Corporate

Corporate Information

Altius is a natural resource project generation and royalty business based in the province of Newfoundland & Labrador.

Altius is focused on the mining and resources sector through prospect generation, and the creation and acquisition of royalties and investments. The Corporation has a strong financial position with nearly $300 million in assets including ~$135 million in cash and no debt. Altius owns an effective 0.3% net smelter return in the producing Voisey’s Bay nickel-copper-cobalt mine located in Labrador, Canada and has numerous active mineral exploration agreements principally in eastern Canada targeting a variety of mineral commodities. In addition, the Corporation holds investments in junior exploration and development stage companies.

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/or 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.

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 15 years. Altius' current strategy also extends to seeking third party royalty acquisitions or financings and other investment and merchant banking opportunities, in recognition of the large accumulated cash balance of the company.

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. The model has worked well by allowing exposure to multiple opportunities while minimizing negative impacts to the capital structure of the company.

Altius commitment to grassroots project generation is stronger than ever with several active mineral exploration partnerships and/or alliances covering prospective projects for gold, base metals, uranium, nickel, and iron ore in eastern Canada. The Company’s exploration business is also expanding its project generation mandate to other prospective jurisdictions outside of eastern Canada like its most recent entry into Chile (http://altiusminerals.com/projects/zeus). Considering its financial strength and proven business approach, Altius views the general lack of quality early-stage generative exploration in the sector has an opportune time for Altius to expand its exploration focus into other prospective jurisdictions.

Although, Altius' financial capability has grown considerably in its 15 years of business it remains committed to managing risk and exercising financial discipline. Altius is also continually reviewing royalty-like investment opportunities to prudently deploy its capital.

Capital Structure

Financial discipline and protection of capital structure are enduring hallmarks of Altius business plan and serves as the platform for the continued growth. Even after 17 years of business, Altius still has less than 27 million shares outstanding, yet it has built its financial position in cash (~$135 million) and liquid investments to nearly $300 million with no debt. The Company also has a consistent long-term revenue stream from the Voisey's Bay royalty making it fully financed internally for the next several decades.

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. In the past year (April 2, 2012 to March 19, 2013) the Company purchased 683,628 Shares through the NCIB at a volume weighted average price of $10.76 per Share.

Market Facts As of September 1, 2013
Shares Issued 27,762,604
Fully Diluted 28,331,104
Options 568,500
Working Capital ~$135,000,000
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