Jump to content

ALS.TO - Altius Minerals


Guest Dazel

Recommended Posts

 

 

Alderon closed at $4.05 today a 52 week high...market cap is now $286m.

for those that bought it...congrats...I know some of you sligh investors did.

 

as for the Altius shareholders..this was on the 2009 books at $1.3m!!!!!! The former Thompson

consolidated invstors have spent $10m on drilling I believe...not a bad return already!

 

Dazel.

Link to comment
Share on other sites

  • Replies 7.5k
  • Created
  • Last Reply

Top Posters In This Topic

Thanks Dazel, I just bough about a 5% position in Altius. I believe it's the first time I buy a stock recommended on this board (except FFH & BRK) and it's also my first time buying commodities.

 

I bough it as a jockey stock. I see it as a closed end fund selling at par value.

 

BeerBaron

Link to comment
Share on other sites

  • 2 weeks later...

I have investigated this company and I am very impressed so far. It was very interesting to follow Paul Van Eeden's comments on this company over the years (through internet resources):

- Dalton seems to be very good at timing commodities - his uranium projects in 2003. Iron ore today etc...

- He has diversified his land holdings into all kinds of commodities - energy - rare earth metals - uranium - nickel included among others. So that his ability to unlock value at the right moment is already supported by the existing properties and prospects.

- He is very risk averse and sells some of his holdings early into cash and converts some into royalties also. He did it over and over again.

- There has already been around 4 bonanza projects already where Altius converted hundreds of thousands of dollars or a few millions into 10s to 100s of millions in short periods of time (sometimes below 10 months!). Absolutely amazing.

 

About Alderon: They aim to delineate a 600 to 800 MT resource in Q1 2011 (already has 500MT). Results are beyond expectations so far. If we take a conservative 100$/T price for the iron ore and the 3% royalty, estimating it can get financing for 16 MT/year (800MT in 50 years), the royalty stream will be 48 M$ per year. That for more than 40 years is worth above 1B$ of present value. Coupled with the equity stake, Altius gain may have a 2B$ value (Consolidated Thomson has a market cap close to 4B$ with a little above 800MT of resources and is upgrading to 16MT production by 2013). Off course we need to be very conservative but I DO understand Dazel's excitement very very well now.

 

Milrock seems to be doing pretty well too. There are also many other iron ore projects and they got Rio Tinto on one of them.

 

It really does look like a gem and it still looks pretty cheap. Plus no debt, gobs of cash and a risk averse management in a risk averse business model. I also believe that Paul van Eeden will bring additional contacts and will do additional prospect generation for Altius.

Link to comment
Share on other sites

 

"Dazel, have you been able to put your hands on the feasibility study for the oil refinery?"

 

I have the NLRC at 0 in my analysis...even though I think a liquidation would bring something. So I have not gone into it too much. Dalton says that no one has been able to argue that the numbers do not work....It is designed for diesel fuel and is intended to be shipped to Europe...from what I recall.

 

If there is anything positive that comes out of NLRC..Altius shares will sky rocket..I am not counting on that which is why I call it a call option and price it as out of the money right now.

 

Dazel.

Link to comment
Share on other sites

Guest Dazel

 

I expect quarterly results out on or before March 17th...should explain a lot to the public.

 

Also expect Alderon to release their reserve measurement anytime as well....

 

I would like Altius to give some comment  to their other potential projects and where they are...but obviously they are busy with NLRC and Alderon right now...this info is very public.

 

Of special interest to us is St. Georges Potash and the Oil shale's in New Brunswick...we think these are unknown to the public...in this environment we think this could generate a lot of partnership interest.

 

Dazel.

Link to comment
Share on other sites

Dazel,

 

Of special interest to us is St. Georges Potash and the Oil shale's in New Brunswick...we think these are unknown to the public...in this environment we think this could generate a lot of partnership interest.

 

What do you think about the uranium projects (Notakwanon and Boxey Point for example)?

Link to comment
Share on other sites

Guest Dazel

 

 

All I know about their uranium holdings is what they did with their last uranium project...that produced a $200m plus gain and a 3 % sales royalty (not started yet). Uranium and all of their projects are now in play with the global oil and commodity boom. I am not qualified to know what they are worth otrher than to compare similar resources close to where they are. It seems that Potash and Oil are in vogue and when that happens their is financing money to be had...that follows the Altius model...that is where I would be focusing...however, these guys are way smarter than me with regards to resources and I get that for free..so I will wait.

 

Shareholders might be interested in the New millineum capital story...Tata steel has agreed to finance their Labrador project...Their market cap is $680m...for about the same amount of Iron ore...that Alderon says they have (estimate should be out soon)..the Tata project is further ahead but Alderon thinks they can raise their estimate of iron ore with 2011 drilling that has been successful so far...

