Elemental Altus Royalties – Record Annual Revenue In 2024 And Growth Strategy In 2025
Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to review the key takeaways from the Q4 and full year 2024 financials, including record quarterly and annual revenues and cash flows, marking their seventh consecutive year of revenue growth. We also discuss the financial and development growth on tap for 2025, with updates at key royalty partner operations.
Full Year 2024 Highlights:
- Record revenue of US$16.3 million and record adjusted revenue1 of US$21.6 million, up 39% on 2023
- Gold Equivalent Ounces1 (“GEOs”) of 8,987 ounces (9,122 GEOs in 2023) with production from Korali-Sud pushed into Q1 2025
- Record Operating Cash Flow plus Caserones dividends of US$8.7 million, up 42% on 2023, and record adjusted EBITDA1 of US$15.1 million, up 53% on 2023
- US$33.5 million of accretive royalty acquisitions including producing gold royalties over Bonikro, Ballarat and SKO mines
- Repayment of US$27 million of debt, with remaining debt repaid in full in Q1 2025 leaving a fully undrawn US$50 million facility with NBC, CIBC and RBC
Fourth Quarter 2024 Highlights:
- Record Q4 revenue of US$5.5 million and record adjusted revenue1 of US$6.8 million, up 21% on Q4 2023 and with no contribution from Korali-Sud
- Q4 attributable GEOs1 of 2,552 ounces (2,843 GEOs in Q4 2023)
- Record Operating Cash Flow plus Caserones dividends of US$3.3 million, up 54% on Q4 2023, and record Q4 adjusted EBITDA1 of US$4.8 million, up 72% on Q4 2023
2025 Outlook
- Record guidance of 11,600 to 13,200 GEOs, translating to record adjusted revenue of US$30.1 million to US$34.3 million, based on a gold price of US$2,600/oz and a copper price of US$4.00/lb
- This represents a 38% increase in GEOs and 50% year-on-year increase in adjusted revenue at the mid-point of guidance, with full exposure to higher gold prices
- Production is anticipated to be weighted towards the first half of the year, driven by first gold sales at the Korali-Sud royalty and Caserones shipments delayed from Q4 2024 into Q1 2025
- Up to US$15 million in one-off payments, with over US$10 million expected in the first half of the year
Fred breaks down the financial strength of the company, and the leverage of it’s balance sheet to rising production and revenues in a higher metals price environment. He also highlighted with the roughly $5 million in cash on hand, the expected revenues over $30 million this year, a number of additional incoming $15 million in one-off payments, and the $50 million credit facility on hand, that the company is in a great position to keep reviewing acquisition transactions in the year to come.
Wrapping up we cover some of the anticipated growth of the projects at their key cornerstone royalty assets: Caserones, Karlawinda, Korali-Sud, as well key royalties on compelling development projects in their portfolio like Arizona Sonoran’s Cactus project in Arizona, Focus Minerals’ Laverton project in Western Australia, and Firefly Metals Pickel Crow project in Ontario.
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email them to me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording, and may choose to buy or sell shares at any time.
Click here to view recent news on the Elemental Altus Royalties website
Wolfster, when I predicted Poilievre to win that was 5 months ago long before this election on April 28th and he was way ahead in the polls. Then along came Donald Trump and he has had a sobering effect on the polls, when he wanted to annex Canada. You in your short-term infinite wisdom which doesn’t change with the times, just like your stock selection that Doc Jones picked out for you, don’t understand that like the markets the election polls are constantly in flux. Buy and hold speculators get their head handed to them on a platter and then they cry, oh I wish I had sold when I had a profit. Do you even know why others let the gurus do their stock selection, it is because when your stocks go down you can blame someone else. LOL! again
Poilievre also just said yesterday that if elected he will take The Liberals ban off internal combustion engines which were to be phased out in 2030. The market will decide with their dollars which product they want, and they are already rejecting Ev’s. The market won’t see it your way unless Carney gets in and then we won’t have a market for long because the government can’t mandate what people buy and if we don’t have a market we won’t have an economy. LOL! again!
