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ALS.TO - Altius Minerals

Guest Dazel

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nostradamus Newbie

nostradamus

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http://www.vocm.com/newsarticle.asp?mn=2&id=27964&latest=1

 

Shareholders in one of the province's most successful companies were told at their annual meeting yesterday that the company is expanding into South America.

Altius Minerals of St. John's is in a strong financial position with approximately 162-million dollars in cash and nearly 300-million dollars in total assets.

It's their 15th anniversary, and president and CEO Brian Dalton told shareholders the company will be expanding its operations into Chile. He says they have a deal with Zeus Capital of Santiago, and plan to do business in a big way.

Dalton says they are also still focused on Newfoundland and Labrador, especially the Julienne Lake iron ore deposit. Altius controls the extensions of that deposit.

Altius has eleven active mineral exploration partnerships, many of them with some of the major players in the mining industry.

 

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Guest Dazel

Guest Dazel

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http://www.theglobeandmail.com/globe-investor/franco-nevada-to-buy-weyburn-oil-stake-for-400-million/article5008775/

 

 

Royalty companies will go where the value of cash streams are...Franco touted as a precious metals royalty shows here that they will buy where there is value.

 

That is why we continue to think Altius and it's assets are attractive to all royalty companies precious metals or not. When cash is cheap for some companies (royalty) they will spend it on assets that trade at discounts...as they should.

 

Dazel.

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hohi Newbie

hohi

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Soon the deadline for Julienne Lake development proposals is over. I know that Altius wanted to bid (together with a partner) as they own the property with the deposits extensions. Could  bring a positive surprise if we are successful with our bid. That deposits hosts 1 Bt+ @ 34% Fe + everything we own in the extension...

 

Further info can be found here:

http://www.nr.gov.nl.ca/nr/mines/Julienne/index.html

 

cheers

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Guest Dazel

Guest Dazel

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http://beforeitsnews.com/press-releases/2012/11/century-iron-mines-announces-filing-of-second-fiscal-quarter-financial-results-reporting-a-gain-of-approximately-53-5-million-on-deemed-disposal-of-a-subsidiary-2608764.html

 

 

Century has booked a $53m gain on a sale of a subsidiary...in the release above they say they have sold 80% of the Astray property they acquired from Altius. Allthough they claim 100% ownership they have not acquired the asset yet because they have not spent the $7m on exploration... So technically, Altius still owns it...there has to be some sort of negotiation going on...we think....

 

We will look into it... For two reasons obviously, Altius' end and what the $53m gain is from...it would put a figure on Altius project values...certainly the $53 m cannot be from the one Astray property.

 

Dazel.

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nostradamus Newbie

nostradamus

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Any views from the board on whether the following news is a net positive or negative for the development of the Rocky Brook and Topsails uranium properties of Altius?

 

JNR Announces Agreement to be Acquired by Denison Mines Corp

http://www.jnrresources.com/s/NewsReleases.asp?ReportID=557372&_Type=News-Releases&_Title=JNR-Announces-Agreement-to-be-Acquired-by-Denison-Mines-Corp.

 

On the positive side Denison seems to have a greater capacity to fund future exploration. However, the Chairman of Denison gives the main reason for the acquisition of JNR as the advancement of its goal to become the preeminent exploration company in the Athabasca Basin (in Saskatchewan). So is there a risk that they simply mothball the Altius properties (in Newfoundland)?

 

N.

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Guest Dazel

Guest Dazel

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The fact there is some action on jnr is positive. Denison is a company in much better shape.

 

Commodities and any company involved in them have been hit by the fiscal cliff scare...China etc.

 

Those that are smart will pick up good assets for great prices right now.

 

Dazel.

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ItsAValueTrap Newbie

ItsAValueTrap

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The quarterly MD&As of juniors are definitely worth reading as they often make important disclosures in them.  Normally I don't advocate reading quarterly reports as it is too short-term focused but I would advocate skimming the MD&A for information regarding the development of a junior's deposit.  Selwyn Resources for example disclosed that its feasibility study was a failure in its MD&A; it did not disclose that in a press release until much later on.

 

As for the feasibility study on the Kami Property, we had been expecting, as indicated in prior MD&A’s, to

complete this study during the third quarter of 2012 and to release the final results during the fourth quarter of

2012. However, while the progress of the study itself has continued to advance, certain engineering studies and

optimization analyses within the overall feasibility initiative are taking more time to conduct and finalize than we

had originally anticipated. The results still may be released during the fourth quarter, but in any event, the results

of the feasibility study will be released prior to January 31, 2013.

