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1. Company Snapshot

1.a. Company Description

Altius Minerals Corporation operates as a diversified mining royalty and streaming company in Canada, the United States, and Brazil.The company owns royalty and streaming interests in 12 operating mines covering copper, zinc, nickel, cobalt, iron ore, precious metals, potash, and thermal and metallurgical coal.It is also involved in the acquisition and management of renewable energy investments and royalties, as well as early-stage royalties and minority equity or project interests.


Altius Minerals Corporation was incorporated in 1997 and is headquartered in St. John's, Canada.

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1.b. Last Insights on ALS

Altius Minerals' recent performance was positively driven by several factors. The company's diversified royalty model, which includes a mix of base and battery metals, potash, iron ore, and renewable energy, is expected to yield attributable royalty revenue of approximately $21.2 million in Q3 2025. A recent royalty acquisition and the company's Project Generation business update also contributed to the positive momentum. Additionally, Altius' revenue transparency and early disclosure of quarterly results are expected to enhance trust in its diversified royalty model.

1.c. Company Highlights

2. Altius Minerals' Q3 Earnings: A Strong Performance

Altius Minerals reported Q3 adjusted net earnings of $0.17 per share, beating analyst estimates of $0.135 per share. The company's net earnings for the quarter were $265 million or $5.72 per share, driven by a $340 million gain on the sale of the Arthur Gold Royalty and higher royalty revenues. The company's revenue growth is expected to continue, with analysts estimating a 15.1% increase in revenues for the next year.

Publication Date: Nov -16

📋 Highlights
  • Q3 Net Earnings Surge:: $265M net earnings ($5.72/share) driven by $340M gain from Arthur Gold Royalty sale and higher royalty revenues.
  • Adjusted Earnings Growth:: Q3 2025 adjusted net earnings of $0.17/share outperformed Q3 2024 due to Arthur gain, FX, and tax impacts.
  • Liquidity Position:: Total liquidity of $540M, including $125M revolver and $62.5M accordion feature, bolstered by $340M from royalty sale.
  • Dividend & Buyback Activity:: Paid $4.2M in cash dividends, repurchased 52,000 shares for $1.5M, and renewed $0.10/share dividend for Q4.
  • Portfolio Growth Outlook:: Anticipated higher royalty revenue and interest receipts to drive growth in Q4 and 2025, with details expected in year-end update.

Financial Performance

The company's financial performance was strong in Q3, with a significant gain on the sale of the Arthur Gold Royalty. The company's royalty revenues also increased, driven by higher commodity prices. The company's adjusted net earnings per share of $0.17 was higher than the same quarter last year, mainly due to the gain on the sale of the Arthur Gold Royalty, foreign exchange, and related tax impacts.

Liquidity and Capital Management

Altius Minerals has a strong liquidity position, with approximately $540 million in total liquidity available, including cash on hand, $125 million available under its revolver, and $62.5 million potentially available as an accordion feature. The company paid total cash dividends of $4.2 million and issued approximately 13,000 common shares under the dividend reinvestment plan. The company's quarterly dividend will be $0.10 per share, paid to shareholders of record on November 28 with a payment date of December 15.

Valuation and Growth Prospects

Altius Minerals is currently trading at a P/E Ratio of 18.8, P/B Ratio of 3.27, and P/S Ratio of 39.48. The company's EV/EBITDA ratio is 17.7, indicating a relatively high valuation. However, the company's expected revenue growth and strong liquidity position may justify this valuation. As Brian Dalton mentioned, "the company is analyzing and comparing various options, and they will provide more information on this effort in coming quarters." The company's return on equity (ROE) is 17.97%, indicating a strong ability to generate returns for shareholders.

Outlook and Opportunities

The company expects to see continued portfolio growth over the coming quarters, driven by higher royalty revenue and interest receipts. Altius Minerals is also exploring external opportunities, including mergers and acquisitions, and is being patient and disciplined in its approach. As Brian Dalton noted, "market volatility is a factor, and they're excited about it." The company's renewable sector exposure is also expected to benefit from strong electricity markets and long-term contracts.

3. NewsRoom

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Altius Receives Contingent Payment and Confirms Extent of Arthur Gold Royalty Lands

Nov -24

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Altius Minerals Corp (ATUSF) Q3 2025 Earnings Call Highlights: Strong Earnings Boosted by ...

