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Altius reports 4Q20 attributable royalty revenue

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Global Mining Review,

Altius Minerals Corp. expects to report record attributable quarterly royalty revenue of approximately CAN$21.9 million (CAN$0.53 per share) for 4Q20 ended 31 December 2020. This compares to quarterly revenues of CAN$16.2 million (CAN$0.39 per share) in 3Q20 and CAN$17.6 million (CAN$0.41 per share) in the comparable quarter in 2019. For the full year ended 31 December 2020, Altius expects to report royalty revenue of CAN$67.5 million (CAN$1.62 per share) compared to CAN$78.1 million for the year ended 31 December 2019 (CAN$1.83 per share).

4Q20 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 CAN$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, the company expects residual volume-based impacts to revenue in the current quarter due to normal lag periods between production and royalty recognitions.

Potash revenue of CAN$3 million was comparable to the prior quarter and year ago comparable quarter. Stronger pricing during 4Q20 was offset by reduced production throughput due to planned maintenance at key mines. Revenue was lower on a y/y basis on lower annual average realised pricing but offset partially by higher total annual production volumes.

Thermal (electrical) coal revenue of CAN$6.3 million in 4Q20 was higher than the year ago comparable quarter of CAN$3.5 million, and the CAN$2.7 million recorded in 3Q20. The acquisition of additional royalty partnership units from Liberty Metals & Mining Holdings LLC announced on 27 July 2020 for a net cost of CAN$9 million resulted in incremental revenue of CAN$3 million during the quarter.

Iron ore revenue of CAN$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 Corp. (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.

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