Altius Minerals Corporation
TSX : ALS

Altius Minerals Corporation

December 10, 2015 08:53 ET

Altius Minerals Corporation Reports Quarterly Attributable Revenue of $8,534,000 and Adjusted EBITDA of $6,729,000

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Dec. 10, 2015) - Altius Minerals Corporation ("Altius" or the "Corporation") (TSX:ALS) reports attributable revenue(1) of $8,534,000, adjusted EBITDA(1) of $6,729,000 and a net loss of $1,140,000 or ($0.03) per share for the quarter ended October 31, 2015 compared to attributable revenue(1) of $7,027,000, adjusted EBITDA(2) of $7,693,000 and a net loss of $25,348,000 for same period last year. Year to date, the Corporation has attributable revenue of $18,319,000, adjusted EBITDA of $13,868,000 and net loss of $1,682,000.

The current period results were positively affected by royalty revenues from Altius' newly acquired 777 royalty of $2,361,000 as well as Prairie Royalties and Voisey's Bay of $5,077,000 and $372,000, respectively. Revenues were offset by non-cash charges such as amortization of royalty interests of $1,829,000 and equity losses of $1,002,000 and impairment losses of $1,695,000 in the Corporation's investment in Alderon.

A summary of the financial results is included in the following table.

For the 3 months ended, For the 6 months ended,
October 31, October 31,
2015 2014 2015 2014
$ $ $ $
Royalty revenue
777 2,361,000 - 4,892,000 -
Coal 3,819,000 4,558,000 8,072,000 9,516,000
Potash 1,258,000 1,344,000 2,760,000 2,418,000
Voisey's Bay 372,000 683,000 1,049,000 1,262,000
CDP 406,000 355,000 862,000 859,000
Interest and investment 316,000 68,000 682,000 149,000
Other 2,000 19,000 2,000 40,000
Attributable revenue (1) 8,534,000 7,027,000 18,319,000 14,244,000
Adjusted EBITDA (2) 6,727,000 7,693,000 13,868,000 7,693,000
Net loss attributable to common shareholders (1,140,000 ) (25,348,000 ) (1,682,000 ) (25,348,000 )
Net loss per share
basic and diluted (0.03 ) (0.77 ) (0.04 ) (0.77 )
Total assets 448,546,000 394,267,000 448,546,000 394,267,000
Total liabilities 96,827,000 130,471,000 96,827,000 130,471,000
Cash dividends declared & paid to shareholders 1,198,000 Nil 2,396,000 Nil

Additional information on the Corporation's results of operations is included in the Corporation's MD&A, and Financial Statements, which were filed on SEDAR today and are also available on the Corporation's website at www.altiusminerals.com.

Non-IFRS Measures

Attributable revenue and adjusted EBITDA is intended to provide additional information only and do not have any standardized meaning prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see below.

  1. Attributable revenue is defined by the Corporation as total revenue from the consolidated financial statements and the Corporation's proportionate share of gross revenue in the joint ventures. The Corporation's key decision makers use attributable royalty revenue and related attributable royalty expenses as a basis to evaluate the business performance. The attributable royalty revenue amounts, together with as amortization of royalty interests, general and administrative costs and mining tax, are not reported gross in the consolidated statement of earnings (loss) since the royalty revenues are being generated in a joint venture and IFRS 11 Joint Arrangements requires net reporting as an equity pick up. The reconciliation to IFRS reports the elimination of the attributable revenues and reconciles to the revenues recognized in the consolidated statements of earnings (loss).
  1. Adjusted EBITDA is defined by the Corporation as net earnings (loss) before taxes, amortization, interest, non-recurring items, non-cash amounts such as impairments, losses and gains, and share based compensation. The Corporation also adjusts earnings in joint ventures to reflect EBITDA on those assets which exclude amortization of royalty interests as well as adjusting for any one time items. Adjusted EBITDA is a useful measure of the performance of our business, especially for demonstrating the impact that EBITDA in joint ventures have on the overall business. Adjusted EBITDA identifies the cash generated in a given period that will be available to fund the Corporation's future operations, growth opportunities, shareholder dividends and to service debt obligations.
Reconciliations to IFRS measures
Attributable revenue
For the 3 months ended For the 6 months ended
October 31, October 31,
2015 2014 2015 2014
$ $ $ $
Royalty revenue
777 2,361,000 - 4,892,000 -
Coal 3,819,000 4,558,000 8,072,000 9,516,000
Potash 1,258,000 1,344,000 2,760,000 2,418,000
Voisey's Bay 372,000 683,000 1,049,000 1,262,000
CDP 406,000 355,000 862,000 859,000
Interest and investment 316,000 68,000 682,000 149,000
Other 2,000 19,000 2,000 40,000
Attributable revenue (1) 8,534,000 7,027,000 18,319,000 14,244,000
Adjust: joint venture revenue (5,449,000 ) (6,585,000 ) (11,881,000 ) (13,196,000 )
IFRS revenue per consolidated financial statements 3,085,000 442,000 6,438,000 1,048,000
For the 3 months ended For the 6 months ended
Adjusted EBITDA October 31, October 31,
2015 2014 2015 2014
$ $ $ $
(Loss) earnings before income taxes (341,000 ) (28,083,000 ) (686,000 ) (28,083,000 )
Addback (deduct):
Amortization 1,738,000 32,000 3,572,000 32,000
Exploration and evaluation assets abandoned or impaired 317,000 92,000 659,000 92,000
Share based compensation (share settled) (15,000 ) - 165,000 -
Interest on long-term debt 1,405,000 2,417,000 2,852,000 2,417,000
Loss (gain) on disposal of investments & impairment recognition (606,000 ) 791,000 (544,000 ) 791,000
Unrealized (gain) loss on fair value adjustment of derivatives (219,000 ) 1,102,000 (219,000 ) 1,102,000
Dilution (gain) on issuance of shares by associates - (46,000 ) - (46,000 )
Share of loss and impairment in associates 2,697,000 29,543,000 3,287,000 29,543,000
Earnings from joint ventures (3,561,000 ) (4,310,000 ) (6,904,000 ) (4,310,000 )
Callinan related costs - - 210,000 -
LNRLP EBITDA 279,000 547,000 821,000 547,000
Prairie Royalties EBITDA 5,035,000 5,608,000 10,655,000 5,608,000
Adjusted EBITDA 6,729,000 7,693,000 13,868,000 7,693,000
LNRLP EBITDA
Revenue 372,000 683,000 1,049,000 683,000
Less: mining taxes (93,000 ) (136,000 ) (228,000 ) (136,000 )
LNRLP Adjusted EBITDA 279,000 547,000 821,000 547,000
Prairie Royalties EBITDA
Revenue 5,079,000 5,849,000 10,831,000 5,849,000
Operating expenses (44,000 ) (241,000 ) (176,000 ) (241,000 )
Prairie Royalties Adjusted EBITDA 5,035,000 5,608,000 10,655,000 5,608,000

About Altius

Altius is a diversified mining royalty company with royalty interests in 13 producing mines located in Canada. The royalty interests include mining operations that produce nickel, copper, zinc, cobalt, gold, silver, potash, thermal (electrical) and metallurgical coal. Altius holds other significant pre-development stage royalties and its project generation pipeline contains a diversified portfolio of exploration stage projects and royalties, many of which are being advanced through various partner-funding arrangements.

Altius has 39,932,102 shares issued and outstanding that are listed on Canada's Toronto Stock Exchange. It is a member of both the S&P/TSX Small Cap and S&P/TSX Global Mining Indices.

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