Altius Minerals Corporation

Altius Minerals Corporation

June 23, 2016 09:24 ET

Altius Minerals Corporation (TSX:ALS) Reports Annual Attributable Revenue of $33,085,000 and Adjusted EBITDA of $25,499,000; Declares Quarterly Dividend

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - June 23, 2016) - Altius Minerals Corporation ("Altius" or the "Corporation") (TSX:ALS) reports annual attributable revenue(1) of $33,085,000 or $0.83 per share and adjusted EBITDA(2) of $25,499,000 or $0.64 per share compared to attributable revenue of $28,808,000 or $0.90 per share and adjusted EBITDA of $22,881,000 or $0.71 per share for last year. The increases are largely attributable to growth in base metals royalty revenue as a result of the addition of the 777 Mine royalty to the Corporation's portfolio.

A net loss of $38,464,000 or $0.97 per share for the year ended April 30, 2016 compares a net loss of $30,211,000 or $0.94 per share for last year. The net loss is largely attributable to non-cash impairment charges on goodwill of $16,402,000, investment carrying values of $10,943,000, and the write-down of mineral properties of $5,723,000.

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

2016 2015
$ $
Royalty revenue
Base metals 9,653,000 2,523,000
Coal 15,240,000 17,889,000
Potash 6,155,000 6,707,000
Other 720,000 1,509,000
Interest and investment 1,317,000 180,000
Attributable revenue (1) 33,085,000 28,808,000
Net loss attributable to common shareholders (38,464,000 ) (30,211,000 )
Net loss per share
basic and diluted (0.97 ) (0.94 )
Total assets 411,492,000 355,891,000
Total liabilities 91,277,000 95,117,000
Cash dividends declared & paid to shareholders 4,789,000 647,000

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

The Corporation also wishes to confirm that its board of directors has declared a cash dividend on its common shares of three cents per common share to all shareholders of record at the close of business on July 6, 2016. The dividend is expected to be paid on or about July 20, 2016.

The declaration, timing, and payment of future dividends will largely depend on the Company's financial results as well as other factors. Dividends paid by Altius are eligible dividends for Canadian income tax purposes unless otherwise stated.

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).

  2. 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 2016 2015
$ $
Attributable revenue 33,085,000 28,808,000
Adjust: joint venture revenue (21,881,000) (26,127,000)
IFRS revenue per consolidated financial statements 11,204,000 2,681,000
Adjusted EBITDA 2016 2015
$ $
(Loss) earnings before income taxes (39,880,000) (33,542,000)
Amortization 8,410,000 481,000
Exploration and evaluation assets abandoned or impaired 5,723,000 474,000
Share based compensation (share settled) 581,000 -
Interest on long-term debt 5,440,000 10,030,000
Loss (gain) on disposal of investments & impairment recognition 4,713,000 (14,331,000)
Loss on disposal of subsidiary - 5,839,000
Unrealized (gain) loss on fair value adjustment of derivatives (348,000) 2,540,000
Dilution (gain) on issuance of shares by associates - (163,000)
Share of loss and impairment in associates 7,067,000 43,613,000
Earnings from joint ventures (4,552,000) (17,031,000)
Callinan related costs 210,000 -
LNRLP EBITDA 1,086,000 1,959,000
Prairie Royalties EBITDA 20,134,000 23,012,000
Impairment of goodwill 16,402,000 -
Foreign currency loss 513,000 -
Adjusted EBITDA 25,499,000 22,881,000
Revenue 1,430,000 2,523,000
Less: mining taxes (344,000) (505,000)
Less: administrative charges - (59,000)
LNRLP Adjusted EBITDA 1,086,000 1,959,000
Prairie Royalties EBITDA
Revenue 20,451,000 23,609,000
Operating expenses (317,000) (597,000)
Prairie Royalties Adjusted EBITDA 20,134,000 23,012,000

About Altius

Altius diversified royalties and streams generate revenue from 14 operating mines largely located throughout Canada, and more recently Brazil, from copper, zinc, nickel, cobalt, precious metals, potash and thermal (electrical) and metallurgical coal. The portfolio also includes numerous pre-development stage royalties covering a wide spectrum of mineral commodities and jurisdictions.

Altius has 43,410,902 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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