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Altius Minerals
Pay <$1 for $1 liquid NAV
No credit for two developing royalties
Pay nothing for massive upside potential $2.5 mm in after tax royalty payments in 2013
$2.5mm - $3 mm/year at current prices G&A $2mm-$3mm/year
Royalty acquisition & investment The best business is a royalty on the growth of others requiring little capital itself.
~Warren Buffett, 1978 Berkshire annual report
When it works
Mineral & project location
Uranium - Central Labrador Copper/gold - central Newfoundland (Ming Mine)
Partner
Aurora Energy Rambler Metals
ALS cost
$650,000 $600,000 $2 million
Downside protection
$150 mm cash/treasurys ($5.33/share) $110 mm securities ($3.90) $8.4 mm Voiseys Bay Royalty ($0.30)
$2-3mm/year royalties at $6 lb. nickel
Cumulative revenues ~$25 mm Est. mine life ~2036 Royalty covers all future expansion/development at zero extra cost Cash flow covers Altius G&A
Capital structure
28,854,364 fully diluted shares
NCIB 1,406,207
Started 4/2/2013 Expires 4/1/2014
Hebei Says Iron Ore to Recover to $140 on Higher Chinese Output We can see there will be no shortages Ironore prices are not going to go crazy high.
~Tian Zejun, president of Hebeis international trading unit
Wait til it trades below NAV, then buy it then wait some more. Thank you. dferris@stansberryresearch.com