chinese stimulus seems like it might be infrastructure based, so heavy steel requirements. At current share price/iron ore prices this will work out very well.

Williams406

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Re: ALS.TO - Altius Minerals
« Reply #7339 on: April 07, 2020, 01:30:47 PM »
Same re LIF.