Altius Minerals Corporation · TSX:ALS
Altius Minerals — Merger or Acquisition (March 2018)
9 slides from Altius Minerals's merger presentation, March 2018
Slide 1: Liberty Potash Royalty Portfolio Acquisition
Liberty Potash Royalty Portfolio Acquisition March 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 A
Slide 3: Transaction Overview
Transaction Overview • Altius Minerals Corporation (“Altius”) together with a private third party has agreed to purchase from Liberty Metals & Mining Holdings, LLC a 44.9% interest in Potash Royalty LP (“Potash Royalties” or “PRLP”) for cash consideration of $75 million. Altius’ proportional share o
Slide 4: Counter-Cyclical Acquisition – Potash Prices Still Well Below Mid-Cycle
Counter-Cyclical Acquisition – Potash Prices Still Well Below Mid-Cycle 1997-2001: 2002-2011: 2012-2015: 2016-Present: Many exploration Commodities supercycle Commodities Royalty revenue growing projects acquired Three successful spin-outs and many supercycle ends fast as commodity prices and PG bus
Slide 5: Pro-Forma Revenue Breakdown by Commodity
Pro-Forma Revenue Breakdown by Commodity 2018E Revenue (Previous Guidance) 2018E Revenue (Pro Forma) Other Other 2.0% 1.8% Met Coal Met Coal 5.1% 4.7% Iron Ore Iron Ore 12.0% 11.1% Base Metals Base Metals 45.5% Potash 49.3% 12.5% Potash 19.2% Thermal Coal 19.1% Thermal Coal 17.7% Potash royalty reve
Slide 6: Global Potash Production Royalty Exposure
Global Potash Production Royalty Exposure Other Saskatchewan Mines Global Non- Saskatchewan Mines Mines within the Potash Royalties Portfolio The six mines in this portfolio made up >30% of Global Potash Production in 2017 Source: IFA, Company Reports 6
Slide 7: Royalty Volume Growth Potential
Royalty Volume Growth Potential Well positioned to capture share of strong global demand growth following more than $9 billion in recent capital expansions Expansion Nameplate Capacity (Mtpa) Production Mine Announcement Pre- Post- Completion Date 2017 Date Expansion Expansion Esterhazy May 2009 Dec
Slide 8: Royalty Volume Growth Potential
Royalty Volume Growth Potential • Global potash demand has grown at 4% CAGR (+11Mt) over the past 5 years and 2.7% CAGR over the past 15 years Global Potash Consumption 70MT KCI • Recent expansions mean that production volumes at the mines we hold royalties on can increase by 95% before embedded 60M
Slide 9: Potash Price Growth Potential
Potash Price Growth Potential 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 dramatically t