Altius Minerals (TSX:ALS) - A Royalty Company for the Coming Commodity Supercycle

Interview with Brian Dalton, President & CEO of Altius Minerals Corp.
Our previous interview: www.cruxinvestor.com/posts/al...
Recording date: 15th December 2023
Altius Minerals holds an impressive portfolio of royalties and streams, with significant exposure to copper and potash markets set to see major supply shortfalls. Its focused strategy stands to benefit enormously if management’s bullish views on commodity supercycle play out.
CEO Brian Dalton foresees widening gaps between supply and demand across metals crucial to the green energy transition. Depleting reserves have reduced output from existing mines even as EV growth and global development drive more consumption. The result is drastically underinvestment in new production capacity that will take a commodity price surge to unlock.
In copper specifically, champions like Altius argue rapidly expanding electric grid and vehicle manufacturing needs will overwhelm flatlining supply, likely spurring prices past incentive thresholds. As the lowest cost producer globally, operations in Altius’ royalty portfolio would stand to dramatically boost volumes should attractive economics exist.
While inflation and political turmoil have challenged mining companies, royalty holders avoid much of this exposure. Increased costs for operators generally translate into higher commodity selling prices. With its lucrative 3% Kami iron royalty and 2% Curipamba copper stream among others, an Altius investment offers upside to the coming commodity bull run.
Two Key Catalysts Approaching
Beyond the compelling long-term thesis, Altius has potential near-term catalysts ahead. Champion Iron is set to release feasibility study results for its Kami project, where Altius holds a major royalty. The study will detail production scale, guiding valuation.
Additionally, AngloGold Ashanti is advancing Silicon, revealed as a Tier-1 gold discovery royalty for Altius. AngloGold executive commentary points to a large, potentially 300-600k ounce annual operation in the making. As realization of this world-class asset grows, Altius’ royalty stake may warrant portfolio elevation or market sale.
Long-Term Mindset Anchors Volatile Markets
Commodity investors know cycles come and go. Underpinning Altius strategy is exploiting the trough to own stakes in mineral resources themselves. In royalties like Silicon with exploration roots, this philosophy bore fruit in discovery lottery tickets matured patiently into prime assets. Alongside commodity uptrends, such high-conviction positioning stands to thrive.
Management doesn’t pretend to predict precisely when markets turn. But after years sounding caution, they express growing confidence prices now teeter at levels ushering investment anew. For investors similarly optimistic on global energy decarbonization and electrification trends, Altius offers both broad commodity exposure and idiosyncratic drivers like Kami steelmaking advances.
In Altius Minerals, royalty stakes offer asymmetric returns to those aligned with management’s supercycle worldview. When cycles swing favorably, royalty economics cannot be beat. As an inflation hedge with tangible backing, commodity royalty vehicles seem destined for greater attention. Altius allow investors to focus fully on the long-term supply/demand dynamics tilting the playing field.
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[@kevinr3909]

I think it's great to have a world class gold royalty in our portfolio!

[@scottwilliamson1606]

Thanks Brian and Matt. Great info!! Very encouraging looking forward!

[@reggieduquesnoy]

Altius, I guess the latin name was carefully chosen, means deeper. The Royal(ty) way to invest is to dig deeper and put Time on your side.
In fact, that is the very definition of "investing". All the rest is speculation. Investing relies on careful fundament analysis, speculation and trading rely on charts, sentiment, tea leaves or coffee dregs reading, algorithmic bots operating in the fraction of a sparrow's fart and other nonsense, a black hole vortex for the greatest benefit of brokers, hedge funds and fast buck con-artists. In the same way as "Politics" and policies are run by ephemeral politicos based on opinion polls and an eye firmly fixed on the weather wane.
All this to say that I bought some shares, some while ago, for my grand children and have a lot of time to listen to Brian Dalton. Always educational and never time lost!

[@ruster719]

Always appreciate an update from Brian. Would have been interesting to touch upon Cobre Panama in terms of copper supply and the read across in terms of royalty valuations. Also I seem to remember a discussion with AngloGold re the extent of the coverage of AM’s royalty, has that been settled? I have bought this stock badly, so will be using this years weakness to average down. For me this is the most compelling long term investment in this area.

[@user-up6yd3gk5e]

Is that little door behind Brian where he hangs out Quasi Modo style until the copper, potash, et al prices achieve incentive pricing? lol

[@mybanto1137]

Solid company like RGLD, FNV, WPM. Unfortunately all pay pathetic dividends which may be to their high PE ratios.

[@gerritfranks7124]

…I‘am a shareholder for some years. But why the shareprice is as disapointing as it is?
I don‘t hear a clear and strong strategy. Only some positive stories , no hard facts, no figures …
I want to know why I should buy ALTIUS, not why to sell it….