All-Canadian royalty portfolio
Voisey's Bay Royalty (NL, Canada)
- 10% of a 3% NSR (effective 0.3%)
Nickel, Copper, Cobalt (Ni-Cu-Co)
|LTM (as of January 31, 2016) Royalty Revenue||$2.2 million|
|Annual production capacity||~2.0 mt|
|Estimated Mine Life||35 years with U/G expansion announced 2018|
Altius has a 10% interest in the Labrador Nickel Royalty Limited Partnership ("LNRLP"). The LNRLP holds a 3% net smelter return royalty over the Voisey's Bay nickel-copper-cobalt project in Labrador that is owned and operated by Vale INCO NL.
Altius acquired the royalty interest in mid-2003 using a conservative long term nickel price of US$3.25 per pound for a total purchase cost of $13.6 million and by mid 2010 Altius had recognized cumulative revenue in excess of $15 million, achieving payback. In fiscal 2012 Altius realized $4.15 million in revenue.
The Voisey's Bay project and district is arguably at a very early stage of its exploration and development history compared to other world-renowned nickel districts like Sudbury and Norilsk which dramatically grew in scale over the initial decades following discovery.
In September 2018, Altius and Royal Gold announced a settlement with Vale to a long-standing legal dispute, as Altius had not received a quarterly royalty payment since 2016. The settlement provides a clear calculation basis for the royalty on a go-forward basis, with the first royalty payment being recognized in Q3 2018, and payments to continue through the underground expansion, giving Voisey's Bay an additional 15 years of mine life. With the expansion, Voisey's Bay mine life is expected to continue until 2034 as announced by Vale.