Altius Minerals Corporation · TSX:ALS
Altius Minerals — Investor Day (May 2023)
122 slides from Altius Minerals's investor day presentation, May 16, 2023
Slide 1: Investor Day
C e l e b r a t i n g 2 5 Y e a r s TSX: ALS | OTCQX: ATUSF Investor Day May 16 th , 2023 Coal to Renewable Power | Clean Steel | Potash | Copper | Lithium | Nickel | Cobalt
Slide 2: Forward Looking Statements
Forward Looking Statements This document includes certain statements that constitute “forward- In particular, the forward looking statements and information looking statements” and “forward-looking information” within the contained herein relating to past, present and future commodity meaning of app
Slide 3: Understanding the Value of our Royalties
Understanding the Value of our Royalties The following presentation takes a fresh look at the potential values of our royalty assets over a range of potential price and production volume scenarios Long-Life Royalty Thematic Exposures Focus Areas Work of this type helps to inform many board and manag
Slide 4: How to Value Long-Life Natural Resource Royalties?
How to Value Long-Life Natural Resource Royalties? Other 11% The long expected lives and embedded optionality associated with the majority Potash of Altius’s development and operating stage royalties means that they are best 32% suited to sensitivities-based, long-term Net Present Value (NPV or DCF)
Slide 5: NPV Models Out the Window?
NPV Models Out the Window? Model basis is fine but standard input conventions are overdue for refurbishment “So the largest mining companies in the world are throwing these NPV models While Altius believes that NPV models remain as a broadly valid tool for out the window. They should be burned; they
Slide 6: Price and Volume Inputs
Price and Volume Inputs Conventional vs Actual Current Input Conventions A. Typically, flat to declining short- and medium-term commodity prices that are then projected to remain perpetually flat on a long-term basis B. No progressive “brownfields” volume or mine life growth beyond that which has be
Slide 7: Price Considerations
Price Considerations
Slide 8: Consensus Base and Battery Metals Price Deck
Consensus Base and Battery Metals Price Deck Current Forecasts Consensus Commodity (USD) Spot1 2023 2024 2025 2026 Long Term USD:CAD 1.36 1.33 1.32 1.31 1.31 1.30 Nickel $10.98 $10.00 $9.30 $9.36 $9.28 $8.65 Copper $3.89 $3.70 $3.85 $4.06 $4.14 $3.68 Cobalt $15.65 $25.24 $27.35 $28.46 $29.50 $26.57
Slide 9: Structural & Cyclical Price Trends
Structural & Cyclical Price Trends Historic Perspective – Copper Price Trend Inflation Average Nominal Copper Price $6.00/lb $5.00/lb During the later decades of the last century the price of copper revolved LME Copper ($/lb) cyclically around a relatively flat average of ~$0.90/lb. $4.00/lb $3.00/l
Slide 10: Incentivization Price Trends – Copper Example
$8.00 Incentivization Price Trends – Copper Example $7.00 $6.00 $5.00 $5.00 Over the past 20+ years inflationary forces (general + sector specific) have caused the average incentivization price trend line for $4.00 $4.00 copper growth investing to increase by more than 4x (nominal 6.5% CAGR) $3.00 $
Slide 11: Consensus Long-Term Price Forecasting
Consensus Long-Term Price Forecasting 20-Year Track Record - Copper $6.00 LME Copper Price ($/lb) versus Long Term Consensus Forecasts Industry experts make annual predictions as to future copper prices, which are then utilized to model asset values Prediction Year of Long-Term Consensus Price Forec
Slide 12: Hypothetical Case Study
Hypothetical Case Study Revenue Based Copper Royalty Valuation Lookback Cumulative revenue (actual ) Cumulative revenue (predicted) $120M $100M Scenario: Royalty Co has a top-line revenue royalty on a copper mine that begins production at the start of 2003 and that operates for 20 years $80M to the
Slide 13: Consensus Long Term Price Forecasting
Consensus Long Term Price Forecasting Track Record – Nickel $25 Year of Forecast $20 $15 $10 2023 LT Forecast 2013 LT Forecast (Avg Price vs Fcst: +1.02x) $5 2003 LT Forecast (Avg Price vs Fcst: +2.46x) - TSX: ALS | OTCQX: ATUSF |13
Slide 14: Lithium Price Assumptions
Lithium Price Assumptions Long- Term Price Discovery Remains Nascent Lithium Carbonate $100,000/t $80,000/t $60,000/t $46,671/t $40,000/t $33,835/t $28,316/t $24,461/t Long Term Price: $20,000/t $21,368/t $0/t 2011 2013 2015 2017 2019 2021 2023 2025 2027 Lithium has emerged as a nascent mainstream (
Slide 15: Consensus Potash Price Deck
Consensus Potash Price Deck (Midwest US Pricing Basis) Altius Model Price Spot1 2023 2024 2025 2026 Long Term Rocanville Proxy2 ($US/ton) $480 $511 $421 $362 $362 $362 1. Spot Price as of April 28, 2023 2. Proxy price based on US Midwest FOB, adjusted from short tons to metric tonnes Potash prices a
Slide 16: Potash Price Historical and Forecast
