Business
Altius Minerals Reports Third Quarter 2020 Attributable Royalty Revenue of Approximately $16.2 million
ST. JOHN’S, Newfoundland / Oct 21, 2020 / Business Wire / Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) (“Altius” or the “Corporation”) expects to repor
About this update from Altius Minerals Corporation
[{"type":"text","content":"ST. JOHN’S, Newfoundland / Oct 21, 2020 / Business Wire / Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) (“Altius” or the “Corporation”) expects to report attributable royalty revenue† of approximately $16.2 million ($0.39 per share) for the third quarter ended September 30, 2020. This compares to quarterly revenues of $13 million ($0.31 per share) in Q2 2020 and $19.2 million ($0.45 per share) in the comparable quarter last year. Royalty revenue improved from last quarter primarily on improved base metal pricing and a reduction in negative volume impacts from COVID-19 related production and demand factors. Base metal revenue of $8.7 million, or 53% of total royalty revenue, was particularly strong during the quarter. Towards the end of Q3 2020, Lundin Mining Corporation (“Lundin”) announced that a main electrical substation failure had caused damage to four ball and SAG mill motors and that there would be an interruption in processing at the Chapada mine. Lundin stated that partial processing would resume in the second week of Q4 2020 and full-scale processing was expected within 60 days of the beginning of Q4 2020. Subsequent to the quarter, on October 11, 2020, Hudbay Minerals Inc. (“Hudbay”) announced that production from 777 was temporarily interrupted after a hoist rope detached from the skip within the production shaft and that Hudbay was currently assessing remediation timelines. Iron ore revenue was down by 66% compared to Q3 2019 as Iron Ore Company of Canada (\"IOC\") elected not to pay dividends to shareholders during the quarter. This in turn resulted in the Corporation receiving lower dividends from its shareholding in Labrador Iron Ore Royalty Corporation which serves as a pass through vehicle for royalty revenues and dividends related to IOC operations. Potash revenue of $3.2 million was down 15% in Q3 2020 from the same quarter one year ago, and down 21% from Q2 2020 on lower realized potash prices which are partially the result of changes in USD-CAD foreign exchange rates. Thermal (electrical) coal revenue of $2.7 million in Q3 2020 was slightly higher than the year ago comparable quarter, and higher than the $2.2 million recorded in Q2 2020. The acquisition of the minority interest from Liberty Metals & Mining Holdings LLC announced on July 27, 2020 resulted in one month of the quarterly revenue (Ju...