Altius Minerals (TSX:ALS) - A Royalty Company for the Coming Commodity Supercycle

[Music] well thank you having for having us back on again best of the season I think it's been best part of a year since we gave you an update but um for those who don't know us uh this is Altius minerals Corporation royalty company focused primarily on nonprecious Metals maybe that's changing a little bit uh I'm Brian dalon I'm CEO Brian get see sir you're right how been I think so the beginning of the year um and what a year KY what a year it's been hard to read for about the past two or three years during this kind of Co period this inflation r period of ours um when you look back to this year did it pan out the way you thought it would it was a hard year to read going in you know we're all kind of at that point of when does the market provide incentive pricing so that Supply can be brought to the market because there are some really serious uh Supply demand deficits looming and you know the year wrapped up we can say it's another year that incentive pricing in most major Commodities was not provided and uh you get what you pay for and pretty much no Capital was put to the ground and we're a year closer to those deficits without any Supply relief in sight and I think it's an extraordinarily bullish setup it is it is a bullish setup for those who are patient uh for those who aren't it's been quite a noisy year um lot lot of lot of people concerned um about it so I want to in a way the way that you constructed your portfolio is kind of like the way we like to construct our portfolio to give us a balance for the highs and the lows because those highs and lows don't happen to companies in the same way so again just looking at the way your portfolio is structured any Lessons Learned or has it gone to plan I would say to plan I mean we set ourselves up with long-term assets we buy them once you know we don't trade in and out so you know you're making when we make calls we're making long-term calls so the macro means a lot more to us than the day-to-day swings and whichever analyst is trying to beat up China's growth rate tomorrow and you know trying to cover a short or something like that none of that stuff really matters but the big macro is has been intact in fact probably strengthened I think there's more cracks that have shown in existing Supply this year that might be the hall Market this year that is not just about lack of incentivization for the required growth to come but the vulnerability of what's already the base production amounts particularly in Copper that's been that's been that'll be one of the big stories that you look back on and say about 2023 yeah for sure there's been a disconnect between the uh incentive price and there's also been disconnect with equities in terms that the the metals that the you know you certainly involved with um again and you got this micro View and you got this long-term view but has any of that going surprised you in in a way because you know the gold guys have been under pressure for three years um price has moved margins haven't really changed um it's hard to get money for gold you know Junior Gold projects development projects in fact you know you've seen you know something in your portfolio where you've you know you've got we're talking about the adventus liex merg here specifically you know companies have to readjust and be agile and Nimble and and and just change the the moving Parts on the on on the table as it were so do you see do you expect to see a lot more of that and or do you think the acares will start to come through the incentive price will start to come through next year it's a shortterm time frame for me to make a call around but again it's been so long now since we've had investment either in the form of you know Capital commitments from major players supported by their major shareholders uh versus you know this return returns of capital Mantra that's persisted for an unprecedented period now so when it cracks it will crack very very powerfully I'm sure um similarly for you know more Junior type Capital sources more speculative flows I thought we started out the year first say third of the Year there was I felt there was some sentiment starting to build and a bit of enthusiasm starting to to happen but that really dissipated as the year went on and it's really tough if you were a development stage player uh really really tough if you're a junior looking for exploration dollars maybe you know with some small Pockets uh you know uranium stories have got got a bid lately but you know broadly speaking no the Speculator and sentiment generally is it's downright depressing which I actually find really exciting but I weird like that yeah well it's but it's true though you know when when the wind blows um you know everything kind of resets in a way so you I mean let's take an example let's let's go back to the advant lman situation okay they've come together why is it going why is it going to work as two rather than the way things were going on there before what what does that sort of thing in the market do because there will be more of this we've seen a few there will be more on suspect but what does it what does it do for you Les you cidence I believe it adds to the probability that the elor m c bomber project gets built and and we own a royalty on that asset we're also obviously big shareholders of Adventist but you know primarily there our focus is on on the 2% royalty that we have on that project you know it's a fantastic high-grade project there's obviously issues in country around uh just political upheaval and permitting and the all these