Potash Price Historical and Forecast Track Record $1,000 Year of Forecast $800 $600 2023 LT Forecast $400 2021 LT Forecast (Avg Price vs Fcst:1.84x) 2018 LT Forecast (Avg Price vs Fcst: 1.49x) $200 - 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 TSX: ALS | OTCQ
Slide 17: Past Expansions Relative to Pricing
Past Expansions Relative to Pricing Current Saskatchewan Brownfields incentive Price Estimated at ~$500/t $1,000 Expansion Investment Price incentivizes new supply Low capital intensity Announcement requirements investments to Esterhazy complete prior cycle $800 expansion ramp-ups $600 Cory $400 Roc
Slide 18: Iron Ore Price Deck
Iron Ore Price Deck Consensus Iron Ore Type (USD) Spot1 2023 2024 2025 2026 Long Term 62% Iron Fines $122 $103 $93 $89 $89 $78 65% Iron Pellets $155 $158 $149 $138 $134 $136 Fines Grade Premium ($/%) $3.00 $3.00 $3.67 $2.00 $2.10 $4.33 Implied Kami Price (68%) $140 $121 $115 $101 $102 $104 Iron Ore
Slide 19: Historical P62 Iron Ore Price & Consensus LT Forecasts
Historical P62 Iron Ore Price & Consensus LT Forecasts Track Record $300 Year of Forecast $250 $200 $150 $100 2013 LT Forecast (Avg Price vs Fcst: +1.03x) 2023 LT Forecast 2015 LT Forecast (Avg Price vs Fcst: +1.95x) $50 2018 LT Forecast (Avg Price vs Fcst: +1.95x) - TSX: ALS | OTCQX: ATUSF |19
Slide 20: Consensus Long Term Price Forecasting
Consensus Long Term Price Forecasting Track Record – Gold $2,500 Year of Forecast $2,000 2023 LT Forecast $1,500 2013 LT Forecast $1,000 2010 LT Forecast $500 2006 LT Forecast - 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 Gold price inflation trend counters the ar
Slide 21: Nominal Price Inflation Summary
Nominal Price Inflation Summary 20 Year estimated price/index CAGR Copper 6.5% Nickel 5.5% Potash 5.8% P62 Iron Ore 5.5% Gold 6.2% US CPI 2.5% Global CPI 3.6% Commodity prices / mining costs have been inflating at average rates that are approximately twice as high as general inflation rates over the
Slide 22: Asset Overview
Asset Overview TSX: ALS | OTCQX: ATUSF |22
Slide 23: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Growth For Shareholders Long-Life Royalty Thematic FocusExposures Areas Potash Potash 32% Fertilizer NAV Natural Breakdown agricultural (Analyst Consensus) nutrient that $379M supports Food Sustainability and Counteracts Def
Slide 24: Fertilizer Demand
Fertilizer Demand The Most Fundamental of Fundamentals Since 1960: Population has increased by more than 150% (from 3 to 8 billion) and is projected to reach more than 10 billion late this century Total agricultural land has increased by less than 20% The increased global food requirement has been m
Slide 25: Fertilizer Demand Growth Fundamentals
Fertilizer Demand Growth Fundamentals Royalty Profile Mines – Global Market Share In late 2022, both royalty mine portfolio operators announced investments to 30% activate remaining supply capacity (Nutrien ramp-ups, Mosaic debottlenecking) by 20-25% over the next 1-4 years 26% This is in response t
Slide 26: Resources Allows For Multiple Future Production Expansions
Resources Allows For Multiple Future Production Expansions Altius Royalty Portfolio Mines M&I Resource Potential Resource Lives Estimates Rocanville 28 Years 8x Reserves Esterhazy 33 Years 4x Reserves Vanscoy 200 Years 17x Reserves Allan 46 Years 23x Reserves Cory 37 Years 18x Reserves Reserve Mine
Slide 27: Potash Portfolio Valuation
Potash Portfolio Valuation Long Term Market Share Hold Scenario Illustration Conventional models account for production volumes that account only for published mine plans and financially committed growth Our internal view is that these mines at least continue to hold global market share over the lon
Slide 28: Price Sensitivities
Analyst Consensus Potash Indicative Valuation Sensitivities Range: C$296 - $403 million Asset Value Median: C$379 million Volume Sensitivities Undiscounted After-tax Cash Flow Base Case Growth Case $1,000 Consensus Price Deck $2,117M $2,117M 2.65% Price CAGR from Spot Base $6,753M $6,753M $800 Price
Slide 29: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Growth For Shareholders Long-Life Royalty Thematic FocusExposures Areas Electrification Metals NAV Copper, Nickel, Breakdown Lithium and (Analyst Consensus) Cobalt are $202M critical to enabling Electrified Transport and Pow
Slide 30: Structural and Cyclical Demand Trends
Structural and Cyclical Demand Trends Historic Perspective - Copper Copper demand has compounded at 3.3% for the past 120 years and grown by 67% in the past 20 years (from 15 million to 25 million tonnes) Today many people believe a global recession is looming that will cause demand destruction. Whi
Slide 31: Chapada & Saúva
Chapada & Saúva Resource & Reserve Growth Chapada + Saúva copper resources (M&I resources inclusive of reserves) have grown by approximately 58% (net of depletion) since our acquisition in 2016 Expansion studies underway Contained Copper Resource & Reserve1 (Mlbs) Chapada Proven & Probable Reserve D
