Elemental Altus Royalties Posts Record First Quarter Revenue of US$3.3 million

• Record Q1 royalty revenue of US$3.3 million and adjusted revenue of US$4.7 million, up 24% year-over-year
• Attributable Gold Equivalent Ounces (GEOs) of 2,283 ounces, a 13% increase from Q1 2023
• Operating cash flow plus Caserones dividends of US$1.2 million, expected to grow throughout 2024
• Adjusted EBITDA of US$3.2 million, a 42% increase from Q1 2023
• On track to meet 2024 guidance of 10,000 to 11,700 GEOs, representing a 19% increase at the midpoint compared to 2023

Elemental Altus Royalties Corp. is an income-generating precious metals royalty company with 10 producing royalties and a diverse portfolio of pre-production and discovery stage assets. The company focuses on acquiring uncapped royalties and streams over producing or near-production mines operated by established counterparties. Elemental Altus aims to build a global gold royalty company that offers investors superior exposure to gold with reduced risk and a strong growth profile.

Financial Performance & Outlook

Elemental Altus reported record financial results for the first quarter of 2024, with royalty revenue of US$3.3 million and adjusted revenue of US$4.7 million, representing a 24% increase compared to Q1 2023. The company's attributable GEOs also grew by 13% year-over-year to 2,283 ounces. Operating cash flow, including Caserones dividends, amounted to US$1.2 million and is expected to grow throughout 2024 as margins expand.

The company's adjusted EBITDA for Q1 2024 was US$3.2 million, a 42% increase from the same period in 2023. Elemental Altus is on track to meet its 2024 guidance of 10,000 to 11,700 GEOs, which represents a 19% increase at the midpoint compared to 2023. This guidance provides top-line exposure to gold and copper prices.

Asset Updates & Developments

Elemental Altus' royalty portfolio includes several key assets that are expected to drive growth in the coming years. The Diba royalty, operated by Allied Gold Corp, is on track to commence mining in Q2 2024 and has the potential to become a material, long-life royalty for the company. Allied has also made significant progress in expanding the resource at Diba, demonstrating the upside potential of Elemental Altus' royalty.

At the Bonikro mine, royalty attributable sales in Q1 2024 were 21,407 ounces, a substantial increase from 4,471 ounces in Q1 2023. Allied has indicated that Bonikro production will be weighted towards the second half of the year, further improving the near-term outlook for Elemental Altus.

Focus Minerals, the operator of the Laverton Gold Project, has announced increases in resources at several higher-grade open pit deposits covered by Elemental Altus' royalty. Focus plans to update its 2021 Stage 1 Prefeasibility Study for open pit production, reflecting the increased resources and improved gold pricing.

Corporate Developments & Financial Flexibility

Elemental Altus repaid US$5 million of its credit facility in Q1 2024, reducing the borrowing balance to US$25 million and leaving US$15 million undrawn, with an additional US$10 million available under certain conditions. The company intends to continue reducing the amount drawn on the credit facility while maintaining financial flexibility for new acquisitions.

Post-quarter end, Elemental Altus acquired a 1.25% – 1.40% NSR royalty on the HCK Lithium Project in Rwanda, operated by Rio Tinto Mining and Exploration Limited. This acquisition serves as repayment for the company's US$0.2 million receivable balance from Aterian Plc and adds further diversification to its royalty portfolio.

Falling G&A expenditure and significant expected cash flow generation following merger synergies and asset sales are expected to generate milestone payments, placing Elemental Altus in a position to generate material cash flow.

Conclusion

Elemental Altus Royalties Corp. is well-positioned for growth, with a diverse portfolio of producing and development-stage royalties. The company's record Q1 2024 financial results, coupled with its strong outlook for the remainder of the year, demonstrate its ability to generate significant cash flow and create value for shareholders.

Investors looking at Elemental Altus Royalties can expect exposure to a growing portfolio of gold and copper royalties, with the potential for new acquisitions and exploration upside. The company's focus on acquiring uncapped royalties and streams over producing or near-production mines operated by established counterparties reduces risk while providing leverage to commodity prices.

As Elemental Altus continues to execute its growth strategy and optimize its portfolio, investors can anticipate increased cash flow generation and shareholder returns. With a strong financial position and a proven track record of value creation, Elemental Altus Royalties presents an attractive opportunity for investors seeking exposure to precious metals royalties with reduced risk and significant upside potential.