Altius Reports Fourth Quarter 2020 Attributable Royalty Revenue of Approximately $21.9 Million

Rhea-AI Summary

Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) expects to report record quarterly royalty revenue of approximately $21.9 million ($0.53 per share) for Q4 2020. This is an increase from $16.2 million in Q3 and $17.6 million in Q4 2019. Total expected royalty revenue for 2020 is $67.5 million ($1.62 per share), down from $78.1 million in 2019. Factors affecting revenue include higher commodity prices and increased ownership in coal royalties. Key segments include base metals ($6.8 million), potash ($3.0 million), thermal coal ($6.3 million), and iron ore ($5.2 million).

Positive

• Record quarterly royalty revenue of $21.9 million ($0.53 per share) for Q4 2020, up from Q3 2020 and Q4 2019.
• Increase in thermal coal revenue to $6.3 million, reflecting successful acquisition of royalty units.
• Improved base metal revenue of $6.8 million despite production interruptions.

Negative

• Annual royalty revenue expectation of $67.5 million is down from $78.1 million in 2019.
• Potash revenue remained flat but was impacted by lower prices on a year-over-year basis.
• Residual impacts on Q1 2021 revenue expected due to production interruptions in Q4.

Altius Minerals Corporation (ALS:TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expects to report record attributable quarterly royalty revenue^† of approximately $21.9 million ($0.53 per share) for the fourth quarter ended December 31, 2020. This compares to quarterly revenues of $16.2 million ($0.39 per share) in Q3 2020 and $17.6 million ($0.41 per share) in the comparable quarter last year. For the full year ended December 31, 2020 Altius expects to report royalty revenue of $67.5 million ($1.62 per share) compared to $78.1 million for the year ended December 31, 2019 ($1.83 per share).

Fourth quarter royalty revenue represents a significant rebound from levels recorded during the first three quarters of the year, benefitting primarily from stronger underlying commodity prices, a significant end-of-year dividend issuance by the Iron Ore Company of Canada (“IOC”) and higher tonnage-based revenue related to a greater share of ownership in its Alberta thermal coal royalty partnership.

Base metal (primarily copper) revenue of $6.8 million, or 31% of total royalty revenue, was positively impacted by improved prices but this was offset during the quarter by unplanned production interruptions at Chapada and 777. While full production has now resumed at both operations, we expect residual volume-based impacts to revenue in the current quarter due to normal lag periods between production and royalty recognitions.

Potash revenue of $3.0 million was comparable to the prior quarter and year ago comparable quarter. Stronger pricing during Q4 was offset by reduced production throughput due to planned maintenance at key mines. Revenue was lower on a year-over-year basis on lower annual average realized pricing but offset partially by higher total annual production volumes.

Thermal (electrical) coal revenue of $6.3 million in Q4 2020 was higher than the year ago comparable quarter of $3.5 million, and the $2.7 million recorded in Q3 2020. The acquisition of additional royalty partnership units from Liberty Metals & Mining Holdings LLC announced on July 27, 2020 for a net cost of $9.0 million resulted in incremental revenue of $3.0 million during the quarter.

Iron ore revenue of $5.2 million, or 24% of total royalty revenue, was higher this quarter compared to the previous quarter as IOC paid a significant dividend to shareholders after having elected to not declare dividends during the first three quarters of the year. This in turn resulted in an increased flow through of dividend payments to Altius from Labrador Iron Ore Royalty Corporation (“LIORC”). On a year-to-date basis, 2020 revenue was lower than 2019 on reduced IOC dividend payments and a reduction in the LIORC shareholding level that the Corporation completed earlier in the year.

Summary of attributable royalty revenue (in thousands of Canadian dollars)		Three months ended December 31, 2020		Year ended December 31, 2020		Year ended December 31, 2019
Base metals		$6,790		$26,861		$28,533
Iron ore (1)		$5,173		$8,765		$15,480
Potash		$3,022		$14,598		$16,630
Thermal (electrical) coal		$6,309		$13,696		$12,525
Metallurgical coal		$265		$1,612		$3,199
Other royalties and interest		$358		$1,928		$1,738
Attributable royalty revenue		$21,917		$67,460		$78,105
See non-IFRS measures section of our MD&A for definition and reconciliation of attributable royalty revenue
(1) Labrador Iron Ore Royalty Corporation dividends received

Fourth Quarter and Year end 2020 Financial Results Conference Call and Webcast Details

Additional details relating to individual royalty performances and asset level developments will be provided with the release of full financial results, which will occur on March 10, 2021 after the close of market, with a conference call to follow on March 11, 2021.

Date: March 11, 2021
Time: 9:00 AM EST
Toll Free Dial-In Number: +1(866) 521-4909
International Dial-In Number: +1(647) 427-2311
Conference Call Title and ID: Altius Q4 and Year End 2020 Financial Results; ID - 5162939
Webcast Link: Altius Q4 and Year End 2020 Financial Results

^†Attributable royalty revenue is a non-IFRS measure and does not have any standardized meaning prescribed under IFRS. For a detailed description and examples of the reconciliation of this measure, please see the Corporation’s MD&A disclosures for prior quarterly and annual reporting periods, which are available at http://altiusminerals.com/financialstatements

About Altius

Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These each hold the potential to cause increased demand for many of Altius’s commodity exposures including copper, renewable based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore, and potash. Altius has 41,477,653 common shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.

Forward-Looking Information

This news release contains forward-looking information. The statements are based on reasonable assumptions and expectations of management and Altius provides no assurance that actual events will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Altius believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. Altius does not undertake to update any forward-looking information contained herein except in accordance with securities regulation.

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FAQ

What are Altius Minerals' Q4 2020 revenue expectations?

Altius expects record quarterly royalty revenue of approximately $21.9 million for Q4 2020.

How does Altius' 2020 royalty revenue compare to 2019?

Altius expects total royalty revenue of $67.5 million in 2020, down from $78.1 million in 2019.

What contributed to the increase in Altius' thermal coal revenue?

Thermal coal revenue increased due to an acquisition of additional royalty partnership units.

What challenges did Altius face in Q4 2020 regarding base metal revenue?

Base metal revenue was affected by unplanned production interruptions at Chapada and 777.

When will Altius release its full financial results for Q4 2020?

Altius will release its full financial results on March 10, 2021.