ALS.TO - Altius Minerals

[naboo]

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

The agreement is subject to approval, so it is not a done deal.  Any chance that could be cancelled?

[biaggio]

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?

Share repurchase? (less shares outstanding)

[Dazel]

Naboo,


It could be cancelled.....we looked at this another way recently....why would Rio Tinto not come  in and buy out the whole thing at these prices? I mean really.

Buy out a
Altius at 50% premium...you get a majority stake in Alderon...basically for free because of their cash and Alderon shares....then you only need to pay another $50 m to control Alderon...

You get all of Altius projects including the one you know best which you are partnering with them now....and you become the largest land holder of iron ore properties in Labrador! They have been doing business there for over 50 years why not...it is basically free.

We do not want this to happen because it will undervalue the assets...but this is what businesses do....

So Naboo....this is also a possibility at these ridiculous prices....so there is risk to both sides in a deal not being fully completed.

Dazel.

[Dazel]

Iron ore prices up again today.

China stock market up everyday this week....this is very different then the last year and half where china was tightening....they are up over 12% this year....the market is looking ahead as it punished them while they tightened...they were down big last year....as were all commodities.

Dazel.

[alertmeipp]

Dazel,

Are the cash in USD or CDN? 

[Liberty]

http://www.bloomberg.com/news/2012-05-31/mittal-price-squeeze-in-960-billion-steelmaking-industry.html

This was posted in the posco thread but it contains a lot that it interesting about iron ore producers.

[Dazel]

Cash is mostly cdn government paper....last I checked.

[Dazel]

http://www.reuters.com/article/2012/06/03/canada-column-markets-idUSL1E8GH3S020120603?feedType=RSS&feedName=financialsSector&rpc=43


I would think that Altius is busy here as well..

Dazel

[shoeless]

Some discussion of iron-ore, Fortescue and mention of Alderon:
http://brontecapital.blogspot.co.il/2012/06/how-business-decisions-are-made-in-boom.html
Probably belongs in the LUK thread but iron ore seems to be mentioned here more often

[Liberty]

Some discussion of iron-ore, Fortescue and mention of Alderon:
http://brontecapital.blogspot.co.il/2012/06/how-business-decisions-are-made-in-boom.html
Probably belongs in the LUK thread but iron ore seems to be mentioned here more often

There sure is no love for ADV in there. Thanks for posting, good to hear some contrary opinion even if I can't say I'm very convinced by what they say.