Mailing Address: P.O. Box 8263 Stn “A”
Date:
Ticker Symbol:
7-Nov 2019
ALS.TSX
Civic Address:
2nd Floor – 38 Duffy Place
St. John’s, NL, A1B 3M5
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
Altius Reports Q3 2019 Royalty Revenue of $19.2M and Adjusted EBITDA of $15.2M
St. John’s – (TSX: ALS; OTCQX: ATUSF) Altius Minerals Corporation (“Altius” or the “Corporation”) reports attributable
royalty revenue(Note 1) of $19.2 million or $0.45 per share for the quarter ended September 30, 2019, which compares to Q3
2018 royalty revenue of $17.1 million or $0.40 per share and Q2 2019 royalty revenue of $19.5 million or $0.46 per share.
Adjusted EBITDA (Note 1) of $15.2 million or $0.36 per share for the three months represents a margin of 79% of royalty
revenue and compares to Adjusted EBITDA of $13.9 million or $0.32 per share in Q3 2018 and $16.3 million or $0.38 per
share in Q2 2019.
The Q3 2019 adjusted(Note 2) and net earnings per share (“EPS”) of $0.10 compares to adjusted EPS in Q3 2018 of $0.09
and adjusted EPS of $0.15 in Q2 2019.
Royalty revenue guidance of $77 – 81 million for the year remains unchanged. Quarterly highlights and outlook comments
are as follows:
• Base metal revenue of $ 8 million in Q 3 2019 was up 25% from Q 2 2019 and up 15% relative to the
comparable year ago period. The positive change from Q2 2019 is mainly attributable to the timing of sales
and a strong production quarter at Chapada. Delivered pounds of copper attributable to Altius are up 11%
for the nine months ended September 30, 2019 versus the same period in 2018, on higher throughput and
increased recoveries. 777 royalty revenue was lower than Q2 and consistent with Q3 2018 revenue, with
the main factor being lo wer realized zinc prices and head grades. Voisey’s Bay royalty revenue was up
from Q2 2019 on higher nickel prices.
• Indirect iron ore royalty revenue from our 5. 9% ownership of Labrador Iron Ore Royalty Corporation
(“LIORC”) was $3.8 million, compared to $3.5 million in Q2 2019 and $1.9 million in the third quarter of
2018. The strong year over year increase is a function of higher realized pellet and high-grade concentrate
prices at Iron Ore Company of Canada operations while the prior year comparable quarter was also
negatively impacted by LIORC’s election to lower its dividend payout ratio in favor of retain ing additional
cash on its balance sheet.
• Potash roya lty revenue of $ 3.7 million is down 28% from Q 2 2019 and down 11% from Q3 2018, as
abnormally poor weather during the North American planting season resulted in lowered demand and
inventory build-ups. Nutrien Ltd. and The Mosaic Company, operators of our various Saskatchewan potash
mine royalties, have both announced temporary production curtailments to take place in the fourth quarter
this year in order to rebalance inventory levels . These measures are expected to be short term and both
operators have reaffirmed a positive outlook for potash demand in 2020, as well as for medium to long term
potash fundamentals.
• Thermal coal revenue of $ 2.6 million was down from the prior quarter and comparable 2018 period due
mainly to planned and unplanned maintenance downtime at Genesee which reduced production levels.
Normal operations have since resumed. In the matter of the Statement of Claim filed against the
governments of Alberta and Canada, document production is nearing completion and the discovery phase
will commence in the near future.
• Metallurgical (steelmaking) coal was lower than the prior quarter and 2018 quarter reflecting both volume
reductions and a decline in metallurgical coal prices. We anticipate that as the remaining pits at Cardinal
River are mined and closure approaches that throughput decreases will continue.
Date:
Ticker Symbol:
7-Nov 2019
ALS.TSX
Civic Address:
2nd Floor – 38 Duffy Place
St. John’s, NL, A1B 3M5
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
The following tables summarize the financial results for the quarter ended September 30, 2019.
