Altius Minerals Corporation · TSX:ALS
Altius Minerals — Investor Presentation (November 2022)
32 slides from Altius Minerals's investor presentation, November 2022
Slide 1: Celebrating 25 Years
Celebrating 25 Years TSX: ALS | OTCQX: ATUSF November 2022 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: Altius' Royalty Business Model
Altius’ Royalty Business Model Offers Lower-Risk / High-Upside Exposure Royalty Revenue Growth ($M CAD) Top-line revenue exposure to a diversified portfolio of long-life $29 sustainability-focused natural resource projects +40% CAGR Since 2014 $26 $… $23 High corporate EBITDA margins (80%+) $22 $22
Slide 4: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Returns For Shareholders Thematic Global Focus Areas Sustainability Other 11% Potash Potash Electrification Renewable High-Purity 32% Fertilizer Metals Energy Iron Ore High Purity Iron Ore 16% Natural agricultural Copper, Ni
Slide 5: Long-Term Portfolio Tailwinds and Altius Positioning
Long-Term Portfolio Tailwinds and Altius Positioning Potash • Population growth and competing land use driving agricultural yield requirements – compounded “unconstrained” demand growth of 2.7% over last two decades suggests expansion of potash fertilizer market from ~70Mt currently to 85-90Mt by 20
Slide 6: Long-Term Portfolio Tailwinds and Altius Positioning
Long-Term Portfolio Tailwinds and Altius Positioning Electrification Metals • Electrification based metals demand surge approaching as renewables and EV’s adoption curves begin to inflect and drive unprecedented market deficits • Supply replacement and growth has now been disincentivized for more th
Slide 7: Long-Term Portfolio Tailwinds and Altius Positioning
Long-Term Portfolio Tailwinds and Altius Positioning Renewable Energy • Growing market share for electricity within broader energy complex • Emerging as most competitive power generation type - particularly when emissions costs factored Macro Tailwinds • Competing fuel and other general cost inflati
Slide 8: Long-Term Portfolio Tailwinds and Altius Positioning
Long-Term Portfolio Tailwinds and Altius Positioning High-Purity Iron Ore • Decarbonization of steel making recognized as a significant climate change imperative • Blast furnace steel making (coal dependent) attrition underway in favor of electric furnace processes (scrap and/or high purity iron Mac
Slide 9: Project Generation Business
Project Generation Business Royalty Pipeline Growth Differentiator PG Junior Equities Portfolio Performance Exploration & Development Pipeline $43 Net Monetization Objectiv Starting Equities $43 Current Equities e $22 Value ($MM) Value ($MM) Apr 2016 September 2022 PG Junior Equities Portfolio Expos
Slide 10: Emerging PG Royalty Highlight
Emerging PG Royalty Highlight Silicon Gold District Discovery, Nevada 1.5% NSR royalty stems from a regional exploration agreement under which Callinan royalties (now Altius) grubstaked Renaissance (now Orogen Royalties) resulting in the creation of the Silicon project. AngloGold Ashanti (AGA) subse
Slide 11: Capital Structure
Capital Structure Dividend per Share Growth ($C) Capitalization Table1 Issued Common Shares 47.6 million Basic Market Capitalization $1,062 million Cash $35 million PG Equities $47.5 million LIORC (TSX:LIF) Equity $121 million $0.29 Altius Renewables (TSX:ARR) Equity $146 million $0.24 Term Debt $40
Slide 12: Sustainable Business Foundation
Sustainable Business Foundation Long Resource Lives are a Key Predictor of Project Organic Growth Cory 45 M&I: 798 Years + Total: 843 Years Esterhazy 73 M&I: 361 Years + Total: 464 Years Potash Allan 48 M&I: 1099 Years + Total: 1,147 Years Fertilizer Rocanville 29 M&I: 218 years + Total: 247 Years V
Slide 13: Appendix
Appendix TSX: ALS | OTCQX: ATUSF |13
Slide 14: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Returns For Shareholders Thematic Global Focus Areas Sustainability Potash Potash 32% Fertilizer Natural agricultural fertilizer that NAV Breakdown supports (Analyst Consensus) Food Sustainability and Counteracts Deforestati
Slide 15: Potash – Growth Incentivization Underway
Potash – Growth Incentivization Underway Production – Tonnes KCl $1200/st 2022 Production 2025 Target $1000/st $800/st $600/st 18.0Mtpa $400/st 13.0Mtpa $200/st 6.5Mtpa 5.5Mtpa - Jan/20 Jul/20 Jan/21 Jul/21 Jan/22 Jul/22 Nutrien Esterhazy US Cornbelt Granular (USD) US Cornbelt Granular (CAD) TSX: AL
Slide 16: Potash – Constrained Supply and Increasing Demand
Potash – Constrained Supply and Increasing Demand Global MOP Shipments Global potash demand is currently constrained by available supply meaning that soil Mil Tonnes replenishment levels are not being met – this will have negative future crop yield 75 implications 70 65 Crop inventory levels are alr
Slide 17: Potash – Saskatchewan Potash is Becoming More Critical Than Ever
