ALS.TO - Altius Minerals

[Liberty]

What I'm more curious about in the mid-term is to see if Altius will be as successful outside of Newfoundland-Labrador. If they can transition their expertise to other hunting grounds, I'll be very happy.

[goldfinger]

What I'm more curious about in the mid-term is to see if Altius will be as successful outside of Newfoundland-Labrador. If they can transition their expertise to other hunting grounds, I'll be very happy.

I concur

[Dazel]

I do not think  you will see them outside their sweet spot for awhile...I would be very disapointed to see them waste much time outside their current projects unless they were able to buy royalties at a good price. We would rather see a large scale buyback.
They have the largest area of staked mineral rights in all of Newfoundland Labrador...they know the government and they have proven success time and again. it looks like they could pull out $400m plus from Alderon over the medium term...ownership stake and Royalty...if the drilling continues to be successful. This is on a $2m investment!
They have another iron ore project down the road!!!! What will it be worth by the time they are done? We think mr.market has lost his marbles here!

disclosure we continue to buy....we just do not see anything as cheap.
Dazel.

[moore_capital54]

The one thing that worries me about Alderon is the rail capacity, other than that I agree with you on Altius.

[goldfinger]

The one thing that worries me about Alderon is the rail capacity, other than that I agree with you on Altius.

http://finance.yahoo.com/news/Alderon-Confirms-Rail-and-iw-2097525415.html?x=0&.v=1

[goldfinger]

I do not think  you will see them outside their sweet spot for awhile...I would be very disapointed to see them waste much time outside their current projects unless they were able to buy royalties at a good price. We would rather see a large scale buyback.
They have the largest area of staked mineral rights in all of Newfoundland Labrador...they know the government and they have proven success time and again. it looks like they could pull out $400m plus from Alderon over the medium term...ownership stake and Royalty...if the drilling continues to be successful. This is on a $2m investment!
They have another iron ore project down the road!!!! What will it be worth by the time they are done? We think mr.market has lost his marbles here!

disclosure we continue to buy....we just do not see anything as cheap.
Dazel.

- Cranberry invests opportunistically wherever it makes sense.
- Millrock is an example of a partnership operating outside of Newfoundland.
- Dalton mentioned recently that he wants to buy royalties and also explore for new stakes in other geographic areas.
I agree they have lots of projects they already can develop, but why not increasing the portfolio when it makes sense?

[moore_capital54]

That press release doesn't confirm anything. Trust me when I say that the biggest issue with this project is going to be rail capacity. Think about it for a second, if the fundamentals of iron ore remain strong enough to support the type of CAPEX that the Alderon project will require, there will be even less capacity on that line. And IOC is going to prefer to ramp up production themselves. I was at a conference recently where Morabito was pressed on this and he discussed some other options as did Adriana Resources which recently received an investment from Wisco. With iron ore its all about infrastructure, hence the CLM deal.

[Dazel]

I do not think that it is out of the question to look outside of their geographic area, I am just stating the obvious...they have a tremendous portfolio with a book value of practically 0. I would monetize those assets first...using the proceeds to invest in the their "circle of competence" abroad. We vision this more in the fashion of what Leucadia has done at fortescue...and what Altius did at IRC and Millrock...

The most unappreciated asset at Altius is their royalty stream which will attract very high valuations in the future...this is where we would like to see them be proactive. We would like them to show the market place what they think these royalties are worth...which would bring the share price to where it should be giving them more options to purchase more royalties. They have shown tremendous skill yet their valuation as a company in the market has both their royalty stream and management valued at the less than 0. We will be around when these are revalued...they will be happy days..but the revaluation will bring the opportunity you guys are discussing. That is where things will get interesting.

If the stock price remains depressed it is possible that they will get taken out. With all that cash, the Alderon stake and the royalties valued at 0..smart money has to be looking at it.
If that is the case we will likely follow Brian Dalton to his  next venture or stay with him if a buy outkeeps him at Altius with greater financial flexability.
He is a rare breed of business man and the makret is missing that.

Dazel.

[Dazel]

http://alderonmining.com/_resources/news/2011-07-06-NewsRelease.pdf

It looks like Alderon has made up an all star team from the Labrador iron ore district...I  like that his million in
options are priced at $3.20.

Dazel.

[Liberty]

Very nice. Seems like a heavy-hitter who can get things done!