minerals corporation the beginning of chapter 2… june 2009
TRANSCRIPT
MINERALS CORPORATION
The Beginning of Chapter 2…
June 2009
Issued shares: 28,381,195
Fully Diluted: 29,689,695
Cash: $157 million
Debt: nil
CAPITAL STRUCTURE
Chapter 1 for Altius…
Altius began early in the last resource bear market (1997-2002) generating exploration projects at low cost
It managed successfully to sell many of these during the bull market from 2003 to 2008 – while often retaining long-term royalties
A royalty creation business
…the 1st Cycle
37% annual share price growth rate through first complete sector cycle
Voisey’s Bay Royalty
Acquired in 2003 – Long term Ni price assumption of $3.25
Viewed as a long-term investment in a world-class asset
Payback achieved in 2008
25 year revenue stream – low cost producer
Current year revenue estimated at $1.5-2.0 million
No cost continued exposure to exploration and expansion potential
Vale has announced new capital investment in processing infrastructure
AURORA ENERGY
Co-founded Aurora Energy Resources in 2005 and subsequently grossed$208 million in sale of full equity interest
Retain 2% gross sales royalty on all potential uranium production in Aurora’s Central Mineral Belt project with current M-I-I resources of 130 M lbs
The beginning of Chapter 2 for Altius…
Current environment is similar to 1997-2002
Major difference is that we are starting this cycle with a large, profit derived, cash position and a well developed project generation business model
Current cash is far in excess of that optimal to the project generation business
Additional contrarian investments in the sector are attractive
Embracing Cyclicity
Project generation and royalty businesses
Focus on founding creative, new mineral resource projects
Attract JV financing partners (more than 50 since inception, 14 current)
Co-found independent public spin-out companies around select project initiatives e.g. Aurora, Rambler
Altius has directly invested about $10 million in mineral project generation over 11 years since inception
Third party spending on Altius generated projects in that time exceeds $80 million
Diversified commodity focus
Project Generation Business
Examples of JV Success in 2008
Taylor Brook - 1.71% Ni, 0.13% Cu, and 0.028% Co over 4.15 meters
Viking - four new zones of high-grade gold mineralization with recent drill holeIntercepts of 218.79 g/t over 0.5 m, & 50.05 g/t over 3.7 m
-2500 m drilling program commencing next month
A new discovery located in the heart of North America’s most important iron ore mining district
Acquired by staking when the market was gloomy
- K-08-01: 30.10% Fe over 108.50 m-K-08-03: 30.00% Fe over 100.40 m
Nearby Bloom Lake deposit which recently completed project financing and off-take
Project Generation - Kamistiatusset Iron Ore Project
What’s Next?
Project generation business in excellent position
- competition for projects, people and services is dropping quickly
- great opening now to expand proven model to additional jurisdictions
Cash position creates additional contrarian opportunities to acquire royalty and equity stakes in strong assets
-Initial deal flow indications are strong
Consider Altius as a potential value adding financial partner-www.altiusminerals.com
MINERALS CORPORATION