Altius Minerals Corporation · TSX:ALS
Altius Minerals — Global Metals & Mining Conference 2023
34 slides from Altius Minerals's conference presentation, February 2023
Slide 1: Celebrating 25 Years
Celebrating 25 Years TSX: ALS | OTCQX: ATUSF Global Metals & Mining Conference February 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- Forward-looking statements speak only as of the date those statements looking statements” and “forward-looking information” within the are made. Except as required by applicable law, Altius does not assume
Slide 3: Sustainability Based Growth Pillars
Other Sustainability Based Growth Pillars 11% Potash Enabling Change While Delivering Strong Growth For Shareholders High Purity 32% Iron Ore 16% NAV Breakdown (Analyst Consensus) Long-Life Royalty Thematic FocusExposures Areas Renewables 17% Potash Electrification Renewable High-Purity Electrificat
Slide 4: Organic Growth Catalysts
Organic Growth Catalysts Portfolio Hosts Several Potentially Material Forms of Embedded Growth Optionality • Operators currently completing ramp-up and debottlenecking investments with targeted production growth of 38% (Nutrien portfolio) Potash and 18% (Mosaic Esterhazy) over next 1-4 years Royalti
Slide 5: Capital Structure
Capital Structure Dividend per Share Growth ($C) Capitalization Table Issued Common Shares1 47.6 million Basic Market Capitalization1 $1,071 million Cash2 $14.3 million PG Equities3 $50.3 million LIORC (TSX:LIF) Equity1 $128 million $0.29 Altius Renewables (TSX:ARR) Equity1 $161 million $0.24 Term D
Slide 6: Royalty Assets
Royalty Assets TSX: ALS | OTCQX: ATUSF |6
Slide 7: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Potash Fertilizer Thematic Global Focus Areas Sustainability Potash Potash 32% Fertilizer Natural agricultural fertilizer that NAV Breakdown supports (Analyst Consensus) Food Sustainability and Counteracts Deforestation Thematic Focus Areas TSX: ALS | OTCQX: ATUSF
Slide 8: Our Potash Royalty Mines – Increasingly Essential to the World
Our Potash Royalty Mines – Increasingly Essential to the World Global Potash Requirements Global potash demand reached ~70Mt in 2021 , an increase of 30Mt (+70%) over the Actual and Forecasted Potash Demand Projected Potash Demand 160 past 20 years, on increasing population and agricultural yield re
Slide 9: Fertilizer Demand Growth Fundamentals
Fertilizer Demand Growth Fundamentals Since 1960: • Population has increased by more than 150% (from 3 to 8 billion) and is projected to reach more than 10 billion later this century • Total agricultural land has increased by less than 20% • The increased global food requirement has been met by dram
Slide 10: Resources Allows For Multiple Future Production Expansions
Resources Allows For Multiple Future Production Expansions Altius Royalty Portfolio Mines Reserves Resources Reserves Average Measured Indicated Resources Total Average Grade Inferred Mine Proven Probable Mine Total Grade (Mt) (Mt) (Mt) K 2O (Mt) (Mt) (Mt) (Mt) K 2O (%) (%) Rocanville 2,017 1,575 3,
Slide 11: Potash Portfolio Production Growth Trend
Potash Portfolio Production Growth Trend Altius Upside Scenario – Long-Term Hold of Global Market Share Case Most analyst valuations (consensus ~ C$380 million) assume our portfolio volumes will be maintained at a steady state level on a Portfolio Production Rate History and Future Growth Assumption
Slide 12: Potash Price Growth Trend
Potash Price Growth Trend Current Prices Likely Over-Corrected - Do Not Incentivize Sufficient Supply to Meet Demand Growth Consensus analyst consensus price decks for potash indicate a decline over next few years and then forecast long term prices on a flat basis at these lower levels In our opinio
Slide 13: Past Expansions Relative to Pricing
Past Expansions Relative to Pricing Practical Confirmation of Incentive Pricing Estimates TSX: ALS | OTCQX: ATUSF |13
Slide 14: Potash Price Growth Trend
Potash Price Growth Trend Royalties Benefit From Price Increases without Share of Underlying Cost Inflation Price inflation trends provide material long-term upside to Altius’s multi-cycle royalty revenue profile and, in the 2.5% LT price growth scenario, TSX: ALS | OTCQX: ATUSF |14 would result in
Slide 15: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Electrification Metals Thematic Global Focus Areas Sustainability Electrification Metals Copper, Nickel, Lithium and Cobalt NAV Breakdown are critical to (Analyst Consensus) enabling Electrified Transport and Power Grid Rejuvenation Electrification Metals 23% Them
Slide 16: Copper Supply – Incentivization Hurdle Moving Higher
Copper Supply – Incentivization Hurdle Moving Higher You Get What You Pay For… Incentive Cu price inflating at average ~ 6% CAGR over past 20 years (vs ~2.5% average CPI inflation) Theoretical copper growth investment incentive price modeled using average industry $5.00 $5.00 capital intensity and o
Slide 17: Chapada & Sauva
Chapada & Sauva 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 Chapada mine expansion studies underway Contained Copper Resource & Reserve1 (Mlbs) Chapada Reserve Chapad
Slide 18: Chapada & Sauva
Chapada & Sauva Production Growth Potential Maiden resource estimate for new Saúva discovery published in early 2023 of 1.27 billion pounds of contained copper in Indica ted resources; deposit remains open to further expansion and a 55,000m drilling program underway. Indicated resource copper grade
