Altius Reports Third Quarter 2019 Attributable Royalty Revenue of Approximately $19.1 million
Date:
Ticker Symbol:
17-Oct-2019
ALS.TSX
Civic Address:
Altius Minerals Corporation
2nd Floor, 38 Duffy Place St. John’s, NL
A1B 4M5, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Altius Reports Third Quarter 2019 Attributable Royalty Revenue of Approximately $19.1 million
St. John’s – (TSX: ALS; OTCQX: ATUSF) Altius Minerals Corporation (“Altius” or “the Corporation” ) reports attributable
royalty revenue1 of approximately $19.1 million ($0.45 per share) for the quarter ended September 30, 2019. This compares
to revenues of $17.1 million ($0.40 per share) generated in the comparable quarter last year, and $19.5 million ($0.46 per
share) during the prior quarter . On a year -to-date basis, royalty revenue of $60.5 million ($1.41 per share) compares to
$49.5 million ($1.14 per share) in the comparable period last year.
Base metal revenue contributed 41.3% of total royalty revenue , with Chapada benefiting from the timing of carryover of
sales from Q2. Iron ore revenue accounted for approximately 19.8% of the total, and was higher than the previous quarter
as Labrador Iron Ore Royalty Corporation’s (“LIORC”) pass -through of Iron O re Company of Canada (“IOC”) related
royalties and dividends benefited from strong pricing for high quality iron ore products. Potash revenues accounted for
19.5% of the total revenues . These were lower than during the prior quarter and in Q3 2018 as abnormally poor weather
during the North American planting season resulted in demand weakness and lower prices . Electrical (thermal) coal
accounted for 13.7% of total royalty revenue and was down relative to comparable periods mainly due to planned and
unplanned maintenance and technical issues at the Genesee Mine, which have since been resolved. Me tallurgical
(steelmaking) coal accounted for 3.6% of royalty revenue and was lower than the prior quarter reflecting both volume
reductions and a decline in metallurgical coal prices. The Corporation is maintaining its previously released royalty revenue
guidance of $77 - $81 million for the year.
Other noteworthy royalty developments during and subsequent to the quarter included:
• Altius Renewable Royalties (“ARR”) received its first major renewable energy project royalty subsequent to
quarter end, when Tri Global Energy (“TGE”) announced that it had reached an agreement to sell the 360 MW,
development stage Canyon Wind project in Texas to a private investment company. This sale to an operator
triggered the creation of a 3% gross revenue royalty in favour of ARR under its portfolio-based royalty financing
agreement with TGE. The portfolio of TGE wind energy development projects subject to potential royalties now
totals 1,475 MW.
• Excelsior Mining Corp. announced completion of construction at its new Gu nnison ISL copper operation and
commenced wet commissioning of its operations while it awaits the receipts of official permits to begin mining. First
production is expected by the end of 2019. Altius holds a 1.625% gross sales royalty on the Gunnison mine.
• Nutrien Ltd. and The Mosaic Company, operators of Altius’s potash royalty mines, have both announced production
curtailments during Q4 2019 in response to inventory build -ups during a demand slowdown in potash markets,
which is expected to be short-term. Both operators have affirmed a positive outlook for potash demand in 2020, as
well as for medium to long term potash fundamentals.
• Iron ore prices have retreated from elevated levels earlier this year but remain strong, particularly for high grade
products such as those produced by IOC. Recent media reports have also indicated that Rio Tinto, majority owner
of IOC, has decided to no longer pursue the sale of the company. If accurate, this removes an uncertainty that has
been previously noted by LIORC as a key reason to withhold cash flows that would otherwise flow through as
shareholder dividends.
• Lundin Mining Corporation released an updated technical report for the Chapada mine that confirmed the strong
resource growth that former owner Yamana Gold Inc. reported during the last three years. Lundin also announced
that it is actively advancing options for mine and plant expa nsion while carrying out an aggressive concurrent
exploration program, with results to be incorporated into any expansion plans.
Date:
Ticker Symbol:
17-Oct-2019
ALS.TSX
Civic Address:
Altius Minerals Corporation
2nd Floor, 38 Duffy Place St. John’s, NL
A1B 4M5, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Summary of attributable royalty revenue
Three months ended
September 30, 2019
Three months ended
September 30, 2018
Three months ended
June 30, 2019
(in thousands of Canadian dollars)
Base metals 7,874 6,911 6,403
Potash 3,730 4,169 5,169
Iron ore (1) 3,782 1,923 3,494
Thermal (electrical) coal 2,611 2,668 3,119
Metallurgical coal 694 934 982
Other royalties and interest 394 479 366
Attributable royalty revenue 19,085 17,084 19,533
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
Q3 2019 Financial Results Conference Call and Webcast Information:
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 November 7, 2019 after the close of market, with a conference call to
follow on November 8, 2019.
Time: 9:00 a.m. EST on Friday, November 8, 2019
Dial-In Numbers: +1-(866) 521-4909 toll free (US/ Canada) or +1-(647) 427-2311
Conference Call Title: Altius Q3 2019 financial results
Webcast URL: Q3 2019 Financial Results
The call will be webcast and archived on the Corporation’s website for a limited time.
1 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 http://altiusminerals.com/financial-
statements
About Altius
Altius directly and indirectly holds diversified royalties and streams which generate revenue from 15 operating mines. These
producing royalties are located in Canada and Brazil and provide exposure to copper, zinc, nickel, cobalt, iron ore, potash,
thermal (electrical) and metallurgical coal. The portfolio also includes development stage royalties in copper and renewable
energy and numerous predevelopment stage royalties covering a wide spectrum of mineral commodities and jurisdictions.
Altius also holds a portfolio of junior equities that were generated from vending exploration projects to industry partners
in exchange for minority equity interests and new royalties.
Altius has 42,641,596 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.
Date:
Ticker Symbol:
17-Oct-2019
ALS.TSX
Civic Address:
Altius Minerals Corporation
2nd Floor, 38 Duffy Place St. John’s, NL
A1B 4M5, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
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‐loo king 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 reasonab le assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those projected. Mining exploration and
development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the
forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the
relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in
metal prices, general economic and political conditions, environmental risks, and community and non -governmental
actions. Such factors will also affect whether Altius will ultimately receive the benefits anticipated pursuan t to relevant
agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and
other factors should be considered carefully and 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 or Ben Lewis at 1.877.576.2209 or