Author Topic: ALS.TO - Altius Minerals  (Read 1889073 times)

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6860 on: December 05, 2018, 08:17:32 AM »
“The terms of the Construction GRR are Altius has paid C$5.0 million for a gross revenue royalty that is equal to (i) 0.625% while the plant capacity of all the plants operated or constructed by the Company or its affiliates for use in connection with the Gunnison Copper Project ("Plant Capacity") is less than 75 million lbs. of copper per annum; and (ii) 0.5% while the Plant Capacity is greater than or equal to 75 million lbs. of copper per annum.

“Combined with the GRRs that Altius previously acquired (see Excelsior news releases July 29, 2014 and August 1, 2013) Altius now holds a 1.625% GRR on the Gunnison Copper Project while Plant Capacity is less than 75 million lbs. of copper per annum and 1.5% while the Plant Capacity is greater than or equal to 75 million lbs. of copper per annum.“

*

Royalty option did indeed vary with the production capacity of the plant. At 25 million pounds of annual production ($3 copper) the 1.625% royalty will bring in C$1.6 million annually.

At 75 million pounds ($3 copper) the 1.5% royalty brings in C$4.4 million annually.

At 125 million pounds ($3 copper) the 1.5% royalty brings in C$7.3 million annually.
« Last Edit: December 05, 2018, 08:23:48 AM by linealdin »


linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6861 on: December 06, 2018, 08:19:18 AM »
https://ceo.ca/@nasdaq/evrim-announces-initial-drilling-results-at-cuale-gold

Evrim with initial drill results at Cuale. 14 meters of 1.92 g/t gold is the best result. The market hates it.

I believe the assays are not totally inconsistent with the target: a near-surface HSE deposit with 1g/t to 2 g/t gold. North Dome assays are coming.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6862 on: December 07, 2018, 03:26:49 AM »
https://www.capitalpower.com/InvestorRelations/Events/Documents/2018%20Capital%20Power%20Investor%20Day.pdf

Capital Power Investor Day presentation. Slides 18 to 21 give some color on the Genesee complex conversions, which will happen in a staged fashion.

Currently the plants have 20% natural gas co-firing ability. (I’ve seen no major dropoff in coal revenue to Altius in 2018. Perhaps they are using only a small portion of that co-firing capacity.)

2019: 20% gas co-firing capacity.

2020: New pipeline will allow 35% gas co-firing capacity.

Step 3: Increase one unit to 67% gas co-firing capacity.

Step 4: Increase 2 other units to 67% gas co-firing capacity.

Step 5: Increase 1 unit to 100% gas co-firing capacity.

Step 6: Increase 2 other units to 100% gas co-firing capacity.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6863 on: December 07, 2018, 03:36:25 AM »
Nameplate capacity does not equal 100% use of that capacity. We see that today. The Genesee complex currently has 20% gas co-firing capacity but Genesee’s fuel mix is nowhere near 20% gas.

I think Step 4 of the schedule above will happen in 2025. I predict Step 6 will happen in 2028.

Altius will receive gradually decreasing Genesee coal royalty revenue through 2030. Genesee will co-fire coal until the last possible moment.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6864 on: December 10, 2018, 07:01:48 AM »
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/878-tsx-venture/nai/55843-canex-metals-intersects-multiple-high-grade-veins-at-gibson.html

First drill hole result from Canex Metals’s Gibson prospect (Altius 1.5% royalty and lots of Canex equity):

Multiple higher grade veins intersected (such as 1 meter of 15.84 g/t gold equivalent), along with a 31.5 meter section of 1.33 g/t gold equivalent. It’s a start.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6865 on: December 10, 2018, 03:26:29 PM »
https://ceo.ca/@leni/a-conversationwith-chad-wells-vp-corporate-development-of-altius-minerals

Chad Wells interview:

“I can’t make a promise, but I'll say to you I have extraordinary belief that that $65 million will be worth the market capitalization value of the entirety of Altius, roughly $600 million, through the cycle.

“We're seeded up on the right deals, at the right time, in the right commodities and right projects that those things are going to deliver value.”

*

10 bagger from the PG equity portfolio. That’s also what I expect this bull cycle.

3 new project generation deals in the works. 2 of them likely to be the Aussie properties Broken Hill and Mount Isa.

Co-investment rights in Lithium Royalty Corp based upon Altius’s pro-rata equity ownership in LRC. So it could go higher than 10%.
« Last Edit: December 10, 2018, 03:31:38 PM by linealdin »

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6866 on: December 10, 2018, 07:08:51 PM »
Wells on financing $1 billion capex for Alderon:

“So is the capital there today? Probably not. Will it come? It will. Also, I'd say you don’t necessarily have to think that these things are going to be built by the market. There's a lot of diversified miners out there that have good balance sheets, have made a lot of money here in the last few years, again, and are going to be looking for shovel-ready assets to acquire to develop themselves. Maybe some of these things get built in different ways, not necessarily going to be through the capital market conventions of a bull market, if you will.”

*

The sale of Kami is a distinct possibility. Sprott and Altius control Alderon’s debt while Altius and friends have enough votes to push through a sale. A low ball sale of Kami to Teck for C$75 million is not a bad outcome for Altius. As long as the buyer can put the royalty into production.

bizaro86

  • Hero Member
  • *****
  • Posts: 1295
Re: ALS.TO - Altius Minerals
« Reply #6867 on: December 10, 2018, 09:20:46 PM »
A sale of Alderon  for $0 would be a great outcome for ALS if it went to someone who had the money and intent to build Kami.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6868 on: December 11, 2018, 03:11:23 AM »
Chad Wells on the Labrador Trough:

“The way we see things playing out in the Trough, we believe IOC brings a lot of transparency and reality to the broader marketplace, of the niche, that Labrador iron fits. We think that spills over into Champion, which is a very high margin operation right now, but is flying under the radar. We think the market will take credence and recognition there.

“And as this market continues to want more high grade, low impurity iron ore, the next shovel ready project in that district is Kami.”

*

It’s public information that Teck and Arcelormittal had some involvement in a sales process for Rio Tinto’s 58.7% equity stake in IOC. Rio Tinto’s asking price was a sky high US$6 billion.

Teck needs to diversify out of coal. Iron ore would be a way to do that. Arcelormittal has operations close to Kami and a private railway with excess capacity. Instead of paying US$3 billion to US$6 billion to Rio Tinto those companies could easily take over Alderon for C$75 million and finance Kami themselves (in partnership with HBIS).

This is my preferred outcome.

linealdin

  • Hero Member
  • *****
  • Posts: 2113
Re: ALS.TO - Altius Minerals
« Reply #6869 on: December 11, 2018, 05:27:59 AM »
The Aussie companies can still raise cash by issuing equity. EMU NL raised a total of A$1.374 million with two recent placements while PolarX raised A$1.26 million. Both companies are financed for their planned 2019 drill programs (Altius holds royalties on the flagship projects for EMU and PolarX).

Altius also had a change in substantial holding in Allegiance Coal. I believe Altius was due a milestone payment in shares when Allegiance filed for environmental permits.