ALS.TO - Altius Minerals

[Dazel]

http://www.franco-nevada.com/files/Franco-Nevada_Lumina_Press_Release_0.pdf

this deal was announced yesterday....if these early stage royalties are worth $66m what are Altius royalties worth? Take out Voisey  as it is currently a producer and you have a lot of value that is free...and as we see above there are company buyers for these assets even in this crazy environment.

What would it be worth if they spun out the royalties into a separate company? remember that Royal Gold and Franco Nevada are getting 50 to 60 pe's on this stuff.

Franco-Nevada was part of the bidding process for IRC royalty and put a bid in for the assets that Royal Gold trumped.

Dazel.

[Dazel]

http://www.mbironoreindex.com/


The price of iron ore is down...5.5% over the last couple of months and is still at $170 per ton.....
let s put that in perspective because these are real prices that are negotiated by buyers and sellers who mine and use the iron ore. These prices are not determined by futures traders "YET"...yes they should likely come down some more

Alderon's long term pricing for the their mine plan is $118 per ton...there is a good margin for error....and the costs of construction have just come down as well..(this month anyway!)

copper is down 28% in the same time period...

Dazel.

[Liberty]

Thanks Dazel, good to see that iron ore seems to be holding up relatively well.

My ideal scenario is for the market to stay soft a while longer, allowing ALS to deploy cash in undervalued equities and royalties, but not so down that Alderon is put on hold. And then by the time Alderon is getting closer to shipping ore, things start to pick up again.. Best of both worlds

We'll see how it plays out.

[Liberty]

Looks like they've repurchased almost 36k shares last month:

http://canadianinsider.com/coReport/allTransactions.php?ticker=als

[naboo]

Alderon Sees Massive Kami Production

http://resourceclips.com/2011/09/28/the-iron-hub/

[Liberty]

Alderon Sees Massive Kami Production

http://resourceclips.com/2011/09/28/the-iron-hub/

That was great, thanks!

[Liberty]

http://www.marketwatch.com/story/altius-minerals-corporation-tsx-als-reports-first-quarter-net-loss-of-1588000-2011-09-29

[Dazel]

http://www.altiusminerals.com/files/fs_1317325332.pdf

Here is the link from Altius...

$8m tax payment was a drag on cash and their share of alderon's loss was $1.3 million that flowed through...was the loss.

-Voisey Bay royalty stream was $1m for the quarter (double last year)...they said annualized will be $4 to $4.5 million

-they detail several projects...they have been busy...and are heavily marketing their iron ore holdings that are substantial...Rio Tinto has been drilling through their partnership agreement

-they have been searching for gold in the north west territories this summer...interesting

-should be a very interesting fall when all of the results of their work are released

Dazel.

[Dazel]

Rick Rule went on record this week that he was buying and was extremely excited about mining stocks. Altius is part of his and the other great investors (eric sprott is now partners with Rule) in the resource network. Rick Rule was part of the IRC deal that Altius did very well in. We expect to see Altius and Paul Van Eden to deploy some capital during this malaise. All of the above are the best in the business at these types of investments. Altius has the cash ready to take advantage of these prices. Their patience will pay off.

Dazel.

[gurjot]

hello dazel,
 do you have a link to where rick rule spoke?
thanks