Author Topic: ALS.TO - Altius Minerals  (Read 1901416 times)

LTVALUE

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Re: ALS.TO - Altius Minerals
« Reply #790 on: September 07, 2012, 12:24:42 PM »
It is my belief that a significant percentage of the increased iron ore production coming on line will either be delayed or stopped due to political factors, cost overruns, underlying commodity price decline, etc. 

A major strength of Altius is their ability and discipline regarding when to invest capital.  Many of the royalty deals in the past couple of years will only be successful if the underlying commodity appreciates in price. Altius being value investors, only look at deals where preservation of capital exists and returns are looked at with an understanding that future outcomes fall under a number of scenarios.  In other words they model their own probability distribution for each deal and only act when the least favourable outcomes still promise preservation of capital and a suitable rate of return to accommodate the necessary risk.  i.e. limiting their investment in Alderon to the initial $2 million!  At present Altius is being rewarded/penalized based on their iron ore exposure.  Altius' value is comprised of much more....IMHO their iron ore properties will still prove of great value and if they don't work out they are still in a position to capitalize on future uncertainty.

Here is an interesting article regarding the future of Chinese steel demand:

http://ftalphaville.ft.com/blog/2012/03/21/930311/steel-demand-is-endless/


Dazel

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Re: ALS.TO - Altius Minerals
« Reply #791 on: September 07, 2012, 02:13:13 PM »

We see a huge window of opportunity...this what Thompson Consolidated did...they built during the low price environment and cashed in at the high...deja vu all over again.

As for Altius we are hoping they are doing or have done some buying of other companies lately...all commodities are now rallying...iron ore will join the party.

As Rogers said it is just a blip...get to work Alderon...Hebei is an obvious believer....

For us...our other investments are moving up quickly...it may work out Perfectly to add to Altius and Alderon here.

Dazel.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #792 on: September 12, 2012, 02:43:37 AM »
http://www.abc.net.au/news/2012-09-12/iron-ore-prices-continue-rebound/4256692?section=business


Funny  negativity always steals (pardon the pun!) the headlines....the rebound in iron ore prices is  hard to find! Whoever, picked up the 4 or 5 million shares of Alderon during the latest drop is going to make a killing...hopefully Altius added.

Dazel.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #793 on: September 12, 2012, 02:54:37 AM »
http://www.miningweekly.com/article/rcr-sees-potential-uranium-supply-gap-emerging-2012-09-12


Paladin will be looking at the 2015 uranium demand as china brings on their 26 nuclear reactors....if you were to add the 18 japaneese reactors potentially brought back on line things could get very interesting for uranium prices.

Dazel.

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #794 on: September 13, 2012, 09:06:28 AM »
http://altiusminerals.com/press-releases/view/263

Quote
St. John’s - Altius Minerals Corporation (“Altius”) reported a net loss attributable to common shareholders of $2,857,000 or ($0.10) per share for the three months ended July 31, 2012 compared to a net loss of $1,588,000 for the same period last year. The current year was affected primarily by the losses in the share of associates, decreased royalty revenue, and a general decline in the market value of investments.

A summary of the financial results is included in the following table.

Three months ended July 31, (unaudited) 2012 2011 $ $ Revenue 1,335,000 2,156,000 Net earnings (loss) attributable to shareholders (2,857,000) (1,588,000) Diluted earnings (loss) per share (0.10) (0.06) Net cash flow from operating activities 4,647,000 (6,751,000)

Significant progress on its wholly owned and partner-funded project interests continued during the period, particularly in the Labrador West iron ore mining district. Additional information on the Corporation’s results of operations is included in the Corporation’s MD&A, and Financial Statements, which were filed on SEDAR today and are also available on the Company’s website at www.altiusminerals.com.
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LTVALUE

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Re: ALS.TO - Altius Minerals
« Reply #795 on: September 13, 2012, 09:31:01 AM »
Information regarding Snelgrove Lake deal:

http://www.mamba.com.au/uploads/9/2/0/6/9206450/2012-07-30_mab_mamba_to_acquire_highly_prospective_iron_ore_project.pdf

The company is Mamba Minerals listed on the ASX.

