TSX: ALS · 2020. 12. 7. · TSX: ALS | OTCQX: ATUSF |4 $3.38 $2.00 $2.50 $3.00 $3.50 $1.24 $0.75...
Transcript of TSX: ALS · 2020. 12. 7. · TSX: ALS | OTCQX: ATUSF |4 $3.38 $2.00 $2.50 $3.00 $3.50 $1.24 $0.75...
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TSX: ALS
Coal to Renewable Power | Clean Steel | Potash | Copper | Lithium | Nickel | Cobalt
D e cember 2 0 2 0
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FORWARD-LOOKING STATEMENT
This document includes certain statements that constitute “forward-looking statements” and “forward-looking information” within themeaning of applicable securities laws (collectively, “forward-lookingstatements”). Forward-looking statements include statementsregarding Altius Minerals Corporation’s (“Altius”) intent, or the beliefsor current expectations of Altius’ officers and directors. Such forward-looking statements are typically identified by words such as “believe”,“anticipate”, “estimate”, “project”, “intend”, “expect”, “may”, “will”,“plan”, “should”, “would”, “contemplate”, “possible”, “attempts”,“seeks” and similar expressions. Forward-looking statements mayrelate to future outlook and anticipated events or results.
By their very nature, forward-looking statements involve numerousassumptions, inherent risks and uncertainties, both general andspecific, and the risk that predictions and other forward-lookingstatements will not prove to be accurate. Do not unduly rely onforward-looking statements, as a number of important factors, manyof which are beyond Altius’ control, could cause actual results to differmaterially from the estimates and intentions expressed in suchforward-looking statements.
Forward-looking statements speak only as of the date thosestatements are made. Except as required by applicable law, Altius doesnot assume any obligation to update, or to publicly announce theresults of any change to, any forward-looking statement containedherein to reflect actual results, future events or developments,changes in assumptions or changes in other factors affecting theforward-looking statements.
Non-IFRS MeasuresAttributable revenue, adjusted EBITDA and adjusted operating cashflow is intended to provide additional information only and do nothave any standardized meaning prescribed under IFRS and should notbe considered in isolation or as a substitute for measures ofperformance prepared in accordance with IFRS. Other companies maycalculate these measures differently. For a reconciliation of thesemeasures to various IFRS measures, please refer to our ManagementDiscussion and Analysis.
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ROYALTIES ONA SUSTAINABLE NATURAL RESOURCEFUTURE
Subsidiary Altius Renewable Royalties Corp. (“ARR”) reinvesting royalties from phasing out coal mines to fund the development of a portfolio of more than 23 GW of new renewable energy projects through royalty financing
Macro-Trend
Fossil Fuel to Renewable Energy Transition
Electrification and Storage
Soil Quality/AgriculturalYield Improvements
Lower EmissionSteel Making
AltiusRoyaltyExposure
Renewables Replacing Coal
Cu, Ni, Li, Co
Natural Potash Fertilizer
Clean Iron Ore Products
Copper, which benefits more than any other metal from EV and renewable energy transitions, represents our largest portfolio component. Royalty exposure to battery metals - Nickel, Lithium and Cobalt is beginning to ramp-up
Altius’s potash fertilizer royalties relate to a portfolio of top-tier Canadian mines that have pre-built capacity expansions as the need for sustainable food production increases
Royalties relate to high iron / low impurity concentrates and pellets that require less metallurgical coal usage in steel making – minimizing pollution and carbonimpacts
Industry leading fundamental business growth from assets that enable the world to meet its sustainability objectives.
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$3.38
$2.00
$2.50
$3.00
$3.50
$1.24
$0.75
$0.85
$0.95
$1.05
$1.15
$1.25
$127
$146
$75
$95
$115
$135
$155
CFR 62%, China CFR 65%, China
PRICE EXPOSURE TO COMMODITIES WITH STRONG FUNDAMENTALSMacro-trend and Infrastructure Spending Catalysts Emerging
Copper Price (US$/lb)
Zinc Price (US$/lb)
Nickel Price (US$/lb)
Nov
2019
Feb May Aug Nov
2020
Nov
2019
Feb May Aug Nov
2020
Nov
2019
Feb May Aug Nov
2020
Potash Price (US$/t)
$210
$235
$260
$285
Granular MOP Corn Belt (ST)
Nov
2019
Feb May Aug Nov
2020
Iron Ore Price (US$/t)
Nov
2019
Feb May Aug Nov
2020
Consensus NAV
Copper 22%
Potash35%
Iron Ore8%
Ni-Zn-Co3%
Renewables and Coal - No
Price Exposure
32%
YTDRoyalty
Revenue
Copper 38%
Potash25%
Iron Ore8%
Ni-Zn-Co6%
Renewables and Coal - No
Price Exposure
23%
$7.43
$5.00
$5.50
$6.00
$6.50
$7.00
$7.50
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3Coal
ROYALTY LIVESUnrivalled Sustainability & Expandability
Weighted to 2019 revenue contribution levels our royalties have a potential weighted average remaining life of more than 120 years.
Mine lives calculated based on current mineral inventory and 2019 throughput. Coal asset lives denote the expected plant closure and not based on mineral inventory. The 2019 revenue weighted average mine life is based on remaining reserves inclusive of MI resources and
throughput capacity.
