Slide 1: August 2018
AUGUST 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 1997 – 2001 2002 – 2011 2012 – 2015 2016 – Present COMMODITIES ROYALTY REVENUE GROWING FAST AS 40 IPO COMMODITIES SUPERCYCLE BEGINS COMMODITY PRICES RECOVER SUPERCYCLE ENDS Number of Exploration / Royalty Creation Transactions ― Many ― Voisey’s Bay royalty ac
Slide 5: Royalty Revenue Growth Profile
ROYALTY REVENUE GROWTH PROFILE Royalty Revenue (FY2014 – LTM 2018)† Q2‘18 Revenue $16.5M $70M $46M LTM $29M $33M EBITDA Margin 80% $6M FY 2014 FY 2015 FY 2016 FY 2017 LTM 2018 † Altius converted its financial reporting period to calendar year-end in 2017 from its previous fiscal year-end of April 30
Slide 6: Capital Structure and Available Liquidity
CAPITAL STRUCTURE AND AVAILABLE LIQUIDITY ALS:TSX Research Coverage Issued Common Shares 43.2 million Craig Hutchison Fairfax Preferred Securities 10.0 million Basic Market Capitalization $557 million Brian MacArthur Annual Dividend $0.16 per share Outstanding Debt $125 million Orest Wowkodaw Cash a
Slide 7: Credit Refinancing – Upsized and Improved Terms
CREDIT REFINANCING – UPSIZED AND IMPROVED TERMS EXTENSION AND INCREASE OF CREDIT FACILITY (JULY 2018) $250M Revolver $200M (Unused) • Credit facility increased to $225M $5M Revolver (Unused) $100M • Term extended by 5 years to 2023 $150M maturity • More flexibility on covenants $100M Revolver $75M T
Slide 8: Diversified Mining Royalty Focus
DIVERSIFIED MINING ROYALTY FOCUS PRECIOUS METAL MINING MAJORS DIVERSIFIED MINING MAJORS US$75B Market Capitalization US$535B Market Capitalization PRECIOUS METAL ROYALTY COMPANIES DIVERSIFIED ROYALTY COMPANIES US$31B Market Capitalization US$3B Market Capitalization PLENTY OF ROOM FOR GROWTH 8 † Mar
Slide 9: Strong Operators in Safe Jurisdictions
STRONG OPERATORS IN SAFE JURISDICTIONS Rocanville Mine Allan Mine Cory Mine Patience Lake Vanscoy Mine Chapada Mine Commodity Potash Location Saskatchewan, Canada Commodity Copper Location Goias, Brazil Esterhazy Mine Copper 37% 777 Mine Commodity Potash Location Saskatchewan, Canada Commodity Coppe
Slide 10: Commodity Diversification
COMMODITY DIVERSIFICATION Met. Other Coal 5% 4% Iron Ore 9% Copper Zinc 37% 9% Three Months Ended July 31-2017† Commodity Mix Potash 12% Thermal Coal 24% Copper 37% POTASH REVENUES DISPLACING THERMAL COAL AS SECOND HIGHEST CONTRIBUTOR POST POTASH PORTFOLIO ACQUISITION FROM LIBERTY LATE Q1 2018 Other
Slide 11: Long Life Assets = Expansion Optionality
LONG LIFE ASSETS = EXPANSION OPTIONALITY IOC 25 18 20 Total: 62 Years Base Metals Chapada 27 10 2 Total: 37 Years Voisey 15 1 3 Total: 19 Years 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) Coa
Slide 12: Producing Royalty Updates
PRODUCING ROYALTY UPDATES Q2 reporting by Teck included a highlighted announcement that a detailed design study is underway to develop a new mining area within the Cardinal River project area. This was CARDINAL RIVER noted to offer the potential to extend the mine life by 9 years to 2029 at a produc
Slide 13: Producing Royalty Updates
PRODUCING ROYALTY UPDATES Hudbay provided guidance during the quarter that it has pushed back its planned closure 777 date at 777 by a year to late 2021 while also noting that it continues to evaluate options that could lead to further mine life extensions. Nutrien increased its guidance for global
Slide 14: Resource Stage Royalty Updates
RESOURCE STAGE ROYALTY UPDATES GUNNISON PROJECT Operator Excelsior Mining Corp. 1.0% The final required permit (Underground GRR, further Injection Control) was issued during the Commodity Copper option on quarter but remains subject to an appeal additional during the subsequent 30 day appeal 0.5% pe
Slide 15: Project Generator Business Growth
PROJECT GENERATOR BUSINESS GROWTH Value Creation Through Project Generator Junior Portfolio $60M ~$1.40/share $33M PG Portfolio Value $22M April 2016 April 2017 June 2018 • 41 Projects converted to junior equity and new royalties since 2016 market bottom • Does not include $10M equity convertible de
Slide 16: Project Generation Highlights
PROJECT GENERATION HIGHLIGHTS ▪ Copper-gold rich VMS deposit in west- ▪ Recent drilling results from Moosehead ▪ Constantine released the first set of step central Ecuador within the Curipamba Project in Central Newfoundland has out assay results from Palmer Project in project that possesses signifi
Slide 17: 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