IN THOUSANDS OF CANADIAN DOLLARS (except per share amounts)
September 30, 2019 June 30, 2019 September 30, 2018
Revenue
Attributable royalty 19,231$ 19,533$ 17,084$
Project generation 25 5 550
Attributable revenue (1) 19,256 19,538 17,634
Adjust: joint venture revenue (3,674) (4,353) (3,953)
IFRS revenue per consolidated financial statements 15,582 15,185 13,681
Net earnings (loss) 4,614$ (1,868)$ 6,273$
Net earnings (loss) per share, basic and diluted 0.10 (0.05) 0.14
Total assets 572,679 613,937 609,078
Total liabilities 172,865 182,841 182,904
Cash dividends declared & paid to shareholders 2,137 2,143 1,724
September 30, 2019 June 30, 2019 September 30, 2018
Revenue
Base metalsBase metals
777 Mine 2,082$ 3,246$ 1,901$
Chapada 5,542 2,905 4,659
Voisey's Bay 369 252 351
Metallurgical Coal
Cheviot 694 982 934
Thermal (Electrical) Coal
Genesee 1,007 1,270 1,448
Paintearth 178 98 148
Sheerness 1,271 1,535 780
Highvale 155 216 292
Potash
Cory 173 335 131
Rocanville 2,597 3,323 2,943
Allan 128 158 220
Patience Lake 30 - -
Esterhazy 743 1,304 849
Vanscoy 57 44 23
Lanigan 2 6 3
Iron ore (1)
3,782 3,494 1,923
Other
Renew ables 142 111 -
Coal bed methane 54 100 98
Interest and investment 225 154 381
Attributable royalty revenue 19,231$ 19,533$ 17,084$
Summary of attributable royalty revenue
Three months ended
(1) See non-IFRS measures section for definition and reconciliation
Three months ended
Notes
1. Attributable revenue and adjusted EBITDA (and respective per share amounts) 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 prepar ed 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 outstanding during the period . For a reconciliation of these measures to various IF RS measures, please see the Corporation’s MD&A
which is available at http:/altiusminerals.com/financial-statements.
2. Adjusted earnings and respective per share amounts are intended to provide additional information only and do not have any st andardized meaning prescribed
under IFRS and should not be considered in isolation or as a substitute for measures of performance p repared in accordance with IFRS. Other companies may
calculate these measures differently. The calculations used for the adjusted earnings per share are as follows:
Date:
Ticker Symbol:
7-Nov 2019
ALS.TSX
Civic Address:
2nd Floor – 38 Duffy Place
St. John’s, NL, A1B 3M5
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
September 30, 2019 June 30, 2019 September 30, 2018
Reported earnings (loss) per share 0.10$ (0.05)$ 0.14$
Adjusted for:
Equity accounted for (gains) and losses - - (0.05)
Impairments - 0.25 -
(Gain) loss on adjustment of derivatives - (0.02) -
Tax recovery due to change in rates - (0.03) -
Adjusted earnings per share 0.10$ 0.15$ 0.09$
Adjusted Earnings per Share
Three months ended
Additional information on the Corporation’s results of operati ons 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.
Liquidity and Dividend Declaration
Cash at September 30, 2019 was $31.7 million compared to $24 million at the end of Q2 2019 . During the quarter the
Corporation repaid $5 million in accordance with the quarterly amortization schedule of its term debt, thus ending the quarter
with total debt of $114.6 million.
The Corporation’s junior equities portfolio had a market value of $52.5 million at September 30, 2019. This amount excludes
the market value of LIORC and the book value of privately held royalty investments, which stood at $93.1 million and $21.3
million respectively.
The Corporation returned approximately $2.1 million through its regular quarterly dividend paid to common shareholders,
and $1.8 million in repurchasing 154,200 shares under its Normal Course Issuer Bid.
The Corporation advises that its board of directors has declared its regular quarterly cash dividend of five cents per common
share payable to all shareholders of record at the close of business on December 5, 2019. The dividend is expected to be
paid on or about December 20, 2019. 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 2019 Financial Results Conference Call and Webcast Information
A conference call will be held on Friday, November 8, 2019, starting at 9:00 a.m. ET to further discuss the quarter and first
nine months of 2019. 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 Friday, November 8, 2019
Dial-In Numbers: +1-(866) 521-4909 toll free (US/ Canada) or +1-(647) 427-2311
Conference 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.
Date:
Ticker Symbol:
7-Nov 2019
ALS.TSX
Civic Address:
2nd Floor – 38 Duffy Place
St. John’s, NL, A1B 3M5
Website: www.altiusminerals.com
Toll Free: 1.877.576.2209
Fax: 709.576.3441
e-mail: [email protected]
Mailing Address:
P.O. Box 8263 Stn “A”
St. John’s, NL, A1B 3N4, CANADA
About Altius
Altius directly and indirectly holds diversified royalties and streams which generate revenue from 15 operating mines. These
producing royalties are 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 portfol io of junior equities that were generated from vending exploration projects to industry partners in
exchange for minority equity interests and new royalties. Altius has 42,544,796 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.
For further information, please contact Ben Lewis or Flora Wood at 1.877.576.2209 or [email protected].