Potash – Saskatchewan Potash is Becoming More Critical Than Ever World Production of Potash (potassium chloride), by country, 2021 (p) Geopolitical based supply destruction from Russia and Belarus creates Ranking Country Tonnes (000s) % of Total market hole – Canada is only alternative supply region
Slide 18: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Returns For Shareholders 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 Re
Slide 19: Chapada and the Saúva Discovery
Chapada and the Saúva Discovery District Scale Potential Emerging Chapada total copper in resources and reserves (all categories) has grown by 48% since our acquisition in 2016 and has never decreased YoY despite 8 years of steady mine production Current mine life assuming no additional resource add
Slide 20: Lithium Royalty Corporation
Lithium Royalty Corporation Altius 12.6% Shareholder Operational Country Project Operator Royalty Grade Cost LOM Status Filing Target Australia Mt Cattlin Allkem A $1.5/t 1.28% 384 8+ Producing FS 2017 Brazil Grota do Cirilo Sigma Lithium 1.0% 1.47% 342 35+ Construction FS 2022 Australia Finniss Cor
Slide 21: Curipamba Update
Curipamba Update Altius 2% NSR and 9.7% Corporate Equity El Domo Project Highlights Investment Stability Agreement approved by Ecuadorian Government in November 2022 TSX: ALS | OTCQX: ATUSF |21
Slide 22: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Returns For Shareholders Thematic Global Focus Areas Sustainability Renewable Energy Wind, solar and storage directly NAV Breakdown enables the (Analyst Consensus) Decarbonization of Power Generation Renewables 17% Thematic
Slide 23: Renewable Energy
Renewable Energy 59% Owner of Altius Renewable Royalties Altius co-founded ARR and is a 59% shareholder. ARR and Apollo hold equal interests in Great Bay Renewables (GBR), a joint venture renewable energy royalty company 59% 50% 50% TSX: ALS | OTCQX: ATUSF |23
Slide 24: Strong Adoption of Royalty Model Continues in Renewables Sector
Strong Adoption of Royalty Model Continues in Renewables Sector GBR Investment Trajectory GBR Total Investments ($USM) New Capital Committed Total Capital Deployed $40 ARR Initial Public $33 Offering $53 Apollo Joint Venture $35 Formed $236 $20 $203 $25 $150 $35 $115 $95 $70 $30 $35 $5 $5 Feb-19 Feb
Slide 25: Portfolio Growth
Portfolio Growth GBR Level Project Royalties Megawatts Under Royalty Growth1 10,000 MW 8,000 MW 6,000 MW 4,000 MW 2,000 MW - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 *Approx. 1,800 MW solar & storage projects under Hodson energy yet to be assigned and 1,500 MW renewable projects under BlueS
Slide 26: Diversity Increasing – Top Tier Royalty Counterparties
Diversity Increasing – Top Tier Royalty Counterparties Diversified Portfolio Royalty Counterparties Scale 100 MW Legend 200 MW Solar Operating & Construction 300 MW Wind In Development 400 MW TSX: ALS | OTCQX: ATUSF |26
Slide 27: Sustainability Based Growth Pillars
Sustainability Based Growth Pillars Enabling Change While Delivering Strong Returns For Shareholders Thematic Global Focus Areas Sustainability High-Purity Iron Ore High Purity Iron Ore 16% Allows infrastructure to be NAV Breakdown built with (Analyst Consensus) Green Steel (Minimize Coal Inputs) Th
Slide 28: Clean Steel Macro-Growth Trend
Clean Steel Macro-Growth Trend The global steelmaking industry’s primary response to increasing decarbonization imperatives is its ongoing rapid transition away from Blast Furnace (BF) plants to Electric Arc Furnace (EAF) plants EAF processes requires high purity metal inputs (DR Pellets + scrap ste
Slide 29: Clean Steel Macro-Growth Trend
Clean Steel Macro-Growth Trend The already underway global transition to EAF steelmaking, as a result of lower emissions-based cost benefits, is structurally driving up relative pricing for high-purity forms of iron ore inputs Altius believes that these trends are deeply structural and (even in an u
Slide 30: Our Labrador Trough District Positioning
Our Labrador Trough District Positioning Producing Development Resource IOC Mine Kami Labrador West Altius has accumulated a Altius holds a direct 3% Gross significant shareholder of Sales Royalty relating to Kami, Labrador Iron Ore Royalty which Champion notes as a Corporation, which serves as a fl
Slide 31: Cyclical Positioning
Cyclical Positioning Weak Capital Investment Backdrop Global Iron Ore Industry Development Capital ($USM) $30,000 5-Year Average: $27.7B/Year $15,000 7-Year Average: $5.7B/Year - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Champion Iron November Investor Update TSX: ALS | OTC
Slide 32: Flora Wood
Producing Project Royalties Generation Development Renewable Energy Royalties Portfolio Flora Wood Director, Investor Relations Phone: (416) 346-9020 Email: flora@altiusminerals.com TSX: ALS | OTCQX: ATUSF |32
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