ALS.TO - Altius Minerals

[linealdin]

Impressive start to 2018 on the project generation front. 24 projects placed in new homes:

 

1) Letter of intent for Sail Pond to New Found Gold.

 

2) 12 Chile copper-gold projects to Aethon Minerals.

 

3) 4 projects placed with Canstar Resources.

 

4) Diamond spinout upcoming.

 

5) Letter of intent for 5 projects to Canex Metals.

 

6) Moosehead Gold option to Sokoman finally closes.

 

*

 

Next up? Somebody's got to take the Voyageur Nickel project. Nickel prices near a 3 year high.

[linealdin]

https://www.asx.com.au/asxpdf/20180503/pdf/43trmzwjpgy1dq.pdf

 

ASX filings indicate CIA has sold 909,108 tonnes of 66% concentrate for total revenue of C$103.9 million. Sales are from April 1st to today, May 3rd.

 

About US$89 per tonne. About what was expected given the usual discounts in the offtake agreements.

[linealdin]

http://aethonminerals.com/news/122490

 

Aethon Minerals begins trading today on the TSX Venture Exchange. Altius controls ~20% of the stock. Their Chilean partners own another 20%.

 

Altius owns an effective 1.5% royalty on all 12 copper-gold properties. The Chilean partners own an effective 0.5% royalty on those properties.

[linealdin]

Altius using its prestige and reputation to open up the equity markets for its junior partners. Altius acting as a lead investor:

 

1) Subscribed for $500K of Canstar's C$1.5 million capital raise.

 

2) Will subscribe for $1 million of New Found Gold's proposed C$7.7 million capital raise.

 

3) Will subscribe for $100K of Canex Metals's C$500K capital raise.

 

4) Subscribed for a million or so of Constantine Metals's C$10 million capital raise.

 

5) Subscribed for C$3 million of Adventus's C$10 million capital raise.

 

*

 

If Altius is on board, then influential capital organizers like Rick Rule and/or John Tognetti are likely also on board. There seems to be some confidence in this burgeoning bull market for resource juniors.

[mugwump]

does altius have more than 20% of labrador iron royalty stock?

http://www.labradorironore.com/News-Releases/Press-Release-Details/2018/Labrador-Iron-Ore-Royalty-Corporation-Adopts-Shareholder-Rights-Plan/default.aspx

[linealdin]

does altius have more than 20% of labrador iron royalty stock?

http://www.labradorironore.com/News-Releases/Press-Release-Details/2018/Labrador-Iron-Ore-Royalty-Corporation-Adopts-Shareholder-Rights-Plan/default.aspx

 

No, just 5%.

[linealdin]

https://www.yamana.com/English/investors/news/news-details/2018/Yamana-Gold-Announces-First-Quarter-2018-Results-Start-Up-at-Cerro-Moro-and-an-Update-on-the-Plan-for-Select-Development-Opportunities-at-Chapada/default.aspx

 

Chapada produces 30.4 million pounds of copper in Q1, about 15% higher than the 26.5 million pounds produced in Q1 2017. The processing plant optimizations of recent years leading to better recoveries.

 

Chapada produced 127 million pounds of copper in 2017. If production in 2018 is just 10% higher we should see around 140 million pounds of copper in 2018.

 

I think the Chapada stream is on track to hit C$20 million in 2018 revenue. Remarkable, considering the purchase price for the Chapada stream was only C$78 million two years ago.

[linealdin]

Yamana also announces its 3 stage expansion plans at Chapada:

 

Phase 1: C$9 million committed to further plant optimizations which should increase copper recoveries by 2%. These optimizations will be commissioned by mid-2019.

 

Phase 2: Feasibility study initiated to increase processing plant capacity from 23 million tonnes up to 32 million tonnes. Target of increasing copper production to 160 million pounds. Target commissioning by late 2022.

 

Phase 3: Getting to the Sucupira mineralization. Target commissioning by 2026.

 

*

 

Takeaway for Altius: Besides the 2% recovery rate improvement to be delivered in 2019 it will be business as usual for the next 4 years or so.