 

In some cases, juniors will delay and delay the release of feasibility studies if the project is not remotely economic.  I don't think it is the case here as Alderon's partner likely did their due diligence and the feasibility study will likely be heavily manipulated anyways (if Consolidated Thompson is any indication).

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hohi Newbie

hohi

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how much they have left in their buyback program?

 

Hi alertmeipp!

 

As I understand it their buyback program is open-ended and automated. A broker is repurchasing in their name so that they can repurchase at all times - even before some important news is going to be posted.

 

Here's a link to the original news from ALS website:

http://altiusminerals.com/press-releases/view/259

 

cheers,

hohi

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nostradamus Newbie

nostradamus

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Obviously there is the potential for some signficant near-term newsflow that could have a positve effect on the stock price (eg Kami feasibility study and subsequent funding, Julienne lake proposal).

 

But another thing that had dropped off my radar was their NLRC interest. This is clearly less significant than the above, but may not be immaterial. From the altius website:

 

On November 20, 2009 the Court accepted an NLRC proposal to the creditors for a project care and maintenance plan for up to 36 months and dismissed all further requests for creditor's claim adjustments for voting purposes. NLRC continues to seek qualified interested parties for the potential purchase of its refinery project and associated permits

 

So the creditor standstill ends around now. Looking back at their annual reports it seems that Altius have a $30m secured loan to NLRC on the books at zero. From their 2008 report:

 

In December 2007, the Corporation loaned $30,093,000 in the form of a convertible demand loan to NLRC. The non-interest bearing demand loan is secured by the assets of NLRC and is convertible at the Corporation’s option into 1,440,000 shares of NLRC. NLRC used the funds to make a milestone payment to IJK consortium regarding the purchase of steel and manufacture of heavy wall vessels, which are considered long-lead time items required for the proposed oil refinery project.

 

Does anyone on the board have any more information on this that might help work out how much Altius could get back? Or whether NLRC are likely to apply for a further extension of the creditor protection?

 

N.

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beerbaron Newbie

beerbaron

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Obviously there is the potential for some signficant near-term newsflow that could have a positve effect on the stock price (eg Kami feasibility study and subsequent funding, Julienne lake proposal).

 

But another thing that had dropped off my radar was their NLRC interest. This is clearly less significant than the above, but may not be immaterial. From the altius website:

 

On November 20, 2009 the Court accepted an NLRC proposal to the creditors for a project care and maintenance plan for up to 36 months and dismissed all further requests for creditor's claim adjustments for voting purposes. NLRC continues to seek qualified interested parties for the potential purchase of its refinery project and associated permits

 

So the creditor standstill ends around now. Looking back at their annual reports it seems that Altius have a $30m secured loan to NLRC on the books at zero. From their 2008 report:

 

In December 2007, the Corporation loaned $30,093,000 in the form of a convertible demand loan to NLRC. The non-interest bearing demand loan is secured by the assets of NLRC and is convertible at the Corporation’s option into 1,440,000 shares of NLRC. NLRC used the funds to make a milestone payment to IJK consortium regarding the purchase of steel and manufacture of heavy wall vessels, which are considered long-lead time items required for the proposed oil refinery project.

 

Does anyone on the board have any more information on this that might help work out how much Altius could get back? Or whether NLRC are likely to apply for a further extension of the creditor protection?

 

N.

 

Here is the update I got from Chad about 2 months ago:

 

Sorry for the tardy reply.  NLRC remains in creditor protection and as per our quarterly MDnA filings on pg 9 - http://altiusminerals.com/uploads/fs_1331242067.pdf

 

 

“…NLRC

 

The Corporation currently holds a 39.6% equity interest in NLRC, a private company that has earned permitting rights to and proposed the construction of a new 300,000 barrel per day crude oil refinery at Southern Head, Placentia Bay, Newfoundland and Labrador, Canada. NLRC is currently operating under a creditor standstill period with a mandate to sell its assets or complete financing of the project.

 

NLRC continues to seek out a strategic partner or buyer for the refinery project. Efforts of late have focused mainly on Asian based state owned interests.”

 

There have been a lot of legal challenges in the structure of the Legal Claim filed by SNC and as such the Claim is yet to be heard by the Court and probably never will as it will die due to lack of credence.

 

No news because there has been little to report and at this stage of the Claim it is essentially immaterial from an Altius perspective.

 

If you like to better understand please feel free to call me at 1.877.576.2209.

 

Regards,

Chad

 

BeerBaron

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