ELE.TO · 2023-08-21 12:00:00

Elemental Altus Royalties Announces Record Second Quarter Revenue

Corporate Updates

Elemental Altus Royalties Announces Record

Second Quarter Revenue

Vancouver, British Columbia--(Newsfile Corp. - August 21, 2023) - Elemental Altus Royalties Corp.

(TSXV: ELE) (OTCQX: ELEMF) ("

Elemental Altus

" or "

the

Company

") announces its operating and

financial results for the quarter ended June 30, 2023. For complete details please refer to the Financial

Statements and associated Management Discussion and Analysis ("

MD&A

") for the three and six

months ended June 30, 2023, which can be found on the SEDAR+ website (

http://www.sedarplus.ca

) or

the Company's website (

www.elementalaltus.com

Second Quarter 2023 Financial Highlights:

Record revenue of $2.6 million, up 25% compared to Q2 2022

Record adjusted revenue of $4.7 million, inclusive of Caserones royalty revenue, up 127%

compared to Q2 2022

Record Gold Equivalent Ounces ("

GEOs

") of 2,377 ounces, up 109% compared to Q2 2022

Record adjusted EBITDA of $3.3 million, up 184% compared to Q2 2022

Royalty Portfolio Highlights and Key Developments:

On March 27, 2023 Lundin Mining Corporation (TSX: LUN) announced that it had entered into a

binding purchase agreement to acquire a 51% interest in the Caserones copper-molybdenum

mine in Chile ("

Caserones

On March 9, 2023, the Company entered into a binding agreement to acquire an additional

0.025% effective net smelter return ("

NSR

royalty on Caserones

On July 12, 2023, the Company agreed to purchase an additional effective 0.030% NSR on

Caserones, increasing the total effective NSR held to 0.473%

On April 20, 2023, the Company announced that it had completed the acquisition of an additional

0.25% NSR royalty on the Pickle Crow project in Ontario, Canada from a private third-party entity

for total consideration of US$300,000 in cash, increasing the effective NSR royalty held by the

Company to 2.25%

Highlights Subsequent to June 30, 2023:

On July 20, 2023, the Company announced that it agreed to the sale of its 100% owned Diba and

Lakanfla gold licences in western Mali to Allied Gold Corporation ("

Allied

"), the owner and

operator of the Sadiola gold mine. As consideration, Allied will grant a near-term production NSR

royalty of 3% on the first 226,000 ounces of gold from certain deposits followed by a 2% uncapped

royalty on all other production from the licences and pay up to $6 million in cash. The transaction

will be completed after local regulatory approvals and filings are completed

On July 25, 2023, the Company announced it had agreed to the sale of a 95% interest in its Daro

and Zager copper-gold licences in northern Ethiopia to ANS Exploration ("

ANS

"). As

consideration, ANS will pay US$200,000 in cash and grant two uncapped NSR royalties of 2.5%

on copper and gold produced from the licences. The transaction will be completed after local

regulatory approvals and filings are completed

Frederick Bell, CEO of Elemental Altus, commented:

"The first half of 2023 has been very positive with the Company continuing to deliver record revenues

and impressive growth in our attributable production quarter over quarter. This quarter we continued to

add exposure to one of our cornerstone assets, a royalty on the Caserones copper mine in Chile and

we look forward to seeing additional optimization on the asset now that Lundin Mining is the majority

owner and operator.

"Subsequent to the end of the quarter we generated three new gold and copper royalties through

transactions on assets in Mali and Ethiopia. The royalty in Mali in particular offers the potential for

near-term revenue at Allied's adjacent Sadiola gold mine and we look forward to adding further

royalties to the portfolio in the second half of the year."

Operating Asset Highlights

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

months ended June 30, 2023 and 2022. Adjusted revenue also includes accrued royalty revenue from

equity investments for the same periods (see Non-IFRS Measures).

Three months ended

June 30,

Six months ended

June 30,

2023

$'000

2022

$'000

2023

$'000

2022

$'000

Revenue from royalties

Amancaya

211

216

448

498

Ballarat

179

214

Bonikro

266

Karlawinda

1,181

1,216

2,440

2,361

Kwale

206

Mercedes

193

433

Mulgarrie

Mount Pleasant

189

206

SKO

151

Wahgnion

583

469

1,251

1,444

Total revenue

2,600

2,082

5,406

4,277

Royalty revenue from equity investments

Caserones

2,128

3,148

Adjusted revenue

4,728

2,082

8,554

4,277

(1)

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 22.8% equity interest at June 30, 2023.