 

Once Yamana commissions the Phase 2 expansion there will be a 300 day proving period running the plant at the higher rate (which will lead to much higher royalties for Altius) then the Chapada expansion rate of 2.65% kicks in, which will cut down the benefits from expansion for Altius.

[mugwump]

linealdin

thanks for the information on labrador

[linealdin]

Aethon trades at 80 cents today. Altius owns 5.488 million shares of Aethon worth C$4.4 million at that level. Another solid addition to the Project Generation equity portfolio.

[linealdin]

http://www.avrupaminerals.com/news/index.php?content_id=286

 

Avrupa announces the beginning of the 2100 meter drill program at the Alvito magnetite IOCG project. It will be 15 holes at 7 different targets in the very large 300 square kilometer property.

 

Drill program will continue for 1.5 to 2 months with assay results by the end of Q2 2018.

 

Alvito is my pick for a discovery surprise. IOCG deposits are usually massive, and Oz Minerals, which is funding the exploration, is an expert on exploring and mining IOCG deposits.

 

Altius holds a 1.5% royalty.

[linealdin]

http://www.reveloresources.com/content/763/RVL_NR04_LoroUpdate_02May2018.pdf

 

It's drill season! Revelo announces the beginning of a 2750 meter drill program at the Loro gold/silver project, funded by Hochschild Mining.

 

12 holes at 8 different locations. Drill program will take 1.5 months.

 

Altius holds an effective 1% royalty on precious metals.

[linealdin]

https://www.yamana.com/English/investors/news/news-details/2018/Yamana-Gold-Announces-First-Quarter-2018-Results-Start-Up-at-Cerro-Moro-and-an-Update-on-the-Plan-for-Select-Development-Opportunities-at-Chapada/default.aspx

 

One more thing on Yamana Gold. This is what is happening with the exploration program at Chapada (which increased reserves & resources significantly with its 2017 program):

 

"The Company continues to advance its exploration program with the objective of identifying higher-grade copper and gold opportunities that are proximal to the Chapada mine, completing infill drilling of the Sucupira and Baru deposits and advancing district scale targets.  Mineralization has been identified along a 15-kilometre trend with numerous prospective areas under consideration for further drilling.  An exploration update relating to this will be included with results for the second quarter of 2018.  Infill drilling in the Baru area is expected to reduce stripping ratios for the Sucupira deposit and drilling on oxide mineralization, such as Hidrotermalito, offers the potential for heap leaching opportunities. Additionally, there are significant near mine sulphide targets that the Company is pursuing to supplement the existing mine plan."

 

I expect 2018 exploration to increase the reserves/resources at Chapada much more than mining activities deplete those reserves/resources. I want at least 30 more years of mine life from Chapada.

[linealdin]

Exploration success in 2017 at Chapada is probably underappreciated. In 2017 Chapada copper reserves (proven & probable) increased by 7% over depletion, while measured & indicated resources increased by 99%.

 

At December 31st proven & probable copper reserves stood at 3,471 million pounds, while measured & indicated copper resources were 1,313 million pounds.

 

Depletion (from mining) was 160 million pounds in 2017. If we can assume that's an average year of depletion then there's 30 years of mine life left (21.7 years from P&P reserves, and 8.2 years from the M&I resources). Taking us through 2047.

 

That's assuming Yamana never adds another pound of copper to reserves or resources at Chapada.

 

30 years of mine life is likely for Chapada. Now the question is whether enough reserves can be found to extend mine life to 40 or 50 years. The next frontier.

 

[linealdin]

http://s1.q4cdn.com/305438552/files/doc_news/general/2018/NRQ18.pdf

 

Hudbay Q1 results. 777 mine production slowing as the mine ages.

 

“Ore mined at 777 declined as ground conditions warranted rehabilitation of headings and a more conservative stope sequence in order to adapt to more challenging operating conditions as the mine ages. Higher 777 unit operating costs were driven by higher mobile and fixed infrastructure maintenance costs and ground rehabilitation work completed in the quarter, together with the impact of lower production.”

