All-Canadian royalty portfolio
Voisey's Bay Royalty (NL, Canada)
Royalty - 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||19 years|
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 and expects several decades of comparable annual royalty revenue at the current nickel price of $8-$10 per lb.
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.