The Company has agreed to acquire a further 1.6% interest in SLM California and this is

expected to close in Q3 2023.

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

ended June 30, 2023 and 2022:

Three months ended

June 30,

Six months ended

June 30,

2023

GEO

2022

GEO

2023

GEO

2022

GEO

Amancaya

106

116

225

265

Ballarat

108

Bonikro

134

Karlawinda

594

673

1,227

1,263

Kwale

110

Mercedes

217

Mulgarrie

Mount Pleasant

111

SKO

Wahgnion

293

250

629

536

Caserones

1,070

1,580

Total GEOs

2,377

1,138

4,298

2,285

(1)

See Non-IFRS Measures.

Elemental Altus expects to achieve previously announced guidance of 9,000 to 10,200 GEOs, weighted

towards the second half of the year.

Quarterly changes to revenue received by Elemental Altus are driven primarily by fluctuations in

production at the underlying mines, the timing of sales, changes in the price of commodities and assets

being advanced to production.

Karlawinda Gold Mine, Australia

Capricorn reported record annual production at Karlawinda during the year to June 30, 2023,

having produced 120,014 ounces

On April 26, 2023 Capricorn reported that their 73 hole (10,983m) RC drilling at the newly

identified Berwick prospect, located 2km east of the Bibra open pit, detected near surface gold

mineralisation over a 500m strike length and follow up drilling is underway

Near mine exploration has identified a number of additional prospects within 5km of the Bibra

deposit, including Muirfield and Vedas

Caserones Copper Mine, Chile

In Q2 2023, the Company accrued adjusted royalty revenue of $2.13 million (before tax) using an

estimate of Q2 sales from Lundin Mining's published production, and a $0.9m upward adjustment

based on under accrued revenue relating to Q1 2023

The Company recorded a received dividend of $1.40 million relating to Q1 2023 sales

On July 13, 2023, Lundin Mining (TSX: LUN) closed its previously announced acquisition of an

initial 51% of Caserones from JX Nippon Mining and Metals for $950 million. Lundin Mining has

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

Lundin Mining announced that Caserones annual production guidance for both 2024 and 2025 is

110,000-120,000t of copper and 1,500-2,500t of molybdenum on a 100% basis

Wahgnion Gold Mine, Burkina Faso

Wahgnion throughput remained steady as production moved into the Samavogo pit during the

quarter, where grades are expected to increase from Q3

On June 30, 2023 Endeavour Mining announced the sale of its Wahgnion and Boungou mines in

Burkina Faso to Lilium Mining, a subsidiary of Lilium Capital

Mercedes Gold Mine, Mexico

Bear Creek reported a revision of mining methods utilized at the mine with the Marianas and San

Martin deposits switched from cut and fill mining at both deposits to room and pillar mining at San

Martin and sub-level caving and sub-level stoping at Marianas

Tonnes mined from the high-grade San Martin deposit (Measured and Indicated Resource of

289,000t @ 6.6g/t Au) are expected to double from 400 to 800t per day during Q3 2023 as the

available working faces increase. The deposit is expected to account for an estimated 50% of H2

2023 gold production

Bonikro Gold Mine, Cote d'Ivoire

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 Cote d'Ivoire. At a gold price above $1,450, the NSR royalty is at an

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

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

Amancaya Gold Mine, Chile

In Q2 2023 attributable GEOs were broadly similar to Q1 2022

During the period, Austral focused exploration efforts at Amancaya on geological interpretation,

having designated a shallow drill program to demonstrate continuity at the Oeste vein, a narrow

gold-rich vein previously interpreted and parallel to the Central vein

Ballarat Gold Mine, Australia

The Company owns a 1.25% NSR royalty on the underground Ballarat gold mine in Australia and

also owns approximately $0.6 million in accrued royalty payments

The current administrators are undertaking a sales process of the mine which is expected to be

finalized prior to the administration ending date of October 2023

During the administration period, the mine has continued to operate

Tailings permits have been progressed offering a pathway to long term management of the tailings

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.

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, 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

Steven Poulton, Executive Chairman 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 Altus 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 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 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 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 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/177954

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