FORWARD LOOKING STATEMENTS

Transcription

1 FORWARD LOOKING STATEMENTS This document includes certain statements that constitute forward looking statements and forward looking information within the meaning of applicable securitiess laws (collectively, forward looking statements ). Forward looking statements include statements regarding Altius Minerals Corporation s ( Altius ) intent, or the beliefs or current expectations of Altius officers and directors. Such forward looking statements are typically identified by words such as believe, anticipate, estimate, project, intend, expect, may, will, plan, should, would, contemplate, possible, attempts, seeks and similar expressions. Forward looking statements may relate to future outlook and anticipated events or results. By their very nature, forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward looking statements will not prove to be accurate. Do not unduly rely on forward looking statements, as a number of important factors, many of which are beyond Altius control, could cause actual results to differ materially from the estimates and intentions expressed in such forward looking statements. These factors include, but are not limited to the inability to obtain approval of the proposed plan of arrangement by the court and the other regulatory approvals and the occurrence of any other event, change or other circumstance that could give rise to the termination of the Arrangement Agreement, or the delay of consummation of the transaction or failure to complete the arrangement for any other reason. Forward looking statements speak only as of the date those statements are made. Except as required by applicable law, Altius does not assume any obligation to update, or to publicly announce the results of any change to, any forward looking statement contained herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward looking statements. 1

2 GROWING A DIVERSIFIED MINING ROYALTY COMPANY January 2015

3 ROYALTY LEVEL INVESTMENT IN THE PRECIOUS METAL SECTOR (US$bn) Precious Metals Market Capitalizations Top 5 Mine ers $55 To p 5 Royalty y / Strea am Compan nies $21 +15bn since % of Top 5 Miner Value Investors in the Precious Metals sector have now fully embraced the royalty business model as an alternative to operating level companies 3

4 DIVERSIFIED MINING LACKS A ROYALTY LEADER (US$bn) Diversified Mining Market Capitalizations p 5 Miners $327 Top 5 Royalty / Stream Companies To <$2bn 0.5% of Top 5 Miner Value The Diversified Mining royalty sector is dramatically under developed 4

5 ALTIUS IS WELL POSITIONED TO CAPTURE THE OPPORTUNITY Altius royalty portfolio beginning to emulate operating- anies level portfolios of major Diversified Mining compa Nickel, Copper and Cobalt 10% Met Coal 7% Other 4% Altius 1 Electrical Coal 58% Cyclically-seasoned team with a successful long-term royalty growth record Potash 21% Diversity it by Commodity Iron Ore 49% Strong royalty base built from which to grow additional diversity and scale Other Diamonds 2% Minerals 6% 3% Rio Tinto 2 Gold 1% Coal 8% Bauxite & Alumina 5% Aluminium 17% Copper 9% (1) Attributable table to Altius; LTM as of December 31, 2013 (2) Rio Tinto Chartbook 2014 Focused on a goal of becoming a leading Diversified Mining royalty company 5

6 PRODUCTION ROYALTY PORTFOLIO 12 producing mine royalties 6 commodities Voisey's Bay 10% Mine Revenue Diversity Other 9% Paintearth 19% Reserve based average mine life of 39 years Rocanville 8% Esterhazy 8% Genesee 22% Highly expandable mines Cardinal River 7% Sheerness 17% Low jurisdictional risk All investment grade counterparties All royalties (no streams)

7 WORLD CLASS ROYALTY PLATFORM MINE Voisey s Bay Genesee RESOURCE BASED POTENTIAL LIFE COUNTERPARTIES Paintearth 11 Sheerness Highvale Cardinal River Rocanville Cory Allan Patience Lake Esterhazy Vanscoy n.a Canadian operator margins strengthening with falling oil and currency prices 7

8 GROWTH STRATEGY Existing Roya alty Expansions Royalty Acquisition and Investment Created Royalties Focused on a goal of becoming a leading Diversified Mining royalty company

9 GROWING A DIVERSIFIED MINING ROYALTY COMPANY Shares Outstanding: 32.4 million Enterprise Value (Jan. 23): ~$474 million 17 year share price CAGR: 27% 3,275% 182% 374% Cyclically opportunistic Focused on long term growth per share 9

10 EXPANSION GROWTH POTENTIAL FROM CURRENT ROYALTIES Unusually long resource lives (165 year weighted avera age) underscore brownfield expandability of mines Royalties not subject to capital cost of expansions but full beneficiaries of growth Potash mines nearing completion of a wave of multi b illion dollar capacity expansions Carbon capture technology evolving quickly with potential to expand regulatory based lives of electrical coal mines Voisey s Bay underground expansion approved 25.0Potash Mine Expansions 21.4 ty (Mtpa KCl) Capacit % 5.0 SaskPower s Boundary Dam Project World s first commercial scale carbon capture coal power generation facility 0.0 Capacity Capacity Post Expansion 10

