Project Generation / Exploration
Altius has built a portfolio of directly and indirectly held junior resource investments that have been generated from founding stakes and earn-in option related payments through its joint venture strategy to advance projects as well as selective investing in other juniors employing a project generation and joint venture business model.
Altius' PG 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 terrains for copper, nickel, zinc, iron ore, coal, gold and even diamonds. When the market turned in 2017 Altius was poised to sell its portfolio of lands to juniors in return for equity stakes and underlying royalty interests. At December 31, 2022, the portfolio value stands at $50.3 million. Net sales from the portfolio (sales minus new investments) add to the Altius cash balance, although they are recognized through Other Comprehensive Income rather than the income statement. On a year-to-date basis in 2022, we are net investors, i.e. the cost of new investments has exceeded the monetization of existing positions. New equities are frequently being added to the portfolio primarily from the vending of new projects generated by the PG group in exchange for equity stakes.
Project Generation Equity Portfolio*
as of December 31, 2022
|Symbol||Company||ALS >10%||ALS >20%||Royalty|
|ABRA:V||ABRASILVER RESOURCE CORP||Y1|
|CHF:LSE||CHESTERFIELD RESOURCES PLC||Y|
|TRU:V||TRU PRECIOUS METALS||8,740,000||Y|
|URC:V||URANIUM ROYALTY CORP.
|HTRC:CSE||HIGH TIDE RESOURCES||13,427,507||Y|
* Effective for the quarter ended March 2022 and going forward, we have aligned our disclosure in the table to show only positions where we retain a royalty, and positions where we own 10% or more are disclosed by the number of shares owned and also filed on SEDI.
1 Altius holds a buyback right on the La Coipita project in the form of an option to acquire a 1.1% NSR held by the vendor for US$3M for the term of the option.
More information on our producing and Project Generation royalties can be found on pages 26-29 of our 2022 Q3 MD&A here.