Business
Altius Minerals Provides Update on COVID-19 Related Business Impacts
ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--Altius Minerals Corporation (“Altius”) (ALS:TSX, ATUSF: OTCQX) wishes to update its shareholders with re
About this update from Altius Minerals Corporation
[{"type":"text","content":"ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--Altius Minerals Corporation (“Altius”) (ALS:TSX, ATUSF: OTCQX) wishes to update its shareholders with respect to the current status of its diversified royalty business in relation to the global COVID-19 pandemic. Royalty Operations Update As of today, Altius has noted COVID-19 related production curtailments from mines that collectively produced just under 2% of 2019 attributable royalty revenues. A summary of compiled information related to each operation within its diversified royalty portfolio is provided below. This information is believed to be accurate and current however given the dynamic nature of the broader situation readers are strongly cautioned that it should be considered as subject to potential further clarification and change. Canada Nutrien Ltd. has published a statement noting that all of its potash mines, most of which are subject to Altius royalties (16% of 2019 attributable royalty revenue), remain operational and that enhanced safety measures have been put in place to limit risks related to its workforce. It has also commented on the importance of its business as an essential service within the global food supply chain and highlighted its strong balance sheet and liquidity. The Mosaic Company has indicated that production from the Esterhazy potash mine (5% of 2019 attributable royalty revenue) is continuing under enhanced safety protocols and further indicated that year-to-date potash sales are tracking higher than during the same period in 2019 due to better agricultural conditions. It also has commented on its strong balance sheet and liquidity. The Iron Ore Company of Canada (“IOC”) mines and processing facilities in Labrador, Canada remain operational; however IOC has indicated that as per direction from the government of Quebec, from where its ore is shipped, it must reduce activities to a minimum. It is unclear at this time what, if any, impact this might have on production levels. A neighboring iron ore mine located across the border in Quebec, from which IOC receives rail transport service fees, has announced a production ramp down. Altius receives dividends (20% of 2019 attributable royalty revenue) from Labrador Iron Ore Royalty Corporation (“LIORC”) which acts as a flow through vehicle for royalties and equity dividends stemming from IOC’s o...