Saturday, December 13, 2014

Altius Minerals reports earnings

Link to earnings report:

Here is a summary from Seeking Alpha. Do not worry about the loss it is just an accounting entry as the company has to adjust the carrying costs of its various investments.

There were no surprises in the financial results and investors need to make sure they read the numbers together with the accompanying press release as Altius' corporate structure requires it to deduct a loss on the value of the JV from the actual revenue. This might be confusing and give people the wrong thoughts and opinions about Altius.

This loss is not a cash loss. If and when the value of the the JV interests increase the company will be forced to show a huge profit but as with this loss it is just an accounting exercise. Everything is on track with the royalties and this is just an exercise in clipping coupons and waiting for this great management team to come up with another great deal.

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