Tuesday, April 12, 2016

Altius Mineral acquires copper stream on Yamana Gold's Chapada Mine

Link:

Altius Minerals Corporation is pleased to report that it has entered into a metal purchase agreement with a subsidiary of Yamana Gold Inc. (“Yamana”) to acquire future copper payments referenced to Yamana’s Chapada copper‐gold mine located in central Brazil.  


 Altius CEO Brian Dalton commented that, “Through this transaction Altius has continued to grow its exposure to long‐life diversified mining assets that have sustainably low relative positions on global cost curves. Chapada copper payments will significantly increase our revenue and EBITDA on a per share basis while also adding long‐term option value through the potential for production level expansion and above‐average exploration prospectivity.”

If you want a case study in what buying low and selling high means than study the history of Altius Minerals and their management team. They have consistently been able to deploy capital at nearly the bottom of the last three commodity cycles. This stream will add another $8-9 million in EBIT per year and of course there is optionality as the Chapada Mine has a 700 sq km surrounding land package. 

As I have said before this is one you just buy and hold and it will make you money long term. Best management team in the resource sector. 

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