types of challenges but you know you can't Overlook the fact that Capital costs have been increasing in the space and that financing is hard to come by so probably the most complimentary feature I see there is just bringing together that um that project and the really strong technical execution that adventus has has achieved in bringing the project uh to this point in advancing the social license and now bringing in Ross Bey and his team and their track record to really just um support the overall initiative through late stages of financing and building I just I mean I'm sure in some ways people would say that the the Ross's entry there looks opportunistic but I actually think it's it's a strengthening move you can't always measure these things you know on a spreadsheet sometimes it's more the intangibles that that define success or failure and I really do believe this is a really powerful um combination now to finish the job right well and and in a way as a world stolder I guess you don't necessary Minds what what happens to um whether there is opportunistic or not the royalty stays stays the same but just again more broadly looking at and this is this is a kind of question around how you in terms of what you've leared over the course of the past couple of years in terms of what you've seen and how you go about constructing your own portfolio we've seen all sorts of political um upheavals you know we've got you know venezuel Venezuela recently um you know trying to you know renew their claims against Guana and you know off shore oil and potentially onshore gold um we've seen all sorts of you know conversations in Chile around you know new constitutions Etc Mexico is going through a change in that's in that's running uh regulations as well do these things as a longterm outlook player did these things change your mind about investing in certain countries or do you think the those sorts of events over the course of time even themselves out and projects do get done and therefore for you maybe it's a case of getting in cheaper U but we're having to wait a little bit longer would you avoid that sort of thing I mean it's difficult to be in this industry and to say you're going to avoid you know everything out of the US Border in the americ it's just difficult basically that means that the world won't get the metals it needs it's that simple um yes specifically to certain regions within countries because I think it is very local in some cases some of it's bigger picture Panama it may very well be Countrywide philosophical we'll see what happens when the economic consequences hit home how that all plays out Peru Chile maybe has come through most of it Argentina is an enormous wild card right now because if you if you really look at what projects are out there in again I'll go to Copper that could make a difference that could become part of the that Supply equation long term an awful lot of the the otherwise you know likely candidates you know politics notwithstanding sit in Argentina so that that's a really interesting place to watch over the next little bit we're willing to take some risk because we're willing to take very long-term bets on on some of these jurisdictions but the overarching message here is that that additional challenge that exists around where you can execute a project and even after you've executed it you know what you can rely upon in terms of your your fiscal regime and tax policy and all of that that Dynamic to me what it does is it it adds dramatically or greatly to the uh risk profile the implied cost of capital for making those projects work and that overall is enormously inflationary uh to the overall cost structure of winning these medals from the ground like the smaller this world gets the more local or or you know Countrywide sheare of the of the overall pie is allocated you know that way and not towards you know paying back project Finance you know these things all have to be met with more price it's it's the only way so I'm I'm incredibly bullish don't forget we're a royalty holder those additional costs that might come on they won't erode our royalties they'll impact the margins of the Mind operators but to the extent that higher costs no matter where they come from lower grades higher taxes whatever it doesn't matter are ultimately going to be reflected in the price required for the materials we're full beneficiaries of that Topline Revenue growth so I mean I don't want to be cute about it but inflation is a driver of our business it isn't it isn't a challenge I mean I would still like to see an easier world to get this stuff done done because the world needs it but uh in our case it it is a benefit is a benefit really in the Long Haul yeah it's yeah it's a benefit it's a benefit of long it doesn't kill the company and they can keep producing uh and it's I'm trying to think the right word it's Ben I'm not sure benefits the right word it's like it doesn't affect your bottom line that that's for sure for the companies their margins get squeeze and as long as doesn't get us squeeze to a place where they have to stop it's all kind of good news I mean let's let's just talk about one thing that you come back to a couple times corpor right and if I'm if I'm and you talked about some of the issues around Supply and obviously getting funded getting funded in not an onerous way I.E that the money is not too too distructive the cost of money is not too destructive these these companies need money to move forward and um assuming that the political environment is there the social environment is is is there and um you know they they can do that but it seems to be