Slide 32: Operating Assets – Chapada & Saúva
Operating Assets – Chapada & Saúva Production Rate Scenarios 3.7% Copper Stream Rate until 75Mlbs delivered, then 1.50%, Chapada Copper Production Profile and Future Growth Potential1,2 Base Case Scenario: Chapada Reserves Depleted @ 24Mtpa pounds (millions) Production rate LOM runs from 2023 to 205
Slide 33: Price Sensitivities
Analyst Value Chapada Indicative Valuation Sensitivities Range: C$105 - $182 million Median: C$117 million Asset Value Matrix Production Sensitivity After Tax NAV5% Base Case Expansion Case Price Sensitivities Consensus Price Deck $111M $140M 3.25% Price CAGR on Incentive Price $198M $249M 6.50% Pri
Slide 34: Voisey’s Bay Nickel – Copper – Cobalt
Voisey’s Bay Nickel – Copper – Cobalt Recent exploration results confirm potential to further extend mine life Mine currently transitioning from the open pit Ovoid mine to the underground Reid Brook and Eastern Deeps mines Currently published mine plan indicates a remaining life of approximately 11
Slide 35: Price Sensitivities
Voisey’s Bay Indicative Valuation Sensitivities Analyst Consensus: $16M Asset Value Matrix Production Sensitivity Price Sensitivities AfterTax NAV5% Base Case Life Extension Case Consensus Price Deck $19M $33M 2.75% CAGR on Spot Base $27M $55M 5.5% CAGR on Spot Base $32M $74M Base Case is derived fr
Slide 36: Voisey’s Bay Case Study
Voisey’s Bay Case Study Actual Voisey’s Bay Royalty Returns Since Acquisition $7.0M $3.23/lbs Nickel Price Calculated Actual $6.0M $5.0M $4.0M Actual Cumulative Revenue: $46M $3.0M $3.23 LT Price Cumulative Revenue Predicted: $18M Actual versus Predicted: 2.4x $2.0M $1.0M - 2006 2007 2008 2009 2010
Slide 37: Curipamba Project
Curipamba Project Base Production (Expressed as CuEqMlbs) Adventus Mining Altius holds a 2% NSR royalty relating to the Curipamba project in Ecuador and is also a significant shareholder of Adventus Mining Adventus currently completing studies and environmental and social licencing initiatives in an
Slide 38: Price Sensitivities
Curipamba Indicative Valuation Sensitivities Analyst Consensus: $26M Asset Value Matrix Production Sensitivity After-tax NAV5 Open Pit Only + 5 Year Underground Price Sensitivities Consensus Price Deck $23M $29M 3.25% Price CAGR on Incentive Price $31M $42M 6.50% Price CAGR on Incentive Price $35M $
Slide 39: Lithium Royalty Corporation
Lithium Royalty Corporation 9.55% Indirect Equity Interest Altius became a co-founding investor of a Limited Partnership that originated Lithium Royalty Corporation in 2017 It has subsequently acquired 32 royalties, 3 of which are Altius co-participation royalties LRC completed an IPO during the qua
Slide 40: Lithium Royalty Corporation
Lithium Royalty Corporation Current Royalty Portfolio Altius Direct Royalty Co-participation TSX: ALS | OTCQX: ATUSF Source: https://www.lithiumroyaltycorp.com/wp-content/uploads/2023/05/LIRC-Investor-Presentation-May-2023_FINAL.pdf |40
Slide 41: Altius Direct Lithium Royalty Interests
Altius Direct Lithium Royalty Interests 1 Altius has acquired direct interests in 3 of LRC’s royalties through LP based co-participation rights: Groto do Cirillo (Sigma Lithium – Brazil), Tres Quebradas (Zijin Mining- Argentina) and Mariana (Gangfeng-Argentina) Groto do Cirilo has reported the comme
Slide 42: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Growth For Shareholders Long-Life Royalty Thematic FocusExposures Areas Renewable Energy NAV Wind, solar and Breakdown storage directly (Analyst Consensus) enables the $180M Renewables Decarbonization 17% of Power Generation
Slide 43: Altius Renewable Royalties
Altius Renewable Royalties 58% Equity Interest Altius Renewable Royalties co-founded Great Bay Renewables (GBR) in 2019 2.4 GW of operating 9.2 GW of 9 states royalties development royalties GBR became a 50:50 joint venture with Funds controlled by global PE firm Apollo Global Management in 2020 ~US
Slide 44: GBR Portfolio Summary
GBR Portfolio Summary Operating Royalties Owner/ Counterparty Credit PPA Project Name COD MWac Technology Market Counterparty Rating Offtaker Clyde River Various NA VT State 5 Hydro / Solar ISO-NE Cotton Plains Portfolio 2017 NA U.S Govt 215 Wind / Solar ERCOT Prospero 2 2021 NA 250 Solar ERCOT Jayh
Slide 45: Portfolio Diversity
Portfolio Diversity Operating Assets | 2023E Operating Royalty Revenue By Power Market By Technology 1% 1% 12% 37% 53% 33% 61% ERCOT CAISO Wind Solar Hydro SPP NE-ISO Development Asset Pipeline By State By Technology 15% 26% 2.2 13% 14% 14% 6.2 18% Texas Virginia Illinois Wyoming Indiana Other Solar
Slide 46: GBR Royalty Financing Adoption and Capital Requirement Growth
