Altius Minerals Corporation

Transcription

1 Altius Minerals Corporation June 2012

2 CAPITAL STRUCTURE Issued shares: 28,759,675 Market Capitalization: $308 million Cash: Market Securities: Debt: $162 million $114 million* nil * Includes interest in majority owned investment company ALS:TSX altiusminerals.com

3 OUR BUSINESS Altius has two co omplementarybusiness lines Mineral exp ploration project generator Royalty c reation and investment t

4 PROJECT GENERATION BUSINESS Continuing core focus on the internal generation of exploration projects Altius has a proven ability to generate mineral exploration projects of merit More than 60 projects have attracted industry funding partners since inception Partner exploration funding exceeds $150 million over that period (vs. ~$15 million directly) 2011/12 4 new property agreements in Labrador West Iron District with Century Iron Mines (TSX:FER) Pending agreement on Snelgrove Lake and a significant exploration alliance in Quebec anticipated Iron ore projects largely dealt to partners and portfolio commodity rebalancing underway

5 PROJECT GENERATION BUSINESS Deal structuring t options til tailored to project, markets kt and partner strengths th Form a partner funded joint venture to retain a minority direct project interest Convert the project interest into a large minority equity stake in a public vehicle Retain a founders royalty in either scenario

6 PROJECT GENERATION B BUSINESS JOINT VENTURE PARTNERS 11 currently active proje ect agreements

7 IRON ORE LABRADOR TROUGH RENAISSANCE North America s dominant iron ore district District participants include: Rio Tinto, Arcelor Mittal, Hebei Steel, Cliffs, Tata Steel, Wuhan Steel, Mitsubishi, China Minmetals Race is on to capture remaining infrastructure capacity Altius began land acquisition strategy 9 years ago Altius is largest landholder

8 KAMI PROJECT Altius is the largest shareholder of Alderon and holds a 3% royalty over the Kami Project. Project Kami iron ore deposit in Canada s Labrador Trough mining district. Location Surrounded by 4 operating mines (Rio Tinto, Cliffs, Arcelor Mittal, Consolidated Thompson) Infrastructure 15 km from a common carrier rail connection to port Port of Sept Isles in the process of expanding to accommodate Mta of iron ore loading on to Cape size vessels

9 12 MONTH HIGHLIGHTS Positive Preliminary Economic Assessment: >40% IRR, >$ 3 billion NPV Total Kami tonnage estimate (all category) now exceeds 1 billion tonnes Environmental Assessment process well underway Canadian Government announced invest tment in a new multi user user port to handle 250, dwt vessels Project finance linked product off take agreement completed with Hebei Steel Group (~400 million in obligations for effective 40% interest

10 Equity Altius is a founder and the largest shareholder of Alderon Iron Ore: 32.3 million shares (~25% %) Other major shareholders include Hebei Iron and Steel Group (~20%) and Liberty Mutual (15%) Royalty Altius discovered, and holds a 3% Gross Sales Royalty over, Alderon s Kami Iron Ore deposit Kami is expected to produce initially at 8 million tonnes of Fe concentrate per year beginning in 2015 with expansion to 16 million tonnes beginning in 2018 At current spot Fe iron prices (~$130/ tonne) this royalty will generate pre tax revenue of more than $30MM/year per 8 million tonnes of production

11 RIO TINTO EARN-IN / OPTION AGREEMENT Discovery hole, October 2011: % Fe 3% GOR RioTinto to earn 70% interest subjec t to a 3% Altius Gross Royalty

12 LABRADOR TROUGH PROJECT

13 Julienne Lake Iron Ore Project

14 ROYALTY BUSINESS For development and producing stage mineral assets Altius prefers royalties Objective To build a royalty portfolio through both project generation and acquisition Strategy Focus on royalties on world class development or production stage assets with proven operators Project generation business is slowly, but sure ly, delivering exceptionally high return royalties. (E.g. Kami royalty scheduled to begin paying in 2015) Seeking to directly acquire existing third party royalties or provide royalty based project financing

15 ROYALTY ACQUISITION VOISEY S BAY ROYALTY Acquired in 2003 payback achieved in 2008 Viewed as a long term investment in a world class asset ~ 25 year revenue stream low cost producer Annual revenue estimated at ~$4.0 million at current production levels and nickel prices Exposure to exploration and expansion potential at zero cost Royalty Revenue ($ millions)

16 Board of Directors John A. Baker Q.C. Chairman John is a senior partner in a leading St. John's law firm and carries on an extensive and diverse mining, securities, and corporate / commercial practice. He has served on numerous public company and volunteer boards and has received several awards for public service. Brian F. Dalton President & CEO A mining industry entrepreneur for more than 20 years, Brian co founded Altius after successfully developing several private mineral exploration and exploration service companies. He is an active member of several industry and community organizations and has received several recognitions for entrepreneurship. Fred Mifflin Director Fred Mifflin is currently a Partner with Blair Franklin Capital Partners in Toronto, an independent financial advisory and investment management firm. Prior to his current position, he was Vice Chairman and Global Head of Investment and Corporate Banking for BMO Nesbitt Burns Inc., responsible for that firm's business in Canada, the United States, Europe and Asia. He also previously led BMO Nesbitt Burns' metals and mining business. Jamie Strauss Director Jamie is currently a Director of mining finance boutique firm, Strauss Partners based in London, England. Jamie has worked as a stockbroker in the City of London for 25 years, specialising in the corporate resource arena, including a term as Managing Director of UK for BMO Capital Markets He has raised in excess of $1 bn in recent years for projects spanning the globe in both the energy and mineral world on behalf of leading institutions in North America, Australia and Europe. Susan Sherk Director Susan is a Senior Human Environment Associate with AMEC Environment and Infrastructure, a division of AMEC Americas Limited, an international project management and services company. Donald J. Warr F.C.A Director Mr. Warr has 35 years experience as a Chartered Accountant and actively practices as a partner with the accountancy firm, Blackwood and Warr.

17 Altius Minerals Corporation T hank kyou