there's a kind of we talk about disconnect earlier about this a disconnect between people's perception of the need for that supply and the demand fundamentals in the copper space at the moment right it's like oh China's going to be building those houses or oh China's building less cars or China China China again how do how do you read that kind of coer environment because it it seem it seems to me very short-termist at at at the moment in terms of sentiment very PR much so I mean the supply story is fairly actually fairly transparent there aren't going to be mines that pop up out of nowhere that nobody saw coming that's never going to happen right so the opposite is not true though can production disappear out of nowhere oh boy yes it can um so in that dynamic between supply and demand supply side I've never seen anything set up like this before my life like this is crazy now um these mines that are meant to go down you can't wish more war back into the ground like they're done they truly are done so that's why I think we had a fairly bullish setup starting in the early part of the year because this was this was dominating but then the Bears jumped in and it was like oh no we've got demand destruction coming that is going to more than offset that Supply destruction that's coming and like this is an this is an ugly Market there's going to be a big uh you know Supply demand Surplus right there's a surplus of production because demand is going to crash that b and sure enough sentiment dissipated and um shorts had a fun run of it all and Longs got crushed but let's look back on the year now guess what depending on whose numbers you look to turns out copper in China consumption will be up between five and 8% this year what I thought it was going to be cut in half I thought the world was over as far as copper in China China China was loving this narrative this this everyone talking down the price of copper mid year guess what they were doing buying the living out of it like come on guys like it's it's anyway it's fun but and then other little touch points look at the cost overruns on qb2 we would have guessed the incentive price for copper this time last year at around five bucks that's where we were counted to but if you start to plug in Real Life numbers because those people were using kind of data sets but if you look to recent examples like the capex intensity for qb2 once all of the overruns are factored in and you plug that back into an incentive price Model your copper incentive price goes into the sevens and eights Anglo just came out so they'd been spending all this money to grow all this production and that was in our earlier numbers right they're spending this amount of money to generate this much of this much growth and that informs a capital intensity that can go into an its Enterprise model well now they spent all the money but guess what you're not getting the copper you're getting a fraction of the copper hence the capex intensity number was understated in the fullness of time I.E it's not $5 incentive anymore right so that's the real stuff overall this year copper consumption in you know the gloomiest of years for copper it's up it's on Trend it's on Trend growth an extra 5 or 600,000 pounds required this year over last last year guess what be the same thing next year it'll be the same thing the year after that if we don't even get demand surges from electrification or anything else but that's that part the supply side we can you can see it you don't there won't be surprise production trust me on that we're not going to surprise the upside on production in Copper for a very long time it's get harder to find you need to dig deep breath oh wonderful and and the grades are getting lower so uh yeah it's it kind of feels like it's a bit obvious but it doesn't feel like the markets felt it's that obvious maybe a factor of the fact that it's been a risk of environment people are you know concerned about their own cash positions but uh institutional guys I'd have thought they would have worked this out I mean maybe some have but I mean you're not hearing the big investors you know beit Rio to or BHP and say what are you doing you're not investing in your minds either right and and they've got to do something they know that you can sense that shift they feel that There's an opportunity and a window but I also think they're facing the reality that they don't actually have a lot in the cbers to bring to the market so even if they wanted to take like a um a bull a longer term or a few years out kind of more bullish View and make their capital investment decisions because they know it's going to come um probably take a beaten for the from the investors for a period of time the reality is is that even if they wanted to take that that kind of a stance there isn't much that they can go to that looks attractive probably until you're looking at Copper in the A1 range like that's where we're too it's it's yeah three9 years you're going to see more of this like um BHP buying Oz that kind of thing right it's just right now the spread between the cost of buying a unit of existing production from a mediumsized player to the concept of going and building your next best big green fields mine that spread right now is enormous it's an mmaa it's a recipe for m&a there's no doubt for for sure and I think that the m&a will will be coming and it's great that some the big boys will open up the balance sheet and and and stuff will start moving forward but it's just moving the pieces around the deck I think the problem is finding the new stuff because we're going to need multiples of what we've got now