GBR Royalty Financing Adoption and Capital Requirement Growth Driving Increased Future Investment Deployment Pipeline GBR royalty financing is experiencing strong adoption growth in the US renewable energy sector as clearly demonstrated by the list of royalty counterparties it has attracted in its f
Slide 47: Competing Capital Sources
Competing Capital Sources Non-Dilutive Royalty Financing Increasing in Relative Attractiveness TSX Renewables Index 350 300 Implied equity cost of capital for the sector have increased substantially over past two years 250 200 150 100 50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 US Over
Slide 48: Illustrative GBR Growth
Illustrative GBR Growth Continued Investment Deployment Base Case (Current Deployment) Growth Case 25.0 Cumulative Royalty MW Expected by 25.0 Cumulative Royalty MW Expected by COD Year COD Year 20.9 20.0 20.0 15.4 9.6 15.0 15.0 12.5 4.8 3.2 10.0 10.0 8.7 2.0 11.4 4.0 10.6 11.4 5.0 10.6 5.0 9.3 9.3
Slide 49: Perpetual Resources Provide Additional Long-Term Optionality
Perpetual Resources Provide Additional Long-Term Optionality Royalty Growth with No Share Of Investment Costs The underlying GBR royalty assets host several forms of embedded optionality that we have not attempted to capture within the scenario illustrations included within the scope of this present
Slide 50: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Growth For Shareholders Long-Life Royalty Thematic FocusExposures Areas High-Purity High Purity Iron Ore Iron Ore 16% NAV Allows Breakdown infrastructure to (Analyst Consensus) be built with $208M Green Steel (Minimize Coal
Slide 51: Clean Steel Macro-Growth Trend
Clean Steel Macro-Growth Trend Transition is Well Underway The global transition to EA (electric arc furnace) steelmaking, which requires no coal inputs, is occurring much faster than is widely recognized with significant capital investment occurring to support shift of global steel manufacturing in
Slide 52: Clean Steel Macro-Growth Trend
Clean Steel Macro-Growth Trend DR-Grade Iron Ore Supply / Demand Balance by 2031 1 DR Iron Ore Demand 303 Demand EA steelmaking can only utilize scrap steel and high purity iron (DR grade) Supply2 Brazil 21 Sweden 7 Global DR quality iron ore demand is expected to Canada 15 exceed 300Mtpa by 2031 Ru
Slide 53: Our Labrador Trough District Positioning
Our Labrador Trough District Positioning Producing Feasibility Study Resource IOC Mine Kami Labrador West 654Mt @ 28.8 FeT% Altius has accumulated a Altius holds a direct 3% Gross (inferred)1 significant shareholding in Sales Royalty relating to Kami, Labrador Iron Ore Royalty which Champion notes a
Slide 54: IOC / Labrador Iron Ore Royalty Corp. (LIORC)
IOC / Labrador Iron Ore Royalty Corp. (LIORC) Overview LIORC holds two key assets: 7% Gross Royalty on production revenue from the Iron Ore Company of Canada (IOC) operations 15.1% equity ownership in IOC (Rio Tinto – 59%, Mitsubishi – 26%) Operation produces high-grade concentrates and both BF and
Slide 55: IOC / Labrador Iron Ore Royalty Corp. (LIORC)
IOC / Labrador Iron Ore Royalty Corp. (LIORC) Capital Investment Program Underway $800M Capex Profile $742 A significant capital investment program was initiated at IOC during the $600M $653 previous sector investment cycle that was designed to increase $534 production capacity to 21Mtpa $498 $400M
Slide 56: Price Sensitivities
LIORC Indicative Value Sensitivities Analyst Consensus: $141M Royalty and Equity Differentiation Price Sensitivities Production Sensitivity After-tax Dividend NAV5 (Royalty) NAV8 (Equity) 18 Mtpa 21 Mtpa Consensus $111M + $51M $128M + $71M 2.75% Price CAGR on Trendline Price $260M + $169M $302M + $2
Slide 57: Kami Project
Kami Project Analyst Consensus: $70M Champion Iron Ore The Kami Project is situated adjacent to Champion’s Bloom Lake Mine and is being evaluated by Champion as a DRI grade iron ore project. 3.0% GSR (2.4% effective rate after top line royalty tax) is registered on title Altius Royalty and Equity In
Slide 58: Kami Indicative Valuation Sensitivities
Kami Indicative Valuation Sensitivities Analyst Consensus: $70M Asset Value Matrix Production Sensitivity Base Case: Expansion Case: After-tax NAV5% Price Sensitivities 8 Mtpa Fe Con 16 Mtpa Fe Con Consensus $223M $424M 2.75% Price CAGR on Trendline Price $342M $682M 5.50% Historic Price CAGR $504M
Slide 59: Project Generation Business
Project Generation Business Royalty Pipeline Growth Differentiator Diverse Global Exposure PG Junior Equities Portfolio Performance $40 Net Monetization Objective Current Equities $52 Value ($M) Starting Equities $22 Value ($MM) Apr 2016 March 2023 PG Junior Equities Portfolio Exposures (By Commodit
Slide 60: Project Generation Business
Project Generation Business Strong Exposure to Resource Discovery and Growth 432,500ms of Drilling Anticipated in 2023 435,481 m 442,500 m 432,500 m 150,500 m 125,000 m 208,150 m 185,538 m 167,475 m 292,000 m 307,500 m 227,331 m 60,678 m 2018 2019 2020 2021 2022 2023 Equity and/or Royalty Equity Onl
