Corporate

Corporate Information

Altius is focused on the mining and resources sector through prospect generation and the creation and acquisition of royalties.

OUR ASSETS

Altius holds royalty interests in 12 producing assets that include 5 coal mines and 6 potash mines located in western Canada and a royalty on the producing Voisey’s Bay nickel-copper-cobalt mine in Labrador. Collectively these royalties generated approximately $31 million in revenue in the 2013 calender year and are anticipated to generate similar levels of per annum revenue for the foreseeable future.

PROJECT OPERATOR 2013 CALENDAR YEAR ($ millions) COMMODITY MINE LIFE
Voisey's Bay VALE 3.1 Ni-Cu-Co 21
Genesee Sherritt/Capital Power 6.9 Coal/Electricity 43
Paintearth Sherritt/ATCO 5.3 Coal/Electricity 11
Sheerness Sherritt/ATCO 5.4 Coal/Electricity 24
Highvale Sherritt/TransAlta Nil* Coal/Electricity 19
Cheviot Teck 2.6 Steelmaking Coal 16
Rocanville Potash Corp 2.2 Potash 75
Cory Potash corp 0.9 Potash 75
Allan Potash Corp 0.3 Potash 83
Patience Lake Potash Corp 0.3 Potash 49
Esterhazy Mosaic 2.1 Potash 73
Vanscoy Agrium 0.2 Potash 61
CDP various 2.1 Potash 50+
others various 0.2 Potash 73
31.2 Total

*revenues anticipated to commence again in 2016

The Company also has a 3% gross sales royalty on the development stage Kami iron ore project of Alderon Iron Ore Corp. (“Alderon”), a 2% gross sales royalty for the advanced exploration stage Central Mineral Belt uranium project of Paladin Energy Limited, and several other resource stage project royalties which it has CREATED as part of its project generation business. The project generation pipeline contains a diversified portfolio of exploration stage projects and royalties, eleven (11) of which are currently being advanced through various partner-funding arrangements.

Altius has also built a portfolio of directly and indirectly held junior resource investments, including a founding ~25% shareholding in Alderon Iron Ore (ADV:TSX), an ~8% shareholding in Virginia Mines Inc. (VGQ:TSX), and a ~5.9% shareholding in Callinan Royalties Corporation (CAA:TSXV).

For a more detailed account of Altius and its growing royalty business please see this link to a Short Term Prospectus filed by the Company on May 6, 2014.

OUR APPROACH

The Company prefers to generate partnerships or corporate structures related to the opportunities it generates, which results in the Corporation carrying minority and non-operating project or equity interests and above all CREATING royalty interests. Since inception in 1997, the business model and operating philosophy have consistently delivered increased value for shareholders of Altius through cyclical market conditions. The company has built a solid reputation around its percentage of successful mineral project generation initiatives that it intends to further build upon while it approaches realization on its unique royalty creation strategy.

Looking forward, the strategy of the company is to continue to grow and innovatively manage the project generation business with a view to profiting from minority project and equity interests as well as realizing on its "organic" royalty creation strategy of 17 years. Altius' will also continue to seek out top quality royalty acquisitions, much like its recent Prairies Royalties acquisition and other investment and merchant banking opportunities to augment and grow is diversified minerals royalties portfolio.

Business Strategy

Altius' business model is simple and has been implemented as an effective means of managing risk. It involves a small team of people that conceptualize and innovate mineral resource related opportunities, invest in their initiation and development and, when successful, form businesses or partnerships around these opportunities and create royalties. The model has worked well by allowing exposure to multiple opportunities while minimizing negative impacts to the capital structure of the company all awhile creating royalties at a zero to often negative cost for future benefit to all shareholders.

Most recently Altius' has evolved into a bona fide royalty company with its Prairies Royalties acquisition, however, even with this added financial capability, it remains committed to managing risk and exercising financial discipline. Altius will continue to focus on project generation and nurturing exploration partnerships and/or alliances across the commodities spectrum as a means to creating royalties. Project generation is royalty creation at Altius and it is a truly unique attribute in the royalty sector.

A Virtuous Cycle of Royalty Growth and Creation

A Virtuous Cycle of Royalty Growth and Creation

Altius' 17 Year Royalty History

Altius' 17 Year Royalty History

Capital Structure

Financial discipline and protection of capital structure are enduring hallmarks of Altius business plan and serves as the platform for its continued growth. Even after 17 years of business, Altius still has only 32.2 million shares outstanding, yet it has built a diversified royalty business consisting of 12 producing royalties generating per annum revenue of ~$30 million.