by 2050 um and I think that should be a lot yeah it should should be midterm player that has a project that actually has expansion potential brownfields expansion is looking really attractive right now people will pay up for that because again the other spread that's out there like the capex intensity for greenfields versus Brownfield right now is probably as wide as I've ever seen it as well in particular if you're looking for m&a targets here it's somebody who has a project that a big guy looks at and says well we can come with our Firepower and our expertise and we can we can actually come to a we can actually generate a positive ir and an investment in growing that project whereas the the smaller player maybe just doesn't have the wear with all it but as you say that'll represent a fraction of what the market is going to need like a a small fraction yeah and the big guys will be getting uh getting it for a parkon they will um because you know when with these kind of cash constra cast constraint companies you know they they don't have the kind competitive tension that they're going to need to drive that acquisition price up so I think you know it's going to be great time for the the mid mid midcaps and and the and the and the big boys um but we but we're in violent agreements about copper and the copper Market let's let's say that uh that what we need to discuss now is again maybe you know we're having this outlook on on on COA but we had this Outlook I felt two years ago this a typ of potach but it's gone through a kind of a funny old period terms of uh pricing in terms of the the market and um and how that's controlled how's that affected you and can you see some you know please guy in front of you yeah well anytime I've ever talked to a podes you know longterm is the word that comes off my tongue most and it it's just one of those Commodities and the poach mines in Saskatchewan they're as longterm as As It Gets In The Mining World um so it's all fine like it's all fine last year we made a crazy amount of money from Poes like way more than we were expecting but it was because the podes price shot up on uh on the Ukraine Bell Russian situation or the Russian Bell Russian production risk and scare and price shot up well that caused the farmers the buyers to say B and say I can't pay that for podes and they sat it out they just said I'm just not going to put it on the ground so it fast forward 18 months or so and it's now it's showing up in um the yields that their lands are producing right yields are dropping quickly because they economically chose to not apply nutrients there's no rocket science this is about as basic of biology as you're ever going to deal with um and now all of a sudden there's it's payback time right so now you you can't get away with not putting nutrients in the ground and so what we're hearing from our operators is that their their last quarter was setting Rec records in terms of demand for podes the prices are have stayed more moderate which is positive actually because there needs to be that right equilibrium and uh there's incremental volume growth that's happening Global demand is you know there's a dip in the chart there like Global demand for poach last year in response to the high prices looks like a low Point looks like it's going right back to trend line now to its good old 3.7% grow rate over time um still the best mindes in the world still incrementally bring down production a fair price right now I don't think it's a strong enough price to incentivize the growth that's required going forward but I'm not whining about it it's all fine PES is all fine p is all fine good I I I hoped so two years ago um BHP HED so two years ago we all did um it's a funny Old Market that one but I tell you what's not a funny Old Market and and a little bit more exciting for you is um and and you've got a royalty on this is with champion iron they green they are green they're a green company um that potentially could be a real game Cher for you how are things advancing and so you can see what I'm doing I'm just going to have a quick run through your portfolio so see that how how that's balanced but Champion AR strikes me is something that's going to be sort of disproportionately important to you so Champion has a royalty on a project that we originated 20 years ago I mean one of the unique things about is that even as it's become more of a royalties business over time it's always maintained its exploration Focus generate our own projects Farm them out to developers retain royalty so it's a bit of a differentiator we don't just buy royalties in the market we we work to create them long term as well so the Cami project was one of those projects Discovery was made and it came close in the last cycle um but didn't quite get there when when things crashed out in that 2016 2017 period a lot of money got spent advancing the project but it had never got to production it's found its way the champion iron or uh and what's one of the things that's unique about the Cami project this is a much stronger attribute for it now than it would have been even 10 or 15 years ago is that it's a very rare deposit that can ultimately produce ultra high Purity iron ore by ultra high Purity I mean Rich enough or or pure enough that it can go into directly into electric Arc furnaces alongside of scrap with no coal input and so that that's an important point I want to come to so we're Champion is too they've been working advancing the updating a feasibility study around a very specific plan to develop Cami to produce that direct reduction or electric Arc furnace capable grade material so that's