 

*

 

http://s1.q4cdn.com/305438552/files/doc_presentations/2018/Hudbay_2018AGMPresentation_May2_FINAL-(1).pdf

 

Hudbay AGM presentation. See slide 10: Three years of mine life remaining at 777 based on reserves. 1 year of mine life based on M&I resources. And 1 more year based on inferred resources.

[linealdin]

https://www.nutrien.com/investors/news-releases/2018-nutriens-first-quarter-2018-impacted-delayed-spring-season-expect

 

https://www.nutrien.com/sites/default/files/2018-05/Nutrien%20Q1%202018%20Presentation.pdf

 

Nutrien Q1 results. News release and presentation. Relevant for Altius:

 

1) Potash sales volume up 11% to 3.1 million tonnes compared to Q1 2017 (combined Potash Corp and Agrium).

 

2) Potash realized sales price up 12% (US$19 per tonne increase) compared to Q1 2017.

 

3) A higher portion of supply produced at Rocanville, the lowest cost facility, compared to Q1 2017.

 

*

 

More Rocanville, higher prices, higher volumes generally. All of this despite a late start to the spring planting season and rail shipping issues. Nutrien expects a stronger Q2.

[linealdin]

http://vocm.com/news/ioc-says-latest-offer-to-workers-compares-well-with-similar-operations/

 

IOC claims their last contract offer was fair. By the last year of the 5 year deal (2022) the average salary would be an astonishing C$142,000.

 

The workers seem kind of spoiled if they're turning down that deal. Not sure there's room for compromise if the worker expectations are that high.

 

 

[linealdin]

https://ceo.ca/@bullmarketmove/the-next-bull-market-move-interview-live-from-london-collin-kettell-ceo-partner-palisade-global-investments-ltd

 

Interview with Collin Kettell, one of the financiers of New Found Gold, which optioned Sail Pond. Altius will be a large shareholder of NFG:

 

"New Found Gold is the second largest landholder in all of Newfoundland and Labrador. We also have a flagship project in Ontario, very much focused on gold exploration on a massive scale. And what that means is we’re not just looking for one million ounce deposits. We’re looking for multiple deposits across trends. And we’re very enthusiastic about the assets that we’ve accumulated in the company over the last couple of years.

 

"Altius Minerals announced last month that they had signed an LOI with New Found that’s going to see us go public with somewhere between seven and a half and ten million dollars in cash. And that’s gonna put us on the path to be the leading vehicle for investors seeking exposure on gold exploration in Newfoundland.

 

"Most people don’t know but Newfoundland’s been one of the few places that’s had a staking rush over the last year and a half. And there’s a lot of companies that have moved into the space. It’s still very fragmented and I think a company that secures a large land position like New Found is gonna be very attractive for investors."

 

*

 

Altius is getting 12 million NFG shares for Sail Pond, and it is kicking in C$1 million into the C$7.5 million to C$10 million financing. The endgame is likely to exit the IPO with a 19.9% position in NFG. ThreeD Capital owns 13.5 million shares of NFG, worth a "fair market value" of 40 cents per share.  Probably what they paid.

 

If the financiers know their business after the IPO there will be roughly 50 million shares priced at 40 cents each. A market cap of C$20 million. Altius will own a ~20% stake worth C$4 million.

[reader]

Lineldin,

 

12 mil shares plus 1mil/0.4=2.5 mil equals 14.5 mil shares

14.5/50=.29

29%

Even better.

 

https://ceo.ca/@bullmarketmove/the-next-bull-market-move-interview-live-from-london-collin-kettell-ceo-partner-palisade-global-investments-ltd

 

Interview with Collin Kettell, one of the financiers of New Found Gold, which optioned Sail Pond. Altius will be a large shareholder of NFG:

 

"New Found Gold is the second largest landholder in all of Newfoundland and Labrador. We also have a flagship project in Ontario, very much focused on gold exploration on a massive scale. And what that means is we’re not just looking for one million ounce deposits. We’re looking for multiple deposits across trends. And we’re very enthusiastic about the assets that we’ve accumulated in the company over the last couple of years.

