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ALS.TO - Altius Minerals


Guest Dazel

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have also increased my position. Mr. Market is going crazy.

 

I'll meet you when it is below 10$

 

 

Just wondering, who is selling ???

 

IMHO  Speculators that bought when commodities were hot a few weeks ago are selling indiscriminately now. 

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Guest Dazel

 

 

Prices today were as low as when the tsunami hit Japan. To put that in perspective...the dow was 800 points lower...on the mass nuclear and radiation scare.

 

Dazel.

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Guest Dazel

 

thanks for noticing us getting our ass handed to us!!! We sold almost everything after the tsumani rebound so Altius is our only real position...as always added too early!!

 

We do not run a fund..it is our money...across several accounts so not sure what the percentage is...

 

Dazel.

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Not directly about Altius, but about another producer near Labrador:

 

http://www.cbc.ca/news/business/story/2011/05/20/arcelotmittal-steel-quebec.html

 

International steel conglomerate ArcelorMittal will invest $2.1 billion to expand its iron ore facilities in Mont-Wright, Quebec.

 

The facility, near the town of Fermont, will be upgraded to be able to produce 24 million tonnes of iron ore concentrate by 2013 — a major upgrade over the 14 million tonnes currently produced.

 

The company is also considering upgrades at a facility in Port Cartier. The expansion will create 8,000 construction jobs during the process, and 900 permanent ones once the upgrade is completed, the Luxembourg based steel titan said Friday.

 

Soaring global demand for the raw materials that allow economic expansion has caused a rush of investment in the commodities sector in recent months and years. ArcelorMittal, which has operations in more than 60 countries, has committed to hike its iron ore production to 100 million tonnes by 2015 to keep up with demand.

 

The world's largest steel producer, ArcelorMittal acquired most of its Canadian assets during the last round of consolidation in the steel industry in 2006. Among other holdings, they also own the former Dofasco steel-making facilities in Hamilton, Ont.

 

Earlier this year, the company took over Baffinland Iron Mines Corp. and its massive iron ore development in Mary River, about 160 kilometres south of Pond Inlet, Nunavut.

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  • 2 weeks later...
Guest Dazel

 

For those shareholders of Altius....

sleep tight....you own Candian resources in New Foundland and Labrador. Where the government is friendly and your CEO and resident entrepreneur is from there...

They are the largest holder of mining permits in the province and work closely with the government. We have not gotten any respect from the market for our political safety and "Canadian assets and cash equivalents" but we will.

 

www.nr.gov.nl.ca/nr/mineralstrategy/submissions/Altius.pdf

 

We made money a small amount of money on TRE on their $11 equity raise...but passed on all the high flyers with respect to China. We hope there is no fraud there of course for all involved.

 

But we chose the slow turtle like road of Altius. With an embedded margin of safety. We sleep well with our cash hoard and we expect a "Canadian premium" at some point in the future.

 

Dazel.

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http://www.dailymarkets.com/stock/2011/06/06/cliffs-provides-outlook/

 

 

Here are the economics of the Consolidated Thompson mine from Cliffs Natural resource for 2011 and 2012. You can see why they bought it!

 

Sorry for the overload of info but it shows what Alderon could become...if it grows up like it's neighbour.

 

Dazel. 

 

 

 

So it seems like ALDERON RESOURCE (ALDFF, ADV.V) at current price is a better choice than Altius.

 

 

 

 

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http://www.dailymarkets.com/stock/2011/06/06/cliffs-provides-outlook/

 

 

Here are the economics of the Consolidated Thompson mine from Cliffs Natural resource for 2011 and 2012. You can see why they bought it!

 

Sorry for the overload of info but it shows what Alderon could become...if it grows up like it's neighbour.

 

Dazel.  

 

 

 

So it seems like ALDERON RESOURCE (ALDFF, ADV.V) at current price is a better choice than Altius.

 

 

 

 

 

But it's way riskier because it doesn't have a huge cash balance and its success is dependent on one currently undeveloped body of ore.  Altius has Alderon upside (including the royalty) and many other assets that support its value.  If Alderon doesn't work out for some reason a current investor would lose way less if they only owned Altius.

 

I should add that Dazel did a way better job explaining this earlier in this thread (about why he's buying Altius, not Alderon).

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Guest Dazel

 

 

I am pretty sure that it expires in Oct 2012...as per latest financial report...of course I would love to

see something happen sooner rather than later there. I will check it.

 

Dazel.

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Guest Dazel

 

 

NLRC does expire Oct 2011....sorry for the brain cramp...as I have said I value it at 0...it does act as a out of the money call option because if there is any new positive development it would be extremely positive frot he company. As we all know Brian Dalton has worked very hard here hopeflly he can pull something off...we know from the finacial reports that they are negotiating with "china and state interests" these parties would not be alone in my opinion...likley they would partner with a major refiner...and they could do one off trades on refined oil in other parts of the world that are closer to China.

This is speculation on our part.

 

Dazel.

 

 

 

 

 

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NLRC does expire Oct 2011....sorry for the brain cramp...as I have said I value it at 0...it does act as a out of the money call option because if there is any new positive development it would be extremely positive frot he company. As we all know Brian Dalton has worked very hard here hopeflly he can pull something off...we know from the finacial reports that they are negotiating with "china and state interests" these parties would not be alone in my opinion...likley they would partner with a major refiner...and they could do one off trades on refined oil in other parts of the world that are closer to China.

This is speculation on our part.

 

Dazel.

 

 

 

 

 

 

Everybody makes mistakes but the fact that Altius invested so much money in this one doesn't make you raise some questions on how they approach certain types of investments?

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Guest Dazel

 

Goldfinger.....at the time the market was pricing in a huge equity component (for nlrc) to their valuations on NLRC alone. They were

partnered with the who's who of the european investment community in the biggest private equity financings of alltime. Yes, I would say they got caught up and then caught by the financial crisis. The truth is if that did not happen we would have never got involved in Altius.. as we would not have invested in that valuation or anything close to it.

That is why 0.

If anything the process scared the crap out of them...they could have deployed way more capital as they were loaded with cash in 2009. They were aggressive in IRC and the buy back but conservative by holding lots of cash. They have no debt which to us may be "too conservative"...we would not be upset to see them issues long term debt at these rates and buy back another 10% of the float. Why? it's the best investment they could make right now. so the long answer is no I am not worried...if anything they are too conservative here. I would assume they would be in a quiet period before earnigs in the next couple of weeks. But I would expect buy backs if we are trading at these levels at that point.

 

Altius is the only secured creditor of NLRC so they were not that stupid...they get paid first...I do not know if there is any cash left at NLRC...but I am assuming their is some...Altius should get it...if nothing happens...the entire invesment has been written off to 0...so any money recovered would be a bonus.

 

 

 

If Brian Dalton can put something together even with SNC Lavalin..it would be extremely positive and the market values the whole company at less than it's cash and liquid investments right now  so it really would be something if he could pull it off.

like we said an "out of the money" call option.

Dazel

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