Fred Bell, CEO, and David Baker CFO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), both join us to review the key takeaways from the Q3 financials and operations, including record quarterly cash flows and EBITDA.
Financial Highlights
- Royalty revenue of US$3.7 million and adjusted revenue of US$4.8 million, up 32% on Q3 2023
- Attributable Gold Equivalent Ounces of 1,941 ounces, up 3% on Q3 2023
- Operating Cash Flow plus Caserones dividends of US$2.8 million, up 42% on Q3 2023
- Adjusted EBITDA of US$3.7 million, up 72% on Q3 2023
- Net cash position as of November 18, 2024, following La Mancha US$12.8 million private placement completed post-quarter end
- US$50 million available liquidity for non-dilutive royalty acquisitions
- For Adjusted Revenue, Elemental Altus has slightly revised its 2024 guidance range, increasing the low end to $21.6 million from $20.0 million and lowering the high end to $23.1 million from $23.3 million. The guidance range continues to compare favorably with 2023 actual Adjusted Revenue of $17.9 million due to higher gold prices.
We have Fred and Dave break down the financial strength of the company, and the leverage to it’s balance sheet to rising production and revenues. We also review the growth via per-share metrics moving into Q4 and in particular looking ahead to full-year 2025 gold equivalent ounce growth anticipated from Allied Gold’s Korali-Sud (Diba) asset, and the increased production from the assets acquired from AlphaStream Limited in September for US$28 million in equity. The AlphaStream portfolio includes a further 2.25% NSR on the Company’s Bonikro royalty, 1.25% NSR on Ballarat, A$5/oz on SKO, and increased interests on 21 other royalties in Australia.
Next we touched upon the cornerstone royalty assets at both Caserones and Karlawinda. In Q3 2024, the Company accrued adjusted royalty revenue of $1.1 million from Caserones, based on reported sales of 22.0kt of copper. Q3 2024 gold production from Karlawinda was 25,559 ounces. The balance of the Company’s producing portfolio provides immediate exposure and leverage to gold prices that are significantly above consensus forecasts.
Wrapping up we discuss that while this acquisition transaction was done with equity, that the company has a solid cash position, incoming revenues, and a credit facility to go after future accretive transactions.
If you have any follow up questions for Fred or Dave regarding Elemental Altus Royalties, then please email them in to us at Shad@kereport.com or Fleck@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.
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