Business
Altius Minerals Reports Second Quarter 2021 Expected Attributable Royalty Revenue of Approximately $21.8 million
ST. JOHN'S, Newfoundland and Labrador / Jul 15, 2021 / Business Wire / Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expe
About this update from Altius Minerals Corporation
[{"type":"text","content":"ST. JOHN'S, Newfoundland and Labrador / Jul 15, 2021 / Business Wire / Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expects to report attributable quarterly royalty revenue† of approximately $21.8 million ($0.53 per share) for the second quarter ended June 30, 2021. This compares to quarterly revenues of $17.8 million ($0.43 per share) in Q1 2021. Base metal (primarily copper) revenue of $9.4 million is up 24% from Q1 2021 base metal revenue of $7.6 million, and represented 43% of total royalty revenue. Performance in the quarter was positively impacted by stronger metal prices, but was offset by lower copper production from both 777 and Chapada. During the quarter, Vale commenced production from its new underground mine at Voisey’s Bay and Lundin Mining continued to aggressively drill near mine targets at Chapada in support of ongoing project expansion studies. Potash revenue of $4.5 million is up 11% from Q1 2021 potash revenue of $4.1 million and represented 21% of total royalty revenue. Steady price improvements over the past year continued to be reflected while overall portfolio based production was down slightly from Q1 but similar to Q2 2020 production. Average realized prices for royalty calculation purposes continued to reflect timing of sales recognition lags with realized prices in Q2 generally aligned with Q1 2021 market prices. Market prices based on US Midwest and Brazil delivery increased by 50-60% during Q2 and these are expected to result in higher realized prices to Altius in the coming quarters. During the quarter, Mosaic closed its Esterhazy K1 and K2 mining shafts while it continues to ramp up production from the new K3 mining shaft which is expected to reach full capacity early in 2022. Nutrien announced two 500,000 tonne increases to its annual potash production guidance during the quarter in response to increased demand. Iron ore revenue in the form of dividends received from Labrador Iron Ore Royalty Corporation (“LIORC”) was $5.0 million, or 23% of total royalty revenue, which compares to $2.9 million in Q1 2021. The 72% increase reflected strong royalty revenue and a significant equity dividend paid by the Iron Ore Company of Canada (“IOC”) as it continued to benefit from strong demand and pricing for its high-purity iron ore products that result in lower emissio...