Some additional detail. I'm midway through my own valuation.
Fully Diluted Shares Outstanding
29,816,395 at September 13, 2010
Cash and Liquid investments
$170,000,000 (from Feb 2011 presentation by Alderon) - $5.70/share
Equity Positions - Working to determine if each of these holdings is fairly valued.
Northern Abitibi Mining Corp - 1,115,000 shares @ 0.24 = $267,600
Royal Gold - 529,297 shares @ 47.04 = $24,898,130.88
Alderon Resource Corporation - 32,285,006 @ 3.92 = $126,557,223.52
Rambler Metals and Mining - 12,000,000 @ 0.69 = $8,280,000 (however, Rambler has significantly diluted shareholders several times)
Millrock Resources - 7,932,046 @ 0.81 = $6,424,957.26
Joint venture with Cranberry Capital - $25 million (89.2% interest) to invest primarily in early stage mineral exploration companies, managed by Paul van Eeden.
Total Equity Positions of $191,427,911.66 - $6.42/share
Other Investments
Newfoundland and Labrador Refining Corporation - 39.6% interest; carried at $0 (NLRC must sell its assets to satisfy creditors or complete financing of the project by October 2011). Altius is also a secured creditor of NLRC.
Millrock Resources - June 2010 warrants for the purchase of 3,450,000 common shares at a price of 45 cents per share for a period of five years; $1,242,000=(0.81-.45)*3,450,000 shares (not sure if I'm double counting this. I don't see that these warrants have been exercised.)
Current and Potential Royalty Streams
Voisey's Bay - 0.3% net smelter returns (30 year life; revenue of $4.1m in '09 before strike)
Millrock Resources - 2% on gold and 1% on other commodities
Aurora Energy - 2% gross uranium sales royalty and a 2% net smelter return. This project is subject to a three year moratorium, subject to review on or before April 2011, imposed by the Nunatsiavut government (the self governing Inuit of Northern Labrador)
Northern Abitibi Mining Corp - 2 to 4% sliding scale net smelter royalty, tied to price of gold.
Early Stage exploration
From 2010 AR, Altius is pursuing 17 projects (18 with Cliffs included?) at a generative or early stage, including:
Labrador Iron Ore – potential 49 (Altius)/51 (Rio Tinto) interest if Rio Tinto meets certain investment targets by December 2011. Triggers a range of possible (positive) outcomes including a 2-3% gross royalty for Altius (3% unless Rio Tinto buys down 1% of Altius' royalty stream for $10M).
50/50 interest in potential joint ventures with Cliffs Natural Resources, triggering a 1% net smelter royalty for Altius. Exploration costs funded by CNR.
This paragraph from their 2010 AR outlining Altius' strategy is also instructive:
Altius’ principal business activities are focused on the generation and
acquisition of mineral projects and royalties. Often these business
activities generate alliances or corporate structures which result in the
Company creating minority and non-operating projects or equity interests
in addition to project-level royalty interests. The creation of certain equity
stakes through the co-founding of special purpose companies (“spin
outs”) has resulted in significant profits in the past and continues to be a
key plank in our strategy. To complement this work and in recognition of
its large accumulated cash position the Company also pursues direct royalty
interests and equity stakes in companies with undervalued quality assets.