Slide 19: Altius Lithium Royalty Interests
Altius Lithium Royalty Interests Direct Royalties + LRC 11.4% Equity (Before expected IPO based equity dilution) Altius ownership 11.4% + direct interests in three Operator LRC Royalty Name Country Type Product Stage Allkem A$1.5/t treated Mt. Cattlin Australia Hard Rock Spodumene Production royalti
Slide 20: Altius Lithium Royalty Interests
Altius Lithium Royalty Interests Flagship royalties have seen strong resource growth and planned production rate increases since time of acquisition Acquired using conservative production outlooks and pricing – resulting in very strong implied subsequent IRR and NAV accretion Robust near-term royalt
Slide 21: Voisey's Bay Nickel – Copper – Cobalt
Voisey’s Bay Nickel – Copper – Cobalt Recent exploration results confirm potential to further extend mine life Mine currently transitioning from the open pit Ovoid mine to the underground Reid Brook and Eastern Deeps mines Currently published mine plan indicates a remaining life of approximately 11
Slide 22: Curipamba Copper – Zinc – Gold
Curipamba Copper – Zinc – Gold 2% NSR Royalty & 9.7% Shareholder in Adventus Open-Pit NSR Breakdown1,2 Underground NSR Breakdown1,2,3 Silver Silver 7% 4% Altius holds a 2% NSR royalty relating to the Curipamba project and is also a Zinc Zinc significant shareholder of Adventus Mining 15% 16% Copper
Slide 23: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Renewable Energy Thematic Global Focus Areas Sustainability Renewable Energy Wind, solar and storage directly NAV Breakdown enables the (Analyst Consensus) Decarbonization of Power Generation Renewables 17% Thematic Focus Areas TSX: ALS | OTCQX: ATUSF |23
Slide 24: Renewable Energy
Renewable Energy 58% Owner of Altius Renewable Energy Altius co-founded ARR and is a 58% shareholder. ARR and Apollo hold equal interests in Great Bay Renewables (GBR), a joint venture renewable energy royalty company 58% 50% 50% TSX: ALS | OTCQX: ATUSF |24
Slide 25: Strong Adoption of Royalty Model Continues in Renewables Sector
Strong Adoption of Royalty Model Continues in Renewables Sector GBR Investment Trajectory GBR Total Investments ($USM) New Capital Committed Total Capital Deployed ARR $18 Initial Public $46 Offering $40 Apollo Joint $33 Venture Formed $53 $322 $35 $276 $236 $20 $203 $25 $150 $35 $95 $115 $70 $30 $3
Slide 26: Portfolio Growth
Portfolio Growth GBR Level Project Royalties Megawatts Subject to Royalty1 GBR Joint Venture achieved first positive cash flow in 2022 10,000 MW Robust royalty revenue build up expected from 8,000 MW existing investments 6,000 MW Sector adoption of GBR royalty financing increasing and deal originati
Slide 27: Portfolio Diversity – Top Tier Royalty Counterparties
Portfolio Diversity – Top Tier Royalty Counterparties Exposure to Expansive Development Portfolios Royalty Counterparties Power Offtake Customers Include: Scale 100 MW Legend 200 MW Solar Operating & Construction 300 MW Wind In Development 400 MW TSX: ALS | OTCQX: ATUSF |27
Slide 28: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars High Purity Iron Ore Thematic Global Focus Areas Sustainability High-Purity High Iron Ore Purity Iron Ore 16% Allows infrastructure to be NAV Breakdown built with (Analyst Consensus) Green Steel (Minimize Coal Inputs) Thematic Focus Areas TSX: ALS | OTCQX: ATUSF |
Slide 29: Clean Steel Macro-Growth Trend
Clean Steel Macro-Growth Trend The global transition to EAF steelmaking, as a result of lower emissions-based benefits, is occurring much faster than is widely recognized with significant capital investment occurring to support shift of manufacturing infrastructure base Limited visibility on where r
Slide 30: Weak Iron Ore Capital Investment Backdrop
Weak Iron Ore Capital Investment Backdrop High-Purity Supply Growth Lagging Future Demand Requirements Global Iron Ore Industry Development Capital ($USM) Vast majority of this investment wave supported production growth of lower purity iron ore types and resulted in a global average grade decline $
Slide 31: 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) significant shareholder of Sales Royalty relating to Kami, Labrador Iron Ore Royalty which Champion notes as
Slide 32: Project Generation Business
Project Generation Business Royalty Pipeline Growth Differentiator PG Junior Equities Portfolio Performance Exploration & Development Pipeline $40 Net Monetization Objectiv Current Equities Starting Equities $50 Value ($MM) e $22 Value ($MM) Apr 2016 December 2022 PG Junior Equities Portfolio Exposu
Slide 33: Emerging PG Royalty Highlight
Emerging PG Royalty Highlight Silicon Gold District Discovery, Nevada North Bullfrog (NBF) Upgraded and expanded resources announced by Anglogold Ashanti (Feb 22, 2023) for MAVERICK & the Silicon l deposit of 3.4 Moz gold Indicated (121.56 @ 0.87 g/t) plus 0.81 Moz Inferred FRYING PAN TARGETS (36 Mt
Slide 34: Flora Wood
Producing Project Royalties Generation Development Renewable Energy Royalties Portfolio Flora Wood Vice President, Investor Relations & Sustainability Phone: (416) 346-9020 Email: flora@altiusminerals.com TSX: ALS | OTCQX: ATUSF |34
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