ELE.TO · 2023-04-28 12:00:00

Elemental Altus Royalties Announces Record Attributable Production and Sales for 2022

Production Results

Elemental Altus Royalties Announces Record

Attributable Production and Sales for 2022

Vancouver, British Columbia--(Newsfile Corp. - April 28, 2023) - 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, 2022. For complete details, please refer

to the Financial Statements and associated Management Discussion and Analysis ("

MD&A

") for the

three and twelve months ended December 31, 2022, available on SEDAR (

http://www.sedar.com

) and

the Company's website (

www.elementalaltus.com

Full Year 2022 Financial Highlights:

Record revenue of $9.6 million, up 46% on FYE December 2021

Record adjusted revenue of $10.5 million up 59% on FYE December 2021

Record Gold Equivalent Ounces ("

GEOs

") of 5,834 ounces up 59% on FYE December 2021

Full year record adjusted EBITDA of $6.7 million, up 111% on FYE December 2021

Fourth Quarter 2022 Financial Highlights:

Q4 revenue of $2.6 million up approximately 11% on FYE December 2021

Q4 adjusted revenue of $2.8 million up approximately 21% on FYE December 2021

Q4 attributable GEOs of 1,621 ounces up approximately 25% on FYE December 2021

Cash position of $17.5 million with $20 million of revolving credit facility undrawn

Highlights and Key Developments

On August 16, 2022, the Company completed the Merger with Altus Strategies plc

On October 25, 2022, the Company announced the completion of the sale of its 100% owned

Morocco-focused copper subsidiary, Aterian Resources Ltd. ("Aterian"), generating 15 new

royalties for the Company

On December 1, 2022 the Company entered into an agreement with National Bank of Canada

("NBC") and Canadian Imperial Bank of Commerce ("CIBC") for an up to US$50 million revolving

credit facility

Materially decreased the Company's cost of capital and reduced the total amount drawn, resulting

in saving over US$3.5 million in interest annually

Frederick Bell, CEO of Elemental Altus, commented:

"In 2022 we delivered our fifth consecutive annual revenue record, graduated to a larger lower cost

credit facility and expanded our portfolio to over 50 royalties and streams. The merger with Altus has

provided a platform to further grow the portfolio through organic royalty creation as well as acquisitions

with the creation of 15 new royalties in Morocco, complimenting the subsequent acquisition of a

portfolio of royalties in Q1 2023. We have a very positive outlook for the remaining 2023 year and are

well positioned to acquire additional accretive deals to further add to our strong portfolio of assets."

2023 Guidance and Highlights Subsequent to December 31, 2022

The Company announced 2023 guidance of between 9,000 to 10,200 GEOs representing at its

midpoint an approximate 65% increase on the 5,800 GEOs received in 2022

In the first quarter of 2023, the Company acquired a portfolio of 19 royalties from a wholly owned

subsidiary of First Mining Gold Corp. for consideration of $3.5 million in cash and $1.5 million in

common shares. The portfolio included a 2.0% Net Smelter Return royalty on the development

stage Pickle Crow gold project in Ontario, Canada, one of the highest grade +2 million ounce gold

deposits in the world and 1.5% NSR royalty on the development stage Hope Brook gold project in

Newfoundland, Canada which has previously produced approximately 0.75 million ounces of gold

In the first quarter of 2023, the Company entered into a binding agreement to acquire an additional

0.025% effective net smelter return royalty on the producing Caserones Copper-Molybdenum

mine, located in the Atacama region of northern Chile, for consideration of $2.0 million in cash. On

closing of the acquisition, Elemental Altus will hold an effective 0.443% NSR royalty on Caserones

On April 20, 2023, Elemental Altus announced that it has paid a total of US$300,000 in cash to a

private third-party entity to acquire an additional 0.25% NSR royalty on AuTECO's (ASX: AUT)

Pickle Crow gold asset in Ontario, increasing the effective NSR royalty held by the Company to

2.25%

Operating Asset Highlights

The following table summarizes the Company's revenue from royalty and streaming interests during the

three and twelve months ended December 31, 2022 and 2021. Adjusted revenue also includes royalty

revenue from equity investments for the same periods. Royalty revenues are at zero cost and Ming

stream revenues are subject to a 20% cost of sales (see section 12 of MD&A - Non-IFRS)

Three months ended

December 31,

Twelve months ended

December 31,

2022

$'000

2021

$'000

2022

$'000

2021

$'000

Revenue from royalties

Amancaya

272

262

994

1,270

Ballarat

200

347

Bonikro

Karlawinda

1,029

1,078

4,338

1,861

Kwale

146

325

611

Mercedes

243

380

Mount Pleasant

316

SKO

Wahgnion

633

815

2,133

2,844

Revenue from streams

Ming

677

Total revenue

2,573

2,323

9,639

6,611

Royalty revenue from equity investments

Caserones

1,2

242

898

Adjusted revenue

2,815

2,323

10,537

6,611

(1)

For the post acquisition period commencing August 16, 2022.

(2)

The Caserones royalty is held by Sociedad Legal Minera California Una de la Sierra Peña Negra ("SLM California") in which the Company held an

effective 21.5% equity interest at December 31, 2022.

