Author Topic: ALS.TO - Altius Minerals  (Read 1997694 times)

Thrifty3000

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Re: ALS.TO - Altius Minerals
« Reply #7390 on: October 13, 2020, 06:27:26 AM »
Does anyone following altius have an estimate of the royalty income of the ARR royalties that are expected to come into production in the next couple of years?

Around $10 to $12 million of ARR. The plan was to invest roughly $100 million in renewables to replace the expiring coal royalties.


nostradamus

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Re: ALS.TO - Altius Minerals
« Reply #7391 on: October 13, 2020, 07:16:59 AM »
Does anyone following altius have an estimate of the royalty income of the ARR royalties that are expected to come into production in the next couple of years?

Around $10 to $12 million of ARR. The plan was to invest roughly $100 million in renewables to replace the expiring coal royalties.

You mean this is the revenue that is expected when the full $100m investment has been converted into paying royalities? (According to their presentation they have only invested $66m so far).

If so, is there any estimate on the time it takes between the money being depolyed and the 10-12% income stream beginning?

Williams406

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Re: ALS.TO - Altius Minerals
« Reply #7392 on: October 14, 2020, 10:24:22 AM »
Iluka (ASX listed) spinning off royalty subsidiary which has sizable Area C iron ore royalties. I note this here simply because it's a new base-metal royalty player with some scale that will be hunting for deals.

https://www.iluka.com/getattachment/2d4847b2-f9fd-477f-9d62-1aec66251cbc/deterra-royalties-demerger-briefing-presentation.aspx

Thrifty3000

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Re: ALS.TO - Altius Minerals
« Reply #7393 on: October 15, 2020, 11:38:48 AM »
Does anyone following altius have an estimate of the royalty income of the ARR royalties that are expected to come into production in the next couple of years?

Around $10 to $12 million of ARR. The plan was to invest roughly $100 million in renewables to replace the expiring coal royalties.

You mean this is the revenue that is expected when the full $100m investment has been converted into paying royalities? (According to their presentation they have only invested $66m so far).

If so, is there any estimate on the time it takes between the money being depolyed and the 10-12% income stream beginning?

Both of these questions have been asked in recent conference calls. I can't say I've walked away with a crystal clear understanding of the answers. They seem to suggest they've already made the commitments necessary to achieve the strategic goal of replacing coal royalties (so maybe the initial deals are structured to only require $66 million to replace the declining coal royalties - but that seems a little too good to be true, so I think I've misinterpreted something.). They also make it sound like the 10% to 12% ROI kicks in the day the investment is made, even though the income might not start rolling in for a couple/few years (I may have misinterpreted this one too).

Because they have been so transparent and executed so well I mostly give them the benefit of the doubt on the renewables income in my financial model. I make the assumption that the renewables royalty income will fully offset the expiring coal royalties.

I do have to commend Altius big time on their renewables strategy. Think about it. They have been innovative by inventing a brand new royalty product and achieving product/market fit. They have been completely transparent with shareholders about their strategy. And, they have executed beautifully despite economic and pandemic challenges. What the heck more could investors want from a management team? I really admire this company, and love following their progress.

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #7394 on: October 21, 2020, 06:58:45 AM »
Q3 royalty numbers are out:

http://altiusminerals.com/storage/press-releases/2020-10-21-q3-royalty-revenue-final-1603282514.pdf

Quote
attributable royalty revenue† of approximately $16.2 million ($0.39 per share) for the third quarter ended September 30, 2020. This compares to quarterly revenues of $13 million ($0.31 per share) in Q2 2020 and $19.2 million ($0.45 per share) in the comparable quarter last year.

Looks like revenue is down 15.6% YoY.

bizaro86

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Re: ALS.TO - Altius Minerals
« Reply #7395 on: October 21, 2020, 08:59:20 PM »
Q3 royalty numbers are out:

http://altiusminerals.com/storage/press-releases/2020-10-21-q3-royalty-revenue-final-1603282514.pdf

Quote
attributable royalty revenue† of approximately $16.2 million ($0.39 per share) for the third quarter ended September 30, 2020. This compares to quarterly revenues of $13 million ($0.31 per share) in Q2 2020 and $19.2 million ($0.45 per share) in the comparable quarter last year.

Looks like revenue is down 15.6% YoY.

