Altius Reports Q3 2018 Royalty Revenue of $17.1M and Adjusted EBITDA of $13.9M
Date:
Ticker Symbol:
7-Nov 2018
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 Q3 2018 ROYALTY REVENUE OF $17.1M AND ADJUSTED EBITDA OF $13.9M
St. John’s – (TSX: ALS; OTCQX: ATUSF) Altius Minerals Corporation (“Altius” or the “Corporation”) reports attributable royalty
revenue(Note 1) of $17.1 million ($0.40 per share) for the quarter ended September 30, 2018 compared to $16.5 million ($0.38
per share) in the previous quarter and $17.9 million ($0.42 per share) in the comparable prior year quarter ended October
31, 2017. Total Q3 2018 revenue of $17.6 million includes project generation based revenue of approximately $0.5 million.
Adjusted EBITDA(Note 1) of $13.9 million ($0.32 per share) for the three months compares to $13.0 million ($0.30 per share)
in Q2 2018 and $14.6 million ($0.34 per share) for the three months ended October 31, 2017. Q3 2018 net earnings per
share were $0.14 compared to $0.12 in Q2 2018 and $0.16 in the comparable quarter last year. Q3 2018 earnings include
a non-cash $2.0 million dilution gain (approximately 4.7 cents per share) related to the Adventus Zinc Corporation private
placement financing and another issuance of shares for an exploration alliance.
Royalty revenue highlights are as follows:
• Potash royalty revenue is up 148% compared to the prior year quarter, and up 9% over Q2 this year, as
prices continued to rise and the Rocanville and Esterhazy mines continued to increase capacity utilization.
• Base metal royalty revenue was down 10% from Q2 2018 and down 17% from the comparable quarter in
2017, reflecting lower 777 production compounded by lower copper and zinc prices. Base metal royalty
revenue accounted for 40% of royalty revenue this quarter and includes a $0.35 million revenue contribution
from Voisey’s Bay.
• Thermal coal royalty revenue was down 31% from its year-ago comparable quarter, and down 19% from
Q2 2018, mainly due to mine sequencing changes at Sheerness that have impacted the last two quarters.
• Indirect iron ore revenue related to dividends received from Labrador Iron Ore Royalty Corp. (“LIORC”), in
which Altius now holds approximately 5.46% of the issued and outstanding shares, was down 36% from
the comparable quarter last year, but up 144% from Q2 2018. Iron Ore Company of Canada continued to
ramp up operations following a labour related work stoppage during Q2 and iron ore quality premiums
remained very strong; however, this was offset by the deci sion by LIORC to withhold a significant amount
of its cash flow that it would more typically have paid out as shareholder dividends.
Date:
Ticker Symbol:
7-Nov 2018
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
The following table summarizes the financial results for the quarter ended September 30, 2018.
(in thousands of Canadian Dollars) September 30, 2018 October 31, 2017
Revenue
Attributable royalty $17,084 $17,939
Project generation $550 $108
Attributable revenue (1)
$17,634 $18,047
Adjust: joint venture revenue $(3,953) $(5,873)
IFRS revenue per consolidated financial statements $13,681 $12,174
Net earnings $6,273 $6,748
Net earnings per share
basic and diluted $0.14 $0.16
Total assets $609,078 $448,426
Total liabilities $182,904 $108,125
Cash dividends declared & paid to shareholders $1,724 $1,296
(1) See non-IFRS measures section of this MD&A for a reconciliation and explanation of attributable revenue.