Now as far as Ev’s go you trust the mainstream media that we will all be driving electric cars when even they are admitting that the showrooms are selling a lot less and if your buddy Carney gets in, he will keep Trudeau’s policies alive and hope that the gullible public will still want what he tells them to buy. Not going to happen but you keep holding your Magna and Emerita and hope this economy turns around and you make a killing. I have seen the graveyards of “Buy and Hold” speculators like you, and they all thought they knew better. LOL! Again DT
In any given neighborhood here in the U.S., if 5 or 6 people with EV’s try to charge them at the same time, it can overload the grid.
I’ve read that in some small communities in the nether reaches of Canada, the generators powering the electric grid are spun by diesel engines. How will that work out by 2030?
And what happens with each new AI data center that’s built. 🤣🤣🤣. Yes the lack of upgraded infrastructure is a huge issue with power for everything.
Which all leads back to the need for more copper. 🤔
Yes. One never knows how an election will go til the final results are in. Hence why I said I will believe it when I see it. 🤣🤣🤣.
So please explain how Carney being in charge or PP for that matter will effect sales of EV’s in China???? That’s the market for the Honda EV’s being built in Alliston.
And of course if something doesn’t jive with your claims it’s media misinformation every time like this headline.
Global electric vehicle sales up 29% in March
Wolfster, You have got China and copper etched on your brain when are you going to see what is really happening by stretching your membrane. There is a need for more copper, but it now takes 20 years in Canada to get government approval for a new mine to be built. LOL! DT 🤣🤣🤣
🤣🤣🤣…..so you’re of the belief that having permits in place for mining in a strong jurisdiction with lots of copper to mine would be a unicorn…..or are you just helping promote Magna too???
Wolfster, EV’s need an infrastructure build out that requires billions of pounds of copper to bring the transmission lines up to speed to handle the load and that is just in Canada alone, never mind the rest of The World. By the time that happens technology will have made them obsolete. Anyway, Canada is too cold a country to make Ev’s a solution. The problem with Ev’s isn’t constructing the vehicles it is getting the electrical power to run them and more so getting the copper out of the ground so that the infrastructure can handle the load. Any advanced nation can manufacture Ev’s but making them an alternative that people can afford for now and for the foreseeable future is not an option. DT
Wolfster, are you really that naive that you think Honda Canada can build EV’s in a plant in Alliston Ontario, Canada, ship it to China and sell it on the Chinese market. You notice I didn’t use the other word I used naive. (Oh! Dear) DT 😉
I’m sorry. You’re right as you always are. The mere mortals just can’t stretch there membranes to keep up with you. So how long before the heads of Honda get canned for coming up with such a hairbrained idea???
And please enlighten the rest of us how to navigate our way through the “Great Depression” we are in…..or better yet Shad why not have DT be a guest where he can let us all know where we should be investing. I mean he certainly is quite confident that we mere mortals are clueless.
Wolfster, just because you are the head of a corporation or a business doesn’t mean you know what you are doing. Look at your own country and who has been heading it for the last lost decade. Canada has the worst production in that time of all the developed G-7 countries not to mention many other domestic problems, that I don’t want to get into. When will you stop looking at what is happening in your own life centered around Alliston Ontario and see the world around and beyond you. Canada if managed properly should be one of if not the richest country in the World per capita especially considering all our natural resources, agricultural farmland and a small population with industry. DT LOL! 😜
https://ibb.co/845HHY4R
ELEMF: Breaking Out
Breaking Good!
Wolfster, no wonder you live in a small town you think like a person who lives in a small town. The I seen and I done crowd! DT
Heading into the final weekend before the big election DT….and as I said way back when you were confident about the conservative victory I’ll believe it when I see it.
I see that PP said he wouldn’t cancel any existing deals for construction of EV plants so I guess the Honda EV plant is going ahead as planned(which I already knew cuz I pass by the construction every day lol). Good thing the plan wasn’t for US EVs but rather the Chinese market. Guess the need for battery metals will still be needed after all. Magna situated perfectly for that. Cheers.