Altius is a diversified mining royalty company with royalty and royalty-like interests in 14 producing mines located in Canada and Brazil. The interests include mining operations that produce copper, zinc, nickel, cobalt, gold, silver, potash, thermal (electrical) and metallurgical coal.
Altius is focused on growing its royalty business through prospect generation and the creation and acquisition of royalties.
Altius holds royalty interests in 13 producing assets in Canada that include a 4% NSR royalty on Hudbay's 777 copper-zinc mine in Manitoba, 6 potash mines and 5 coal mines located in western Canada,and a royalty on the Voisey’s Bay nickel-copper-cobalt mine in Labrador as well as a 3.7% "stream" interest to Yamana's Chapada Mine in Brazil, . Collectively these royalties are anticipated to generate approximately $45 million in revenue per year.
For additional information regarding each of the royalties please see the Royalties section of this website.
|PROJECT||OPERATOR||*Last 12 Month ($ millions)||COMMODITY||MINE LIFE|
|Patience Lake||Potash Corp||0.27||Potash||49|
|TOTAL||as of January 31, 2016||37.1m Total|
|**Chapada||Yamana Gold||$8-9||Copper (Cu)||17|
*as of January 31, 2016
** future "stream" revenue of $8-$9 million is anticipated increasing total royalty portfolio revenue to >$45 million
The Company also holds several other royalties on projects ranging from "shovel ready" development stage to exploration stage which it has primarily created as part of its original, and core project generation exploration business. The project generation pipeline contains a diversified portfolio of exploration stage projects and royalties, many 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 that have been generated from founding and earn in option related payments through its joint venture strategy to advance projects as well as selective investing in other top quality juniors employing a project generation and joint venture business model, in part, similar to Altius.
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. Earnings generated from the prospect generation business are either re-circulated into the exploration business or used to acquire third party royalties to augment the internally generated royalties held by the business.
A Virtuous Cycle of Royalty Growth and Creation
Altius' has now evolved into a diversified mining royalty company with its portfolio of 13 producing royalties. Even with this added financial capability, the Company 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.
Altius' 19 Year Royalty History
Financial discipline and protection of capital structure are enduring hallmarks of Altius business plan and serves as the platform for its continued growth. Altius balances its capital allocation between debt repayment, shareholder capital returns (via dividends or share buybacks), direct royalty acquisition opportunities and low cost exploration initiatives. In April 2015 the Company initiated a dividend of $0.08 / share per year which it has since increased to $0.12 / share and although modest, it is the desire to grow this distribution amount over time.
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"). 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 July 7, 2016|
|Annual Royalty Revenue||~$39-$40 million|
|Annual Dividend||$0.12 per share|
|Total Debt||$93 million|
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.
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.
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 12th day of May 2015 by
Brian F. Dalton, Altius President and CEO
Rod Churchill, Employer Co-Chair; Altius Occupational Health and Safety Committee
Jeff Morgan, Employee Co-Chair; Altius Occupational Health and Safety Committee
Carol Seymour, Secretary; Altius Occupational Health and Safety Committee