Altius Reports Q2 Royalty Revenue of $17.9M and Increases Guidance, Release of Fiscal Q2 Financial Results December 12, 2017
Date:
News Release:
Ticker Symbol:
20-Nov-2017
17-18
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
ALTIUS REPORTS Q2 ROYALTY REVENUE OF $17.9M AND INCREASES GUIDANCE,
RELEASE OF FISCAL Q2 FINANCIAL RESULTS DECEMBER 12, 2017
St. John’s – TSX: ALS Altius Minerals Corporation (“Altius” or the “Corporation”) reports that it will release financial results for its
second quarter ended October 31, 2017 on Tuesday, December 12, after the close of market.
Altius expects to report attributable royalty revenue1 of approximately $17.9 million for the second quarter, which is up 19% from Q1
and 81% over the prior year corresponding period.
In light of the strong first half performance, with $33 million in attributable royalty revenue, Altius is increasing its 12-month guidance
to between $67 and $72 million compared to the original guidance this year of $55 million. However, as a result of the previously
announced change in the fiscal year end to December 31, this year will be an 8-month period with new guidance to be issued in January
for the newly coinciding 2018 fiscal and calendar year.
Base metal royalty revenue increased by 18% and 75% on a quarter over quarter and prior year quarterly basis respectively. The 777
royalty and Chapada copper stream both benefitted from continuing improvement in base metal prices. The 777 mine experienced a
paste backfill maintenance issue that slowed production during the quarter but that has since been rectified with production expected
to return to normal by year end. Chapada copper production was higher than plan owing to better grades and throughput and the
mine operator has reported positive results with respect to ongoing plant investments designed to improve metal recoveries wh ile
also continuing to consider the feasibility of further expanding the operation.
Potash revenue was relatively consistent on a quarter over quarter basis ( -4%) but up strongly (116%) relative to the prior year
corresponding period. Most of this benefit is the result of increasing production volumes at Rocanville, and to a lesser extent at
Esterhazy, as the operator continues to preferentially ramp up production at its lower cost , recently expanded mines. Potash prices
also continued to improve modestly during the current year , after bottoming in 2016 , while global potash demand in 2017 is now
widely expected to reach a new all-time annual record.
Immediately subsequent to the quarter end, Altius acquired additional mineral land areas and related royalty interests at Rocanville
from McChip Resources Inc. for a total of $8 million in up -front and future payments. These lands cover newly developed production
areas within the mine that support its recently commissioned nameplate capacity expansion from 2.5 to 6.5 million tonnes per year.
Metallurgical co al revenue was down on both a quarter over quarter ( -23%) and prior year quarterly basis ( -46%) due to lower
production volumes at Cardinal River and the timing of sales relative to the volatile pricing environment that has characteri zed the
commodity over the past year.
Thermal coal revenue was up 8.2% compared to the prior quarter and 33% compared to the fiscal second quarter of last year mainly
on the strength of higher royalty paying production volumes at Sheerness and Genesee.
During the quarter , the Corporation increased its ownership interest in Labrador Iron Ore Royalty Corporation (LIF) and now holds
approximately 5% of the issued and outstanding shares. LIF is mandated as a passive flow-through vehicle for royalties and equity
income related to its 7% royalty and 15.1% equity position in the Iron Ore Company of Canada operations in Labrador, Canada. Altius
acquired the shares in the belief that the market value of LIF was less than that of its royalty and other interests in IOC m aking the
purchase a cost effective, albeit indirect, way to add production stage iron ore to its diversified royalty portfolio. LIF received, and
distributed, significantly higher royalty and equity based cash flows during the year on the strength of higher realized pr ices for its
premium quality pellets and concentrates and also from improved production volumes and sales. Our share of LIF distributions
amounted to $3.0 million during the quarter.