Reserve Mine Life (Years) M&I Resource Life (Years) Inferred Resource Life (Years)
Chapada
Voisey’sBay
777
Gunnison
Sheerness
Genesee
Cory
Esterhazy
Allan
Rocanville
Vanscoy
25IOC
32
14
1
24 19
2
76
57
33
29
14
15
73
16
7
2
Total: 1,004 Years
Total: 129 Years
Total: 1,744 Years
Total: 1,433 Years
Total:309 Years
Several additional deposits identified.
Replacement: Conversion to long life renewable royalties underway with 940MWof project royalties created thus far.
Iron
Base Metals
Potash
+
+
+
+
+
M&I: 928 Years
M&I: 57 Years
M&I: 928 Years | Inferred: 759 Years
M&I: 528 Years | Inferred: 873 Years
M&I: 194 Years | Inferred: 86 Years
Resource increased by 46% in the past 3 years with several exploration programs ongoing and capcity expansions under stufy.
Higher prices/ Lower cut-off grade potentially creates significant additional resource; Further expolorationpotential.
Replacement: Gunnison; Curipamba development
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PG BUSINESS GROWTHRoyalty Creation at Negative Cost
60 Projects
Converted to new royalties and junior equities since 2016
market bottom
Raised in 2020 by Altius Portfolio
Companies
Altius generates mineral exploration projects for sale in exchange for royalties and equity
positions. This is a proven Equity/Royalty Investment Strategy that allows creation of new
pipeline royalties at negative cost and provides cash for 3rd party royalty acquisitions
Net Investments Net Monetization
April 2016 December 2019 Q3 2020
$33M
-$3M
April 2017
-$6M
December 2018
$0.75M
$54M $54M
$17M
$11M
$22M $46M
Junior Equity Portfolio Growth
>$140M
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ARR DEVELOPMENT PROGRESSACCELERATING
2017 2018 2019 2020
Renewable Royalty
First renewable royalty on small hydro/solar project in VT
CIP acquires Panther Grove wind project from TGE for 2nd embedded royalty – 12/2019
Renewable Royalty
GBR acquired by Altius Minerals (through Altius Renewable Royalties subsidiary) – 2/2019
Formation
GBR makes US$30MM royalty investment in Tri Global Energy (“TGE”) –2/2019
Royalty Investment
Silverpeak acquires Flatland Solar project from TGE for 3rdembedded royalty –3/2020
Renewable Royalty
GBR makes US$35MM+ royalty investment in Apex Clean Energy –3/2020
Royalty Investment
Developed and refined renewable royalty structure and offering (legal, tax, etc.)
FormationGBR formed and begins working on business concept with Altius –Q1 2017
Formation
Up to US$200MM strategic investment into GBR from Apollo Funds – 10/2020
Strategic Investment
Silverpeak acquires Canyon Wind (TX) from TGE for 1st embedded royalty on a TGE project –10/2019
Renewable Royalty
Altius and Apollo JV commits an additional US$25 MM Investment into TGE – 10/2020
Strategic Investment
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|8TSX: ALS | OTCQX: ATUSFTSX: ALS | OTCQX: ATUSF 1Based in AWEA 2019 installed capacity in the U.S.
APEX & TRI GLOBAL ENERGY DEVELOPMENT PORTFOLIO
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RENEWABLE ENERGY SECTOR
ARR Represents First Royalty Level Business Model Within Utility Scale Renewable Energy Sector
Increasing Investor Interest
EV/EBITDA Multiples for Operators Versus Royalty Co’s
6.2x 5.0x
6.6x
13.5x
9.3x 9.7x
19.0x
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5x
10x
15x
20x
25x
Oil & Gas Diversified Precious Metals Renewables
Operator Royalty
?
EV / 2021E EBITDA Multiples for Operators Versus Royalty Co’s(1)
Source: Factset. Market data as of November 10, 2020; (1) Consensus Estimates
TSX Renewable Energy and Clean Technology Index since Covid bottom
Renewables sector emerging as a leader in pandemic recovery.
100
120
140
160
180
200
220
Mar2020
Apr May Jun Jul Aug Sep Oct Nov2020
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Issued Common Shares 41.5 millionFairfax Preferred Securities 10.0 million ($100 million)
Basic Market Capitalization $526 millionAnnual Dividend $0.20 per shareOutstanding Debt $141 million
Cash and Public Equity Holdings† $136 million
Available Under Credit Revolver† $39 million
TSX: ALS | OTCQX: ATUSF
FY 2014 FY 2015 FY 2016 FY 2017 2018 2019
FY 2014 FY 2015 FY 2016 FY 2017 2018 2019
$6M
$3M
$28M
$1M
$33M
$15M
$46M
$26M
$67M
$35M
$78M
$44M
Revenues
Adjusted Operating Cash FlowReturns of Capital
Dividends$3M
2015
Dividends$5M
2016
Share buy back$2M
Share buy back$2M Share buy back
$5M
Share buy back$9M
Dividends$7M
2017
Dividends$7M
2018
Dividends$8M
2019
†Market cap as of Dec 7, 2020. Cash and public equity holdings includes $16 million cash + $74 million LIORC equity value + $46 million project generation equity values, as at Sep 30, 2020.
Capital Structure and Track RecordAltius Minerals Corporation
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THANKYOU
Flora WoodDirector, Investor RelationsPhone: (416) 346-9020Email: [email protected]
Producing Royalties
Development Royalties
Project Generation
RenewableEnergy Portfolio
mailto:[email protected]