Disclosure: Bullpen receives compensation from Altius Minerals for research coverage.

On Monday Carney earmarked $10B for a $70B clean energy investment in Labrador/Quebec, which if undertaken would bring total capacity in the region to 14 GW and increase power exports to the US…

… through new interprovincial transmission lines and existing Quebec infrastructure. Like the Alto HSR project, it’s early - but the 23K construction jobs, $31B GDP contribution…

… and the potential impact on high-grade iron production in the Labrador Trough are reasons for optimism, given the industry’s shift to cleaner methods of steel production.

Altius Minerals (ALS) stands to benefit from these regional tailwinds, with its 3% royalty on the Kami project set to become its largest once online at ~$40M per year. With funding announced for logistics and infra planning…

… we believe the odds the project moves forward are increasing, which would warrant a lower discount rate and represent upside to our NAV estimates.

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