Altius Reports First Quarter Attributable Royalty Revenue and Raises Full Year Revenue Guidance

Record Revenue of $21.5 Million in Q1 and New Guidance of $77M –
$81M-

ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius Minerals Corporation (TSX: ALS; OTCQX: ATUSF) (“Altius” or
“the Corporation”) expects to report record attributable royalty revenue1
of approximately $21.5 million ($0.50 per share) for the quarter ended
March 31, 2019. This represents an increase of 36% compared to revenues
of $15.8 million ($0.37 per share) generated in the comparable quarter
last year, and a 22% increase in revenues compared to $17.6 million
($0.41 per share) in Q4 2018.

The Corporation also announces that it is raising its full year revenue
guidance to $77 – $81 million from the previously published estimate
range of $67 – $72 million. This revision considered the strong first
quarter results, increased ownership of Labrador Iron Ore Royalty
Corporation and improved potash, base metal and iron ore prices.

The first quarter results reflect growth across most commodity segments
relative to the prior and comparable year periods. In particular,
Chapada benefitted from strong Q4 2018 production, with the timing of
royalty payments having a positive impact on our Q1 2019, and Labrador
Iron Ore Royalty Corporation recently declared a dividend of $1.05 per
share after three prior quarters of constrained dividend payments.
Revenue from the Corporation’s royalty interest in the Voisey’s Bay mine
is not yet known and has been excluded in the $21.5 million expected in
Q1, but it is not expected to be material.

Noteworthy royalty portfolio developments during the quarter include:

  • Base metal prices have generally improved thus far during 2019 on
    increasing future supply deficit concerns;
  • Iron ore prices have climbed since late January as the market
    continues to digest the impact of the catastrophe at the Corrego do
    Feijao mine in Brazil and related supply losses;
  • Potash royalties continued to benefit from higher average prices and
    the ongoing ramp-up of production volumes;
  • Altius completed its first renewable energy royalty acquisitions as
    part of a long-term strategy to replace electrical coal royalties;
  • Chapada continued to generate strong exploration-based resource growth;
  • The recently announced Chapada mine sale to Lundin Mining is expected
    to lead to future copper production optimization and capacity
    expansion;
  • Significant capital has been allocated by Teck Resources towards
    advancing a potential mine life expansion project at Cardinal River;
  • Hudbay Minerals Inc. announced the extension of the 777 mine life
    until 2022;
  • Excelsior Mining Corp. reported continuing positive construction
    progress for its Gunnison project with first production targeted for
    late 2019; and
  • Altius acquired a 2% royalty on the Curipamba polymetallic project in
    Ecuador with Adventus Zinc Corporation (“Adventus”) and Salazar
    Resources Ltd. Adventus announced improved metallurgy results on April
    15th, 2019 and an updated PEA and resource estimate is
    expected shortly.

Additional details relating to individual royalty performances and asset
level developments will be provided with the release of full financial
results, which Altius will release on May 7, 2019 after the close of
market, with a conference call to follow on May 8, 2019.

                     
             
Summary of attributable royalty revenue

Three months ended
March 31, 2019

Three months ended
March 31, 2018

Three months ended
Dec 31, 2018

(in thousands of Canadian dollars)                    
 
Base metals 7,325 7,189 7,419
Potash (1) 4,827 2,346 3,737
Iron ore (2) 4,233 1,103 2,097
Thermal (electrical) coal 3,268 4,099 3,064
Metallurgical coal 1,215 757 859
Other royalties and interest       679     311     439
Attributable royalty revenue       21,547     15,805     17,615
See non-IFRS measures section of our MD&A for definition and
reconciliation of attributable revenue
(1) Potash Q1 2018 revenue reported 52.4% ownership which
increased to 91.3% following acquisition on March 23 2018
(2) Labrador Iron Ore Royalty Corporation dividends
received
 

Q1 2019 Financial Results Conference Call and Webcast Information:

A conference call will be held on Wednesday, May 8, 2019, starting at
9:00 a.m. EST to further discuss the quarter and revised guidance for
2019. Our Annual and Special Meeting of shareholders will take place in
St John’s, NL at 1:00 pm NL time on the same date. To participate in the
conference call, use the following dial-in numbers and conference ID, or
join the webcast on-line as detailed below.

     

Time:

9:00 a.m. EST on Wednesday, May 8, 2018

Dial-In Numbers:

+1-(866) 521-4909 toll free (US/ Canada) or +1-(647) 427-2311

Conference Title:

Altius Q1 2019 financial results

Webcast URL:

http://event.on24.com/wcc/r/1987321-1/DBD36C8F4B94EC861F0F316CA36DAA8E

 

The call will be webcast and archived on the Corporation’s website for a
limited time.

1 Attributable royalty revenue is a non‐IFRS measure and does
not have any standardized meaning prescribed under IFRS. For a detailed
description and examples of the reconciliation of this measure, please
see the Corporation’s MD&A disclosures for prior quarterly and annual
reporting periods, which are available at http://altiusminerals.com/financial-statements

About Altius

Altius directly and indirectly holds diversified royalties and
streams which generate revenue from 15 operating mines. These producing
royalties are located in Canada and Brazil and provide exposure to
copper, zinc, nickel, cobalt, iron ore, potash, thermal (electrical) and
metallurgical coal. The portfolio also includes development stage
royalties in copper and renewable energy and numerous predevelopment
stage royalties covering a wide spectrum of mineral commodities and
jurisdictions. Altius also holds a portfolio of junior equities that
were generated from vending exploration projects to industry partners in
exchange for minority equity interests and new royalties.

Altius has 42,861,796 common 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.

Forward-Looking Information

This news release contains forward‐looking information. The
statements are based on reasonable assumptions and expectations of
management and Altius provides no assurance that actual events will meet
management’s expectations. In certain cases, forward‐looking information
may be identified by such terms as “anticipates”, “believes”, “could”,
“estimates”, “expects”, “may”, “shall”, “will”, or “would”. Although
Altius believes the expectations expressed in such forward‐looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those projected. Mining exploration and
development is an inherently risky business. In addition, factors that
could cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect decisions to
pursue mineral exploration on the relevant property and the ultimate
exercise of option rights, which may include changes in market
conditions, changes in metal prices, general economic and political
conditions, environmental risks, and community and non-governmental
actions. Such factors will also affect whether Altius will ultimately
receive the benefits anticipated pursuant to relevant agreements. This
list is not exhaustive of the factors that may affect any of the
forward‐looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on forward-looking
information. Altius does not undertake to update any forward-looking
information contained herein except in accordance with securities
regulation.

Contacts

Flora Wood
or
Ben Lewis
1.877.576.2209
flora@altiusminerals.com