literally around the corner days to weeks is what we're hearing for that feasibility result and um I I think the messaging out of champion of late in its own you know investor of materials and whatnot it sounds fairly positive but I won't I won't try to prejudge it but it's a big scale project and we have a fairly large royalty at 3% gross revenues and so you know if we go from today to a few weeks from now and a change in in in view around Camy and when it might if a if it's going to get built and B when it might get built again it has the potential to be our single biggest royalty practically overnight and there's very little value attributed to that you know amongst any of the analysts who cover us so that that's I guess it's it's pretty exciting but I don't want to I don't want to overhype it but let Champion do their thing and and they're great operator one of the best executors that I've ever come across in my career so it's in their very capable hands but I'm I'm pretty optimistic but the other thing that's going on is the market is really come their way they've been talking up green steel now for a number of years right and it kind of it's a bit of a novel message that they're sending out which flies very much in the face of what you would hear say Mario Tinto or a valley or a BHB they're basically saying that the era of the blast furnace is over and that the era of the electric Arc furnace is upon us and why you don't hear that being broadcast by the Rios and phps of the world is everything they produce is suitable only for the blast furnace market and again Champion is trying to look ahead and say I'm sorry guys but what you have before you know it nobody will want it and that's a really crazy statement when you think about the iron or platforms of these big major companies they are the absolute backbones of these business and here's somebody that's saying I'm sorry but nobody wants your material anymore it's redundant or it's it will become redundant over time uh really quick but a blast furnace for anyone who doesn't know takes in varying qualities of iron ore mixes it with coal and outcome steel an electric AR furnace can only take in high Purity iron ore and scrap uses no coal and outcomes steel well it's gone beyond speculation on Champions part as to whether or not the market is indeed transitioning to this you know Greener no no coal usage form of Steel making you just have to follow the money so essentially the entire Global Steel making complex and Industry is investing heavily in building new electric Arc furnaces nobody is investing in building new blast furnaces so yes this takes time for the blast furnace Fleet to roll off but the commitments are being made and money is going to ground that electric Arc furnace Fleet is expanding so fast none of those new plants can take a typical Iron Order comes out of the pillur Australia just think about that for a second I've been drinking the Kool-Aid for a while obviously and then we're heavily invested specifically in the labrador trough one of the very few areas in the world that can produce that special quality iron ore and that has available infrastructure and I'll go further like just have a quick look through the investor presentations of the valet in Rio the last quarter and you start to see it you start to see the message change you start to see the admission that they've got to change their businesses and do it quickly like there's an there's a recognition that's seeping in that oh we're not future facing and the future is not that far out like we really have to do things now or we're suddenly redundant in our Core Business it's really astounding to look at if you go for the look for the salt EAS yeah look and I think I I'll give the kind of counter to the the Kool-Aid conversation um which is yeah I think at worst as a case of the kind of green s moves to the front of the que gets attracts a premium a significant premium because people want that first and we're un unfortunately we're still going to need the kind of blast furnace stuff for a while until it can be if it can be phased out you know and I I think we see that in this in the nickel space in terms of you know Indonesia philippin CH China process and you know they're moving to mat Etc but the bation of a lot of these Commodities is coming partly because of the need for the kind of um green credentials Net Zero and all of those wonderful things that people are are aiming if you run a blast furnace in in Europe right now the reality is is that it's more than a um like a philosophical decision it's an economic one because you're now paying for the carbon that you produce so the relative economics of one plant versus the other it's driving like this is ultimately still capitalism driving the driving the boss here but just think about a world where there's let's say the world needs the same amount of there's no growth in steel in the world for the next 50 years but we still need the same amount as we have today what you're actually talking about then is market share shift right and it's electric AR furnaces present represent this much of Steel making today blast furnaces represent this much well watch that start to go this way and now think about that in terms of relative forms of Ste of inputs so high Purity and scrap versus low Purity it means one is a grow Market with no real obvious major easy Supply sources available to it and the other you know is losing market share it's just not in as much demand as it's been it's losing in a static Market whereas High Purity inputs gain dramatically even in a flat Mark that that's we're say we're saying the