Author Topic: ALS.TO - Altius Minerals  (Read 1884464 times)

value-is-what-you-get

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Re: ALS.TO - Altius Minerals
« Reply #650 on: May 30, 2012, 07:52:51 AM »
What am I missing here - don't private placements normally get priced at around or a slight discount to market price?  Is it possible the largest steel producer in China and second largest in the world have their numbers wrong?   ;D


bathtime

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Re: ALS.TO - Altius Minerals
« Reply #651 on: May 30, 2012, 10:50:41 AM »
Interview with Alderon CEO by Grandich:

http://www.grandich.com/2012/05/grandich-client-alderon-iron-ore-4/

Regarding the Hebei investment, I don't understand the phrase, "if the stock price rose or fell between announcement of the deal and closing a contractual mechanism is in place to shift allocation as between the stock price and the project interest." That implies to me the terms can change, but then he proceeds to say the deal will go ahead as announced.

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Q- The share price for Alderon has come off from the $3.42 close at the time of the Hebei announcement. Is there any risk the deal won’t close?

“ The real deal we have with Hebei is for C$194m for 19.9% of the corporate equity and 25% of the project. Our Chairman Mark Morabito was alive to the market volatility issue at the time the deal was being constructed and he convinced Hebei to agree to the C$194m price with the understanding that if the stock price rose or fell between announcement of the deal and closing, a contractual mechanism is in place to shift allocation as between the stock price and the project interest.  So, the short answer to your question is that market volatility was considered and factored into the negotiations and both sides are comfortable with the outcome. Look at today’s news release on Liberty Metals and Mining firming up their C$13m commitment alongside Hebei for $13M and you get a strong indication this deal is going ahead as originally announced.
---

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #652 on: May 30, 2012, 12:53:59 PM »
What am I missing here - don't private placements normally get priced at around or a slight discount to market price?  Is it possible the largest steel producer in China and second largest in the world have their numbers wrong?   ;D

I'm not 100% sure, but I think Liberty group just got the same price as Hebei, which was exactly 3.42.
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

bathtime

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Re: ALS.TO - Altius Minerals
« Reply #653 on: May 30, 2012, 01:09:45 PM »
Interview with Alderon CEO by Grandich:

http://www.grandich.com/2012/05/grandich-client-alderon-iron-ore-4/

Regarding the Hebei investment, I don't understand the phrase, "if the stock price rose or fell between announcement of the deal and closing a contractual mechanism is in place to shift allocation as between the stock price and the project interest." That implies to me the terms can change, but then he proceeds to say the deal will go ahead as announced.

---
Q- The share price for Alderon has come off from the $3.42 close at the time of the Hebei announcement. Is there any risk the deal won’t close?

“ The real deal we have with Hebei is for C$194m for 19.9% of the corporate equity and 25% of the project. Our Chairman Mark Morabito was alive to the market volatility issue at the time the deal was being constructed and he convinced Hebei to agree to the C$194m price with the understanding that if the stock price rose or fell between announcement of the deal and closing, a contractual mechanism is in place to shift allocation as between the stock price and the project interest.  So, the short answer to your question is that market volatility was considered and factored into the negotiations and both sides are comfortable with the outcome. Look at today’s news release on Liberty Metals and Mining firming up their C$13m commitment alongside Hebei for $13M and you get a strong indication this deal is going ahead as originally announced.
---

After looking at this again, maybe what he's saying is that Hebei buys 19.9% of the equity, but gets not 19.9%, but 25% of the Kami project. So there's a built in discount to offset market volatility. Just a guess.

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #654 on: May 30, 2012, 01:40:41 PM »

I know the world is ending if you watch tv or read anything....but has anyone seen the price of iron ore rise for the third day in a row...we are sitting at $135 on large actual transaction volumes even though the world is ending!?

Imagine for second that china was not tanking, the euro imploding and the US ready to fall off the fiscal cliff?

The Alderon deal is a long term deal....the next step in the deal is feasibility study...then the money is paid...once these events happen it will not be $3.42.... It will be higher.


bathtime

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Re: ALS.TO - Altius Minerals
« Reply #655 on: May 30, 2012, 04:00:21 PM »
Alderon/Hebei subscription agreement attached. They needed the lawyers for this one, long document.

Article on Alderon's "all star" team in The Business Post:

http://www.thebusinesspost.ca/usr/main/docs/24/Vol6issue8.pdf

LTVALUE

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Re: ALS.TO - Altius Minerals
« Reply #656 on: May 30, 2012, 04:01:05 PM »
I have been following this forum for some time.  Great posts!

Altius has posted a presentation by Brian Dalton in Europe

http://altiusminerals.com/uploads/europe-2012-website.pdf

Slide 4: Pending agreement on Snelgrove Lake and a significant exploration alliance in Quebec anticipated

Cheers!!

Liberty

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Re: ALS.TO - Altius Minerals
« Reply #657 on: May 30, 2012, 04:16:33 PM »
I have been following this forum for some time.  Great posts!

Altius has posted a presentation by Brian Dalton in Europe

http://altiusminerals.com/uploads/europe-2012-website.pdf

Slide 4: Pending agreement on Snelgrove Lake and a significant exploration alliance in Quebec anticipated

Cheers!!

Welcome to the board, thanks for posting the presentation!   :)
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

bathtime

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Re: ALS.TO - Altius Minerals
« Reply #658 on: May 30, 2012, 04:18:08 PM »
Thanks for linking to that new presentation.

I noticed cash has gone from $173m as of 1/31/12 (per the last quarterly report) to $162m in the new Europe presentation. Any thoughts on what accounts for the reduction in cash?

Dazel

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Re: ALS.TO - Altius Minerals
« Reply #659 on: May 31, 2012, 06:25:05 AM »


Very much hoping they are accumulating an investment for the fall in cash....they do not need to spend otherwise....Voisey bay royalty has been good as per royal gold's share of the royalty distribution this quarter...around $4m annualized.

Dazel