(Adding share price move in first paragraph and National Bank commentary from sixth paragraph)
Altius Minerals (ALS.TO) hit a fresh record high on Monday after the company reported the closing of Great Bay Royalties (GBR)'s US$73 million royalty investment with Apex Clean Energy over the 311-megawatt Coles Wind project in Illinois.
Construction of the project began in January and commercial operations are expected to begin in the second half of 2027.
The investment was funded through a balance of GBR's cash on hand and new capital contributions from Altius Renewable Royalties (ARR) and Apollo. Altius provided about US$12.4 million to ARR to support its share of the GBR capital call contribution.
"We are pleased to once again provide support to Apex and to mark GBR's second construction stage royalty in MISO, further diversifying its portfolio of 14 operating royalties," Altus Chief Executive Officer Brian Dalton said.
"We also note the strong 20-year [power purchase agreement] that anchors Coles Wind and is reflective of the unprecedented level of demand for new, near-term deployable sources of electricity that is characterizing the current market," Dalton added.
National Bank of Canada on Monday maintained its outperform rating and C$62.50 price target. The company's long-term outlook remains robust with several positive updates from the portfolio, including the ramp-up of production capacity at most of its potash royalties, resource update and advancement of the Sauva deposit at Chapada and advancement of Kami, the bank said.
"Our outperform rating is supported by the company's stable, long-life asset base, transitioning of the portfolio towards lower carbon-intensive commodities and leveraging in-house expertise to provide long-term exposure to future exploration success. We anticipate several positive updates from the portfolio, including resource update and advancement of the Sauva deposit at Chapada, advancement of Kami and growth from lithium/renewables business units," the bank said.
"Given that the current market conditions driving near-term support for many of the commodities within Altius's portfolio (including potash, where global supply shortages are expected to see strong support for production/royalty revenue), and a balance sheet supportive of increased activity on the company's NCIB, we currently base our target on a multiple of 1.6x NAV," it added.
Price: $60.41, Change: $+2.18, Percent Change: +3.74%