same thing it's just I I think that that time frame that you know that transition period it will be the interesting one I think there's get there's a lot of games to be had so probably a 20 year story to play it yeah yeah for for for for sure for sure um and just so so cous of your of your time here I just again looking you know I always like to look at look your your your revenues are well documented and we we we can discuss that but I think easy people kind of look to I'm more interested in the kind of development assets in in portfolio you know such as they kind of the nickel and the lithium um Etc and anything else what would you point people to in terms of what these kind of um materially Advanced you know development assets what's important to note that we haven't discussed yet well I I think without question the biggest sort of story Catalyst that's come out of our business this year I say it came out of the business this year but it's another one of these you know 10e plus kind of stories that has its roots and exploration but I would say that I would look back and say that 2023 was the year that the the Silicon project you know went from being you know an exploration story that looked exciting to being confirmed as a true worldclass gold Discovery in Nevada and of course we have the royalty there uh but Anglo gold I saw senior executive present recently who described it as uh this is a project this this project is going to be a game game changer for Anglo gold not just that's a big company to be making those kinds of statements at at this stage so they've got a concept study coming for the project um within a couple of months I would guess is is what kind of they're messaging what we're looking for there is bit more guidance as to what kind of production rate that thing will optimize at the resource right now they published in various categories resources of about 8 million ounces and there's another Discovery called Merlin that there isn't a formal resource it's close but they've guided thust far to like 6 to8 million so you add all that up and and full caveat here around you know the the types of mixing categories and whatnot but again indulge me with round numbers here and we're talking about 15 million ounces plus that's a pretty Mega Discovery to have and all oxides like all leech stuff in the middle of Nevada so you know what kind of optimal production rate does that land at that's that's a question for engineering and a whole bunch of other questions but I we think it could be material back of the envelope you know if people like to run these things and build these things at 20 or 25 years talking well nor to 500,000 ounces a year type potential to date Anglo is is kind of stuck to references to like north of 300,000 ounces a year uh but that was 8 or 10 million ounces ago right so that hasn't shifted over that time frame so that's a big Point we've got to watch for in the next little bit because obviously the value of that royalty is dramatically different at 300,000 ounces or 600,000 ounces or 900,000 ounces a year so that's that could be a big driver um and I don't think it's well recognized the discovery it's certainly not recognized in the analyst that cover us there's some value given for it but the numbers were seeing there would be fractions of what we quite confidently believe we could achieve in the market if we were for example to sell it today big brand new worldclass gold discoveries in Nevada royalties on big new worldclass gold discoveries in Nevada probably said it here before is about as good as it gets in terms of asset tearing in the overall Global mining Spectrum so um we're expecting a fairly busy noisy spring on that project as well we will once we get those key data points have a better handle on those key data points or some decision- making for us to do around whether or not we believe that the best home for this royalty is with in alus or if we shouldn't indeed be talking to some of the Pure Play precious metal players about vending it or swapping it for non-precious metal royalties that they might have that we like a lot of that discussion is already begun to be honest with you we certainly haven't made a decision if we weren't feeling like we were getting back either in terms of a payment or in asset quality something that matched uh the features that silicon already has early stages likely to grow likely to expand all of the Hallmarks of an alus royalty uh we'll simply just hold it and I'll I'll have to change my tune and we'll stop calling ourselves the non-precious metals royalty company and we'll just add it as another another pillar so either way world class problems love it great fun it's all money right and how how however you want to frame it how however you want to manage that narrative I guess you've got to adjust to what the market wants to agree we need to make technical calls on what the thing could be and we need to see what because again if we just sold it for cash the question is what do we buy right why do we buy I mean I can do a big issuer bid and buy back a chunk of Al this years that's makes actually some sense to me but you know really when you think about external assets and just balancing portfolios and S on that one that's strong a long time asset but if there's good opportunities out there to strengthen our business and our portfolio through this is a reare kind of asset so we've just got to keep our wits about us and take our time and make good calls for a sherold right so can you put a number on one that cost you in terms of like way back in the day can't even remember versus what it could be worth today I