In fairness, the majority of the decline was lower dividends from their iron ore investment. And the underlying mine would have been hugely profitable this quarter given iron ore prices, but the operator (Rio Tinto) didn't distribute dividends, so none got flowed through to Altius. That cash should be accumulating on the IOC balance sheet, and presumably Rio will want to use their share for something, so it will flow through eventually.

Of course, they did have some met coal royalty from Cheviot, which is now closed (and going to zero) so that's a small offset. But if folks are looking at quarter-by-quarter revenue when IOC finally distributes their "just-in-case-pandemic-cash" you can expect a good quarter. 

Williams406

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Re: ALS.TO - Altius Minerals
« Reply #7396 on: October 27, 2020, 11:50:09 AM »
Article from a couple months ago regarding Deterra, the royalty spinoff from Iluka. Will be interesting to see how aggressively the new company tries to grow and whether that is via acquiring royalties/streams directly or acquisitions.

https://www.forbes.com/sites/timtreadgold/2020/08/25/replicating-rinehart-how-a-new-company-could-also-build-a-16-billion-fortune/#75834dd72d4e

Thrifty3000

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Liberty

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Re: ALS.TO - Altius Minerals
« Reply #7398 on: November 16, 2020, 06:50:12 AM »
Altius Reports Acquisition of Kami Iron Ore Project by Champion Iron

Quote
Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) reports
that it has been informed by Deloitte Restructuring Inc., the Receiver overseeing the disposition of assets formerly held by Alderon Iron Ore Corp. (“Alderon”), that an acquisition proposal by Champion Iron Limited (the “Acquisition”)  has been approved by the Supreme Court of Newfoundland and Labrador following a competitive bidding process. The primary asset involved in the Acquisition is the advanced stage Kamistiatusset (“Kami”) iron ore project located in the Labrador Trough geological belt in western Labrador.

Altius’s Project Generation team completed an initial drilling program that broadly outlined the Kami high-grade iron ore deposits in 2008.  Altius subsequently sold the project to Alderon in exchange for a significant equity shareholding in the company and retention of a direct project interest through a 3% gross sales royalty, which has not been impacted by the receivership process. Altius then acquired additional Alderon equity in early 2018 through a purchase from a third-party shareholder and soon after that also became a minority participant in a Sprott Private Resource Lending LP secured debt funding syndicate.

Under the Acquisition, Altius will receive 600,000 Champion Iron shares as consideration for the sale of its portion of secured debt of Alderon.  It also expects to receive a portion of the $15 million cash consideration and the future production-based payments stemming from its 37.3% equity holding in Alderon. The amount of cash consideration will be dependent on the Receiver’s approval process for any additional creditor claims, which will rank in priority over any amounts payable to equity holders. This process remains ongoing, but the Receiver has stated that it believes there will be a substantial recovery to Alderon shareholders.
Closing of the Acquisition is subject to the consent of the Ministry of Industry, Energy and Technology of Newfoundland and Labrador, as well as other customary closing conditions. The Acquisition is expected to be completed in the fourth quarter of calendar 2020.

Brian Dalton, Altius CEO commented, “We are excited to learn that the Kami project has found its way to a new owner that has the proven operating experience and financial depth necessary to further its advancement to potential production.  The project is located adjacent to available infrastructure and features high-quality iron ore of a type that is in increasing global demand owing to its low impurities and inherently lower emissions profile during the steel making process.  In addition to achieving a recovery on our loan principal and benefitting from our significant equity interest in Alderon, we are excited about the renewed possibility for development of the Kami project and the implications of that relative to our fully preserved royalty interest.”

He then added,  “We are also pleased that communities in the Labrador West region, various aboriginal groups and indeed the Provinces of Newfoundland and Labrador and Quebec can now gain a renewed hope in the future economic and social benefits that development of the Kami project would entail and call upon all stakeholders to work diligently together to ensure this outcome. With a strong spirit of cooperation and the inherent positive economic and global sustainability features of the Kami project we share optimism for a positive result and pledge our ongoing support.”

nostradamus

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Re: ALS.TO - Altius Minerals
« Reply #7399 on: November 16, 2020, 07:03:23 AM »
600,000 Champion shares. Current price = 4.3 AUD per share = 2.58 million AUD = 2.46 million CAD

Main value in the royalty though.