Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE – OTCQX:ELEMF), joins me to review the Q4 and full year 2023 operations and financial metrics, a number of royalty partner updates, the sale of the Ming royalty, and the business strategy in 2024 with the optionality from being cashed up and cash-flowing.

2023 Highlights

• Record preliminary adjusted 2023 revenue of US$17.8 million (+70% vs 2022) comprised of:

– US$11.7 million attributable royalty revenue; and

– US$6.1 million attributable revenue from the Caserones copper mine

• Record preliminary adjusted Q4 revenue of US$5.6 million (+98% vs 2022) comprised of:

– US$3.9 million attributable royalty revenue; and

– US$1.7 million attributable revenue from the Caserones copper mine

• Acquired two further existing royalties on the Caserones copper mine, increasing the Company’s effective NSR royalty to 0.473%
• Acquired an existing 0.68% NSR royalty on Arizona Sonoran’s Cactus development stage copper project
• Fast-tracked the Diba gold project to production through the sale to Allied Gold Corporation, who operate the adjacent producing Sadiola mine. Maiden production from Diba is expected in H1 2024 and the Company has both an uncapped royalty and up to US$5 million in remaining milestone payments
• Sold 80.1% of one of the largest Egyptian exploration portfolios to In2Metals Explorer S.à r.l. to advance the projects through the next stage of exploration. In2Metals has an initial US$10 million exploration commitment and commenced drilling in December 2023. Elemental Altus retain an uncapped 1.5% NSR, milestone payments and a remaining US$0.4 million payment due this year
• Acquired two NSR royalties over formerly operating gold mines in Canada with an NSR royalty of up to 2.25% over the high-grade Pickle Crow gold project and an NSR royalty of up to 1.5% over the former Hope Brook gold project

Fred and I review a number of royalty projects and partner updates from operators on both the production and development side, as well as the some of the 1-off transactions, like the recent accretive sale of the Ming royalty.  We wrap up reviewing how these acquisitions and royalty generation transactions tie into their corporate vision and strategy, and give them strong optionality from incoming revenues to do more royalty transactions, pay down debt, and potentially initiate a dividend program.

If you have any follow up questions for Fred regarding Elemental Altus Royalties then please email me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.

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