Officers and directors of the company hold nearly 10% of the issued shares, providing powerful incentive to those at the helm to continue to enhance the shareholder value of the business. The Company also has a continual Normal Course Issuer Bid ("NCIB") or automated Share Buyback program. The reason for the bid is that when the market price of Altius shares is trading below the fundamental value of Altius, based on anticipated cash flows and underlying asset values, the acquisition of common shares under the bid represents an appropriate use of funds.

Market Facts As of May 15, 2014
Shares Issued 32,238,821
Fully Diluted 32,488,821
Options 250,000
2013 Calender year royalty revenue ~$30 million
Cusip # 020936

Committed to ethical business conduct

Altius and its subsidiaries and affiliates are committed to conducting business with people in the same respectful manner and applying the same ethical principles and standards that we would expect and seek from others. The employees, officers and consultants of Altius Minerals Corporation represent Altius and are expected to always act in a manner that enhances the reputation of the company for honesty, fairness, competency and professionalism. The integrity of Altius relies upon the uncompromising personal integrity of each employee. This Code of Conduct applies to employees, officers and consultants of Altius, and to anyone retained by Altius in a similar capacity. It is the responsibility of each employee to use common sense and apply high personal ethical standards in cases where there is no corresponding guideline in this Code of Conduct. While Altius expects the best from each employee, senior personnel are expected to lead by example.

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Corporate Disclosure

This policy establishes procedures which are designed: (i) to permit the disclosure of information about Altius Minerals Corporation (Altius) to the public in an informative, timely and broadly disseminated manner in accordance with all applicable legal and regulatory requirements, (ii) to ensure that non-publicly disclosed information remains confidential, and (iii) to ensure that trading of the Company's securities by directors, officers and employees of Altius, its affiliates and subsidiaries remains in compliance with applicable securities laws and restrict trading by persons who have Material Information about Altius which is not publicly disclosed. The implementation of these policies and procedures is important to develop sound disclosure practices and maintain investor confidence, as well as complying with securities laws and stock exchange rules on disclosure and trading.

This policy has been approved by the directors of Altius.

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Commitment to Safety

Altius' Board, Officers, Managers and Employees are committed to health, safety and mitigation of the environmental footprint resulting from our varied mineral exploration activities.

Altius' employees are required to adhere to all aspects of the Company's Health and Safety program to ensure that not only they, but their coworkers as well as contractors, consultants, observers and visitors remain healthy and safe at all times. Safety policies, procedures and regulations have been established for all individuals and/or companies involved in our activities. However, should an affiliate have policies superior to those of Altius, the higher standard will be followed and vice versa.

Since inception of the Altius health and safety program in 2005, Altius has remained compliant with the Occupational Health & Safety Legislation and strives to exceed minimum requirements. Altius considers its health and safety program to be a "living document" that will change, update and adopt to meet with our own ever increasing health and safety standards as well as the evolving culture of safety in our industry and workplace.

To summarize, Altius:

  • has successfully maintained PRIME status since 2005.
  • has successfully completed a Newfoundland and Labrador Workplace Health and Safety Compensation Commission Occupational Health and Safety audit in 2011
  • has never had any lost days from work due to injury days since inception in 1997.
  • has received national safety awards for 2008 and 2009 from The Association for Mineral Exploration British Columbia (AMEBC) / Prospectors & Developers Association of Canada (PDAC).
  • staff is properly trained with respect to Occupational Health & Safety (OH&S) Legislation, Regulations and safe work practices.
  • not only follows provincial guidelines, but adheres to national mineral exploration best practices with respect to health, safety and the environment.
  • is a recognized leader in the field of environmental mitigation and mineral exploration best practices.
  • wants to ensure to that all employees, contractors, consultants, observers, visitors, etc., remain healthy and safe regardless of the activity

Confirmed this 10th day of May 2011 by

Brian F. Dalton, Altius President and CEO
Rod Churchill, Employer Co-Chair; Altius Occupational Health and Safety Committee
Dale O'Reilly, Employee Co-Chair; Altius Occupational Health and Safety Committee
Andrea Devereaux, Secretary; Altius Occupational Health and Safety Committee

© Copyright 2014 Altius Minerals Corporation