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ALS.TO - Altius Minerals


Guest Dazel

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Alberta announced that all coal plants will be shut off by 2030. This takes a lot of years of some of the coal royalties, especially Gennessee.

 

That's a certainty? It certainly seems ambitious to wean the area off of 55% of it's current power supply over the next 15 years.

 

It was my understanding that the goal was to shut them all down by 2030 unless if there were implementations of carbon capture or other pollution offsetting systems implemented. Some producers, especially those who just build plants in the early 2000s, may find it economical to install such features if it means keeping the plants open for several more years to earn back the investment.

 

I think one of those newer plants is Genessee, correct?

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  • 2 weeks later...

So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

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So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

 

I'm not necessarily thinking it will, but considering a $7 handle is only 2% below the current price I certainly don't put anywhere out in the realm of impossibility. I've been wanting to add but each time I have cash there is something more immediately attractive. I'm just glad the prices have continued to trend downwards because I wouldn't mind adding another 20% or so to my position below $8.

 

 

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So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

 

I'm not necessarily thinking it will, but considering a $7 handle is only 2% below the current price I certainly don't put anywhere out in the realm of impossibility. I've been wanting to add but each time I have cash there is something more immediately attractive. I'm just glad the prices have continued to trend downwards because I wouldn't mind adding another 20% or so to my position below $8.

 

Ah you meant 7.99 with $7, I read as $7.00. It's just hard deciding what to trim (and I recently added my accrued dividends already to Altius in the high $8s). I'm talking ATUSF btw for everyone reading (don't want dividends in CAD).

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careful what you wish for ...

 

I'm not concerned. Altius is one of my largest positions because I sleep at well at night with it regardless of what the share price does. Obviously I wish I had a crystal ball that told me it'd trade below $8 back when I was accumulating at prices between $9-12 2 years ago so I could find something more productive to use the money for, but it is what it is.

 

I increased my position today by 12.5% at $7.80.

 

 

 

 

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So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

 

I'm not necessarily thinking it will, but considering a $7 handle is only 2% below the current price I certainly don't put anywhere out in the realm of impossibility. I've been wanting to add but each time I have cash there is something more immediately attractive. I'm just glad the prices have continued to trend downwards because I wouldn't mind adding another 20% or so to my position below $8.

 

Ah you meant 7.99 with $7, I read as $7.00. It's just hard deciding what to trim (and I recently added my accrued dividends already to Altius in the high $8s). I'm talking ATUSF btw for everyone reading (don't want dividends in CAD).

 

wachtwoord,

 

Isn't ATUSF just a US clearing symbol for TSX:ALS?  In other words, maybe by the time you see the dividend in your US account it is in $USD, but it was paid to your broker in $CAN, and then converted to $USD at the then-current USD/CAN exchange rate, no?  In other words, there is no way to avoid actually getting paid your dividend in $CAN.  Please correct me if I am wrong.

 

 

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So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

 

I'm not necessarily thinking it will, but considering a $7 handle is only 2% below the current price I certainly don't put anywhere out in the realm of impossibility. I've been wanting to add but each time I have cash there is something more immediately attractive. I'm just glad the prices have continued to trend downwards because I wouldn't mind adding another 20% or so to my position below $8.

 

Ah you meant 7.99 with $7, I read as $7.00. It's just hard deciding what to trim (and I recently added my accrued dividends already to Altius in the high $8s). I'm talking ATUSF btw for everyone reading (don't want dividends in CAD).

 

wachtwoord,

 

Isn't ATUSF just a US clearing symbol for TSX:ALS?  In other words, maybe by the time you see the dividend in your US account it is in $USD, but it was paid to your broker in $CAN, and then converted to $USD at the then-current USD/CAN exchange rate, no?  In other words, there is no way to avoid actually getting paid your dividend in $CAN.  Please correct me if I am wrong.

