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Altius is a natural resource project generation and royalty business based in the province of Newfoundland & Labrador.
Altius is focused on the mining and resources sector through prospect generation, the creation and acquisition of royalties and investments. The Corporation has a strong financial position with approximately $132 million in cash and ~$65 million in liquid investments and no debt. Altius owns an effective 0.3% net smelter return in the producing Voisey’s Bay nickel-copper-cobalt mine located in Labrador, Canada and has numerous active mineral exploration agreements principally in eastern Canada targeting a variety of mineral commodities. In addition, the Corporation holds investments in junior exploration and development stage companies.
The Company prefers to generate partnerships or corporate structures related to the opportunities it generates, which results in the Corporation carrying minority and non-operating project or equity interests and/or royalty interests. Since inception in 1997, our business model and operating philosophy have consistently delivered increased value for shareholders of Altius through cyclical market conditions. The company has built a solid reputation around its percentage of successful mineral project generation initiatives that it intends to further build upon.
While the market sentiment for the natural resources sector was somewhat turbulent in 2009 our Company is well prepared to embrace the opportunities of market volatility and/or a down-cycle. Going forward Altius intends to grow its business through its; 1) organic mineral exploration business focused in eastern Canada, 2) exportation of its proven prospect generator business model to other choice jurisdictions, and 3) to prudently deploy its capital in royalty-like investment opportunities throughout the minerals sector.
Altius prospered through the last bear cycle because its business plan inherently preserves capital structure and manages risk, thus there are many reasons to be optimistic about the future of Altius and its expanding business strategy.
Altius' business model is simple and has been implemented as an effective means of managing risk. It involves a small team of people that conceptualize and innovate mineral resource related opportunities, invest in their initiation and development and, when successful, form businesses or partnerships around these opportunities. The model has worked well by allowing exposure to multiple opportunities while minimizing negative impacts to the capital structure of the company.
Altius commitment to grassroots project generation is stronger than ever with 11 active mineral exploration partnerships covering prospective projects for gold, base metals, nickel, uranium, rare earth elements, and iron ore in eastern Canada. The Company’s exploration business is also expanding its project generation mandate to other prospective jurisdictions outside of eastern Canada. Considering its financial strength and proven business approach, Altius views the challenges that continue to impede the financing of early-stage junior exploration sector has an opportune time for Altius to expand its exploration focus into other prospective jurisdictions.
Although, Altius' financial capability has grown considerably in its 12 years of business it remains committed to managing risk and exercising financial discipline. The general volatility of the industry through 2009 is considered by the Company as cyclical and that it therefore represents a better sectoral investment opportunity than has been available for several years. In response, Altius is reviewing an increasing number of opportunities to prudently deploy its capital.
Financial discipline and protection of capital structure are enduring hallmarks of Altius business plan and serves as the platform for the continued growth. Even after 11 years of business, Altius still has only 28.4 million shares outstanding, yet it has built its financial position to approximately $132 million in cash plus ~ $65 million in liquid investments and no debt. The Company also has a consistent long-term revenue stream from the Vosiey's Bay royalty making it fully financed internally for the next several decades.
Officers, directors and members of the company's Advisory Board hold more than 5 million of the issued shares, providing powerful incentive to those at the helm to continue to enhance the shareholder value of the business. The Company also has an active Normal Course Issuer Bid ("NCIB") or Share Buyback program. The reason for the bid is that when the market price of Altius shares is trading below the fundamental value of Altius, based on anticipated cash flows and underlying asset values, the acquisition of common shares under the bid represents an appropriate use of funds.
| As of January 1, 2010 | |
| *Issued shares: | 28,432,895 |
| Options: | 1,551,500 |
| Fully Diluted: | 29,984,395 |
| Cusip #: | 020936 |