Business Breakdowns
· Luke Bridgeman
[00:00:00] S1: Strong managers like Brian Dalton are difficult to come across, almost unique. Number 2, taking a long-term approach, as they have and do, is really important. And I think that surfaces opportunities which other people wouldn't be able to surface. And I think the project generation business exemplifies that. Countercyclicality is written throughout Altius' playbook. And that's really what it's all about. Embedded optionality. When you have exposure to very long-lived mining projects, there is so much which can happen in the future. And the company talks about tripling its royalty revenue from about $60 last year to $200 million by 2030, on the basis of projects which are already in hand. And then beyond that, there are even bigger projects, so there is a lot of upside there. Altius is also an example of the alpha that exists between silos, between asset classes. It's neither a mining company nor a conglomerate. It's one of a kind and therefore overlooked by a lot of investors – maybe not so well understood. And that's a real opportunity for anyone who can do the work. Those would be the key points to hit on.
· Matt Reustle, Luke Bridgeman
[00:00:00] S0: I love it, particularly that last lesson where this doesn't fit cleanly into a specific bucket. It combines a lot of different aspects. But at the end of the day, I go back to the academic approach to investing and thinking about this very clearly in terms of what a royalty represents and embedded optionality, and a lot of these concepts that you see pretty cleanly in this one. So thank you Luke. It has been a fascinating conversation again. Really appreciate you joining us. [00:00:00] S1: It's been a treat. Thanks, Matt.