Author Topic: ALS.TO - Altius Minerals  (Read 2064209 times)

original mungerville

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Re: ALS.TO - Altius Minerals
« Reply #1030 on: January 14, 2013, 11:53:58 PM »
Dazel,

What kind of multiple does the market put on a royalty stream (which stream we should adjust to after-tax dollars) vs an after-tax earnings stream for a mining company?

Is it in the neighbourhood of 2x more - ie p/e of 14 vs 7 or something along those lines? Let's start with iron ore because its "on topic"....:).


Dazel

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Re: ALS.TO - Altius Minerals
« Reply #1031 on: January 15, 2013, 06:34:01 AM »
http://finance.yahoo.com/q;_ylt=AhgtBucA9HFPFGbUFMe.vvWiuYdG;_ylu=X3oDMTIwOGJrNXZ2BG1pdANXaWRlIFF1b3RlcyBNb2R1bGUEcG9zAzEEc2VjA01lZGlhUmVjZW50UXVvdGVzUG9ydGZvbGlvc1dpZGU-;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3?s=LIF.TO


Mungerville,

There are not many iron ore royalties out there for public companies to compare multiples. Labrador iron ore royalty has both and trades at a PE of 21. It is very comparable to Altius because they are neighbors and the Alderon management ran IOC which is their only asset.

If you look at other royalties it is forward projected cash flows that trade at 15 times..Their current multiples are in the range of 30 to 50 times...obviously giving multiples that are 2 to 5 times greater than straight mining company multiples...

Mining royalty companies that have long lasting economical mines  are the greatest companies on the planet and they will continue to command superior multiples. They are inflation adjusted bonds...and in and environment of record low interest rates...we do not see that changing.

Dazel.



Dazel

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Re: ALS.TO - Altius Minerals
« Reply #1032 on: January 17, 2013, 05:52:07 AM »

Are there any Altius shares short? Is anyone that stupid? I have never bothered to check.

Dazel

Ross812

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Re: ALS.TO - Altius Minerals
« Reply #1033 on: January 17, 2013, 07:15:39 AM »
Up 7% on 2x volume... I can't find any news. Alderon is flat. Does anyone know what is going on?
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Phaceliacapital

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Re: ALS.TO - Altius Minerals
« Reply #1034 on: January 17, 2013, 09:21:56 AM »
No clue, also no news on SEDAR
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Ross812

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Re: ALS.TO - Altius Minerals
« Reply #1035 on: January 17, 2013, 09:45:39 AM »
So its up 14% on 6x the daily volume on the Toronto exchange and 10x volume on the pink sheets with no news? I guess it is under a million dollars in shares though. It may just be a fund getting in...
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beerbaron

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Re: ALS.TO - Altius Minerals
« Reply #1036 on: January 17, 2013, 09:50:28 AM »
Dazel probably decided to load up the truck. Maybe he's getting close to control ownership by now :)

BeerBaron

ItsAValueTrap

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Re: ALS.TO - Altius Minerals
« Reply #1037 on: January 17, 2013, 09:58:43 AM »
I don't think that any big fund would get in that sloppy.

It could be anything really... this isn't a very liquid stock with a lot of different shareholders.  One of the Altius presentations lists major shareholders, many of them with 5-10% of the float.

Sometimes some rich retail guy just decides to buy up a lot of stock.  Look at the story of CMEDQ.
« Last Edit: January 17, 2013, 10:09:54 AM by ItsAValueTrap »
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value-is-what-you-get

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Re: ALS.TO - Altius Minerals
« Reply #1038 on: January 17, 2013, 10:29:36 AM »
Dazel probably decided to load up the truck. Maybe he's getting close to control ownership by now :)

BeerBaron

 . . . or maybe he went out for lunch today!!  ;)

original mungerville

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Re: ALS.TO - Altius Minerals
« Reply #1039 on: January 17, 2013, 03:02:37 PM »
Thanks for the reply on the royalty valuations Dazel. Seems clear that the Altius royalty is going to be worth for more than the equity stake in Alderon.