tsx: als · 2020. 12. 7. · tsx: als | otcqx: atusf |4 $3.38 $2.00 $2.50 $3.00 $3.50 $1.24 $0.75...

|2TSX: ALS | OTCQX: ATUSFTSX: ALS | OTCQX: ATUSF

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.


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.


$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


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



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

|6TSX: ALS | OTCQX: ATUSF

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


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

|8TSX: ALS | OTCQX: ATUSFTSX: ALS | OTCQX: ATUSF 1Based in AWEA 2019 installed capacity in the U.S.

APEX & TRI GLOBAL ENERGY DEVELOPMENT PORTFOLIO

3

|9TSX: ALS | OTCQX: ATUSF

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

-

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


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


THANKYOU

Flora WoodDirector, Investor RelationsPhone: (416) 346-9020Email: [email protected]

Producing Royalties

Development Royalties

Project Generation

RenewableEnergy Portfolio
mailto:[email protected]

tsx: als · 2020. 12. 7. · tsx: als | otcqx: atusf |4 $3.38 $2.00 $2.50 $3.00 $3.50 $1.24 $0.75...

Documents