Altius Minerals Corporation · TSX:ALS
Altius Minerals — Investor Presentation (January 2015)
14 slides from Altius Minerals's investor presentation, January 2015
Slide 1: A Growing Diversified Minerals Royalty Company
A GROWING DIVERSIFIED MINERALS ROYALTY COMPANY Januarry 2015
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document includes certain statements that constitute “forward‐lookingg statements” and “forward‐lookingg information” within the meaning of applicable securitiess laws (collectively, “forward‐looking statements”). Forward‐looking statements include statements regardin
Slide 3: Capital Structure
CAPITAL STRUCTURE Altius trades on the TSX as symbol ALS and iss a constituent of both the S&P/TSX Mining and S&P/TSX Sm mall Cap indices Shares Outstanding: 32,410,323 M k t Cap: Market C ~$444 million illi Debt $116 million Cash and Investments: ~$70 million 3
Slide 4: Our Strategy
OUR STRATEGY • Altius is working towards a goal of becoming a signifiicant diversified mining royalty company. • We are attempting to emulate the portfolios of the diversified d mining companies at the royalty level • 12 current royalties covering 6 commodities generating approximately $30M annually
Slide 5: Diversified Mining Lacks a Leader
DIVERSIFIED MINING LACKS A LEADER Precious Metals Diversified Mining ALTIUS IS GETTING THERE Market Capitalizations(1) Market Capitalizations(2) Other Nickel, Copper 4% and Cobalt (in US$bn) 10% Electrical Coal 58% Met Coal 7% Top 5 Miners Altius1 $55 $327 Potash 21% Revenue % by Commodity 2007 Curr
Slide 6: Production Stage Royalty Portfolio
PRODUCTION STAGE ROYALTY PORTFOLIO Mine and Commodity Diversity Long Lives Low Country Risk Top Tier Counterparties
Slide 7: Production Stage Royalties - All Canadian
PRODUCTION STAGE ROYALTIES ‐ ALL CANA ADIAN MINE COMMODITY POTENTIA AL RESOURCE COUNTERPARTIES LIFE Voisey’s Bay Ni‐Cu‐Co 21 Genesee Coal/Electricity 43 Paintearth Coal/Electricity 11 Sheerness Coal/Electricity 24 Highvale Coal/Electricity 19 C di l River Cardinal Ri S l ki Coal Steelmaking C l 16 R
Slide 8: Successful Royalty Growth Strategy
SUCCESSFUL ROYALTY GROWTH STRATEGY Creation via Project Generation Direct Acquisition Indirect Acquisition
Slide 9: Royalty Creation - Project Generation Team
ROYALTY CREATION – PROJECT GENERATION N TEAM • Low‐cost Low cost generation of new projects that can bee converted into royalties and capital gains • Comprehensive due diligence support for both direct d and indirect royalty acquisition opportunities • Business savvy geological l l team comprisedd o
Slide 10: Royalty Creation Growth Strategy
ROYALTY CREATION GROWTH STRATEGY • Altius invests in generating early stage exploration projjects (most aggressively in down‐cycles) down cycles) • Altius then sell, joint ventures or spins out the successful projects (most aggressively in up‐cycles) While ALWAYS creating project level royalties Hig
Slide 11: Negative-Cost Royalty Creation Growth Potential
“NEGATIVE‐COST” ROYALTY CREATION GROWTTH POTENTIAL 10‐Year Performancce Record Net Royalty Creation Cost::($220.6 million) Altius Project Investments: $16.3 $16 3 million Linked Investment Returns: $236.9 million 3rd Party Direct Project Investm ments: $290 million $350,000,000 Altius Expend $300,00
Slide 12: Created Royalties
CREATED ROYALTIES PROJECT OPERATOR ROYALTY STATUS COMMODITY POTENTIAL LIFE / COMMENT Kami Alderon/HBIS 3% Gross Development Iron 2017‐2046+ Julienne Lake Chinese steel 2‐2.5% Min ne Pre‐feasibility Iron 2019‐2048+ company Gate Royaltty partners CDP Various various Exploration Potash and Coal Large,
Slide 13: Royalty Acquisition Growth Performance
ROYALTY ACQUISITION GROWTH PERFORM MANCE Direct Royalty y y Acquisitions q • The Altius technical team is also tasked with identifying and valuing royalties held by others • This work guides direct acquisition targeting and pricingg: Voisey’ss Bay in 2003 for $13 million (~$29 in royyalty receipts t
Slide 14: Investment Summary
INVESTMENT SUMMARY Diversified Portfolio Track Record of Growth 12 producing royalties spanning 6 commodities Shaare price has grown at an average of more Low jurisdictional risk thaan 27% compounded annually since inceeption in 1997 All royalties (no streams) and “interest in land” rather t
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