11 GROWTH THROUGH DISCIPLINED ROYALTY ACQUISITION Direct Royalty Acquisitions Voisey s Bay royalty in 2003 for $13 million ($29.4 million in royalties collected since 2006 start up) Sherritt 11 royalty portfolio in 2013/2014 for $240 million (~9x trailing royalty revenue) Current market conditions favorable for further acc cretive acquisitions 40x 37x Enterprise e Value / LTM EBITDA 35x 30x 25x 20x 15x 10x 5x 30x 21x 14x (1) Average: 23x 11x 9x 0x IRC (Dec 2009) Battle Mountain (Mar 2007) Premier Royalty (Aug 2013) Gold Wheaton (Dec 2010) Silverstone Sherritt PMRL (Mar 2009) Royalties (Dec 2013) 11

12 STRATEGIC ROYALTY INVESTING GROWTH RECORD Indirect Royalty Investments Altius sometimes identifies attractive royalties within other public companies that are deemed to be worth more than the market value of the public com mpanies themselves It then selectively invests in the companies for investment and/or potential future strategic purposes Company Royalty Time Horizon Purchase Cost Sales / Market Value Gain / Loss $ Gain / Loss % Labrador Iron Ore IOC $15.1 IRC various $38.1 Callinan $6.4 Virginia Eleonore $23.5 Totals (C$M) $83.1 $17.9 $2.7 18% $67.5 $ % $5.1* ($1.3) (20%) $46.1* $ % $136.6 $ % * As of Jan 20,

13 CONTRARIAN PROJECT GENERATION / ROYA ALTY CREATION Altius invests in generating early stage exploration projects (most aggressively in down-cycles) It then sells, options or spins out the successful projects (most aggressively in up-cycles) While structuring and retaining royalties 13

14 ROYALTY CREATION 10 YEAR PERFORMANCEE Altius Investment: $1 16M Profits: $220M Partner Funding: $290M Highly profitable business resulting in negative cost royalty creation Cumulative Altius Investments: Cash Realizations: Retained Equities: Cumulative Pre tax Returns: $16 million $223 million $13 million $236 million $350,000,000 $300,000,000 $250,000, $200,000,000 $150,000,000 $100,000,000 $50,000,000 Cumulative Partner Investments In Created Royalty Projects Profits: ROIC: $220 million 1,375% ROIC $

15 ROYALTIES CREATED PROJECT OPERATOR ROYALTY STATUS COMMODITY Kami Julienne Lake Alderon/HBIS 3% Gross Development Iron Chinesee SOE TBD Mine Pre feasibility Iron partners Gate Royalty Chile Projects (15) CDP Prospex 1% BM/2% PM Exploration Various various Exploration to Production Copper and Gold Potash and Coal CMB Lab West Projects (4) Snelgrove Lab/Quebec Alliances Schefferville/Grenvil le/ Menihek Natashquan Alaska Projects (6) Paladin 2% Gross Pre feasibility Uranium Rio Tinto 3% Gross Resource Definition Mamba a 3% Gross Discovery Iron Virginia/Osisk various Exploration Ni PGM, Au, Cu Zn a Century/Wisc 1 4% Sliding Discovery Iron o Anglo American Millrockand JV partners Iron 2% NSR Exploration Ni PGM 1% BM/2% PM Exploration Copper and Gold Exploration and development stage royalty portfolio provides negative risk growth potential 15

16 CYCLICAL OPPORTUNITY Mining sector bear market is now 4 years deep, resulting in attractive asset prices Junior mining market has lost ¾ of its value since 2011 Competition for mineral lands has become very low We are busily assembling strategic land positions in both Canada and Chile TSV-V 16

17 INVESTMENT SUMMARY Altius offers investors commodity and asset diversification from long life, world class royalty assets as well as a proven growth strategy Solid Base of Diversified Royalties 12 producing royalties spanning 6 commodities Expanding mines with total resource life (revenue weighted) of 165 years Low jurisdictional risk All royalties (no streams) and interest in land rather than contractual All investment grade counterparties Track Record of Growth Share price has grown at an average of more than 27% compounded annually since inception in 1997 Royalty revenue has grown by 10 times over the past year Recognized for contrarian discipline and value accretion in royalty creation and acquisition Royalty creation business is generating many exploration and development stage royalties and has delivered ancillary profits of more than C$270 million thus far Focused on a goal of becoming a leading Diversified Mining royalty company Thank You 17