News

June 29, 2009

Altius Minerals Widens The Reach Of Its Royalty Portfolio, And Steps Out Beyond Eastern Canada

By Chris Cann

At the beginning of the year, frightened investors were piling into risk-averse Altius Minerals in some numbers. Many had lost a small fortune on classically risky, early stage exploration plays. Many had been taken to the cleaners despite a promising discovery, because of waning cash reserves. Some lost money on companies with producing assets that either became marginal or because the companies themselves had been caught at the wrong time in the refinancing cycle. For these investors, Altius, with its simple royalty business, no debt, and US$160 million in cash and liquid assets, offered an oasis of calm in the storm. And by mid-April this year the company had restored more than 80 per cent of the value it had lost since mid-2008, and was sporting a handsome-enough share price of C$7.56. But now the landscape has changed again, and investors want to know how Altius will use its strong cash position to create further value for them.

That’s fine by Altius. According to corporate development vice president Chad Wells, the current market environment represents the ideal opportunity for the directors to build on the company’s asset base. “We’re long-term”, he said. “I’m not worried about the share price performance next week or next month, I’m worried about building up a stable of assets in a downturn in the industry. This is a fantastic opportunity for a cash-rich company business to build up its basket of goodies so that...