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Lower Revenues for Altius, but Outlook Positive
Contributed Opinion

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Adrian Day Global Analyst Adrian Day provides brief updates on two of his favorite resource companies. He also looks at very disturbing activity by banks in England, which he believes is a foretaste of what we can expect once Central Bank Digital Currencies come into force.

Altius Minerals Corp. (ALS:TSX.V) released preliminary revenues of $18.7 million for the second quarter, which came in slightly lower than expected, mostly because of potash and renewables. The advantage of a diversified portfolio is that while one or two areas may be weak, others are strong, and thermal coal and iron ore both performed well. It is well understood that this year's revenues will be lower than last because of the closure of the 777 Mine as well as the very high potash prices last year.

The company ended the quarter with just over $11 million in cash and $93 million available under its credit facility. It also holds a portfolio of exploration company equities, whose value fell by $10 million during the quarter to $41.8 million.

However, Altius said it expects several of these to be very active in the period ahead, with about 300,000 meters of drilling in the works. It also appears that Altius repurchased some shares in the last quarter. Further details will be available with their full quarterly financials month.

Altius is a core holding and a Buy here.

Lots of Activity Planned for Orogen

Orogen Royalties Inc. (OGN:TSX.V) released an update on its project generation portfolio, including an estimated 28,000 meters of partner-funded drilling for year, with four drill programs underway and four more planned, mostly in Nevada.

Orogen also has projects in British Columbia and Mexico, although it has scaled back activity in the latter due to the current mining environment.

Orogen is a favorite junior and a Buy if you do not own.

TOP BUYS THIS WEEK include Nestle SA (NESN:VX; NSRGY:OTC), Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE), Midland Exploration Inc. (MD:TSX.V), Lara Exploration Ltd. (LRA:TSX.V),  and Nova Royalty Corp. (NOVR:TSX.V).

FEEDBACK We received perhaps the most feedback we have ever received on our recent article regarding the departure of CEO Sandeep Singh from Osisko. People who knew him, people who had worked with him, and people who had just met him all expressed shock.

The company has yet to provide an official explanation. I hope to come away from meetings next week with a little more clarity.

UPCOMING APPEARANCES include Rick Rule's Resources Symposium this coming week in Boca Raton. I look forward to meeting several of you at the event. Next month is another of the quarterly On The Move webinars, co-hosted by Rich Checkan and yours truly. Our special guest on August 16 is Alex Green, Chief Investment Strategist of The Oxford Club and author of the best-selling The Gone Fishin' Portfolio. Details to follow, but reserve the evening of 16th in your diary now.

And then, in September, in Vancouver, is the annual Capital & Morality Conference, hosted by Jayant Bhandari. This is not an investment conference, but I have met many of you here over the years. I'll be presenting on "Individualism, Land Rights and Liberty in Mediaeval England." Other speakers include Dr. Amy Wax and Rick Rule.

DEBANKED Many of you will have read of the astonishing and disgraceful actions of several British banks in closing accounts of people whose views they do not like and other banks refusing to open accounts for public figures. Among those affected are children of MPs and Peers, as well as, for example, a vicar who preached against transgenderism, and most notably, Nigel Farage, who led the campaign for Britain to leave the EU.

It was Farage who courageously brought this to the public attention. His bank, Coutts, which used to be one of the most esteemed of Britain's private banks, leaked untrue information about financial problems and an allegation that Farage had received under-the-table payments from the Russian government as being the reason for the closure. Under Britain's equivalent of the Freedom of Information, Farage obtained internal documents that showed that the bank had been monitoring his social media and public views and, in fact, closed the account because they did not like these views. His "friendship with Trump" was noted in the 40-page internal bank report.

"His views do not align with our values," the bank frankly said internally as a reason for closing his account. After Farage courageously went public, risking his reputation, scores of other people came forward to say they too had been "de-banked" and suspected their public views of being the reason. This is Orwellian and a foretaste of what can be expected once governments start introducing their own digital currencies. It should send shivers down the spine.

What business is it of a bank the view of its customers, and what business does the bank have preparing dossiers on its customers? Not ironically, in view of Farage's Brexit views, it was an EU law on anti-money laundering that led to the increased surveillance of customers. The government has pledged to put a stop to this.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Altius Minerals Corp., Orogen Royalties Inc., Osisko Gold Royalties Ltd.,Midland Exploration Inc., Lara Exploration Ltd., and Nova Royalty Corp.
  2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
  3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
  4.  This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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Adrian Day Disclosures

Adrian Day’s Global Analyst is distributed for $990 per year by Investment Consultants International, Ltd., P.O. Box 6644, Annapolis, MD 21401. (410) 224-8885. Publisher: Adrian Day. Owner: Investment Consultants International, Ltd. Staff may have positions in securities discussed herein. Adrian Day is also President of Global Strategic Management (GSM), a registered investment advisor, and a separate company from this service. In his capacity as GSM president, Adrian Day may be buying or selling for clients securities recommended herein concurrently, before or after recommendations herein, and may be acting for clients in a manner contrary to recommendations herein. This is not a solicitation for GSM. Views herein are the editor’s opinion and not fact. All information is believed to be correct, but its accuracy cannot be guaranteed. The owner and editor are not responsible for errors and omissions. © 2023. Adrian Day’s Global Analyst. Information and advice herein are intended purely for the subscriber’s own account. Under no circumstances may any part of a Global Analyst e-mail be copied or distributed without prior written permission of the editor. Given the nature of this service, we will pursue any violations aggressively.

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