Issued shares: 28 149 115Issued shares: 28,149,115
Market Capitalization: ~$315 million
ALS:TSX
CAPITAL STRUCTURE
Cash: ~$150 millionCash: ~$150 million
Investments: $110 million*
Debt: nil* Includes proportional 32.9 million shares of Alderon Iron Ore (ADV:TSX)
altiusminerals.com
Mineral Exploration Project Generator
‐Form a partner funded joint venture and
Mineral Exploration Project Generator
‐Form a partner funded joint venture andForm a partner funded joint venture and retain a minority direct project interest
‐Convert project interests into equity stakes in new or existing public vehicles
Form a partner funded joint venture and retain a minority direct project interest
‐Convert project interests into equity stakes in new or existing public vehicles g p
Royalty Creation and Investment
‐Royalties retained in project generation
g p
Royalty Creation and Investment
‐Royalties retained in project generationRoyalties retained in project generation deals described above
‐Retained capital gains available to acquire third party royalties
Royalties retained in project generation deals described above
‐Retained capital gains available to acquire third party royaltiesthird party royaltiesthird party royalties
OUR BUSINESS
PROJECT GENERA
Shareholding monetized for ~$6 M
25% shareholde3% GSR d‐ 3% GSR created
Project milestone share payments (5m + bonus)‐ 1‐4% GSR created
ATION BUSINESS – PROJECT SPIN OUTS
Shareholding monetized for ~$200 M‐ 2% GSR created
rdd
Project milestone share payments (19 9%)Project milestone share payments (19.9%)‐ 3% GSR created
CENTURY/ALTIUS$3M drilling program underway
‐ 1‐4% GSR
RIO TINTO/ALTIUSGeotite Bay Discovery
Drilling & resource calculation underway‐ 3% GOR
ALTIUS & PARTNERSJulienne Lake‐ 3% GSR
Kami ProjectFeasibility/Development
‐ 3% GSR
/MAMBA/ALTIUS$3M phase I drilling program underway
‐ 3% GSR
NORTHERN STAR /ALTIUSdrilling program underway
1 4% GSR‐ 1‐4% GSR
LABRADOR TROUGHLABRADOR TROUGH IRON ORE
Large, Partner FundedLand Position
Alderon EquityAltius is a founder and the largest shareholdAlderon Iron Ore: 32.9 million shares (~25%Alderon Iron Ore: 32.9 million shares ( 25%
Current value of ~$50 million
Other major shareholders include Hebei IronOther major shareholders include Hebei IronSteel Group (~20%) and Liberty Mutual (15%
Kami RoyaltyAltius discovered, and holds a 3% Gross SaleRoyalty, over Alderon’s Kami Iron Ore depos
Equity and Royalty Holding
der of %)%)
n andn and %)
es sit
Feasibility Study BBA – December 2012
NPV at 8% discount rate $3,244 MrateIRR 29.3%
Average estimated operating costs $42 17/toperating costs (loaded for shipping)
$42.17/t
FOB Concentrate sales price forecast (product and off take adjusted to long term CFR benchmark)
$110/t
benchmark)
Estimated mine life 30 years
Final product iron 65 2%Final product iron grade (% Fe) 65.2%
All category resource for the Rose Deposit
1093.2 Mt @29.6% Fe
‐Annual Production Rate 8.0 Mtpa
Projected Plant Start‐up and Q4, 2015
j fi li k d d ff kProject finance linked product off‐take agreement completed with Hebei Steel Group
‐ ~$400 million in obligations for effective 40% interest$400 million in obligations for effective 40% interest
KAMI ROYAlderon Feasibility St
YearRoyalty ($mil)
1 $22.3 2 $27.9 3 $29.1
$4 $28.5 5 $28.9 6 $27.5 7 $27.4 8 $26.6 9 $25.3 10 $26 710 $26.7 11 $25.0 12 $25.5 13 $24.4 14 $24.2 15 $24.4 16 $24.5 $17 $24.4 18 $25.3 19 $25.8 20 $25.6 21 $24.1 22 $23.6 23 $23.7 24 $24.0 25 $24.1 26 $24.2 27 $24.3 28 $24.4 29 $24 929 $24.9 30 $9.5
Total 746
YALTY VALUEtudy (BBA – Dec. 2012)
• Newfoundland and Labrador offering its part ofNewfoundland and Labrador offering its part ofthe Julienne Lake Deposit in a competitive EOIprocess (~580M mineable tonnes at 33.2%).
