Altius Minerals (ALS) AI Stock Analysis

• Market Cap: C$1.14B
• Dividend Yield: 1.42%
• Average Volume (3M): 127.51K
• Price to Earnings (P/E): 83.8
• Beta (1Y): 0.71
• Revenue Growth: -32.22%
• EPS Growth: -23.51%
• Country: CA
• Employees: 19
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Mining
• EPS (TTM): 0.29
• Shares Outstanding: 46,288,610
• 10 Day Avg. Volume: 235,082
• 30 Day Avg. Volume: 127,508
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 19.02
• Price to Cash Flow (P/CF): 26.70
• P/FCF Ratio: 24.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$30.80
• Price Target Upside: 22.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Altius Minerals' stock score reflects a strong financial performance with robust cash flow and operational efficiency, offset by valuation concerns due to a high P/E ratio. Technical analysis indicates potential positive momentum, while the earnings call provided a balanced view with growth potential in key segments, despite challenges impacting net earnings.

Positive Factors

Renewables Growth

Renewables are driving growth for Altius Minerals.

Target Price Increase

The target price for Altius Minerals has been increased to C$33.00.

Negative Factors

Cash Flow Performance

Operating cash flow was a bit lower than anticipated.

Altius Minerals Business Overview & Revenue Model

Company Description

Altius Minerals Corp is engaged in the business of obtaining diversified mining royalty. It holds interests in mining operations that produce metals and minerals such as copper, zinc, nickel, cobalt, gold, silver, and potash. The corporation also holds other pre-development stage royalty interests and various earlier stage royalties. It is engaged in the operating segments of the Acquisition and management of producing and development stage royalty and streaming interests (Royalties); and Acquisition and early stage exploration of mineral resource properties with a goal of vending the properties to third parties in exchange for early stage royalties and minority equity or project interests (Project Generation).

How the Company Makes Money

Altius Minerals makes money primarily through the acquisition and management of royalty interests in mining projects. By holding these royalties, the company earns a percentage of the revenue or production from a mine without having to bear the operational costs. This model allows Altius to generate consistent cash flow from multiple projects and commodities. Additionally, Altius invests in early-stage resource projects and companies, benefiting from potential capital appreciation and income through dividends and interest. The company's strategic partnerships and investments in renewable energy projects also contribute to its earnings by diversifying its revenue streams and reducing exposure to commodity price volatility.

Altius Minerals Financial Statement Overview

Summary

Altius Minerals demonstrates resilient financial health with strong operational efficiency and cash flow generation. While the income statement shows some revenue volatility, profitability margins remain solid. The balance sheet is stable with prudent leverage management, although ROE could be optimized. Strong cash flow management supports the company's financial flexibility and growth potential.

Income Statement

Altius Minerals' income statement shows a mixed performance. The gross profit margin for TTM is strong, reflecting efficient cost management. However, the net profit margin is moderate, indicating room for improvement in profitability. Revenue growth has been inconsistent, with a decline from 2022 to 2023, but a slight recovery in TTM. EBIT and EBITDA margins are robust, highlighting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio and strong equity ratio, indicating good leverage management. However, the return on equity is moderate, suggesting potential for better utilization of shareholder funds. Overall, the company's balance sheet stability is commendable with a solid equity base.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth in TTM, showcasing strong operational cash generation. The operating cash flow to net income ratio is healthy, indicating good cash earnings quality. However, free cash flow to net income ratio could be improved. Overall, cash flow management is strong with consistent free cash flow generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
60.27M	68.96M	84.11M	63.19M	50.93M	44.88M
	Gross Profit
46.24M	47.65M	53.75M	34.25M	27.66M	23.57M
	EBIT
29.28M	31.14M	59.59M	49.73M	25.64M	33.26M
	EBITDA
28.21M	40.58M	81.34M	74.03M	5.08M	41.53M
	Net Income Common Stockholders
13.71M	9.54M	37.49M	40.02M	-26.21M	17.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.83M	130.42M	82.39M	100.02M	21.80M	22.13M
	Total Assets
823.14M	773.54M	780.58M	721.40M	589.61M	566.87M
	Total Debt
118.88M	112.17M	120.87M	115.17M	132.97M	107.83M
	Net Debt
42.04M	-18.25M	38.49M	15.15M	111.16M	85.70M
	Total Liabilities
169.48M	161.00M	171.78M	192.42M	205.78M	166.91M
	Stockholders Equity
530.96M	488.73M	486.19M	433.49M	362.88M	385.20M
Cash Flow		Free Cash Flow
29.75M	35.05M	71.92M	46.64M	34.38M	11.49M
	Operating Cash Flow
32.39M	36.51M	74.26M	47.77M	37.12M	27.39M
	Investing Cash Flow
54.88M	55.07M	-85.75M	-26.55M	-50.19M	-8.37M
	Financing Cash Flow
-42.91M	-38.93M	-10.75M	56.99M	12.74M	-25.29M

