Altius Minerals Corporation · TSX:ALS
Altius Minerals — Investor Presentation (June 2018)
20 slides from Altius Minerals's investor presentation, June 2018
Slide 1: London Marketing June 4-8 2018
LONDON MARKETING JUNE 4 – 8 2018 JUNE 2018
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document includes certain statements that constitute “forward‐looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward‐looking statements”). Forward- looking statements include statements regarding
Slide 3: One Contrarian Strategy, Two Complementary Businesses
ONE CONTRARIAN STRATEGY, TWO COMPLEMENTARY BUSINESSES Royalty Business 15 Producing Diversified Mining Royalty Interests Successful Project Track Record Generation of discovering exploration projects and converting Business into equity profits and new royalties TWO COMPLEMENTARY BUSINESS UNITS THAT
Slide 4: Year History – Working With the Cycle
20 YEAR HISTORY – WORKING WITH THE CYCLE As commodity cycles evolve through bear and bull markets, Altius has continually adapted by either growing its royalty portfolio or bringing assets from its project generation portfolio to market. 1997 – 2001 2002 – 2011 2012 – 2015 2016 – Present 40 COMMODIT
Slide 5: One Year Performance vs. Mining Index & Commodities
ONE YEAR PERFORMANCE VS. MINING INDEX & COMMODITIES Altius +34% Copper +22% S&P 500 +22% Zinc +21% Iron +9% May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 5
Slide 6: Performance
PERFORMANCE Royalty Revenue (FY2014 – CY2017)† 2018 Revenue Guidance $66M $64M – $69M $46M $35M $26M $3M FY 2014 FY 2015 FY 2016 FY 2017 CY 2018 Calendar Year End 2017 † Q1-2018 Performance Q1-2018 Q1-2018 Q1-2018 Revenue EBITDA EBITDA Margin $15.8M $12.7M 80% 6 † Altius converted its financial repo
Slide 7: Capital Structure and Available Liquidity
CAPITAL STRUCTURE AND AVAILABLE LIQUIDITY ALS:TSX Research Coverage Issued Common Shares 43.2 million Fairfax Preferred Securities 10.0 million Craig Hutchison Basic Market Capitalization $609 million Annual Dividend $0.16 per share Brian MacArthur Outstanding Debt $128 million Cash and Public Equit
Slide 8: Diversified Mining Royalty Focus
DIVERSIFIED MINING ROYALTY FOCUS PRECIOUS METAL MINING MAJORS DIVERSIFIED MINING MAJORS US$83B Market Capitalization US$559B Market Capitalization PRECIOUS METAL ROYALTY COMPANIES DIVERSIFIED ROYALTY COMPANIES US$32B Market Capitalization US$3B Market Capitalization PLENTY OF ROOM FOR GROWTH 8 † Mar
Slide 9: Commodity Diversification
COMMODITY DIVERSIFICATION Other 2% Met. Revenue (By Coal Commodity Zinc Mine) Q1-2018 5% 8% 777 Mine $3.3M Chapada $3.9M Iron Ore Copper Metals 11% 37% 2018E Revenue Iron ore - IOC $1.1M Commodity Mix Metallurgical Coal Cheviot $0.8M Brazil Genesee $1.7M Thermal 27% Coal 18% Thermal Paintearth $0.1M
Slide 10: Long Life Assets
LONG LIFE ASSETS IOC 25 18 20 Total: 62 Years Base Metals Chapada 27 10 2 Total: 37 Years Voisey 15 Reserve Mine Life (Years) M&I Resource Life (Years) 777 3 11 Total: 5 Years Inferred Resource Life (Years) Metallurgical 13 11 Total: 24 Years (Cheviot) Coal Thermal 9 (Various Mines) 101 M&I: 394 Yea
Slide 11: Royalty Growth Potential – Potash Volumes
ROYALTY GROWTH POTENTIAL – POTASH VOLUMES • Potash royalty portfolio mines have recently undergone $9B in expansions to allow volume growth potential of up to 71% from 2017 levels • Potash is increasingly critical to global food security as it increases the amount of crops that each farm unit can pr
Slide 12: Royalty Growth Potential – Potash Price
ROYALTY GROWTH POTENTIAL – POTASH PRICE Early 2000’s: Prices below Mid to late 2000’s: Capacity utilizations 2012 -2017: Utilization 2018: Expansions now capacity incentivization levels reach critical levels and prices rise declines on expansion completed while demand while demand growth drives dram
Slide 13: Royalty Revenue Growth Potential
ROYALTY REVENUE GROWTH POTENTIAL Yamana has announced a 3-phase expansion program, starting with recovery optimization. Two feasibility studies are underway to support expanding the CHAPADA Chapada processing plant capacity from 23 to 32 Mtpa and eventual pit wall pushbacks to ultimately increase an
Slide 14: Royalty Revenue Growth Potential
ROYALTY REVENUE GROWTH POTENTIAL GUNNISON PROJECT Operator Excelsior Mining Corp. The EPA is currently reviewing the public comments received on the Gunnison project. The Underground Injection Control (“UIC”) permit 1.0% is expected to be issued after the review is Commodity Copper GRR completed. Th
Slide 15: Blue Sky Renewable Royalties
BLUE SKY RENEWABLE ROYALTIES • Blue Sky Renewable Energy Royalties is under development as a co-venture of Great Bay Renewables and Altius • Great Bay Renewables is a proven renewable energy sector investor and developer • Altius expects to be the largest shareholder of Blue Sky while other strategi
Slide 16: Project Generator Business Performance
PROJECT GENERATOR BUSINESS PERFORMANCE Value Creation Through Project Generator Junior Portfolio $50M $33M $22M April 2016 April 2017 March 2018 • 40 Projects converted to junior equity and new royalties since 2016 market bottom • Does not include $10M equity convertible debenture in Champion Iron o
Slide 17: Partner Funded Exploration in 2018
PARTNER FUNDED EXPLORATION IN 2018 17 PROJECTS 40 KM ACTIVE DRILLING IN 2018 $39M – Estimated Partner Funded Drilling for 2018 $10M $3M $3M $3M $3M $3M $3M $3M $2M $2M $2M $1M $1M Lynx Adventus Zinc Avrupa Canex Canstar EMU Evrim New Found Renaissance Renaissance Revelo Sokoman Wolfden 17 (Assorted)
Slide 18: Evrim – The Latest PG Model Case Study
EVRIM – THE LATEST PG MODEL CASE STUDY • High sulphidation epithermal surface gold discovery in Jalisco, Mexico • 100% owned and explored by partner Evrim Resources with Altius retaining 1% base metal NSR and 1.5% precious metal NSR • Altius owns 17% I/O shares or 19.9% fully diluted including warra
Slide 19: Lynx Diamonds – Another Gem in the PG Portfolio
LYNX DIAMONDS – ANOTHER GEM IN THE PG PORTFOLIO • A New Discovery (Northern Manitoba) – 1,693 microdiamonds in the +0.106 mm to +0.850 mm size fraction recovered from 240 kg in 15 samples. • Large Scale Opportunity – >15 km unit up to 200 m wide locally. • Social License – Recently executed agreemen
Slide 20: Thank You!
THANK YOU! PRODUCING ROYALTIES DEVELOPMENT ROYALTIES PROJECT GENERATION PROJECT Flora Wood CONTACT Director, Investor Relations INFORMATION Phone: (416)346-9020 Email: Flora@altiusminerals.com