The following table summarizes the Company's GEOs from royalty interests during the three and twelve

months ended December 31, 2022 and 2021:

Three months ended

December 31,

Twelve months ended

December 31,

2022

GEO

2021

GEO

2022

GEO

2021

GEO

Amancaya

156

146

551

706

Ballarat

115

200

Bonikro

Karlawinda

592

617

2,404

1,056

Kwale

179

340

Mercedes

140

219

Mount Pleasant

174

SKO

Wahgnion

364

434

1,186

1,561

Ming

327

Caserones

140

520

Total GEOs

1,621

1,294

5,834

3,680

(1)

For the post acquisition period commencing August 16, 2022.

(2)

See section 12 - Non-IFRS Measures.

Karlawinda

In the fourth quarter of 2022 GEOs were comparable relative to the fourth quarter of 2021.

In 2022 Karlawinda produced an attributable 2,404 GEOs generating US$4.33 million in revenue

for the Company.

Capricorn expects to continue its strong operational performance in FY2023 with unchanged gold

production guidance of 115,000 - 125,000 ounces.

Caserones

In the fourth quarter of 2022 GEOs were lower relative to the fourth quarter of 2021 primarily due to

significant weather-related events which impacted the concentrate plant and tailings facility

capacity.

Substantial production recovery is expected in the first quarter of 2023 as throughput, grades and

recoveries return to historical levels.

Subsequent to December 31, 2022, Lundin Mining Corporation (TSX: LUN) ("Lundin") announced

it had entered into a binding agreement with JX Nippon to acquire an initial 51% of Caserones for

$950 million. Lundin will also have the right to acquire up to an additional 19% interest in

Caserones for $350 million over a five-year period commencing on the first anniversary of the date

of closing.

Wahgnion

In the fourth quarter of 2022 GEOs were broadly in line relative to the fourth quarter of 2021.

Production increased from 32,000 ounces in the third quarter to 36,000 ounces in the fourth

quarter of 2022 due to higher processed grades which were partially offset by slightly lower tonnes

milled, while gold recovery rates remained flat.

Total tonnes mined increased due to increased mining productivity following the end of the wet

season and the benefit of a full quarter of mining at the Samavogo pit. In addition, mining continued

at the Nogbele North and South pits while mining at the current stage of the Fourkoura pit ended

during the quarter.

Mercedes

In the fourth quarter of 2022 Elemental Altus received the first full quarter of production from

Mercedes.

On January 4, 2023, Bear Creek announced the discovery of two new high-grade veins discovered

by underground drilling in the Marianas zone in the vicinity of existing development. Additional

drilling to test these veins was expected to be conducted February 2023 with the goal of defining

ore for mining in 2024.

Bear Creek also announced a 2023 exploration budget of US$4.4 million exploration program at

Mercedes, including 33,000 metres of drilling.

Bonikro

Allied Gold is expected to target full production from the royalty area starting H2 2023.

The Company owns an NSR royalty on an area of the mine known as Pushback 5 at Allied Gold's

open pit Bonikro gold mine in Mali. At a gold price above US$1,450, the NSR royalty is at an

effective rate of 2.25%, capped at 560,000 ounces.

Ming

In 2022 Elemental received 408.4 gold ounces from the Ming Gold Stream with gross value of

approximately $674,000.

On March 30, 2023, Rambler announced that it has placed the Ming Mine on care and

maintenance while a sale and solicitation process is underway.

Amancaya

In the fourth quarter of 2022 GEOs were slightly higher compared to the fourth quarter of 2021,

mainly due to operational efficiencies, higher gold grades, and an increase in the number of tonnes

of ore processed.

Austral reported that they intend to continue to review exploration opportunities to increase mineral

reserves in the Guanaco and Amancaya district.

Ballarat

The Company owns an NSR royalty on the underground Ballarat mine at a rate of 1.25% and also

holds ownership of approximately $0.6 million in accrued royalty payments.

While mining continued uninterrupted, the Ballarat Gold Mine in Australia halted processing of ore

from November 30th to January 11th due to excess water in the tailings which have now been

resolved. Mining continued through the period and high-grade ore that was stockpiled was

prioritized for processing.

Frederick Bell

CEO and Director

Corporate & Media Inquiries:

Jacy Zerb, VP Investor Relations

Direct: +1 604-243-6511 ext. 2700

[email protected]

Elemental Altus is a proud member of Discovery Group. For more information please visit:

www.discoverygroup.ca

or contact 604-653-9464.

TSXV: 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, as well as generating royalties on new discoveries. 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

Non-IFRS Measures

The Company has included certain performance measures which are not in accordance with

International Financial Reporting Standards ("

IFRS

"). Non-IFRS measures 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.

Elemental has included certain performance measures in this press release that do not have any

standardized meaning prescribed by IFRS. The Company's royalty revenue is converted to an

attributable gold equivalent ounce, or GEO, basis by dividing the royalty revenue received in a period by

the average gold price for the same respective period. 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 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 and maybe subject to uncertainty. There

can be no assurance that such information is complete or accurate.

Royalty revenue is received at zero cost. Elemental Altus pays 20% per ounce on streaming revenue

from the Ming mine.

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's 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's 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 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 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 Company's ability to deliver a materially increased revenue profile, 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 the Company 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/164063

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