Slide 61: Silicon Gold
Silicon Gold Royalty Covering a Major New Nevada Gold Discoveries Altius holds a 1.5% NSR royalty on the Silicon Project, which represents a major new gold district discovery in Nevada by AngloGold Ashanti (“AGA”) AGA reported an update to its Silicon deposit resource statement on Feb 22, 2023 to no
Slide 62: Silicon Gold Discoveries
Silicon Gold Discoveries 95 1.5% NSR Royalty Extent to Be Confirmed North Bullfrog (NBF) 1.5Moz MAVERICK & FRYING PAN TARGETS SILICON Lands subject to royalty under the agreement are defined as follows: (a) mineral licenses CENTRAL and all lands, property and rights contained within the area of inte
Slide 63: Silicon Illustrative Valuation Scenarios
Silicon Illustrative Valuation Scenarios Analyst Consensus: $64M 10MMoz Resource Scenario Production Rate After-tax NAV51 330,000 ozpa 500,000 ozpa Consensus $110M $134M Spot $131M $159M 3.1% Price CAGR $197M $234M 6.2% Price CAGR $327M $349M 15MMoz Resource Scenario Production Rate After-tax NAV51
Slide 64: Returns of Capital and Capitalization Table
Returns of Capital and Capitalization Table Quarterly Royalty Revenue Growth (C$ millions) 30 25 Capitalization Table $20M Issued Common Shares1 47,634,571 $15M Basic Market Capitalization2 $1,020 million $10M Cash1, 3 $11.2 million $5M PG Equities1 $51.8 million 2023 2014 2015 2019 2016 2020 2021 2
Slide 65: Acquisition Returns
Acquisition Returns Realized Net Asset Value(5%) Realized Net Revenue Acquisition Acquisition Date Purchase Price Net Revenue Consensus + NAV Voisey's Bay 2003 $14 million $40 million $19 million $59 million Chapada Stream 2016 $77 million $82 million $115 million $197 million Potash Portfolio 2014
Slide 66: Sustainability Alignments
Sustainability Alignments Enabling Change Global change in cereal yield and land use 250% 200% Cereal Yield Electrification 150% Population Metals 100% Potash 50% Fertilizer Land Used for - Cereal 1961 1970 1979 1988 1997 2006 2015 Source: Our World in Data based on World Bank; Food and Agriculture
Slide 67: Key Sustainability Initiatives
Key Sustainability Initiatives Altius Achieves Net Zero Altius calculates its direct corporate level CO2 emissions as well as a pro-rata share of underlying asset emissions1 For 2021 we estimated a combined CO2 footprint of 23,625 tonnes, excluding Genesee2, and are currently finalizing the purchase
Slide 68: Corporate Presentation
Corporate Presentation May 2023 1
Slide 69: Important Disclaimers
Important Disclaimers Forward-Looking Information This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may relate to Lithium Royalty Corp.’s (the “Company”, “we”, “us” or “our”) future financial outlook
Slide 70: Table of Contents
Table of Contents Section I. Lithium and the Global Energy Transition II. Lithium Royalty Corp - At a Glance III. LRC Royalty Map IV. LRC Royalty Business Model V. Value Creation / Growth VI. Net Asset Value Appendix A. Royalty Portfolio B. Lithium Demand 3
Slide 71: Global Energy Transition
Global Energy Transition Lithium Royalty Corp is at the centre of a global energy transition • Transition toward decarbonizing our human Decarbonization footprint on Earth Electric Vehicles • Environmental externalities are now “on-balance sheet” • Critical minerals are at the nexus of the transitio
Slide 72: Lithium is at the Nexus of the Energy Transition
Lithium is at the Nexus of the Energy Transition We have entered the “Lithium Age” “Lithium: the irreplaceable element of the electric era”1 “Lithium will in the near future be one of the most sought-after raw materials on earth”2 “Mineral demand for use in EVs and battery storage is a major force,
Slide 73: Lithium Royalty Corp - At a Glance
Lithium Royalty Corp - At a Glance C$809 million 32 Long Life Market Cap1 Royalties Average LOM 19 Years3 81% NAV > 20 years C$1,061 million 5 7 Net Asset Value2 Acquisitions Year-to-Date 2023 Countries 56% NAV OEDC, 46% Canada + Australia 42% Top 10, 56% Top 15 Mining Jurisdictions4 0.76x 6 Diversi
Slide 74: Enabling Decarbonization
Enabling Decarbonization Lithium Royalty Corp. is a signatory of The Principles for Responsible Investment (PRI) supported by the Decarbonization through electrification United Nations. • Greenhouse gases (GHG) from transportation account for 24% of total global emissions1 • WHO attributes air pollu
Slide 75: LRC Royalty Map
LRC Royalty Map Operator Asset Royalty Rate2 Start Date3 CASE LAKE KAUSTINEN / ILMAJOKI Power Metals Royalty 2X CANCET 1 Allkem Mt. Cattlin A$1.5/t 2017 Arvo Lithium Winsome Resources Royalty 2 Core Lithium Finniss 2.50% 2022 SHATFORD LAKE / VALJEVO 3 Sigma Lithium Grota do Cirilo 1.00% 2023 CAT-EUC
Slide 76: LRC Royalty Business Model
LRC Royalty Business Model Risk Management Pure-Play Battery Metal Royalty Company With Differentiated Lithium Exposure ✓ Enhanced protection through GORs ✓ Top-tier jurisdictions (57% NAV OEDC) LRC Lithium Developers Precious Metal Royalties Companies ✓ Higher grade, lower cost projects ✓ Diversifi
