Altius Reports Second Quarter 2021 Expected Attributable Royalty Revenue of Approximately $21.8 million
TS X: ALS | OTCQX: ATUSF Altiu s Minerals Corporation
July 15, 2021 | St. John’s, Newfoundland and Labrador
Altius Reports Second Quarter 2021 Expected Attributable
Royalty Revenue of Approximately $21.8 million
Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expects to report
attributable quarterly royalty revenue † of approximately $ 21.8 million ($0. 53 per share) for the second
quarter ended June 30, 2021. This compares to quarterly revenues of $17.8 million ($0.43 per share) in Q1
2021.
Base metal (primarily copper) revenue of $9.4 million is up 24% from Q1 2021 base metal revenue of $7.6
million, and represented 43% of total royalty revenue. Performance in the quarter was positively impacted
by stronger metal prices, but was offset by lower copper production from both 777 and Chapada.
During the quarter, Vale commenced production from its new underground mine at Voisey’s Bay and Lundin
Mining continued to aggressively drill near mine targets at Chapada in support of ongoing project expansion
studies.
Potash revenue of $ 4.5 million is up 11% from Q1 2021 potash revenue of $4.1 million and represented
21% of total royalty revenue. Steady price improvements over the past year continued to be reflected while
overall portfolio based production was down slightly from Q1 but similar to Q2 2020 production. Average
realized prices for royalty calculation purposes continued to reflect timing of sales recognition lags with
realized prices in Q2 generally aligned with Q1 2021 market prices . Market prices based on US Midwest
and Brazil delivery increased by 50 -60% during Q2 and these are expected to result in higher realized
prices to Altius in the coming quarters.
During the quarter, Mosaic closed its Esterhazy K1 and K2 mining shafts while it continues to ramp up
production from the new K3 mining shaft which is expected to reach full capacity early in 2022 . Nutrien
announced two 500,000 tonne increases to its an nual potash production guidanc e during the quarter in
response to increased demand.
Iron ore revenue in the form of dividends received from Labrador Iron Ore Royalty Corporation (“LIORC”)
was $5.0 million, or 23% of total royalty revenue , which compares to $2.9 million in Q1 202 1. The 72%
increase reflected strong royalty revenue and a significant equity dividend paid by the Iron Ore Company
of Canada (“IOC”) as it continued to benefit from strong demand and pricing for its high-purity iron ore
products that result in lower emission steel making. The Corporation is a significant shareholder of LIORC
which serves as a pass -through vehicle for royalty income and equity dividends related to the operations
of IOC.
On April 1, 2021, the Corporation received 600,000 Champion Iron Limited (“Champion”) shares as
consideration for the sale of its portion of secured debt of Alderon after Champion acquired the assets of
Alderon through a court appointed and competitive bidding process. Interest income of $636,000 on this
loan recovery is included in the table below under “other royalties and interest”. Champion continued work
to update the prior positive feasibility study and revise the project scope for its recently acquired Kami Iron
Ore project. Kami is located nearby to the south of IOC’s operations and a few kilometres southeast of
Champion’s Bloom Lake operations and is subject to a 3% gross sales royalty in favour of Altius. The Kami
project hosts extensive resources of iron ore that are expected to be capable of producing high-purity,
premium priced concentrate products.
TS X: ALS | OTCQX: ATUSF Altiu s Minerals Corporation
Thermal coal revenue of $2. 1 million, or just under 10% of total royalty revenue, compares to $2.9 million
in Q1 largely due to slightly lower seasonal electricity demand at the integrated Genesee mine and power
plant and only nominal revenue from the Sheerness operation.
Altius Renewable Royalties (ARR: TSX) (“ARR”), of which the Corporation is a controlling shareholder,
reported the creation of five new royalty interests on US based development stage wind and solar projects.
These royalties arise from project sales by investee partner Tri Global Energy LLC that collectively
represent more than 1,100 MW of new renewable energy generation capacity. More information can be
found at arr.energy. ARR, through subsidiary Great Bay Renewables which is jointly controlled with certain
funds managed by affiliates of Apollo Global Management, Inc. , also continued to advance several new
royalty-based investment opportunities during the quarter that it believes will lead to additional capital
deployment throughout the remainder of the year.
Summary of attributable royalty revenue
(in thousands of Canadian dollars)
Three months ended
June 30, 2021
Three months ended
March 31, 2021
Three months ended
June 30, 2020
Base metals $9,394 $7,627 $4,835
Iron ore (1) $5,029 $2,874 $1,293
Potash $4,516 $4,072 $4,012
Thermal (electrical) coal $2,140 $2,926 $2,206
Metallurgical coal $0 $58 $466
Other royalties and interest $751 $203 $223
Attributable royalty revenue $21,830 $17,760 $13,035
See non-IFRS measures section of our MD&A for definition and reconciliation of attributable royalty revenue
(1) Labrador Iron Ore Royalty Corporation dividends received
Second Quarter 2021 Financial Results Conference Call and Webcast Details
Additional details relating to individual royalty performances and asset level developments will be provided
with the release of full financial results, which will occur on August 9, 2021 after the close of market, with a
conference call to follow on August 10, 2021.
Date: August 10, 2021
Time: 9:00 AM ET
Toll Free Dial-In Number: +1(866) 521-4909
International Dial-In Number: +1(647) 427-2311
Conference Call Title and ID: Altius Q2 2021 Results, ID 9379845
Webcast Link:
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=A7CADE
D0-3E8D-44EF-AF03-8F7FBFFF082E
†Attributable royalty revenue is a non‐IFRS measure and does not have any standardized meaning
prescribed under IFRS. For a detailed description and examples of the reconciliation of this measure,
please see the Corporation’s MD&A disclosures for prior quarterly and annual reporting periods, which
are available at https://www.altiusminerals.com
About Altius
TS X: ALS | OTCQX: ATUSF Altiu s Minerals Corporation
Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to
long life, high margin operations. This strategy further provides shareholders with exposures that are well
aligned with sustainability -related global growth trends including the electricity generation transition from
fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing
agricultural yield requirements. These each hold the potential to cause increased demand for many of
Altius’s commodity exposures including copper, renewable based electricity, several key battery metals
(lithium, nickel and cobalt), clean iron ore, and potash. Altius has 41,504,597 common shares issued and
outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX Small
Cap and S&P/TSX Global Mining Indices.
Forward-Looking Information
This news release contains forward ‐looking information. The statements are based on reasonable
assumptions and expectations of management and Altius provides no assurance that actual events will
meet management's expectations. In certain cases, forward ‐looking information may be identified by such
terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although
Altius believes the expectations expressed in such forward ‐looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance an d actual results or
developments may differ materially from those projected. Readers should not place undue reliance on
forward-looking information. Altius does not undertake to update any forward-looking information contained
herein except in accordance with securities regulation.
For further information, please contact:
Flora Wood
Email: [email protected]
Tel: 1.877.576.2209
Direct: +1(416)346.9020
Ben Lewis
Email: [email protected]
Tel: 1.877.576.2209