Three months ended
Summary of attributable royalty revenue
(in thousands of Canadian dollars) September 30, 2018 October 31, 2017 Variance September 30, 2018 October 31, 2017 Variance
Revenue
Base metals
777 Mine $1,901 $3,371 $(1,470) $8,420 $10,216 $(1,796)
Chapada $4,659 $4,915 $(256) $13,050 $11,369 $1,681
Voisey's Bay $351 - $351 $351 - $351
Metallurgical Coal
Cheviot $934 $505 $429 $2,368 $1,840 $528
Thermal (Electrical) Coal
Genesee $1,448 $1,666 $(218) $4,751 $4,988 $(237)
Paintearth $148 $89 $59 $372 $371 $1
Sheerness $780 $1,848 $(1,068) $4,224 $4,885 $(661)
Highvale $292 $269 $23 $708 $915 $(207)
Potash
Cory $131 $52 $79 $421 $317 $104
Rocanville $2,943 $1,155 $1,788 $6,936 $3,328 $3,608
Allan $220 $102 $118 $510 $207 $303
Patience Lake - - - $87 $124 $(37)
Esterhazy $849 $355 $494 $2,249 $1,008 $1,241
Vanscoy $23 $17 $6 $121 $65 $56
Lanigan $3 $1 $2 $5 $4 $1
Other
Iron ore(2) $1,923 $2,992 $(1,069) $3,814 $5,237 $(1,423)
Coal bed methane $98 $175 $(77) $419 $832 $(413)
Interest and investment $381 $427 $(46) $627 $711 $(84)
Attributable royalty revenue $17,084 $17,939 $(855) $49,432 $46,417 $3,015
See non- IFRS measures section of this MD&A for definition and reconciliation of attributable revenue
(2) LIORC dividends received
Three months ended Nine months ended
Note
1. Attributable revenue and adjusted EBITDA are intended to provide additional information only and do not have any standardized meaning
prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS. Other companies may calculate these measures differently. The attributable revenue and adjusted EBITDA per share metrics divide the
respective values by the weighted average number of shares at period end. For a reconciliation of these measures to various IFRS measures,
please see the Corporation’s MD&A which is available at http:/altiusminerals.com/financial-statements.
Date:
Ticker Symbol:
7-Nov 2018
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
Additional information on the Corporation’s results of operations and developments in its Project Generation division are
included in the Corporation’s MD&A and Financial Statements which were filed on SEDAR today and are also available on
the Corporation’s website at www.altiusminerals.com.
Outlook, Liquidity and Dividend Declaration
Cash at September 30, 2018 was $33.8 million. During the quarter, the Corporation increased its LIORC position by $8.7
million and expended $2.7 million to repurchase shares under the Normal Course Issuer Bid, along with smaller investments
in royalties related to co-participation rights associated with Lithium Royalty Corp. and project generation partners. The
value of Mining and Other Investments on the balance sheet has increased from $115 million at June 30 to $145 million at
September 30, reflecting new additions and mark -to-market gain s. Despite the overall weakness in the junior mining
investment sector, our Project Generation business continues to perform well, ending the quarter with increased value in its
junior equity portfolio and strong demand for its remaining project inventory. The Corporation’s junior equity portfolio value
was $67.8 million at quarter end compared to $44.1 million at January 1 , 201 8 and $60.3 million at June 30, 2018 . In
addition, Altius holds a $10 million, 8% debenture that is convertible into Champion Iron Ore common shares at $1.00 per
share, and share purchase warrants and indirect ly held equity interests that are not included in this quarter end total. The
Corporation’s outstanding debt decreased by $5 million during the quarter bringing the outstanding balance to $120 million
at quarter end.
The Corporation also advises that its board of directors ha s declared a cash dividend of four cents per common share
payable to all shareholders of record at the close of business on December 6, 2018. The dividend is expected to be paid
on or about December 20, 2018. The declaration, timing and payment of future dividends will largely depend on the
Corporation’s financial results as well as other factors. Dividends paid by Altius on its common shares are eligible dividends
for Canadian income tax purposes unless otherwise stated.
Q3 2018 Financial Results Conference Call and Webcast Information:
A conference call will be held on Thursday, November 8, 2018, starting at 9:00 a.m. ET to further discuss the quarter and
guidance for 2018. To participate in the conference call, use the following dial -in numbers, or join the webcast on -line as
detailed below.
Time: 9:00 a.m. ET on Thursday, November 8, 2018
Dial-In Numbers: +1(647) 427-2311 local or +1-866-521-4909 toll-free
Pass code: None required, but provide title of call
Conference Title: Altius Q3 2018 quarterly results
Webcast URL: Altius Q3 2018 webcast
The call will be webcast and archived on the Corporation’s website for a limited time.
About Altius
Altius directly and indirectly holds diversified royalties and streams that generate revenue from 15 operating mines. These
are located in Canada and Brazil and produce c opper, 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. In addition, Altius 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 42,955,726 shares issued and outstanding that are lis ted 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.
For further information, please contact Ben Lewis or Flora Wood at 1.877.576.2209 or [email protected].