Friday, April 17, 2015

Altius Minerals initiates dividend and resumes share buyback


Altius Minerals Corporation is pleased to announce the implementation of a dividend policy and a starting annualized distribution of $0.08 per share payable as $0.02 per share on a quarterly basis on its common shares to all shareholders of record at the close of business on April 7, 2015 expected to be paid on or about April 20, 2015.

Concurrently, Altius announces that it has made a payment of $35 million on its term debt facility. This payment reduces term debt to $79 million (from $140 million less than a year ago) and, as per the terms of its credit agreement, results in a reduced effective interest rate from 7.8% to 6.5% annually. This payment therefore results in an estimated annual improvement to pre tax operating cash flows of $3.8 million.

Altius also announces that it has re-instated its Normal Course Issuer Bid (“NCIB”) and it may purchase at market price up to 1,617,841 common shares (“Shares”), being approximately 5% of its outstanding Shares of 32,356,826 as of March 17, 2015, by way of a normal course issuer bid (“NCIB”) through the facilities of the Toronto Stock Exchange (“TSX”). The bid is subject to regulatory approval. The NCIB will commence March 30, 2015 and will end no later than March 29, 2016. Any Shares purchased during the NCIB will be cancelled and returned to treasury.

This is what the company said it would do and after selling their stake in Virginia Mines the company was able to pay down debt sufficiently where the management felt comfortable initiating a dividend. I expect further dividend increases as time goes by. Buy and put away for ten years. My initial reasoning from late last year on Altius. 

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