ALS.TO - Altius Minerals

[Liberty]

http://www.marketwatch.com/story/altius-tsx-als-provides-update-of-labrador-west-iron-ore-option-agreement-with-rio-tinto-exploration-canada-2011-11-30?reflink=MW_news_stmp

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR, Nov 30, 2011 (MARKETWIRE via COMTEX) -- Altius Minerals Corporation ("Altius") is pleased to report on exploration activities for its earn-in Option Agreement with Rio Tinto Exploration Canada ("Rio Tinto") in western Labrador, Canada. Under this agreement Rio Tinto may earn up to a 70% interest in 15 map-staked mineral licenses comprising 586 claims covering 14,650 hectares in western Labrador. The optioned licenses have been divided into six different prospects as follows: Bruce Lake, Goethite Bay, Carol Lake, Campground, Huguette Lake and Green Water Lake.

During the 2011 field season, Rio Tinto completed a total of 2633 metres of drilling on the Goethite Bay prospect. The Geothite Bay prospect is located approximately 17 km north east of Iron Ore Company of Canada's Carol Lake operation and 6 km north of the Julienne Lake deposit. Rio Tinto has reported to Altius that drill hole 11LB0027 intersected 279 m @ 29.8% Fe, including 157 m @ 31.9% Fe and 90 m @ 31.9% Fe. Additional drill results are pending.

Altius has received formal notice from Rio Tinto that it has met its first option earn-in obligations on Altius' Labrador West project north of Labrador City by incurring $3 million in exploration expenditures and has therefore earned a 51% interest in the properties. Rio Tinto has a second option to earn an additional 19% property interest by spending an additional $4M by December 2013. In addition to its project interest, Altius retains a 3% gross overriding royalty, 1% of which may be purchased by Rio Tinto for $10 million within the 10th anniversary of the agreement.

[Liberty]

Via SH board, Alderon Helicopter crash:

http://www.cbc.ca/labradormorning/episodes/2011/11/29/labrador-west-helicopter-crash---update-from-alderon/

Thankfully, only minor injuries for the people on board, apparently.

[Dazel]

For Those waiting for an annual report....there is not one coming....fine details are on sedar which is where I do my due diligence...the annual bulletin serves as their annual...the new "information age" they say...I like that saves money!

I have been quiet here for awhile...we love what management is doing...and we are happy to just sit here and watch their shares get cancelled day by day...the market will figure this one out..but hopefully after they retire a ton of shares!

Dazel

[Liberty]

For Those waiting for an annual report....there is not one coming....fine details are on sedar which is where I do my due diligence...the annual bulletin serves as their annual...the new "information age" they say...I like that saves money!

SEDAR is such a crappy site, I had to do print to PDF to save it..

Too bad about the report -- I like how it saves money, but I also thought they had some of the nicest-looking reports around..

I have been quiet here for awhile...we love what management is doing...and we are happy to just sit here and watch their shares get cancelled day by day...the market will figure this one out..but hopefully after they retire a ton of shares!

If I might ask, are you still accumulating or do you have all that you want? If not, you once said you might reveal your average cost once you were doing buying I'm still curious.

[Dazel]

I will take the 5th.....
The longer we are here or lower the better for us....and altius longer term.
Sshhhhhh.

Dazel.

[Liberty]

Fair enough, no pressure

[Liberty]

http://www.altiusminerals.com/files/PR%2011-13-Financials.pdf

St. John's - Altius Minerals Corporation ("Altius") reported a net loss attributable to common shareholders of $2,868,000 or $0.10 per share for the three months ended October 31, 2011 compared to net earnings of $2,138,000 for the same period last year.  The current year's loss includes the Corporation's share of losses in Alderon Iron Ore Corporation ("Alderon") of $1,790,000 and mineral property write-downs totaling $1,055,000.  Offsetting these amounts was an increase in royalty revenue to $723,000 compared to $648,000 in the previous year.

[Dazel]

The report offers no surprises.....we took a couple of very positive pieces from the report...

Most importantly they are seeing "opportunity" in royalty financing and other deals in the market place....this is the first time we have seen them say this since 2008....
While we feel good holding a huge cash position and buying back shares....however, we see the opportunity for greatness in altius in their management...we would like to see them take advantage of the carnage in the sector and use their expertise and their position to get great deals in the companies that need to raise capital or in strategic acquisitions for sales of parts are all of assets. We think that they are capable of making Leucadia like invesments during times of distress (which we are in now)...so we are looking forward to hearing about this over the next little while. The international royalty deal was an excellent example of what they are  likely to do.

They also sound very excited about their other iron ore projects...as it sounds like we should see some more deals coming.

A quiet but major event will happen on December 19th....the vote on whether to lift the moratorium on uranium mining in the central belt of Labrador....this would be extremely positive for altius as paladin could move ahead with their project and the altius 2% royalty...would kick in.

For those watching...cameco  and rio tinto had a Bidding war for hathor uranium...altius has other projects and potential projects in the region.

Dazel.

[Liberty]

Thanks for sharing your thoughts, Dazel.

Most importantly they are seeing "opportunity" in royalty financing and other deals in the market place....this is the first time we have seen them say this since 2008....

I'm curious where you saw them say this. I probably missed it..

I know that a few months ago someone from Altius said something like that about having the chance to deploy capital if there was a "bloodbath", but I'm curious to know if they've said it again recently.

Edit: nevermind, I'll answer my own question:

The value of the Corporation’s shares in junior exploration and early stage companies declined
during the quarter in tandem with broader market declines for early stage resource companies. 
However,  the  weaker market conditions have resulted in the Corporation  seeing  increased
opportunity to provide royalty financing as  an  alternative to equity and debt financing for
development stage projects. The Corporation is currently  evaluating  several  royalty
financing/investment opportunities  in hopes of identifying royalty investments that meet its
objectives in terms of value and underlying asset quality. Considering the Corporation’s strong
balance sheet, with over $175 million in cash available, it is well positioned to take advantage of
such opportunities

[MrB]

I don't think I've seen this before. Page 20 of the interims.

"A subsidiary of the Corporation, 2260761 Ontario Incorporated, holds a 22.8% interest in Sparkfly Inc., a private Georgia corporation that operates an innovative promotions & rewards platform integrated with retail point of sale systems."

Either the auditors mixed up information from another company with Altius' or this is exciting news! Management is now going to use its considerable expertise in mining and exploration and apply it to the coupon business!!.......In Georgia!!!?

Furthermore, Note 8 has $3.1m for additions to investments in associates, which I assume is for Sparkfly.

Note 11. 19% jump in G&A for 6months YoY and 26% 3months YoY.
Note 16. 26% jump in key management and directors compensation for 6months YoY and 18% 3months YoY.
Note 17. Royalty and investment income $723k for 3 months, so roughly $2.8 annualized. Does this include Voisey Bay?
Further on in note 17. Corporate costs 41% higher compared to 1 year ago.