MINERALS CORPORATION The Beginning of Chapter 2… June 2009.
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Transcript of MINERALS CORPORATION The Beginning of Chapter 2… June 2009.
![Page 1: MINERALS CORPORATION The Beginning of Chapter 2… June 2009.](https://reader030.fdocuments.us/reader030/viewer/2022032806/56649f095503460f94c1dbc5/html5/thumbnails/1.jpg)
MINERALS CORPORATION
The Beginning of Chapter 2…
June 2009
![Page 2: MINERALS CORPORATION The Beginning of Chapter 2… June 2009.](https://reader030.fdocuments.us/reader030/viewer/2022032806/56649f095503460f94c1dbc5/html5/thumbnails/2.jpg)
Issued shares: 28,381,195
Fully Diluted: 29,689,695
Cash: $157 million
Debt: nil
CAPITAL STRUCTURE
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Chapter 1 for Altius…
Altius began early in the last resource bear market (1997-2002) generating exploration projects at low cost
It managed successfully to sell many of these during the bull market from 2003 to 2008 – while often retaining long-term royalties
A royalty creation business
…the 1st Cycle
37% annual share price growth rate through first complete sector cycle
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Voisey’s Bay Royalty
Acquired in 2003 – Long term Ni price assumption of $3.25
Viewed as a long-term investment in a world-class asset
Payback achieved in 2008
25 year revenue stream – low cost producer
Current year revenue estimated at $1.5-2.0 million
No cost continued exposure to exploration and expansion potential
Vale has announced new capital investment in processing infrastructure
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AURORA ENERGY
Co-founded Aurora Energy Resources in 2005 and subsequently grossed$208 million in sale of full equity interest
Retain 2% gross sales royalty on all potential uranium production in Aurora’s Central Mineral Belt project with current M-I-I resources of 130 M lbs
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The beginning of Chapter 2 for Altius…
Current environment is similar to 1997-2002
Major difference is that we are starting this cycle with a large, profit derived, cash position and a well developed project generation business model
Current cash is far in excess of that optimal to the project generation business
Additional contrarian investments in the sector are attractive
Embracing Cyclicity
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Project generation and royalty businesses
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Focus on founding creative, new mineral resource projects
Attract JV financing partners (more than 50 since inception, 14 current)
Co-found independent public spin-out companies around select project initiatives e.g. Aurora, Rambler
Altius has directly invested about $10 million in mineral project generation over 11 years since inception
Third party spending on Altius generated projects in that time exceeds $80 million
Diversified commodity focus
Project Generation Business
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Examples of JV Success in 2008
Taylor Brook - 1.71% Ni, 0.13% Cu, and 0.028% Co over 4.15 meters
Viking - four new zones of high-grade gold mineralization with recent drill holeIntercepts of 218.79 g/t over 0.5 m, & 50.05 g/t over 3.7 m
-2500 m drilling program commencing next month
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A new discovery located in the heart of North America’s most important iron ore mining district
Acquired by staking when the market was gloomy
- K-08-01: 30.10% Fe over 108.50 m-K-08-03: 30.00% Fe over 100.40 m
Nearby Bloom Lake deposit which recently completed project financing and off-take
Project Generation - Kamistiatusset Iron Ore Project
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What’s Next?
Project generation business in excellent position
- competition for projects, people and services is dropping quickly
- great opening now to expand proven model to additional jurisdictions
Cash position creates additional contrarian opportunities to acquire royalty and equity stakes in strong assets
-Initial deal flow indications are strong
Consider Altius as a potential value adding financial partner-www.altiusminerals.com
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MINERALS CORPORATION