Slide 77: Diversified Asset Base / Supply Chain Exposure in Favourable Jurisdictions
Diversified Asset Base / Supply Chain Exposure in Favourable Jurisdictions1 Broad-Based Supply Chain Exposure Diversified Sources of Value Long-Life Asset Base2 Europe <10 Years United States 4% 19% 6% Canada 10% 10-20 Years 31% 13% Australia 45% 15% 14% >20 Years 81% 9% South America 6% 7% 40% Tres
Slide 78: LRC Compared to Royalty Peers (% of NAV)
LRC Compared to Royalty Peers (% of NAV) Franco-Nevada Wheaton Precious Metals Top 3 = 32% Cobre Top 3 = 53% Panama Other Oil & Gas 17% 24% 25% Salobo Lithium Royalty Corp1 Stillwater 36% Top 3 = 42% 8% Zinkgruvan Tres Quebradas 3% Other 19% Candelaria 24% Blackwater 7% 4% Antamina Voisey's Bay 4% 5
Slide 79: Illustrative Value Creation – Organic Accretion
Illustrative Value Creation – Organic Accretion (USD Unless Otherwise Noted) NAV accretion as projects from our 3 groups of assets advance from resource delineation to production Discount Rate > 10% 7% 5%1 Project Status > Resource Delineation Resource / Pre-Construction Construction / Production #
Slide 80: Royalty Optionality / Organic Growth
Royalty Optionality / Organic Growth Potential for Free Growth via Asset Expansion / Extension / Commodity Price Inflation Organic Value Creation Sigma Lithium’s market cap increased from $104 million to $4 billion from time of royalty acquisition to today GROTA DO CIRILO ANNUAL PLANNED PRODUCTION G
Slide 81: Royalty Acquisitions
Royalty Acquisitions 1 Primary Royalties • Acquired from companies as financing • Typically earlier stage when conventional capital is not available • LRC IP and network sources these “first look” opportunities • Competition is limited 2 Secondary Royalties • Acquired from prior resource owners (pro
Slide 82: Illustrative Value Creation – Royalty Acquisitions
Illustrative Value Creation – Royalty Acquisitions Total Liquidity = US$70 million1 [Debt + Cash] Accretion Description Timeline LRC IP identifies early stage high grade world class commercial scale project Higher risk, 2 to 5 years higher return Target IRR: 15% – 30% LRC acquires a royalty on a lat
Slide 83: 2023 Events To-Date
2023 Events To-Date Asset Operator LRC Royalty Country Announcement Mt. Cattlin A$1.5/t Treated Mineral Resource increase to 12.8 million tonnes at 1.3% Li2O1 Grota do Cirilo 1.00% NSR Initiation of commercial production2 Updated Mineral Resource from 13.3 million tonnes at 1.4% to 19.4 Finniss 2.50
Slide 84: 2023 Anticipated Catalysts
2023 Anticipated Catalysts Asset Operator LRC Royalty Country Expected Announcement Mt. Cattlin A$1.5/t Treated Australia Mine life extension study results expected by mid 20231 Tres Quebradas 1.00% GOR Argentina First production expected by the end of 20232 Full ramp of Phase 1 production by July 2
Slide 85: Lithium Royalty Corp – Net Asset Value (CAD)
Lithium Royalty Corp – Net Asset Value (CAD) P/NAV 0.3x $55.24 $30.00 P/NAV 0.6x $25.00 $24.36 P/NAV 0.8x $20.00 $19.20 $18.18 $0.04 $0.18 $0.26 $0.26 $0.16 Cash $15.00 NPV10 Assets NPV7 $10.00 Assets $5.00 NPV5 Assets $0.00 At IPO James Bay Moblan Core Neves Case Lake Current Current NPV5 Current N
Slide 86: Corporate Snapshot
Corporate Snapshot LIRC1 TSX Shares Outstanding 55.3M Fully Diluted Shares Outstanding 55.7M Share Price C$14.631 Market Cap US$603M1 Cash US$70.3M2 Debt $0 Analyst Coverage 1. As of May 05, 2023 2. As of March 15, 2023 19
Slide 87: Management Team
Management Team Ernie Ortiz Mark Wellings Blair Levinsky Dominique Barker Philip Panet President & Chief Executive Officer Vice Chair & Executive Vice President, Technical Executive Chair Chief Financial Officer & Vice President, Legal & • London Metal Exchange Lithium Advisory • Over 30 years of in
Slide 88: Board of Directors
Board of Directors Blair Levinsky Mark Wellings Ernie Ortiz Tamara Brown Executive Chair Vice Chair & Executive Vice President, Technical President & Chief Executive Officer Independent Director • Co-Founder, President, and CEO at Waratah, • Over 30 years of international experience in • London Meta
Slide 89: Appendix A: Royalty Portfolio
Appendix A: Royalty Portfolio
Slide 90: Current Royalty Portfolio
Current Royalty Portfolio Asset Operator LRC Royalty Name Country Type Product Stage Report (%) 1 Allkem A$1.5/t Treated Mt. Cattlin Australia Hard Rock Spodumene Production FS 2 Core Lithium 2.50% GOR1 Finniss Australia Hard Rock Spodumene Production DFS 3 Sigma Lithium 1.00% NSR2 Grota do Cirilo B
Slide 91: Appendix B: Lithium Demand
Appendix B: Lithium Demand
Slide 92: Lithium Demand Overview
Lithium Demand Overview EVs use ~6x more minerals than conventional vehicles1 Lithium is the unrivalled charge carrier for electrification2 Copper Glider EV Motor + Generator Lit hium Bat tery - NCA Nickel Lithium will in the near future be Lithium: The fastest-growing Bat tery - NCA+ Bat tery - NMC
