Altius 2011 BulletinThe shareholder bulletin recently released on the Altius website is a must read:
*
1) Explains Century Iron Ore deal. Century is an aggressive new entrant to Canadian iron ore. Altius pleased to do business with what amounts to a Chinese exploration company (if you look at management, partners and shareholders). Altius receives 2 of the 5 million payment shares immediately on signing of the agreement: at Century's current stock price that's an immediate $5 million US share payment.
*
2) Cliffs Alliance is unique. Investing at much earlier stage (preliminary exploration after staking) than typical joint venture deals Altius does (which are usually on properties Altius has done a few years work on).
*
3) Throughout 2011 Altius evaluated and bid on numerous development stage royalties. Still bidding cheaply, waiting for market to come to them.
*
4) Over a dozen Asian steel producers have visited Kami for on-site due diligence related to an offtake deal with Alderon. Expects market to recognize value of Altius's equity and royalty stake in Alderon soon. Under projections from ADV's recently released PEA, Altius could receive $25 million a year in royalties for over 20 years. And the economics should get even better once all parts of the 1.1 billion resource are included (current PEA only evaluates 500 million tonnes or so).
*
5) Royalty buying and organic royalty generation are complementary businesses. When industry resource development budgets are booming, then Altius will form joint ventures to create royalties. When industry resource budgets dries up Altius will have an easier time buying royalties. Right now we're in a what looks like a boom period, therefore lots of partnerships and no royalty buying.