• Altius’ claims cover the remainder of thedeposit.
• Altius has partnered with two Chineseintegrated steel producers to submit a proposal
d l h b d ( dto develop the combined properties (EML andAltius Julienne Lake).
• If the Proposal is accepted Altius will retain aconsolidated royalty and a small carried projectconsolidated royalty and a small carried projectinterest.
• The proposal offers two strategic biddingadvantages:g
• Advantage 1: An improved pit designthat removes boundary related pitlimitations within the EML; and
• Advantage 2: Further pit expansion thatencompasses mineable resources withinAltius’ claim boundary.
Julienne Lake Deposit
Chile Expansion
10 year project generation initiative in partnership10 year project generation initiative in partnership with Santiago’s Zeus Capital
$21 million dollar budget including $14 million in Chilean government non‐recourse loansChilean government non recourse loans
Altius contributing capital and project generation and deal making expertise
Joint ventures and spin out companies will result withJoint ventures and spin‐out companies will result with a strong emphasis on royalty creation
Southern hemisphere location allows greatly increased generative effort without a correspondingincreased generative effort without a corresponding increase in staff levels or overhead costs
Objective
To build a royalty portfolio through both project royalty proceeds to shareholders
Strategy
‐ Focus on royalties on world class development
‐ Project generation business is slowly, but surelyKami royalty scheduled to begin paying in 2015)
‐ Seeking to directly acquire existing third party r
‐ Industry environment is now conducive to value
ROYALTY BUSINESS
generation and acquisition and to distribute the
or production stage assets with proven operators
y, delivering exceptionally high return royalties. (E.g.
royalties or provide royalty based project financing
e oriented investment
Acquired in 2003 ‐ payback achieved in 2008
Viewed as a long‐term investment in a world‐l tclass asset
~ 25 year revenue stream – low cost producer
Annual revenue estimated at ~$3‐4 million at current production levels and nickel prices
Exposure to exploration and expansion potential at zero cost
VOISEY’S BAY ROYALTY
5 0
6.0
Royalty Revenue($ millions)
2.0
3.0
4.0
5.0
0.0
1.0
2006 2007 2008 2009 2010 2011 2012
70
40
50
60
20
30
40
0
10
Note: Kami royalty revenue is subject to a positive developmenrate ramping to 16 Mt/arate, ramping to 16 Mt/a
ROYALTY REVENUE GROWTH POTENTIAL
KamiVoisey's Bay
(Production and feasibility stage royalties only)
nt decision. Revenue potential illustration shows initial stage 8 Mt/a production
Issued shares: 28 149 115Issued shares: 28,149,115
Market Capitalization: ~$315 million
ALS:TSX
CAPITAL STRUCTURE
Cash: ~$150 millionCash: ~$150 million
Investments: $110 million*
Debt: nil* Includes proportional 32.9 million shares of Alderon Iron Ore (ADV:TSX)
altiusminerals.com
INVESTMENT THESIS
Low operating costs; proven prospect g
Profitable spin out model and proven bu
Steady income stream from Voisey’s Bay
Limited downside: Strong balance sheetLimited downside: Strong balance sheet
Organic royalties begin to deliver signifi
Altius will become a recognized royalty
A proven track record and commitment
enerator model execution on Altius projects
usiness strategy continues to deliver
y royalty cash flows company for decades to come
t and assetst and assets
cant value in medium term
business
t to enhancing shareholder value