Elemental Altus Royalties 2023 Full Year Results: Record Annual Revenue, Gold Equivalent Ounces, EBITDA, and Maiden Quarterly Profit
Elemental Altus Royalties 2023 Full Year
Results: Record Annual Revenue, Gold
Equivalent Ounces, EBITDA, and Maiden
Quarterly Profit
Vancouver, British Columbia--(Newsfile Corp. - April 17, 2024) - Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") announces its operating and financial
results for the fourth quarter and full year ended December 31, 2023.
For complete details, please refer to the Financial Statements and associated Management Discussion
and Analysis ("MD&A") for the year ended December 31, 2023, available on SEDAR+
(
http://www.sedarplus.ca
) and the Company's website (
www.elementalaltus.com
). All amounts are in U.S.
dollars unless otherwise indicated.
Full Year 2023 Highlights:
Record revenue of US$11.7 million and record adjusted revenue
1
of US$17.9 million, up 69% on
2022
Record Gold Equivalent Ounces
1
("GEOs") of 9,122 ounces, up 56% on 2022
Record Operating Cash Flow plus Caserones dividends of US$6.1 million, up 894% on 2022, and
record adjusted EBITDA
1
of US$9.8 million, up 47% on 2022
US$20 million of accretive royalty acquisitions
Fourth Quarter 2023 Highlights:
Record Q4 revenue of US$4.0 million and record adjusted revenue
1
of US$5.6 million, up 101%
on Q4 2022
Record Q4 attributable GEOs
1
of 2,843 ounces, up 75% on Q4 2022
Record Operating Cash Flow plus Caserones dividends of US$2.2 million, compared with a loss
in Q4 2022, and record Q4 adjusted EBITDA
1
of US$2.8 million, up 175% on Q4 2022
Maiden quarterly net profit of US$2.2 million, compared with a US$11.5 million loss in Q4 2022
2024 Outlook
Record guidance of 10,000 to 11,700 GEOs, representing at its midpoint a 19% increase on 2023
and top-line exposure to gold and copper prices
Significantly lower G&A expenditure following asset sales, which are also expected to generate
milestone payments placing the company in a position to generate material cash flow
Repaid US$5 million debt in Q1 2024, leaving a strong balance sheet for royalty acquisitions with
US$25 million undrawn on the credit facility and approximately US$10 million of cash as of April
16, 2024
Frederick Bell, CEO of Elemental Altus, commented:
"With the gold price hitting all-time highs and copper appreciating strongly, our cash-flowing royalty
portfolio continues to provide investors with top-line exposure to commodity prices today. Our portfolio
is leveraged approximately 70% to gold and 30% to copper where our 2024 guidance used prices of
US$2,000 an ounce of gold and US$3.90 per pound of copper.
While the team continues to focus on NAV accretive deals with multiple opportunities being
progressed, we are also able to improve the strength of the balance sheet and enhance the
company's ability to execute on high priority transactions. As part of this strategy, we have realised
US$3.5 million in cash through sales of non-core equity holdings and subsequently paid down US$5
million of debt reducing interest payments while still maintaining a strong cash balance.
With the recently announced 2024 guidance expected to result in a seventh consecutive year of
revenue growth, Elemental Altus continues to deliver on key strategic milestones and we look forward
to updating the market on continued progress in the near future."
FY 2024 and Q4 2024 Results
The following table sets forth selected financial information for the full year and three months ended
December 31, 2023:
Three months ended December
31,
Twelve months ended December
31,
2023
2022
2023
2022
$'000
$'000
$'000
$'000
Total Revenue
3,960
2,573
11,744
9,639
Adjusted Revenue
1
5,649
2,815
17,855
10,537
Operating Cash flows
981
296
1,993
(723)
Net profit / (loss)
2,178
(11,518)
(3,901)
(18,211)
Adjusted EBITDA
1
2,766
1,005
9,831
6,683
2023
2022
2023
2022
GEO
GEO
GEO
GEO
Total GEOs
1
2,843
1,621
9,122
5,834
Share Sales
In the first quarter of 2024, Elemental Altus received US$3.5 million from the sale of non-core equity
holdings. The Company retains equity exposure through a number of public and private companies.
Share sale proceeds were partially used to repay US$5 million of the Company's credit facility, leaving
US$25 million drawn and US$25 million undrawn as at March 31, 2024.
Royalty Investments
Elemental Altus invested approximately US$20 million in new royalty investments in 2023, using
approximately US$8.5 million in cash and the remainder in Company equity. Material accretive
investments for the year include the US$10 million acquisition of an existing 0.68% net smelter return
royalty on the Cactus Copper Project in Arizona operated by Arizona Sonoran Copper Company, a
portfolio of development gold royalties, and two further royalties on the Caserones copper-molybdenum
in Chile, operated by Lundin Mining, taking the Company's royalty to 0.473%.
On behalf of Elemental Altus Royalties Corp.
