Altius remains committed to managing risk and exercising financial discipline. Altius continues to seek out royalty acquisition and/or royalty financing opportunities to augment its current portfolio and take advantage of the counter cyclical nature of the business to generate significant shareholder value through opportunistic acquisitions in the Company's exploration and project generation business.
Project Generation/Exploration Strategy
Altius has built a portfolio of directly and indirectly held junior resource investments that have been generated from founding and earn in option related payments through its joint venture strategy to advance projects as well as selective investing in other top-quality juniors employing a project generation and joint venture business model. Altius' strategy is simple but requires a longer cyclically based strategy than most of our industry peers. We organically assemble and generate prospective geological real estate around the globe during periods of bear sentiment when capital for most is sparse, hence competition is light. To put this into perspective from 2012 to 2016 Altius assembled nearly 2 million of hectares of land in 9 different jurisdictions covering prospective terranes for copper, nickel, zinc, iron ore, coal, gold and even diamonds. When the market finally turned in 2017, Altius was poised to sell its portfolio of lands to well capitalized juniors in return for equity stakes and underlying royalty interests. In more recent times (2020/21), Altius has refocused its organic generative exploration efforts back in its home province of Newfoundland and Labrador, where it has generated several gold, nickel and copper projects that has led to numerous new deals and substantial new junior equity positions.
Our model has worked well by allowing exposure to multiple opportunities while minimizing negative impacts to the capital structure of the company all the while creating royalties at a zero to often negative cost for future benefit to all shareholders. Earnings generated from the prospect generation business are either re-circulated into the exploration business or used to acquire third party royalties to augment the internally generated royalties held by the business.
A Virtuous Cycle of Royalty Growth and Creation