 

Sure, but almost my entire portfolio is in USD and currency conversions cost like 2 euro (I assumed I paid nothing by holding ATUSF?). Altius is becoming such a large part of my portfolio I might sell all my ATUSF at some point and buy ALS.TO.

 

For the record, ATUSF is ALS.TO internally and you can instruct your broker to convert between them but they will charge a fee (I can't find the fee as apparently IB deleted my tickets over a year old).

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So what the heck happened today? Down 5 %

 

Does anyone know?

 

What happened is that I'm looking forward to prices that will hopefully be in the $7 range for USD investors. The debt is covered. Near-term FCF is high along with opportunities to deploy it to grow FCF in the future.

 

Buy, hold, and buy more.

 

Why are you thinking it will go to $7? I'm already greedily thinking how to free up funds to buy more (and I'm pretty overweight on this already).

 

I'm not necessarily thinking it will, but considering a $7 handle is only 2% below the current price I certainly don't put anywhere out in the realm of impossibility. I've been wanting to add but each time I have cash there is something more immediately attractive. I'm just glad the prices have continued to trend downwards because I wouldn't mind adding another 20% or so to my position below $8.

 

Ah you meant 7.99 with $7, I read as $7.00. It's just hard deciding what to trim (and I recently added my accrued dividends already to Altius in the high $8s). I'm talking ATUSF btw for everyone reading (don't want dividends in CAD).

 

wachtwoord,

 

Isn't ATUSF just a US clearing symbol for TSX:ALS?  In other words, maybe by the time you see the dividend in your US account it is in $USD, but it was paid to your broker in $CAN, and then converted to $USD at the then-current USD/CAN exchange rate, no?  In other words, there is no way to avoid actually getting paid your dividend in $CAN.  Please correct me if I am wrong.

 

Sure, but almost my entire portfolio is in USD and currency conversions cost like 2 euro (I assumed I paid nothing by holding ATUSF?). Altius is becoming such a large part of my portfolio I might sell all my ATUSF at some point and buy ALS.TO.

 

For the record, ATUSF is ALS.TO internally and you can instruct your broker to convert between them but they will charge a fee (I can't find the fee as apparently IB deleted my tickets over a year old).

 

Ok, so it sounds like your broker charges you to convert the dividend to USD if you nominally hold ALS.TO whereas they convert it for free (behind the scenes) if you nominally hold ATUSF.  I say “nominally” because it is really the same security booked under 2 different names, as you point out.

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Yes, that is what I believe. I have not been able to find fees anywhere.

 

I significantly increased my position today making Altius my largest holding. I wasn't able to get the fill prices mentioned above as I was at work but I bough @7.97 bringing my cost basis down to $9.37

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$10 million in cash. Cliffs paid $4.9 billion in 2011.

 

That's quite the negative CAGR...

 

Indeed - but it bodes very positively for the types of deals that Altius has available to it in this environment. Very exciting to see what the next 5 years will hold.

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$10 million in cash. Cliffs paid $4.9 billion in 2011.

 

That's quite the negative CAGR...

 

Indeed - but it bodes very positively for the types of deals that Altius has available to it in this environment. Very exciting to see what the next 5 years will hold.

 

Maybe, if commodities don't stay depressed for a decade as they sometimes do (not saying they will--have no idea). ALS stock has been mostly flat for almost a decade, would be a shame if it was for another one... They may not be exposed to capex directly, but their partners are, and they are exposed to commodity prices....

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Hmmm so I've been in this since late 2013 and am down a fair bit. The story from their IR presentation sounds good but this value realisation they speak about did not flow to shareholders, it went to management comp and is tied up in the investments they subsequently made.

 

I suppose you have to believe that they will eliminate the debt quickly $1 in royalties per share vs $1 in debt as per the presentation and ramp up the dividend or make smart investments and the cycle turning again soon so that they can then realise. Not sure about timing on either.

 

Thoughts?

Thanks - C.

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