Altius Minerals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALS, the sentiment is Negative. The current price of 25.07 is below the 20-day moving average (MA) of 25.85, below the 50-day MA of 26.88, and above the 200-day MA of 24.74, indicating a neutral trend. The MACD of -0.57 indicates Positive momentum. The RSI at 41.39 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALS.

Altius Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALS	67 Neutral	C$1.14B	83.76	19.20%	1.42%	-32.22%	-23.51%
VNP	58 Neutral	C$501.31M	23.25	10.84%	―	21.14%	-3.80%
Sector *	47 Neutral	$2.61B	-3.78	-28.62%	3.34%	2.54%	-30.57%

Altius Minerals Corporate Events

Altius Minerals Reports Strong 2024 Royalty Revenue Across Diverse Sectors

Altius Minerals Corporation reported its Q4 2024 and full-year 2024 royalty revenue, which amounted to $13.6 million for the quarter and $65.7 million for the year. The revenue was driven by strong performances in base and battery metals, potash, and iron ore sectors, despite some fluctuations in commodity prices and volumes. Adjustments in the potash sector and higher dividends from Labrador Iron Ore Royalty Corporation contributed to the year’s results. The announcement highlights the company’s resilient operational strategy amidst market variability, potentially impacting future stakeholder engagements and industry positioning.

Expansion of Altius’s Royalty Rights in Silicon Gold District Announced

Altius Minerals Corporation announced a partial award decision from an arbitration Tribunal regarding its royalty interests in the Silicon gold district in Nevada. The Tribunal confirmed that Altius’s royalty covers the entire Base Area of Interest and some adjacent lands, expanding its rights significantly. However, lands acquired by AngloGold Ashanti from third parties before the Royalty Agreement are excluded. This decision potentially strengthens Altius’s position in the district, pending a final award.

Altius Minerals Sees Significant Growth in Junior Equities Portfolio and Strategic Investments

Altius Minerals Corporation reported a significant increase in the market value of its junior equities portfolio, reaching $60.4 million by the end of 2024, compared to $45.1 million the previous year. The company generated $26.4 million in proceeds through the monetization of certain equities, using $11.3 million for further investments, notably in Orogen Royalties Inc., and supporting its share buyback program. Altius continues to benefit from its strategic alliance with Orogen, with key developments at the Ermitano gold mine and the Silicon project in Nevada. Additionally, the acquisition of Adventus Mining Corp. by Silvercorp Metals positions Altius to benefit from future copper-gold production in Ecuador, while it maintains interests in other promising projects like Canstar’s Golden Baie and Tru Precious Metals’ Golden Rose in Newfoundland.

Altius Minerals Applauds Strategic Kami Partnership

Altius Minerals Corporation celebrates the partnership of Champion Iron with Nippon Steel and Sojitz Corporation as they acquire a 49% interest in the Kamistiatusset Project. This strategic move is expected to enhance the project’s output of high-purity iron ore concentrate, benefiting Altius through its 3% gross revenue royalty on the project.

Altius Minerals Reports Q3 Revenue and Strategic Moves

Altius Minerals reported a decrease in Q3 2024 royalty revenue to $16.6M from the previous year, impacted by lower potash prices and seasonal mine maintenance. Despite this, the company is optimistic about growth in its renewable energy royalties and base metal projects, with several projects showing promising developments. Additionally, Altius is involved in strategic transactions to strengthen its portfolio, including a significant arrangement with Northampton Capital Partners.