 

Dazel.

Link to comment
Share on other sites

Shareholders might be interested in the New millineum capital story...Tata steel has agreed to finance their Labrador project...Their market cap is $680m...for about the same amount of Iron ore...that Alderon says they have (estimate should be out soon)..the Tata project is further ahead but Alderon thinks they can raise their estimate of iron ore with 2011 drilling that has been successful so far...

 

Dazel.

 

Yeah I heard about it on my drive from work, pretty good news. Maybe you could shed some light in terms on deposit concentration are both mines comparable? What about distribution, I heard Tata plans to make a 300km pipeline, would the equivalent be needed for Alderon? So if I understand correctly Alderon is 1 year behind New Millenium?

 

BeerBaron

 

 

Link to comment
Share on other sites

Paul van Eeden has invested in Miranda Gold a prospect generator in gold projects for the joint venture with Altius (2260761 Ontario Incorporated)

I believe he is also involved with Evrim Metals and I would not be surprised if he bought shares also. Looking at Evrim, they have lots of Gold/Silver projects.

 

MIRANDA GOLD CORP. ("MAD")

BULLETIN TYPE:  Private Placement-Non-Brokered

BULLETIN DATE:  October 29, 2010

TSX Venture Tier 2 Company

 

TSX Venture Exchange has accepted for filing documentation with respect to a Non-Brokered Private Placement announced September 27, 2010:

 

 

Number of Shares:  1,000,000 shares 

     

Purchase Price:  $0.50 per share 

     

Warrants:  1,000,000 share purchase warrants to purchase 1,000,000 shares 

     

Warrant Exercise Price:  $0.75 for a two year period 

     

Number of Placees:  1 placee 

     

Insider / Pro Group Participation: 

 

  Insider=Y / 

Name  ProGroup=P    # of Shares 

2260761 Ontario Incorporated (Paul van Eeden)  Y  1,000,000 

 

Pursuant to Corporate Finance Policy 4.1, Section 1.11(d), the Company must issue a news release announcing the closing of the private placement and setting out the expiry dates of the hold period(s). The Company must also issue a news release if the private placement does not close promptly. Note that in certain circumstances the Exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.

 

 

Link to comment
Share on other sites

Guest Dazel

"Yeah I heard about it on my drive from work, pretty good news. Maybe you could shed some light in terms on deposit concentration are both mines comparable? What about distribution, I heard Tata plans to make a 300km pipeline, would the equivalent be needed for Alderon? So if I understand correctly Alderon is 1 year behind New Millenium?"

 

BeerBaron,

 

I will wait until Alderon's  national 43-101 resource estimate is out...which should be any day..

here is the link to what they are expecting which would be larger in size than The New Millineum project...with the 2011 drilling included.

 

http://alderonmining.com/_resources/news/2011-02-03-NewsRelease.pdf

 

I will look at grades etc when the 43-101 is out. We think this will be a catalyst for both Alderon and Altius...because the brokergae houses will be all over them to raise funds and get the fees from the offering and debt or linking a partnership like the one talked about above with Tata steel...and therefore it will bring more coverage to both stocks. In Altius case bring "some" coverage..there is not one analyst covering it!

 

Dazel.

 

Link to comment
Share on other sites

Dazel,

 

This is a good find. I have also taken a position in Altius.

 

I kept doing more research on 'Prospect generators'. I came across this file that compares various prospect generators from the website of Altius. But the trouble is it is dated. Did you do any work in looking at the other such companies, like Almaden (which is also praised by Rick Rule)? can share any other ideas on Prospect generator companies?

 

 

Link to comment
Share on other sites

Guest Dazel

 

Alderon and Millrock were two of the 3 top picks on BNN yesterday....

 

funny that people look at the Altius subs and it is "never" mentioned anywhere. Someday.

 

Dazel.

Link to comment
Share on other sites

Guest Dazel

 

Trades....3.85...2.80..2.39..3.63...

 

obviously a trading error..wish I was paying attention.

current $3.55

 

Dazel.

Link to comment
Share on other sites

The price action on Alderon was definitely strange.  I guess they decided to cancel all trades below $2.80?  I also couldnt find any explanation concerning the nature of the "trading error."  When this happened to Accenture, P&G, etc. last year, I never fully understood what the exchanges did to "fix" the problem.  On the surface this seems similar, but on a smaller scale.  Hopefully, there will be some kind of clarification...

 

Also, thought I would post another general article on the iron-ore area:

http://www.financialpost.com/news/Iron+cusp+Canada/4400000/story.html

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...