Slide 93: Demand Fundamentals Support Robust Lithium Growth Profile
Demand Fundamentals Support Robust Lithium Growth Profile Automotive OEMs’ EV Targets1 (% of Total Sales) Global Electric Vehicle Sales Projections2 Lithium Market Supply / Demand Balance3 (Mt LCE) 88 50% by 2030 90 84 7.0 80 80 77 73 Possible ~75% by 2030 69 70 64 Probable 60 33% by 2030 60 55 High
Slide 94: Battery Plants Expected to Come Online in Europe and North America
Battery Plants Expected to Come Online in Europe and North America NORTH AMERICA EUROPE Announced OPERATIONAL PLANT PROJECT IN PROGRESS OPERATIONAL PILOT LINE OR IN-PROGRESS Expected Global Lithium Demand of: 2.7 Mt LCE in 20301 Expected Global EV Battery Demand of: 3.2 TWh in 2030 (~2.5M – 2.9Mt LC
Slide 95: Thank You
Thank You Ernie Ortiz President & Chief Executive Officer ernie.ortiz@lithiumroyaltycorp.com Dominique Barker Chief Financial Officer & Head of Sustainability dominique.barker@lithiumroyaltycorp.com Jonida Zaganjori Vice President, Investor Relations jonida@lithiumroyaltycorp.com 28
Slide 96: El Domo: Building the Next Copper-Gold Mine
El Domo: Building the Next Copper-Gold Mine Altius Minerals Investor Day May 16, 2023 ADZN : TSX-V ADVZF : OTCQX 1
Slide 97: Forward Looking Statements
Forward Looking Statements ADZN : TSX-V ADVZF : OTCQX This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information is based on the beliefs, expectations and opinions of the management as of the date the statement is
Slide 98: Background & Adventus Mining Corporation
Background & Adventus Mining Corporation ADZN : TSX-V ADVZF : OTCQX ALTIUS CONTINUES TO BE A STRONG SUPPORTER OF THIS UNIQUE COPPER DEVELOPMENT & EXPLORATION COMPANY Presentation – Adventus • Overview • El Domo Copper-Gold Project – with Curipamba District • Exploration Portfolio – Santiago, Pijili,
Slide 99: El Domo Project Highlights
El Domo Project Highlights ADZN : TSX-V ADVZF : OTCQX HIGH-GRADE COPPER-GOLD PROJECT IN ECUADOR: FEASIBILITY STUDY COMPLETED & PERMITS EXPECTED IN Q3 2023 – TOP DECILE COPPER PROJECT ECONOMICS GLOBALLY Highest greenfield Lowest capital >5% copper eq. US$1.26/lb after-tax intensity of copper P&P Rese
Slide 100: Accountability & Responsibility in All That We Do
Accountability & Responsibility in All That We Do ADZN : TSX-V ADVZF : OTCQX APPLYING BEST ESG PRACTICES TO UNLOCK SOCIAL IMPACT & LOW-CARBON ADVANTAGES 800 CONSTRUCTION & 450 LONG-TERM CAREER OPPORTUNITIES EXPECTED Hydro Power Low-Carbon Copper Environmental ~90% of Ecuador grid Next copper mine in
Slide 101: Capital Structure & Timeline
Capital Structure & Timeline ADZN : TSX-V ADVZF : OTCQX VALUE GAP BETWEEN SHARE PRICE & PROJECT FUNDAMENTALS + EXPLORATION POTENTIAL Symbols: ADZN (TSXV) ADVZF (OTCQX) AZC (Frankfurt) Equity Research Basic Market Capitalization: C$ 67 M Shares Outstanding 179,630,112 Cash 1 : C$ 22 M Options 2 12,20
Slide 102: Unique Investor Base
Unique Investor Base ADZN : TSX-V ADVZF : OTCQX GLOBALLY RESPECTED MINING GROUPS & INSTITUTIONAL INVESTORS AUM / Investor Market Cap Profiles (US$M) Leading global royalty company focused on base metal and bulk commodities, with its royalties on 15 ~$800 operating mines generating ~C$80M per annum i
Slide 103: El Domo Project Highlights
El Domo Project Highlights ADZN : TSX-V ADVZF : OTCQX FEASIBILITY STUDY COMPLETED ON EL DOMO DEPOSIT RESERVES – ADDITIONAL EXPLORATION WITHIN 215 SQ KM NI 43-101 Curipamba Mineral Reserve Estimate (Open Pit Only) (DRA – Oct 2021) 1 • Majority of Proven & Probable Reserves within 40 to 80 m from surf
Slide 104: Revenue by Metal vs. Feed Head Grade
Revenue by Metal vs. Feed Head Grade ADZN : TSX-V ADVZF : OTCQX COPPER-GOLD DOMINANT MINE LIFE – UNDERGROUND EXTENDS LIFE OR EARLY EXPANSION POTENTIAL 3 Underground LOM NSR 2,3 Open-pit LOM NSR 1,2 Underground PEA Net Smelter Return (US$ ‘000) Copper Equivalent Grade (%) Notes: 1 El Domo - Curipamba
Slide 105: El Domo – Execution Plan
El Domo – Execution Plan ADZN : TSX-V ADVZF : OTCQX GOVERNMENT OF ECUADOR SIGNED INVESTMENT PROTECTION AGREEMENT IN Q4 2022 – EXECUTION FOCUS IN 2023 Execution Activities 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Detailed Engineering & Early Site Works Powerline Contract COMPLETED Road Upgrade Co
Slide 106: Beyond El Domo – Curipamba Regional Exploration
Beyond El Domo – Curipamba Regional Exploration ADZN : TSX-V ADVZF : OTCQX NEW REGIONAL TARGETS WITHIN 215 SQUARE KM UNDRILLED DISTRICT Anglo American & Luminex JV Properties In 2021, Adventus discovered a new VMS system 4.5 km SW of El Domo deposit within the Curipamba project – entirely new area f
Slide 107: Pijili & Santiago Exploration Projects
