Altius Minerals Corporation · TSX:ALS
Altius Minerals — Q2 2018 Earnings Presentation
11 slides from Altius Minerals's earnings presentation, Aug 9, 2018
Slide 1: 2nd Quarter 2018 Financial Results
2nd QUARTER 2018 FINANCIAL RESULTS August 9th, 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: Overview of Q2 2018
OVERVIEW OF Q2 2018 $16.5M $15.8M $15.1M • Royalty revenue of $16.5M ($0.38 per share) and EBITDA of $13M $12.6M $12.7M $13.0M ($0.29 per share) for the quarter • Royalty revenues and EBITDA continue to grow in comparison to the prior 3-month period and year-ago quarter ended July 31, 2017 • First f
Slide 4: Royalty Revenue Mix
ROYALTY REVENUE MIX • Recent potash portfolio acquisition has resulted in potash revenues displacing thermal coal as second highest contributor • Iron ore contribution lower due to ~9 week IOC strike ROYALTY REVENUE BY COMMODITY Other 2% Met. Coal Met. Other Iron Coal 4% Ore 5% 4% 5% Iron Ore Zinc 9
Slide 5: Highlights – Revenue Growth From Commodity Price Appreciation & Production Gains
HIGHLIGHTS – REVENUE GROWTH FROM COMMODITY PRICE APPRECIATION & PRODUCTION GAINS • Chapada volumes have increased period over period offset by some production declines in copper at 777. • Our exposure to copper continues to grow with substantial price increases over the three months ended July 2017;
Slide 6: Borrowing & Liquidity
BORROWING & LIQUIDITY • Acquired investments of $15.1 million ($5.1 million additional Alderon, $7 million Lithium Royalty Corp.) during the six months ended June 30, 2018. • Refinanced long-term debt and revolving facility with improved interest rates and added flexibility; effective cash interest
Slide 7: Credit Refinancing (July 2018) – Upsized and Improved Terms
CREDIT REFINANCING (JULY 2018) – UPSIZED AND IMPROVED TERMS EXTENSION AND INCREASE OF CREDIT FACILITY • Credit facility increased to $225M • Term extended by 5 years to 2023 maturity • More flexibility on covenants • Locked in the interest rate on 80% of our current debt $250M $200M Revolver (Unused
Slide 8: Commodity Price Sensitivity
COMMODITY PRICE SENSITIVITY • Various mine production volumes which are moderately seasonal • Base metal and bulk commodity prices Average Prices (1) Price EBITDA Commodity Price Leverage (June 30, 2018) (+/- 10%) (∆ per year) Copper US$3.11/lb $0.31 $1.7M Zinc US$1.41/lb $0.14 $0.5M Potash $329/ton
Slide 9: Junior Portfolio Value Delivers Optionality
JUNIOR PORTFOLIO VALUE DELIVERS OPTIONALITY Value Creation Through Project Generator Junior Portfolio $60M ~$1.40/share $44M $33M PG Portfolio Value $22M April 2016 April 2017 December 2017 June 2018 • 41 Projects converted to junior equity and new royalties since 2016 market bottom • Does not inclu
Slide 10: Outlook
OUTLOOK ▪ Revenue guidance of $64 – $69 million unchanged ▪ Increased copper production expected at Chapada for H2-18 with grade improvements as guided in Yamana's Q2-2018 report: “expect to exceed guidance of 120M lbs” ▪ Operations back to normal at IOC, allowing for resumption of special dividends
Slide 11: Non-IFRS Measures
NON-IFRS MEASURES Attributable revenue and adjusted EBITDA is intended to provide additional information only and do not have any standardized meaning prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Othe