David Baker CFO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to review Q2 2025 financials, record operating cashflows, and outsized year so far of one-off payments. We also dive into a variety of royalty partner project updates, the development growth still on tap in their portfolio of royalties, and look ahead to future acquisitions.
Financial Highlights
- Royalty revenue of US$9.1 million and adjusted revenue1 of US$10.5 million, up 102% on Q2 2024
- Record Operating Cash Flow plus Caserones dividends of US$14.4 million, up +900% on Q2 2024
- Attributable Gold Equivalent Ounces (“GEOs”) of 3,184 ounces, up 73% on Q2 2024 and adjusted EBITDA of US$8.8 million, up 155% on Q2 2024
- Revenue guidance increased to US$35 million to US$40 million, based on an updated US$3,000/oz gold price for 2025
- US$19.7 million increase in cash in Q2 2025
Outlook
- Elemental Altus remains on track to meet record guidance of 11,600 to 13,200 GEOs, translating to increased record adjusted revenue of US$35 million to US$40 million, based on a gold price of US$3,000/oz. Production is anticipated to be weighted towards the first half of the year, driven by first gold sales from the Korali-Sud royalty
- This guidance represents a 38% increase in GEOs and 74% year-on-year increase in adjusted revenue at the mid-point of guidance, with full exposure to higher gold prices
- Elemental Altus has a Normal Course Issuer Bid (“NCIB”) in place to purchase up to 12,288,129 common shares in the capital of the Company
Dave and I then do a rapid-fire review of a number of royalty partner updates at Karlawinda, Caserones Korali-Sud (Diba), Bonikro, Wahgnion, Laverton, Cactus, and Mactung; each with compelling advancement and growth opportunities.
Turning to the financial strength of Elemental Altus, Dave highlights the US$27 million in cash on hand at quarter’s end, the increased revenue guidance of over US$35 million this year, upwards of US$20 million in one-off payments coming in over 2025, the $50 million credit facility on hand, and the solid strategic investor and financial backing from Tether Investments. All of these factors position the company to review making accretive future acquisition transactions this year and moving forward.
If you have any follow up questions for Dave 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.
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