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 646 4527
Email:
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-646-4527.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619K1093 | CUSIP: 28619K109
About Elemental Altus Royalties Corp.
Elemental Altus is an income generating precious metals royalty company with 10 producing royalties
and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on
acquiring uncapped royalties and streams over producing, or near-producing, mines operated by
established counterparties. The vision of Elemental Altus is to build a global gold royalty company,
offering investors superior exposure to gold with reduced risk and a strong growth profile.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President Technical for Elemental Altus, and a qualified person
under National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and
approved the scientific and technical disclosure contained in this press release.
Notes
1. Non-IFRS Measures
The Company has included certain performance measures which are non-IFRS and are intended to
provide additional information and should not be considered in isolation or as a substitute for measures
of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standard
meaning under IFRS and other companies may calculate measures differently.
Royalty revenue is received at zero cost. Distributions from associates related to Elemental Altus'
effective royalty on Caserones are received net of Chilean taxes and have no other costs.
Adjusted Revenue
Adjusted revenue is a non-IFRS financial measure, which is defined as including gross royalty revenue
from associated entities holding royalty interests related to Elemental Altus' effective royalty on the
Caserones copper mine. Management uses adjusted revenue to evaluate the underlying operating
performance of the Company for the reporting periods presented, to assist with the planning and
forecasting of future operating results, and to supplement information in its financial statements.
Management believes that in addition to measures prepared in accordance with IFRS such as revenue,
investors may use adjusted revenue to evaluate the results of the underlying business, particularly as the
adjusted revenue may not typically be included in operating results. Management believes that adjusted
revenue is a useful measure of the Company performance because it adjusts for items which
management believes reflect the Company's core operating results from period to period. Adjusted
revenue is intended to provide additional information to investors and should not be considered in
isolation or as a substitute for measures of performance prepared in accordance with IFRS. It does not
have any standardized meaning under IFRS and may not be comparable to similar measures presented
by other issuers.
Gold Equivalent Ounces
Elemental Altus' adjusted royalty, streaming, and other revenue is converted to an attributable gold
equivalent ounce, or GEO, basis by dividing the royalty and other revenue from associates in a period by
the average gold price for the same respective period, plus the net gold ounces received in the period
from streaming investments. The presentation of this non-IFRS measure is intended to provide
additional information and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS
measures differently. The production forecast was derived using information that is available in the public
domain as at the date hereof, which included guidance and estimates prepared and issued by
management of the operators of the mining operations in which Elemental Altus holds an interest. The
production forecast is sensitive to the performance and operating status of the underlying mines. None of
the information has been independently verified by Elemental Altus and may be subject to uncertainty.
There can be no assurance that such information is complete or accurate.
Adjusted EBITDA
Adjusted EBITDA excludes the effects of certain other income/expenses and unusual non-recurring
items. Adjusted EBITDA is comprised of earnings before interest, taxes, depletion, including depletion
and taxes relating to share of profit from associate, and share-based compensation. Management
believes that this is a useful measure of the Company's performance because it adjusts for items which
may not relate to underlying operating performance of the Company and/or are not necessarily indicative
of future operating results.
Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-
V.) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian securities laws. Forward-looking statements and
information can generally be identified by the use of forward-looking terminology such as "may", "will",
"should", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not limited to, statements with respect to
the date that the name change is expected to become effective, whether shareholders will be required by
their broker to exchange their issued certificate for a new certificate or take any other action in
connection to the name change, the Company's ability to deliver a materially increased revenue profile
with a lower cost of capital, the future growth, development and focus of the Company, and the
acquisition of new royalties and streams. Forward-looking statements and information are based on
forecasts of future results, estimates of amounts not yet determinable and assumptions that, while
believed by management to be reasonable, are inherently subject to significant business, economic and
competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and
uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may
cause Elemental Altus' actual results, performance or achievements to be materially different from those
expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties
and other factors set out herein, including but not limited to: the impact of general business and
economic conditions, the absence of control over the mining operations from which Elemental Altus will
receive royalties, risks related to international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and development of mineral properties; the
uncertainties involved in interpreting exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-
19 pandemic; the possibility that future exploration, development or mining results will not be consistent
with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or
other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs
and expenses; uncertainties relating to the availability and costs of financing needed in the future; the
inherent uncertainty of production and cost estimates and the potential for unexpected costs and
expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including
environmental regulatory restrictions; liability, competition, loss of key employees and other related risks
and uncertainties. For a discussion of important factors which could cause actual results to differ from
forward-looking statements, refer to the annual information form of Elemental Altus for the year ended 31
December 2022. Elemental Altus undertakes no obligation to update forward-looking statements and
information except as required by applicable law. Such forward-looking statements and information
represents management's best judgment based on information currently available. No forward-looking
statement or information can be guaranteed, and actual future results may vary materially. Accordingly,
readers are advised not to place undue reliance on forward-looking statements or information.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/205822