Nov -12

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Altius Reports Q3 2025 Attributable Royalty Revenue of $21.4M and Adjusted Earnings(1) of $7.7M

Nov -11

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Will Altius Minerals' (TSX:ALS) Revenue Transparency Enhance Trust in Its Diversified Royalty Model?

Oct -17

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Altius Reports Q3 2025 Expected Attributable Revenue(1)

Oct -15

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Orogen Royalties Creates a Royalty on the Firenze Gold Project

Oct -14

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Altius Minerals Providing 3rd Quarter 2025 Project Generation Update

Oct -08

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Altius Provides 3rd Quarter 2025 Project Generation Update

Oct -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.27%)

6. Segments

Mineral Royalties

Expected Growth: 8%

Altius Minerals Corporation's 8% growth in mineral royalties is driven by increasing demand for iron ore and metallurgical coal, coupled with rising prices. The company's diversified portfolio of royalties, including copper, gold, and potash, also contributes to growth. Additionally, Altius's strategic partnerships and acquisitions, such as the recent purchase of metallurgical coal royalties, further boost revenue.

Renewable Royalties

Expected Growth: 10%

Altius Minerals Corporation's 10% growth in Renewable Royalties is driven by increasing demand for clean energy, government incentives for renewable projects, and the company's strategic diversification of its royalty portfolio across wind, solar, and hydroelectric assets, resulting in a steady stream of revenue.

Adjustment for Joint Ventures

Expected Growth: 7%

Altius Minerals Corporation's 7% growth in Adjustment for Joint Ventures is driven by increasing copper prices, rising demand from electric vehicle manufacturers, and strategic partnerships. The company's diversified portfolio of royalties and investments in copper-focused projects also contributes to its growth. Additionally, the company's cost-saving initiatives and efficient operations enable it to maintain a strong financial position.

Project Generation

Expected Growth: 11%

Altius Minerals Corporation's 11% project generation growth is driven by increasing copper demand, strategic partnerships, and a strong project pipeline. The company's diversified mineral portfolio, including copper, zinc, and iron ore, positions it for growth in a rising commodity market. Additionally, its focus on sustainable and responsible mining practices enhances its reputation and attractiveness to investors.

7. Detailed Products

Iron Ore

Altius Minerals Corporation is a significant producer of iron ore, a key ingredient in steel production. The company's iron ore products are used in the manufacturing of steel, which is a critical component in the construction, automotive, and consumer goods industries.

Copper

Altius Minerals Corporation extracts copper, a highly conductive metal used in electrical wiring, circuits, and other electronic components. Copper is also used in architectural features, plumbing, and industrial machinery.

Zinc

The company's zinc products are used in galvanizing other metals, such as steel, to protect them from corrosion. Zinc is also used in batteries, alloys, and other industrial applications.

Nickel

Altius Minerals Corporation's nickel products are used in the production of stainless steel, alloys, and other specialty metals. Nickel is also used in electroplating, catalysts, and other industrial processes.

Chromium

The company's chromium products are used in the production of stainless steel, chrome plating, and other specialty metals. Chromium is also used in leather tanning, wood preservation, and other industrial applications.

Royalty Interests

Altius Minerals Corporation holds royalty interests in various mining projects, providing a revenue stream through royalties on mineral production.

8. Altius Minerals Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Altius Minerals Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative minerals and recycling technologies.

Bargaining Power Of Customers

Altius Minerals Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Altius Minerals Corporation relies on a few key suppliers for critical inputs, which gives them some bargaining power. However, the company's scale and diversification efforts mitigate this risk.

Threat Of New Entrants

The mining industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This limits the threat of new entrants and allows Altius Minerals Corporation to maintain its market position.

Intensity Of Rivalry

The mining industry is highly competitive, with many established players competing for market share. Altius Minerals Corporation must continually innovate and improve its operations to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.67%
Debt Cost 8.72%
Equity Weight 81.33%
Equity Cost 8.72%
WACC 8.72%
Leverage 22.95%

11. Quality Control: Altius Minerals Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.86$

Current Price

39.86$

Potential

-0.00%

Expected Cash-Flows