Elemental Royalties Announces Q2 2022 Results
Elemental Royalties Announces Q2 2022
Results
Vancouver, British Columbia--(Newsfile Corp. - August 15, 2022) - Elemental Royalties Corp. (TSXV:
ELE) (OTCQX: ELEMF) ("
Elemental
" or "the
Company
") is pleased to announce its operating and
financial results for the three months ended June 30, 2022. For complete details please refer to the
Financial Statements and associated Management Discussion and Analysis for the three months ended
June 30, 2022, available on SEDAR (
www.sedar.com
) or the Company's website
(
www.elementalroyalties.com
).
Frederick Bell, CEO of Elemental commented:
"The announcement of the merger-of-equals with Altus Strategies was a major milestone and post-
quarter end we were delighted to receive overwhelming shareholder approval for the combination. It
will deliver increased revenue, greater margins, enhanced scale and greatly expand the pipeline of
development and exploration royalties going forward.
At the start of the year, we had revenue from five producing assets and through the combination of the
Altus portfolio, the completion of the Ming Gold Stream and the Mercedes royalty becoming payable
from 28 July 2022, we will have royalties or streams over eleven producing assets, giving
shareholders diversification and optionality over even more discovery potential."
Asset Highlights
On April 4, 2022, the Company announced it had completed a gold purchase and sale agreement
(the "Ming Gold Stream") with Rambler Metals and Mining Canada Limited, a wholly owned
subsidiary of Rambler Metals and Mining PLC (AIM: RMM) ("Rambler"), the owner of the Ming
Copper-Gold Mine in Newfoundland, Canada. Elemental will receive 50% of payable gold
production from Ming until 10,000 ounces are delivered when the stream steps down to 35% of
payable gold production and then 25% once 15,000 ounces are delivered
Subsequent to June 30, 2022, Elemental received its first deliveries of approximately 408 gold
ounces from the Ming Gold Stream from sales relating to Q2 2022. This maiden gold delivery
translates to a gross value of approximately US$734,000 at a US$1,800/oz gold price and sales
will be reflected in the accounts for Q3
Capricorn confirmed that they had achieved record gold production in the June quarter, completing
the first full year of operations at the Karlawinda Gold Project at the top end of their guidance for
the year to June 2022 with annual production of 118,432 ounces at an AISC of A$1,112. Capricorn
also announced Karlawinda guidance of 115,000 - 125,000 ounces for the year to June 2023
Capricorn also announced the completion of 18,308 metres (85 holes) of Resource infill and
extension RC drilling of the planned 129 hole, 29,500 metre near-mine RC drill program. Results
are planned to form part of an update to the Karlawinda Mineral Resource Estimate targeted for
September 2022 and an Ore Reserve Estimate targeted for October 2022
Financial Highlights
Quarterly revenue of US$2.1 million generated across five diversified royalties with the receipt of
408 gold ounces from the Ming Gold Stream subsequent to quarter end
Total of 1,138 attributable gold equivalent ounces (GEOs) sold at zero cash cost to the company
Net loss of US$2.4 million, including significant one-off costs driven by takeover bid defence and
merger costs
Adjusted EBITDA of US$1.2 million, refer to the "Non-IFRS Measures" section of the MD&A
Cash and cash equivalents of US$5.7 million
Corporate Update
On May 12, 2022, Elemental confirmed the Hostile Bid by Gold Royalty Corp had not been
successful. Having failed to meet the statutory minimum tender condition, Gold Royalty Corp
allowed the Hostile Bid to expire
On June 14, 2022, the Company announced that it had reached agreement on the terms and
conditions of a recommended share-for-share merger of equals of Elemental Royalties and Altus
Strategies Plc with the entire issued and to be issued share capital of Altus being acquired by
Elemental (the "Merger"). Under the terms of the Merger, each Altus Shareholder will be entitled to
receive: 0.5940 New Elemental Shares for each Altus Share. This exchange ratio (the "Exchange
Ratio") has been agreed between the boards of Elemental and Altus taking into account the
relative market capitalizations of both companies. Upon completion of the Merger, Elemental
Shareholders will own approximately 52.9% and Altus Shareholders will own approximately 47.1%
of the total issued share capital of the New Elemental Altus Group.
Outlook
Following the completion of the Merger, the Company intends to publish new consolidated guidance for
2022 that will incorporate the producing royalties from the Altus portfolio.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and Director
Corporate Inquiries:
Dustin Zinger, Investor Relations Manager
Corporate Website:
www.elementalroyalties.com
Direct: +1 (604) 653-9464
Email:
Elemental 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: CA28619L1076
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V in Canada and provides investors with
lower risk precious metals exposure through a portfolio of ten high-quality royalties and streams.
This
enables investors to benefit from ongoing royalty revenue, future exploration upside and low operating
costs. Elemental's experienced team seeks to secure royalties in advanced precious metals projects,
run by established operators, from its pipeline of identified opportunities.
Qualified Person
Richard Evans, FAusIMM, is Senior Vice President Technical for Elemental, 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 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. These non-IFRS measures do not have any standard
meaning under IFRS and other companies may calculate measures differently.
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 and share based
compensation. The non-recurring expenses relating to the Gold Royalty Corp. Hostile Bid and the Altus
Merger have also been removed from adjusted EBITDA.
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.
2. Gold Equivalent Ounces
The Company's royalty revenue is converted to an attributable gold equivalent ounce basis by dividing
the royalty revenue received in a period by the average gold price for the same respective period. 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.
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 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 future growth and development of the Company, the Company's 2022 guidance, the availability of
alternative strategic options for the Company and whether such options represent greater value to
Elemental's shareholders; and whether any takeover or change of control transaction involving the
Company will occur and/or be completed and as to the timing thereof. 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 to control or predict, that may cause Elemental's 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 requirement for regulatory approvals and third party consents, the impact of general
business and economic conditions, the absence of control over the mining operations from which
Elemental will receive royalties, including 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's expectations; accidents, equipment breakdowns, title matters, labor
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. Elemental undertakes no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information represents management's best judgment
based on information currently available. No forward-looking statement 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/133962