Altius ups revenue guidance, stock advances

Prospecting on the Alder Zone at the Wilding Lake gold project in central Newfoundland. Source: Altius Minerals Corp.

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Prospecting on the Alder Zone at the Wilding Lake gold project in central Newfoundland. Source: Altius Minerals Corp.

Altius Minerals Corp. [ALS-TSX; ATUSF-OTCQX] said Wednesday April 17 that it expects to have record attributable royalty revenue of $21.5 million (50 cents a share) for the quarter ended March 31, 2019. That marks an increase of 36% increase from the comparable quarter in 2018, and a 22% jump from revenue reported in the fourth quarter of 2018.

The company also raised its full year revenue guidance to $77 million-$81 million from the previously announced range of $67 million-$72 million. Altius said the revised guidance takes into account strong first quarter results, increased ownership of Labrador Iron Ore Royalty Corp. and improved potash, base metal and iron ore prices

Altius shares advanced on the news, rising 7.15% or 91 cents to $13.63. The shares trade in a 52-week range of $10.04 and $14.80.

Altius directly and indirectly holds diversified royalties and streams that generate revenue from 15 operating mines, located in Canada and Brazil. These operations produce copper, zinc, nickel, cobalt, iron ore, potash and thermal (electrical) and metallurgical coal.

The company also holds a large portfolio of exploration stage projects which it has generated for deal making with industry partners. These projects tend to generate newly created royalties, equity and minority interests.

Altius has recently been linked to gold exploration in central Newfoundland through a 19.9% stake in Antler Gold Corp. [ANTL-TSXV] and its ownership of 9.2 million common shares of Sokoman Minerals Corp. [SIC-TSXV] plus 1,800,000 warrants and a 1.5% NSR royalty on Sokoman’s Moosehead gold project.

Its asset portfolio includes an interest in a copper stream from  the Chapada Mine in Brazil, which Lundin Mining Corp. [LUN-TSX; LUMI-Sweden] has agreed to acquire from  Yamana Gold Inc. YRI-TSX; AUY-NYSE] for US$800 million.

On Wednesday, the company said the first quarter results reflect growth across most commodity segments relative to the prior and comparable year periods. In particular, Altius said Chapada benefitted from strong fourth quarter 2018 production, with the timing of royalty payments having a positive impact on first quarter of 2019. Labrador Iron Ore Royalty Corp. recently declared a dividend of $1.05 a share after three prior quarters of constrained dividend payments.

However, Altius said revenue from the company’s royalty interest in the Voisey’s Bay Mine in Labrador is not yet known and has been excluded from the $21.5 million expected in the first quarter. The Voisey’s Bay royalty is not expected to be material.

Altius recently said the Genesse Ltd. Partnership, of which Altius is the General Partner, has filed a lawsuit against the governments of Alberta and Canada. The lawsuit claims $190 million in damages while describing actions that it feels were tantamount to expropriation of its royalty interest in the Genesee coal mine and power plant in Alberta.

Specifically, the suit alleges and unlawful taking of its property and undue interference with its economic interests.

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