Business
Altius Minerals Reports Second Quarter 2020 Attributable Royalty Revenue of Approximately $13 million
ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--(TSX: ALS; OTCQX: ATUSF) Altius Minerals Corporation (“Altius” or the “Corporation”) reports attributabl
About this update from Altius Minerals Corporation
[{"type":"text","content":"ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)--(TSX: ALS; OTCQX: ATUSF) Altius Minerals Corporation (“Altius” or the “Corporation”) reports attributable royalty revenue1 of approximately $13 million ($0.31 per share) for the quarter ended June 30, 2020. This compares to quarterly revenues of $19.5 million ($0.46 per share) generated in the comparable quarter last year, and $16.3 million ($0.39 per share) in Q1 2020. The most significant contributors to the lower recorded revenue in Q2 relative to the comparable periods were as follows: Base metal revenue was lower by ~24% as compared to the corresponding period in 2019 due to significantly lower realized prices on COVID-19 related demand concerns, health and safety based precautionary production curtailments at Voisey’s Bay and a delay in start-up activities at Gunnison due to similar precautionary measures by the operator. Iron ore revenue was down by 63% compared to Q2 2019 as Iron Ore Company of Canada (“IOC”) elected not to pay dividends to shareholders for the second consecutive quarter, despite strong product pricing and improved production levels. This in turn resulted in the Corporation receiving a lower than otherwise expected dividend from Labrador Iron Ore Royalty Corporation (“LIORC”) which serves as a pass through vehicle for royalty revenues and dividends related to IOC operations. Additionally, the Corporation reduced its shareholding in LIORC by one million shares in Q1 of this year. Potash pricing weakness which began in the latter part of last year persisted through Q2 and resulted in a revenue decline of 22% relative to the comparable prior year period, while attributable production levels were similar in both periods. Thermal (electrical) coal revenue was lower by 29% primarily based upon a sharp contraction in electricity demand in Alberta on a combination of lower industrial usage by the oil and gas sector and broader COVID-19 lockdown related demand reductions. This lower electricity demand has translated into lower than forecast coal production levels at Paintearth and Sheerness in particular, while Genesee has continued to operate at or near capacity. Genesee is a more modern and efficient generating facility that is less impacted by lower prices and carbon tax related cost increases. Several of the factors that contributed to weak Q2 mining roy...