FORWARD LOOKING STATEMENTS

Transcription

1 JANUARY 2019

2 FORWARD LOOKING STATEMENTS This document includes certain statements that constitute forward looking statements and forward-looking information within the meaning of applicable securities laws (collectively, forward looking statements ). Forwardlooking 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. 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. 2

3 ALTIUS Focus on diversified mining royalties (base metal, bulks and fertilizers) Strong revenue growth record High-quality mines, operators and jurisdictions Longest-life royalty portfolio in sector Counter-cyclical discipline Attractive valuation compared to North American pure royalty companies

4 CAPITAL STRUCTURE AND BALANCE SHEET Issued Common Shares Fairfax Preferred Securities Basic Market Capitalization Annual Dividend Outstanding Debt Cash and Public Equity Holdings ALS:TSX ATUSF: OTCQX 42.8 million 10.0 million $48 million $0.16 per share $115 million $167 million Research Coverage Craig Hutchison Brian MacArthur Orest Wowkodaw TBD Available Under Credit Revolver $100 million Carey MacRury Debt Investments Cash $180M $150M $120M $90M $60M $0M $M F F 2017 Q1- Q2- Q F 2015 F 2016 F Q Q Q Net Debt $41M $11M -$19M -$126M -$46M -$62M -$59M -$52M 4 All dollar figures are in Canadian dollars with market capitalization as of January 11, Altius converted its financial reporting period to calendar year-end in 2017 from its previous fiscal year-end of April 0. Cash and public equity holdings as of December 1, 2018 includes $28 million cash + $54 million junior equities portfolio position + $85 million LIORC position. 4

5 DIVERSIFIED Other 2% Nickel 1% Zinc 7% Met. Coal 5% Iron Ore 9% Thermal Coal 20% 2018 Revenue Mix Copper 5% 2018 Revenue $66.9M Potash 21% A Balance of Base Metals, Bulk Commodities and Fertilizers 5

6 GROWTH Royalty Revenue (FY ) $67M-$72M $67M $47M $6M $28M $M FY 2014 FY 2015 FY 2016 FY Guidance Range LTM EBITDA Margin Royalty Revenue Per Share (FY ) $ % $0.88 $0.8 $1.08 $0.22 FY 2014 FY 2015 FY 2016 FY Strongest revenue growth record in the royalty sector Altius converted its financial reporting period to calendar year-end in 2017 from its previous fiscal year-end of April 0. FY 2017 refers to an 8-month stub period. LTM EBITD margin refers to the 12- months period ending September 0,

7 GROWTH Embedded future royalty growth requires no additional capital investment Rocanville (Nutrien) Voisey s Bay (Vale) Under Construction Gunnison (Excelsior) Vanscoy (Nutrien) Ramping Up Esterhazy (Mosaic) Cardinal River (Teck) Cory (Nutrien) Allan (Nutrien) Kami (Alderon & Hebei) Feasibility Stage Telkwa (Allegiance & Itochu) Chapada (Yamana).. Altius believes that its sector leading growth record can continue 7

8 GROWTH Portfolio of Junior Explorers Provides Additional Long Term Royalty Pipeline Potential $54 Million Project generation portfolio value as at December 1, (~1.27/share) $54M 54 Projects Converted to new royalties and junior equities since 2016 market bottom. $22M $M April 2016 April 2017 December Altius vended 25 properties and completed 7 deals. Does not include $10M equity convertible debenture in Champion Iron, or indirect holdings and in-the-money share purchase warrants. 8

9 QUALITY Rocanville Mine Allan Mine Cory Mine Patience Lake Vanscoy Mine Potash Chapada Mine Saskatchewan, Canada Copper Esterhazy Mine Goiás, Brazil Potash 777 Mine Saskatchewan, Canada Copper, Zinc, Gold & Silver Voisey s Bay Mine Nickel, Copper & Cobalt Newfoundland, Canada Genesee Mine Sheerness Mine Highvale Mine Paintearth Manitoba, Canada Thermal Coal Iron Ore Company of Canada Alberta, Canada Iron Ore (Pellets and Con.) Labrador, Canada Cheviot Mine Metallurgical Coal Alberta, Canada 9

10 Potash Coal Base Metals LONG-LIFE Revenue Weighted Average Mine Life Remaining ~ 0 Years (Reserves Basis) IOC Total: 62 Years Chapada Total: 8 Years Voisey 14 1 Total: 18 Years Reserve Mine Life (Years) M&I Resource Life (Years) 777 Total: Years Inferred Resource Life (Years) Metallurgical (Cheviot) Total: 2 Years Thermal (Various Mines) 9 Vanscoy M&I: 94 Years Inferred: 455 Yrs + Total: 948 Years Cory 72 M&I: 945 Years Inferred: 772 Yrs + Total: 1,788 Years Esterhazy 68 M&I: 52 Years Inferred: N/A + Total: 120 Years Allan 64 M&I: 69 Years Inferred: 1,048 Years + Total: 1,751 Years Rocanville 5 M&I: 204 Years Inferred: 294 Years + Total: 5 Years Mine lives calculated based on current mineral inventory and 2017 throughput. Thermal coal asset lives denote the 2018 weighted average revenue and expected plant closure and not based on Reserves. The 2018 revenue weighted average mine life is based on remaining reserves. 10

11 IPO Number of Exploration / Royalty Creation Transactions COUNTER-CYCLICAL Cyclical discipline exercised in both M&A and organic growth initiatives Present IPO Many exploration projects acquired through downturn Non-dilutive exploration business model developed COMMODITIES SUPERCYCLE BEGINS Voisey s Bay royalty acquired Three successful exploration spin-outs and many JV s resulting in over $200M in monetized profits COMMODITIES SUPERCYCLE ENDS 1 producing royalties acquired as debt crisis hits producers Exploration project portfolio also opportunistically replenished 22 ROYALTY REVENUE GROWING FAST AS COMMODITY PRICES RECOVER IOC royalty added Increased potash royalty ownership Several earlier stage royalties created and acquired 54 project vend-outs and 2 spin-outs completed Royalty Acquisition Altius Interpretation of Mining Cycle 11

12 ATTRACTIVE VALUATION EV/EBITDA (2019E) P/CF (2019E) P/NAV Franco-Nevada Corporation 20.6x Franco-Nevada Corporation 2.7x Royal Gold Inc. 1.8x Wheaton Precious Metals Corp. 16.5x PrairieSky Royalty Ltd. 20.1x Franco-Nevada Corporation 1.6x Osisko Gold Royalties Ltd. 16.x Osisko Gold Royalties Ltd. 19.9x Wheaton Precious Metals Corp. 1.4x Royal Gold Inc. 15.5x Royal Gold Inc. 19.0x PrairieSky Royalty Ltd. 1.2x Sandstorm Gold Ltd. 14.1x Wheaton Precious Metals Corp. 16.5x Osisko Gold Royalties Ltd. 1.1x PrairieSky Royalty Ltd. 14.0x Sandstorm Gold Ltd. 15.6x Sandstorm Gold Ltd. 1.1x Altius Minerals Corporation 11.5x Altius Minerals Corporation 12.1x Altius Minerals Corporation 1.0x Consensus estimates for multiples based on Factset and market close data as of January 11,

13 THANK YOU PRODUCING ROYALTIES DEVELOPMENT ROYALTIES PROJECT GENERATION PROJECT CONTACT INFORMATION Flora Wood Director, Investor Relations Phone: (416)