mean it's a heck of a return but obviously it's also a long time yeah well it came into us through our merger with Kal andan and the grubstake agreement that originated the royalty was funded I think with $300,000 there you go yeah right well look that's always meant to be a big differentiator in our business has been you know you go and buy royalties and you spend X and you've got an implied irr and you hope that they get bigger and better and that you make you know a better return than than or or the price goes your way those kinds of things that's that's how most of Royalty work royalty business Works we've always felt that for modest investment in Exploration which we've typically been able to recover you know along the way or even make profits we've actually made quite good profits in that business along the way but the ultimate reason for it was that with the fullness of time and it takes time there will be royalty that will go from very low cost exploration stories that will become core elements of our portfolio that will have negative to very low cost bases attached to them and that will become major Revenue contributors so when you think about what the implied rate of return is for something that is like Champion the Camy project we've got a negative cost there's a few hundred, cost based on Silicon these are both two potentially worldclass royalties and the rate of return on those is essentially infinite and blended into the overall portfolio construct um you know can be real game changers we we've always said to ourselves that we're not here trying to become the biggest in terms of scale that we're you know we have the biggest Revenue number or whatever I mean we like that on a perser basis but we it's always been more important to us to think about our business in a way that we on the final Judgment Day that we have the ultimate highest history of rate of return uh in terms of our royalty track record in the LA long I don't care about the scale I just want us to have run a smart business that in the fullness of time portfolio wide can go back and say money's in assets creatives that you know we have excelled and then I feel like we've done our job if I look at this year you've had a could year a few nice sort of um sums in there as well the the revenue's been good you've told us about some of the existing um projects and you how they're Fairing and some of the you know the the ones coming through in the next year two three years I mean see silicon and Champion IR exciting you know but what what's the next year look like you know because this this is a bad you know when you know swings and roundabouts in the sense of you know it's been a difficult Market going forward the future looks bright how was your message to shareholders or people looking in at alus now you're not trying to be the biggest but you're trying to be the best so what are they buying inake well obviously these particular catalysts that we've already talked about we all watching that closely because they could force investment Community to say you know what those assets are worth something and they've got to be valued in here price so that's fairly near term but still the bigger picture for a shareholder of alus is the understanding that that current prices across the commodity spectrum that we're attached to are still below incentivization levels and that has to reverse it just has to like there's not an if it's simply a win and when that happens in the near term like while it's happening we be beneficiaries from those higher prices obviously royalties volume time price still the the win here we're all going for is the point when that incentivization price comes and and it's getting those signals from The Operators of the projects that we hold royalties on uh around expansions new bills that sort of thing like those those are the that's the real game we're playing and you know this sort of newer short-term stuff around big discoveries and whatnot that that's obvious will that day come in 2024 will we start to get that incentive pricing and see that big shift suddenly happen I don't know I suppose I can be bold here it's um it feels kind of close it feels kind of close like this idea that there's a surplus for the next two years and oh we can all just sit back and don't worry too much about it build up some inventories again that just all got shattered in the past two weeks there's no Surplus there's nothing but deficits ahead balanced if we're lucky for a couple years before there's a there's some big holes opening up it doesn't take like it's amazing it's always been amazing to me how much of a surplus or how much of a deficit how small it really can be to really dramatically move things and change the game there's nothing small about the one that's coming it's wonderful it's gonna be magical it'll be beautiful will it be 2024 in some ways I kind of hope so because I've been preaching it for so long that you know boy cried wll on the other hand like give me another six months to this please

Channel: Crux Investor

Views: 4,252

Keywords: mining, gold, nickel, cobalt, uranium, vanadium, lithium, precious metals, crux investor, cruxinvestor, silver, TSX, ASX, AIM, LSE, investing in uranium, investing in mining, investing in stocks, investing in stocks for beginners, investing in gold, invest in stocks, invest in stocks for beginners, invest in gold, invest in mining, analyst's notes, analysts notes, analyst notes, battery metals, electric vehicles, net zero, carbon neutral, carbon credits, nuclear, best mining stocks, TSXV

Id: 6Du207if8DI

Length: 41min 33sec (2493 seconds)

Published: Mon Dec 18 2023