Altius Minerals (TSX: ALS): Stock of the Day

by Ted Leinbach, Research Team, The Oxford Club 

In the rocky hills of northern Canada, companies are scathing the landscape in search of the next gold fortune.

One minerals exploration company has found a strip of land that is showing anywhere from .2 ounces to 9.8 ounces per ton of the yellow metal. And make no mistake, 9.8 ounces of gold is simply HUGE.

But it gets even better than that. This gold find happens to be just one of the half-dozen gold projects this company currently has in the works. And with one government bailout after the next, the prospects for gold and other precious metals as safe havens will only grow.

That’s why today we are recommending Altius Minerals (TSX: ALS). Based in the province of Newfoundland and Labrador, Canada, Altius Minerals is a mineral exploration company with over $200 million in total assets.

As an exploration company, ALS does not do any drilling. Instead, it simply finds mineral-rich land that offers the most potential for profits. Then, it cozies up with a bigger partner that is willing to take on the heavy cost and risk of drilling.

So how does Altius get compensated for its work? By receiving huge royalties from existing mining projects. In fact, the company makes 96% of its annual revenue from them.

And Altius is collecting them like clockwork. Like the .3% royalty ALS collects on a nickel-copper-cobalt project in Voisey’s Bay, Labrador. This project is one of the biggest mineral finds in all of Canadian history – estimated to contain 141million tons of iron ore.

The project will ensure Altius consistent and sustainable cash flow for at least the next quarter century. Think about that for a second…

Even better, the fact that Voisey’s Bay is viewed as a long-term financing source for the company’s business model is great news for Altius shareholders because it will eliminate the dilution of equity.

Bottom line: ALS offers a low-risk way for you to own gold and other precious metals. And when gold skyrockets, expect the share price to follow.

Note: This Company is traded on the Toronto Stock Exchange.

• One Natural Gas Company Worth Looking Into… Now And Later
• LNG Makes It A Really G’Day, Mate
• Will The Price of Oil Per Barrel Drop to $20?

Sign Up now and receive this Free report: Collect 122% in the Next 12 Months From Gold's Surge.

The Single Best Investment for 2009

Forget another stimulus package. Or retreating into "safe-havens" like cash and gold. All you need in 2009 is a small exposure to the "secret" White Cap Index.

It's up as much as 171% straight through Wall Street's meltdown. And one of the latest stocks to be added - an Internet-related venture capital company - is up over 100% since its inclusion into the Index.

Just weeks from now, we'll add another White Cap stock to this market-trouncing index. To get a sneak peek, click here for full details.

Comments

Check out our selection of daily Investment Research:

We Respect Your Privacy

---

What is Investment U?

Since 1999, Investment U has provided impartial, no-nonsense investment advice on how to build long-lasting wealth.

---

Recent Articles

Platinum Services

The Oxford Club is an exclusive, global network of investors, who collectively participate in the pursuit of prosperity and wealth. The Club is renowned for its market-beating, tried-and-true investment principles.

The White Cap Report exclusively identifies companies, White Caps, which - by being among the earliest to gain traction - have secured dominant positions within untapped, billion-dollar markets.

With an elite trading team at the helm, the Xcelerated Profits Report shows any investor how to "invest like a pro," using high-level, yet easy-to-execute strategies that "xcelerate" profits while minimizing risk.

---