Pijili & Santiago Exploration Projects ADZN : TSX-V ADVZF : OTCQX PIJILI & SANTIAGO – PROSPECTIVE FOR LARGE COPPER-GOLD PORPHYRY SYSTEMS • Adventus leads & funds exploration alliance activities up to construction decision (80% Adventus / 20% Salazar) – Pijili & Santiago incorporated to date • Partne
Slide 108: Santiago – Geophysics & Historical Drilling
Santiago – Geophysics & Historical Drilling ADZN : TSX-V ADVZF : OTCQX STRONG GEOPHYSICAL ANOMALY SUGGESTS DRILL PROGRAM BEYOND 300 METRE DEPTH Adventus continues detailed geoscience work in advance of twinning & extending at least two historical drill holes deep into the new geophysical anomaly T
Slide 109: Adventus – Catalysts & Execution
Adventus – Catalysts & Execution ADZN : TSX-V ADVZF : OTCQX MOST ADVANCED GREENFIELD COPPER PROJECT GLOBALLY WITH STRONG EXPLORATION POTENTIAL • Project financing package secured for El Domo development • Permitting process underway for approval in Q3 2023 El Domo • Detailed engineering & early site
Slide 110: The Organic Royalty Generator
THE ORGANIC ROYALTY GENERATOR INVESTOR PRESENTATION ALTIUS MINERALS INVESTOR DAY MAY 16, 2023 TSX.V:OGN | OTCQX: OGNRF OROGENROYALTIES.COM
Slide 111: Disclaimer
Disclaimer This presentation includes certain statements that may be deemed "forward looking statements". All statements in this presentation, other than statements of historical facts, that address events or developments that Orogen Royalties (the "Company“) expects to occur, are forward looking st
Slide 112: A Unique Investment Proposition
A Unique ORGANIC ROYALTY CREATION Profitable prospect generator model minimizes risk while retaining upside. Investment ROYALTY ACQUISITION Proposition Deploy capital in a disciplined manner, focusing on strong risk-adjusted returns. GROWTH Exposure to discovery through royalty Orogen Royalties is f
Slide 113: Operational and Financial Highlights ($C)
Operational and Financial Highlights ($C) FINANCIAL HIGHLIGHTS • 2022 Total Revenue: $4.6M including $3.7M from Ermitaño Royalty • Positive operating cash flow before changes in non-cash working capital of $786k in 2022 • Working Capital: ~$15M at March 31, 2022 POSITIVE DEVELOPMENTS AT FLAGSHIP ROY
Slide 114: Corporate Snapshot
Corporate Snapshot SHARE STRUCTURE SHARE OWNERSHIP Market Cap (1) $103M Share Price (1) $0.55 52 Week High $0.60 52 Week Low $0.345 Est. Working Capital (2) $15M Shares Outstanding (1) 188.0M Warrants (3) 10M Stock Options (4) 8.3M RSUs (1) 0.87M DSUs (1) 0.16M 1. May 15, 2023 2. March 31, 2023 3. W
Slide 115: Flagship Gold Royalty Assets
Flagship Gold Royalty Assets PRODUCING ROYALTY MEDIUM TERM DEVELOPMENT ERMITAÑO (2.0% NSR): SONORA, MEXICO SILICON (1.0% NSR): NEVADA, USA • Owned by First Majestic Silver • Owned by AngloGold Ashanti • 2022 royalty revenue: $3.7M, first full year of commercial • Resource of 4.22M ounces gold2 produ
Slide 116: Ermitaño – Overview
Ermitaño – Overview ROYALTY INTEREST ON 167 SQUARE Domain ktonnes Gold Silver Gold Silver KILOMETRES OF GROUND AT ERMITAÑO (g/t) (g/t) (Koz) (Moz) Royalty AOI is 167 square kilometres P&P 2,539 3.36 56 274 4.6 Reserves M&I 2,855 4.02 63 369 5.8 Resources Inferred 2,851 2.93 84 269 7.7 Resources Note
Slide 117: Ermitaño – Long Section (looking north)
Ermitaño – Long Section (looking north) WWW.OROGENROYALTIES.COM Source: First Majestic Investor Presentation May 9, 2023 TSX.V:OGN | OTCQX: OGNRF 8
Slide 118: Silicon Epithermal Gold Project
Silicon Epithermal Gold Project OROGEN HOLDS A 1% NSR ROYALTY AT THE HEART OF AN EMERGING GOLD DISTRICT IN NEVADA OVERVIEW1 • AngloGold has spent >$600M to consolidate the district • Initial resource at Silicon demonstrates the potential scale of the district • Orogen’s 79 square kilometre AOI hosts
Slide 119: Silicon Gold Project
Silicon Gold Project AN INITIAL PRODUCTION BASE FOR THE DEVELOPMENT OF THE SILICON DISTRICT SILICON DEPOSIT • February 2023 resource estimate up 25% from February 2022 • Initial test work indicates good metallurgical recoveries on oxide ore • Ongoing studies to incorporate sulphide and transitional
Slide 120: Positioned for Discovery
Royalty and Exploration Portfolio in Nevada POSITIONED OROGEN’S PARTNERS FOR DISCOVERY A proven business model generating low-cost exposure to the major gold trends in Nevada Four royalties Eleven option Team that staked including Anglogold agreements with Silicon actively Ashanti’s Silicon industry
Slide 121: Active Option Deals
Active Option Deals PROPERTY PARTNER YEAR OPTIONED LOCATION METAL TERM Llano del Nogal Riverside Resource, BHP 2022 Sonora, Mexico Copper, Gold 1.0% production royalty + cash payments and exploration expenditure Pearl String Barrick Gold Corporation 2022 Nevada, U.S Gold 2.0% NSR royalty + cash paym
Slide 122: Contacts
Contacts SCAN FOR MORE INFORMATION Paddy Nicol President & CEO paddy@orogenroyalties.com d: 604-248-8660 Marco LoCascio VP Corporate Development marco@orogenroyalties.com d: 201-725-2231 TSX.V:OGN | OTCQX:OGNRF www.orogenroyalties.com info@orogenroyalties.com