Below is consideration given to Altius from Mamba's website:

Through the acquisition of CIP Mag,  Mamba  will control the right to acquire
100% of the  Snelgrove Lake  Project from Altius  via the Option Agreement for
consideration as follows:
(i) C$410,000 to be paid to Altius;
(ii) The placement of  17,000,000 options
1
to acquire fully paid ordinary
shares in Mamba exercisable on or before 31 August 2015 at $0.25 per
MAB Option, to Altius at an issue price of $0.005 per MAB Option to
raise $85,000 (“Altius Placement”). Completion of the Altius Placement is
at the election of Altius;
(iii) C$3,250,000 to be spent by MAB on exploration of the  Snelgrove Lake
Project within the first 18 months (Tranche 1 Exploration Spend);
(iv) C$3,250,000 to be spent by MAB on exploration of the  Snelgrove Lake
Project within the first 36 months (Tranche 2 Exploration Spend);
(v) $5,750,000 to Altius within three months from the exercise of the three
year Option to acquire the Snelgrove Lake Project; and
(vi) A gross sales royalty of 3% of revenue.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #796 on: September 13, 2012, 10:33:21 AM »


The central banks of the world have just juiced the engine....big Ben was the last of the public announcements...all that is a hard asset will do very well from here...China, Europe, Japan have all announced big money printing efforts...south America who is in relatively decent shape have cut rates drastically.

Altius's assets will be in demand in the coming years...they are protected for inflation and stand to benefit from the stimulus...

We expect to see a huge amount of m&a to start in the resource sector to take advantage of real things. Altius stands to benefit on both ends....they may take advantage of the situation or someone will looking at taking them out...all that cash and no debt is the envy of the resource sector right now.

The central banks just juiced the system look out!

Dazel.

Eric50

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Re: ALS.TO - Altius Minerals
« Reply #797 on: September 16, 2012, 10:29:00 PM »
Michael Pettit is not very optimist about commodity prices in his latest piece:

"For these reasons I am very pessimistic about hard commodity prices and expect them to drop substantially further in the next two to three years.

1. Production capacity for hard commodities is rising much too quickly, in a belated response to the unexpected surge in demand just under a decade ago.
 
2. Expected economic growth rates in the country that has been biggest source of new demand – virtually the only source – have fallen sharply and commodity prices have fallen with them. Historical precedents and the arithmetic of rebalancing suggest, however, that the current consensus for medium-term Chinese growth is still too optimistic. Expected growth rates will almost certainly fall further in the next two years.

3. Beijing has finally become serious about rebalancing China’s economy, and rebalancing means shifting Chinese growth away from being disproportionately commodity intensive.  Instead of representing 30-60% of global demand for most hard commodities, Chinese demand will shift to a more “normal” level. Remember that even a very limited shift – from 50% of global demand, for example, to a still high 40% of global demand – represents a sharp drop in global demand.

4. There has been so much stockpiling of commodities and finished goods with implicit commodity content in China that the country could well become a net seller, and not net a buyer, of a wide variety of commodities in the next few years."

http://www.mpettis.com/2012/09/16/by-2015-hard-commodity-prices-will-have-collapsed/

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #798 on: September 17, 2012, 06:02:57 AM »

who is michael pettit?

We agree with Jim Rogers, Jeremy Grantham etc. whose beliefs contradict these statements not on capacity but on avalibale resources.

Dazel.

GlennAS

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Who is Michael Pettis?
« Reply #799 on: September 17, 2012, 07:29:23 AM »
Hi Dazel.

((who is michael pettit?))

Michael Pettis is a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets. He is the most astute China watcher on the planet IMO. I have a post-doc economist friend who raves about Pettis. His website is China Financial Markets: http://www.mpettis.com/China Financial Markets. His most recent post is By 2015 hard commodity prices will have collapsed: http://www.mpettis.com/2012/09/16/by-2015-hard-commodity-prices-will-have-collapsed/.

The China hard-landing/soft-landing has various advocates on both sides. Personally, I place more faith in Pettis that Jim Rogers. I have a lot of respect for Jeremy Grantham, but Pettis is much more plugged into the economic data in China than Grantham.

I really like the Altius story, but IMO if the global economy continues to trend downward in spite of the efforts of central bankers to stimulate through a ZIRP interest rate policy (pushing on a string?), I believe there's a very good possibility that I'll be able to pick up Altius shares at below $10.

IMHO. And I could be wrong. :)

Best wishes,
glenn