 

"Altius Minerals announced last month that they had signed an LOI with New Found that’s going to see us go public with somewhere between seven and a half and ten million dollars in cash. And that’s gonna put us on the path to be the leading vehicle for investors seeking exposure on gold exploration in Newfoundland.

 

"Most people don’t know but Newfoundland’s been one of the few places that’s had a staking rush over the last year and a half. And there’s a lot of companies that have moved into the space. It’s still very fragmented and I think a company that secures a large land position like New Found is gonna be very attractive for investors."

 

*

 

Altius is getting 12 million NFG shares for Sail Pond, and it is kicking in C$1 million into the C$7.5 million to C$10 million financing. The endgame is likely to exit the IPO with a 19.9% position in NFG. ThreeD Capital owns 13.5 million shares of NFG, worth a "fair market value" of 40 cents per share.  Probably what they paid.

 

If the financiers know their business after the IPO there will be roughly 50 million shares priced at 40 cents each. A market cap of C$20 million. Altius will own a ~20% stake worth C$4 million.

[linealdin]

There may more private company NFG shares out there than the 13.5 million shares ThreeD owns? There would have to be 72.5 million shares total after the IPO for Altius to stay just under 20%.

 

Something disadvantageous happens when you own more than 19.9% of a venture company. More disclosure requirements? I’m not sure why but Altius has been trying to stay under 20% ownership with most recent deals.

[reader]

You're right, I've looked it up in the rule book of the TSX Venture Exchange.

 

“significant equity interest” means the holding, directly or indirectly and alone or in combination with any other person, of securities: carrying 20 per cent or more of the votes carried by all voting securities; carrying the right to receive 20 per cent or more of any distribution of earnings; and accounting for 20 per cent or more of the total capital or equity of the issuing person"

 

For the purposes of this Rule, the acquisition of, directly or indirectly, or obtaining the ability to exercise control over, a significant equity interest in a Participating Organization shall, in the absence of evidence to the contrary, be deemed to be a change in control of the Participating Organization.

 

 

 

 

There may more private company NFG shares out there than the 13.5 million shares ThreeD owns? There would have to be 72.5 million shares total after the IPO for Altius to stay just under 20%.

 

Something disadvantageous happens when you own more than 19.9% of a venture company. More disclosure requirements? I’m not sure why but Altius has been trying to stay under 20% ownership with most recent deals.

[linealdin]

http://altiusminerals.com/projects/oxford-brook

 

Another project generation deal! Letter of intent signed today for Oxford Brook in New Brunswick. Altius to receive shares and a royalty. Deal will close in a couple of weeks.

[linealdin]

http://antlergold.com/files/PR_20180510_final_with_figures.pdf

 

Antler Gold’s plans for its 2018 exploration program. Soil sampling, mapping, prospecting and rock sampling begins in June. Trenching and drilling to follow in the fall, if warranted.

 

Antler had C$1.3 million in cash at the end of December. Equity raise should happen before the drills start turning again.

[linealdin]

https://www.juniorminingnetwork.com/junior-miner-news/press-releases/551-tsx-venture/wlf/46574-wolfden-announces-additional-drill-results-from-pickett-mtn-maine.html

 

The next round of drill results from Wolfden. Mostly infill drilling, no big hits on the step-out holes. This is going to be a slog.

 

Airborne VTEM geophysical survey has begun and will be completed this month. Searching for regional deposits with same geophysical signature as Mount Pickett.

 

Wolfden at the end of December had a little under C$4 million in cash and short term investments. They are funded for all activities.

 

4500 meters out of planned 10K meter program still to be drilled. Drilling starts again in late May or June.

 

 

[linealdin]

https://www.thetelegram.com/news/local/week-seven-of-strike-at-ioc-in-labrador-west-no-end-in-sight-209763/

 

State of play of the IOC strike. Workers seem quite paranoid: there’s a picket line near the train loading area to make sure no iron ore is being moved. False rumors being spread that IOC staff performing security or maintenance are actually replacement workers.

 

All that cold seems to have addled their brains.