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Elemental Altus – Q1 2024 Financials, A Royalty Acquisition, And Royalty Partner Updates

Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE – OTCQX:ELEMF), joins me to review their operational and financial results from Q1 2024, a recent royalty acquisition now partnered with Rio Tinto, and a few royalty partner updates.   We start off diving into the key metrics and takeaways from the first quarter financials.

 

  • Royalty revenue of US$3.3 million and adjusted revenue of US$4.7 million, up 24% on Q1 2023
  • Attributable Gold Equivalent Ounces (“GEOs”) of 2,283 ounces, up 13% on Q1 2023
  • Operating Cash Flow plus Caserones dividends of US$1.2 million, compared with a loss in Q1 2023 and expected to grow through 2024 as margins increase
  • Adjusted EBITDA of US$3.2 million, up 42% on Q1 2023

 

2024 Outlook

 

  • Diba remains on track to be the Company’s newest producing gold royalty. Allied Gold Corp (TSX: AAUC) have announced that mining is expected to commence in Q2 2024
  • Elemental Altus on course to meet guidance of 10,000 to 11,700 GEOs as production increases over the year. This guidance represents at its midpoint a 19% increase on 2023 and provides top-line exposure to gold and copper prices
  • Repaid US$5 million debt in Q1 2024, leaving US$25 million undrawn on the credit facility and with approximately US$9 million cash on quarter end prior to Q1 royalty receipts. The Company intends to continue to reduce the amount drawn on the credit facility while maintaining financial flexibility to make new acquisitions
  • Falling G&A expenditure and significant expected cash flow generation following merger synergies and asset sales, which are also expected to generate milestone payments placing the company in a position to generate material cash flow

 

During the interview we reviewed th increasing revenue and expanding margins over the course of 2024, and why the company strategy was to aggressively go after cash-flowing assets. We then highlighted that the Diba royalty is on track to commence mining in Q2 and has the potential to be a material long-life royalty for the company based on the exploration potential once it is in production. Fred discusses how this complements other long-life royalty assets like Karlawinda and Caserones, as key cornerstone assets.

 

We also discussed the large portfolio of development and explorations assets that will provide discovery optionality to future value creation.  To that point we discussed the recent acquisition of a royalty over a Rio Tinto operated lithium project in Rwanda, where the Company expect to see significant news flow over the course of 2024. The company is cashed up and looking to make more accretive acquisitions over the course of this year.

 

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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Click here to view recent news on the Elemental Altus Royalties website

Discussion
15 Comments
    Jun 06, 2024 06:23 PM

    Here is my latest article on Substack looking at the larger trends in Gold, GDX, Copper, COPX, and URA.

    —————————————-

    These Commodities Charts Are Still Up And To The Right

    Excelsior Prosperity w/ Shad Marquitz (06/06/2024)

    https://excelsiorprosperity.substack.com/p/these-commodities-charts-are-still

    Reply
      Jun 06, 2024 06:05 PM

      Hi Ex, When I got up this morning I turned to the right, now I can’t go through a doorway without making a right-hand turn. I will be glad when this bull market for precious metal is over, so I don’t have to be known as a right-hand turner. LOL! DT

      Reply
        Jun 06, 2024 06:51 PM

        Haha! Good one DT! You sound all-right to me…😆

        Reply
    Jun 06, 2024 06:31 PM

    Rick Rule says perseverance and tenacity are traits of a successful investor.

    Reply
    Jun 06, 2024 06:07 PM

    Impact Silver is currently a great buy relative to SILJ (that means it’s a great buy relative to silver stocks in general)…
    https://stockcharts.com/h-sc/ui?s=IPT.V%3ASILJ&p=D&yr=2&mn=11&dy=0&id=p69474486883&a=1152905320

    Reply
    Jun 06, 2024 06:16 PM

    Holy cow I’m glad I dumped Americas Silver after its 2016 run. Oh yeah, Alexco too!
    https://stockcharts.com/h-sc/ui?s=USA.TO&p=W&yr=9&mn=0&dy=0&id=p14088583765&a=637050499

    Reply
      Jun 06, 2024 06:08 PM

      When to buy, when to dump is a problem for me..don’t get it. So I better to avoid altogether

      Reply
        Jun 06, 2024 06:27 PM

        Well you’re ahead of the herd for being real with yourself. I have been posting here since the comment section opened in 2010 and one opinion of mine that has never changed is that most people should steer clear of gold and silver mining stocks and resource stocks in general. That goes for “accredited” or high net worth investors too, not just the little retail guy. You can make one timing mistake after another in the conventional stock market and live to tell about it but this sector is very different.

        Reply
      Jun 07, 2024 07:00 AM

      YUUUUUUUUP, trading these stocks is a very dangerous game. Trying to survive and prosper is what makes it interesting for me. There are so many people who lose money, if you go on The Bullboards you can read all the hard luck stories and sense the despair, which is very real. DT

      Reply
    Jun 07, 2024 07:32 AM

    Stick to Phyz..Gold…….. long term money maker……… 🙂

    Reply
      Jun 07, 2024 07:10 PM

      +1, plus one , ditto….. i agree…… Jerry we bad , we know………………………………………………………………………lol

      Reply
        Jun 07, 2024 07:27 PM

        Hello Irish……….. we bad… lol….. 🙂

        Reply
    Jun 07, 2024 07:32 AM

    FREAKY FRIDAY AGAIN………………… HAVE A GREAT ONE>…….

    Reply

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