Elemental Altus Royalties Reports Record 2023 Results, Maiden Quarterly Profit

• Elemental Altus Royalties Corp. reports record annual revenue, gold equivalent ounces, EBITDA, and maiden quarterly profit for 2023
• The company provides investors with top-line exposure to gold and copper prices through its cash-flowing royalty portfolio
• Elemental Altus invested approximately US$20 million in new royalty investments in 2023 and realised US$3.5 million from the sale of non-core equity holdings
• The company repaid US$5 million of its credit facility, leaving a strong balance sheet for future royalty acquisitions
• Elemental Altus expects record guidance of 10,000 to 11,700 GEOs for 2024, representing a 19% increase from 2023

About Elemental Altus Royalties

Elemental Altus Royalties Corp. (TSX-V: ELE, OTCQX: ELEMF) is an income-generating precious metals royalty company with 10 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The company focuses on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties. Elemental Altus' vision is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

Record Financial Performance in 2023

Elemental Altus reported record financial results for the full year and fourth quarter of 2023. The company achieved record revenue of US$11.7 million and record adjusted revenue of US$17.9 million, representing a 69% increase compared to 2022. Gold Equivalent Ounces (GEOs) also reached a record high of 9,122 ounces, up 56% from the previous year.

The company's strong financial performance was further demonstrated by record operating cash flow plus Caserones dividends of US$6.1 million, a significant increase of 894% compared to 2022. Adjusted EBITDA also reached a record high of US$9.8 million, up 47% from the previous year.

In the fourth quarter of 2023, Elemental Altus reported record revenue of US$4.0 million and record adjusted revenue of US$5.6 million, a 101% increase compared to Q4 2022. Attributable GEOs for the quarter also reached a record high of 2,843 ounces, up 75% from the same period in the previous year. The company achieved a maiden quarterly net profit of US$2.2 million, a significant improvement from the US$11.5 million loss in Q4 2022.

Strategic Investments and Balance Sheet Optimization

In 2023, Elemental Altus invested approximately US$20 million in new royalty investments, using a combination of cash (US$8.5 million) and company equity. These investments included the acquisition of an existing 0.68% net smelter return royalty on the Cactus Copper Project in Arizona, a portfolio of development gold royalties, and two additional royalties on the Caserones copper-molybdenum mine in Chile, increasing the company's royalty to 0.473%.

To optimize its balance sheet, Elemental Altus sold non-core equity holdings in the first quarter of 2024, generating US$3.5 million in cash. The proceeds from these sales were partially used to repay US$5 million of the company's credit facility, leaving US$25 million drawn and US$25 million undrawn as of March 31, 2024. This strategic move reduces interest payments while maintaining a strong cash balance for future royalty acquisitions.

Positive Outlook for 2024

Elemental Altus expects record guidance of 10,000 to 11,700 GEOs for 2024, representing a 19% increase from 2023 at the midpoint. The company's royalty portfolio is leveraged approximately 70% to gold and 30% to copper, providing investors with top-line exposure to these commodity prices. The 2024 guidance is based on gold and copper prices of US$2,000 per ounce and US$3.90 per pound, respectively.

With the recent asset sales and debt repayment, Elemental Altus anticipates significantly lower G&A expenditure and expects to generate material cash flow from milestone payments. The company maintains a strong balance sheet for future royalty acquisitions, with US$25 million undrawn on its credit facility and approximately US$10 million in cash as of April 16, 2024.

Conclusion

Elemental Altus Royalties Corp. presents a compelling investment opportunity for those seeking exposure to gold and copper prices through a diversified portfolio of cash-flowing royalties. The company's record financial performance in 2023, strategic investments, and balance sheet optimization demonstrate its commitment to delivering shareholder value.

With a positive outlook for 2024, including record guidance for GEOs and a strong balance sheet for future acquisitions, Elemental Altus is well-positioned to continue its growth trajectory. The company's focus on acquiring uncapped royalties and streams over producing or near-producing mines operated by established counterparties reduces risk while providing investors with superior exposure to gold and copper prices.

As Elemental Altus continues to execute its strategy and deliver on key milestones, investors can expect the company to generate material cash flow and create long-term value. With a proven track record of revenue growth and a clear vision for the future, Elemental Altus Royalties Corp. is an attractive option for investors seeking exposure to the precious metals royalty space.