Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF) (“Altius” or the “Corporation”) expects to
report 2022 annual attributable royalty revenue† of $103.3 million, which is 23% higher than the $83.9 million reported for 2021. Fourth quarter expected attributable royalty revenue of $23.0 million compares to
$23.4 million reported for the fourth quarter of 2021. The 2022 attributable revenue amount establishes a new annual record for the Corporation.
Royalty Revenue Summary
Summary of attributable royalty revenue
(in thousands of Canadian dollars) YE 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 YE 2021 YE 2020
Potash $ 41,445 $ 9,816 $ 10,276 $ 11,450 $ 9,903 $ 19,283 $ 14,598
Base and battery metals 28,512 4,702 5,535 8,315 9,960 36,566 26,861
Iron ore (1) 10,666 2,618 3,740 2,871 1,437 17,243 8,765
Thermal (electrical) coal 15,175 3,774 3,768 4,520 3,113 9,107 13,696
Renewable energy 4,795 1,171 2,089 763 772 411 364
Other 2,756 919 827 703 307 1,320 3,218
Attributable royalty revenue $ 103,349 $ 23,000 $ 26,235 $ 28,622 $ 25,492 $ 83,930 $ 67,502
See non-IFRS measures section of our MD&A for definition and reconciliation of attributable royalty revenue
(1) Labrador Iron Ore Royalty Corporation dividends received
Potash revenue for 2022 of $41.4 million increased by 115% over the $19.3 million reported in 2021, mainly
due to higher realized pricing in the first half of the year as the market reacted to supply concerns relating
to the Russia-Ukrainian war. Tonnes of potash production attributable to royalties were similar to prior year
levels.
The K3 production unit at Mosaic’s Esterhazy mine was fully commissioned during the year with production
from this unit now replacing prior lost production from the K1 and K2 production units.
Both Mosaic and Nutrien announced the start of capital investment programs during the year that are
designed to complete the ramp-up of production capacity at most of our royalty mines. These investments
have been initiated in response to both current and projected long-term global supply constraints that have
emerged and medium to long-term trend-line based demand growth expectations.
Base and battery metal (primarily copper) revenue of $28.5 million for the year is 22% lower than the
$36.6 million reported in 2021. This primarily reflects the closure of the 777 mine during the second quarter
with royalties from other operations performing largely as expected. Average realized copper prices during
both years were very similar.
Early in 2022, Lundin Mining announced the discovery of the Saúva deposit at Chapada, which has initially
indicated copper grades that are significantly higher than currently mined head grades. An aggressive
delineation drilling program continued throughout the year and Lundin has indicated that the deposit is
being considered as part of its ongoing production expansion studies at the operation. An initial resource
Altius Minerals Corporation TSX: ALS | OTCQX: ATUSF
estimate for the discovery is expected to be announced early this year. The Corporation’s stream
agreements include the Saúva discovery area.
At Voisey’s Bay, underground mining has begun with initial production from the Reid Brook mine, while
development of the Eastern Deeps mine continues. Exploration efforts also continued to indicate the
potential for mine life extensions, particularly beneath the currently defined resource areas at Reid Brook.
Adventus Mining Corp. (“Adventus”) announced completion of a comprehensive project finance package
for its Curipamba copper-gold project early in 2022 and of an investment protection agreement with the
Government of Ecuador late in the year. It also continued to advance project permitting and final feasibility
studies in advance of an anticipated construction decision later in 2023. In addition to its substantial equity
holding in Adventus, Altius holds a 2% NSR royalty over the Curipamba project.
The Corporation’s first ever royalty revenue related to lithium production is expected in the coming year as
the Grota do Cirilo project in Brazil is scheduled to commence operations in April, while the Tres Quebradas
project in Argentina is progressing with construction activities. Altius is also an 11.4% co-founding
shareholder in private company Lithium Royalty Corporation which holds larger royalty interests in these
two projects as well as a number of other exploration through production stage lithium focussed royalties.
Iron ore revenue in the form of dividends from Labrador Iron Ore Royalty Corp. (“LIORC”), which serves
as a pass-through vehicle for royalty income and equity dividends related to the operations of Iron Ore
Company of Canada (“IOC”), was $10.7 million, compared to 2021 iron ore revenue of $17.2 million. The
38% decrease was primarily the result of lower realized product prices and lower equity dividends from IOC
- as a greater percentage of IOC’s free cash flow was directed towards growth and sustaining capital
investments. During the year, the Corporation increased its shareholding in LIORC by 866,000 shares to
3,739,800 shares at a total cost of $25.9 million.
IOC’s iron ore product mix includes an approximately 65% iron content concentrate and both blast furnace
and DR pellets. Average market based P65% concentrate prices during the year were US$142 in 2022 vs
US$195 in 2021. Average realized pellet prices at IOC were US$190/t in 2022 vs US$214/t in 2021
reflecting continued relative strength for highest purity products as the iron ore and steel making industries
continue to evolve towards less polluting forms of manufacturing.
Later this year Champion Iron is expected to announce the results of an updated feasibility study for the
Kami project, which is located nearby to the IOC operations as well as to Champion Iron’s Bloom Lake
mine. The study is targeting production of DR grade pellet feed. Altius originated the Kami project within its
Project Generation business and retains a 3% gross sales royalty interest.
Thermal (electrical) coal revenue of $15.2 million during 2021 was 68% per cent higher than the $9.1
million recorded in 2021. The increase reflected higher inflation adjusted royalty rates, higher plant
utilization rates and coal consumption at the Genesee power plant, which was negatively impacted by
unplanned maintenance shutdowns in the prior year. The operator of the Genesee power plant continues
with natural gas based conversion investments that are expected to commission over the next year and
bring an end to coal usage.
Altius Renewable Royalties (“ARR”), of which the Corporation is an approximately 58% shareholder,
continued to ramp up royalty revenue from its US-based renewable energy project investments. As a result
of its controlling shareholding, the Corporation reports ARR financial results on a consolidated basis.
Attributable revenue during the year was approximately 12 times higher at $4.8 million as compared to $0.4
million in 2021. Several new royalties were added to its portfolio through a combination of developer-based
financing agreements and direct royalty investment in advanced-stage and operating projects during the
year. Late in the year, the Corporation invested $20.7 million through participation in an equity financing
completed by ARR to support it in completing two acquisitions of production stage royalties. Further details
regarding ARR and its activities can be found on ARR's website or by accessing its public filings on SEDAR.
Altius Minerals Corporation TSX: ALS | OTCQX: ATUSF
Lastly, the Corporation is expecting to gain significant new insight into the scale and duration potential of
AngloGold Ashanti’s Silicon Project gold discoveries in Nevada during the early part of this year. A PFS is
expected to be released shortly for the Silicon Central deposit and a maiden resource is expected to be
published for the Merlin deposit. Altius holds a 1.5% NSR royalty that covers the discovery area.
Fourth Quarter and Year-End 2022 Financial Results Conference Call and Webcast Details
Additional details relating to individual royalty performances and asset level developments will be provided
with the release of full financial results, which will occur on March 7, 2023 after the close of market, with a
conference call to follow on March 8, 2023.
Date: Wednesday, March 8, 2023
Time: 9:00 AM ET
Toll Free Dial-In Number: +1(888) 396-8049

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