Elemental Altus Royalties Announces 2024 Guidance, Forecasting Seventh Consecutive Year of Record Revenues
Elemental Altus Royalties Announces 2024
Guidance, Forecasting Seventh Consecutive
Year of Record Revenues
Vancouver, British Columbia--(Newsfile Corp. - April 4, 2024) - Elemental Altus Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF) ("
Elemental Altus
" or the "
Company
") is pleased to announce materially
higher guidance for 2024 building on record Adjusted Revenue
1
in 2023.
Highlights
2024 Guidance:
10,000 to 11,700 Gold Equivalent Ounces
1
("
GEOs
") representing at its
midpoint a 20% increase on 2023 and an 85% increase from 2022
Growth Catalysts:
Organic royalty revenue growth driven by Diba and Bonikro royalties
Royalty Revenue Forecast:
Adjusted Revenue of approximately US$20.0 to US$23.3 million at
prices of US$2,000 per ounce of gold and US$3.90 per pound of copper
Additional Revenue:
Alongside royalty revenue, the Company expects to receive approximately
US$20 million in payments from the portfolio over 2024 and 2025
Frederick Bell, CEO of Elemental Altus, commented:
"With 2024 expected to be another record performance, we are continuing our track record of
increasing revenue every year since inception. This is made possible by the diversified portfolio the
Elemental Altus team has assembled in a disciplined manner with producing royalties on high quality
mines with proven operators. Material organic growth this year is expected to be driven by our
royalties over Bonikro and Diba, both operated by newly-listed Allied Gold. Our royalty at Bonikro
covers Pushback 5 which is expected to be the main production area for the next several years having
successfully ramped up production at the end of 2023. Meanwhile, Allied have guided to first
production at Diba in H1 2024, in parallel with growing the resource to provide potentially very
significant long-term upside exposure.
Looking ahead, Elemental Altus continues to be in a robust position to expand its high quality and
sustainable, revenue generating portfolio, supported by a strong cash position, ongoing royalty
receipts and funds available through the credit facility with National and CIBC, which we expect will
generate material shareholder value in the years to come."
Frederick Bell
CEO and Director
Corporate & Media Inquiries:
Tel: +1 604 243 6511 (ext. 2700)
Email:
Elemental Altus is a proud member of Discovery Group. For more information please visit:
www.discoverygroup.ca
or contact 604-653-9464.
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 11 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.
On behalf of Elemental Altus Royalties Corp.
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/204275