Champion Iron Ore successfully closed a series of project financing initiatives, totalling $300 million, related to the start-up of its Bloom
Lake iron ore mine in Quebec during the quarter. Altius holds a $10 million, 8% debenture that is convertible at its option into
Date:
News Release:
Ticker Symbol:
20-Nov-2017
17-18
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
Champion common shares at $1 per share or, if not repaid by the second anniversary, into a 0.21% gross overriding royalty in the
Bloom Lake project. Champion is working to bring Bloom Lake into production during the first half of 2018 and it intends to p roduce
7.4 million tonnes per year of high grade and premium quality iron ore concentrate during a 21-year mine life .
http://www.championiron.com/champion-iron/2017/champion-iron-announces-completion-of-bloom-lake-mine-feasibility-
study/
In late October the U.S. Environmental Protection Agency (EPA) issued a draft underground injection control (UIC) permit for
Excelsior Mining Corp.'s Gunnison copper project, which remains subject to a 30-day public comment period. The UIC permit is the
last of the three key permits required to enter into production; earlier this year, the Arizona Department of Environmental Quality
issued an amended aquifer protection permit for the Johnson camp mine and an aquifer protection permit for the Gunnison copper
project. Altius holds a 1.0% gross revenue royalty related to Gunnison and an option to increase its interest to 1.5% following a
construction decision, as well as a first right to additional royalty and stream financings.
http://www.excelsiormining.com/index.php/projects
Subsequent to quarter-end, Alderon Iron Ore issued an updated Preliminary Economic Assessment for its Kami iron ore project in
Labrador, Canada. http://www.alderonironore.com/index.php/news/2017/417-. Altius holds a 3% gross sales royalty on the Kami
project and approximately 25% of Alderon’s common shares. The updated PEA showed robust economics for the project,
particularly in light of a structural improvement in the market premiums paid for high-grade and low-impurity concentrates of the
type that Kami is modelled to produce.
During the quarter, the Corporation announced the acquisition of a 1.35% gross sales royalty and an option on a further 0.5% GSR on
Wolfden Resources Corporation’s recently acquired Pickett Mountain base metals project in Maine, USA for US$6 million. The royalty
is partially secured with ancillary timber rights attached to the property and is convertible at our election under certain circumstances
into a similar royalty on Wolfden’s Orvan Brook project or Wolfden common equity. Concurrent with the royalty financing , the
Corporation has also subscribed for 14,200,000 equity units at C$0.25 per unit, which includes a half warrant exercisable at C$0.35 for
5 years. Pickett Mountain features very high grade zinc-lead-copper-silver mineralization in historic drill holes and Wolfden intends to
carry out an aggressive work program to validate the historic results, prepare a NI 43-101 compliant resource estimate and explore
for additional mineralization. http://www.wolfdenresources.com/files/News-Nov16-2017.pdf
A conference call will be held on Wednesday, December 13, 2017, starting at 9:00 a.m. EST to further discuss the second quarter and
first half performance. To participate in the conference call, use the following dial -in numbers and conference ID, or join the webcast
on-line as detailed below.
Fiscal 2018 Second Quarter Financials Call Information:
Time: 9.00 a.m. EST on Wednesday, December 13, 2017
Dial-In Numbers: +1 (844) 473-0974 (Canada)
+1 (480) 696-7316 (International)
Pass code: 5093507
Conference Title: Altius Q2 and first half F2018
Webcast URL: https://edge.media-server.com/m6/p/9ebrmcsu
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.
Date:
News Release:
Ticker Symbol:
20-Nov-2017
17-18
ALS.TSX
Civic Address:
Altius Minerals Corporation
Suite 202, 66 Kenmount Road
St. John’s, NL, A1B 3V7, CANADA
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
Altius Minerals Corporation
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
About Altius
Altius’ directly and indirectly held diversified royalties and streams generate revenue from 15 operating mines. These are
located in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore, potash and thermal (electrical) and
metallurgical coal. The portfolio also includes numerous pre -development stage royalties covering a wide spectrum of
mineral commodities and jurisdictions. It also holds a large portfolio of exploration stage projects which it has generated
for deal making with industry partners that results in newly created royalties and equity and minority interests.
Altius has 43,187,291 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", "cou ld",
"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 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 condi tions, environmental risks, and community and non -governmental
actions. Such factors will also affect whether Altius will ultimately receive the benefits anticipated pursuant to relevant
agreements. This list is not exhaustive of the factors that may affec t 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 Chad Wells or Flora Wood at 1.877.576.2209.