Elemental Altus Royalties Strategically Positioned to Deliver Growth and Income for Investors

Elemental Altus Royalties (TSXV: ELE) has been active in monetizing and optimizing its royalty portfolio while adding new royalties, positioning itself to benefit in the current market environment. With its existing cash flowing royalties and strong balance sheet, Elemental Altus is well-placed to acquire additional royalties at attractive valuations. Recent deals have brought in cash payments and royalties on assets moving into production, while reducing exploration spend, making Elemental Altus an appealing investment.

Strategic Deals Extract Value from Royalty Portfolio

Over the past few months, Elemental Altus has executed several strategic deals across its royalty portfolio to extract value and minimize exploration spend.

In Ethiopia, Elemental Altus sold its projects to a new company, Allied Gold Corp, for cash payments, equity in Allied, and a 5% royalty on the projects. Allied has a strong technical team with expertise in Ethiopia, and is well-positioned to advance exploration and attract future investment. This deal provides Elemental Altus near-term cash flow, retains upside through its royalty and equity interest, while outsourcing exploration spend.

Similarly, in Mali, Elemental Altus sold its Diakha-Siribaya project adjacent to the producing 10Moz Sadio-Lamine mine to Allied Gold for $6M in cash payments plus a 3% royalty. Allied plans to fast-track this oxide resource into production given its proximity to their operating mill. Elemental Altus retains upside through its royalty while Allied applies its technical expertise to expand the resource.

These deals demonstrate Elemental’ Altus's strategy of partnering with technically and financially strong companies to advance projects and establish royalties, while minimizing its ongoing exploration spend.

Adding a Near-Term Cash Flowing Royalty on Casserones

Elemental Altus recently acquired an additional 0.42% royalty on the Casserones copper project in Chile, operated by Lundin Mining, for $5.5M. This increases Elementals Altus's royalty to 0.9172%, providing exposure to a large, long-life copper asset moving into production. Lundin's operational expertise is expected to optimize Casserones, with significant resource expansion potential from untested areas. This near-term cash flowing royalty provides Elemental Altus leverage to copper’s electrification-driven demand growth.

Elemental Altus's deals reflect portfolio optimization in the current market environment. With its strong cash flow generation from existing royalties, its strategy is to partner with technically and financially capable companies to progress projects while retaining royalties. This minimizes the company's spend while maintaining upside exposure.

At the same time, Elemental Altus is looking to acquire additional royalties at attractive valuations. Its strong balance sheet provides capacity for selective investments in quality royalty opportunities. Elemental Altus has taken advantage of market dislocations to build a diversified portfolio of royalties on cash flowing, development, and exploration stage assets.

Positive Industry Trends Support Outlook

Looking ahead, Elemental Altus sees a continuation of consolidation among royalty companies, which may create opportunities. The company believes copper and gold - key metals in its portfolio - will see continued strong demand growth. Overall, Elemental is well-positioned to benefit from positive industry trends as a value-accretive royalty investment.

With its recent deals, Elemental Altus has demonstrated an ability to extract value from its portfolio while establishing new royalties on assets moving into production. Its selective approach and strong balance sheet provide capacity to acquire additional high-quality royalties. For investors seeking royalty exposure to copper and gold, Elemental Altus provides diversified exposure through its portfolio of cash flowing and development stage assets, while retaining upside on exploration projects. After strategically optimizing its portfolio, Elemental Altus appears positioned to deliver growth and royalty income to investors.

The Investment Thesis for Elemental Altus Royalties for Investors

• Diversified portfolio of cash flowing royalties provides stable income. Elemental Altus has about 10 producing royalties across different commodities and geographies, giving investors exposure to royalty income from current mining operations.
• Leverage to exploration and resource expansion upside. In addition to its producing assets, Elemental retains royalties on earlier stage exploration projects. These provide upside exposure if resources are expanded or projects are advanced through development.
• Strong balance sheet to fund accretive royalty acquisitions. Elemental Altus has significant cash and capacity to acquire additional royalties. It can be selective in a market where valuations are attractive. New royalty deals can add to cash flow.
• Potential for capital appreciation. As Elemental Altus acquires additional royalties and its existing royalty portfolio appreciates in value with mine expansions and resource growth, this can translate to share price appreciation over time.
• Experienced management team with expertise in royalty acquisitions. Elemental Altus's management has a strong track record of identifying and executing accretive royalty deals to build portfolio value.
• Leverage to favorable copper and gold fundamentals. Much of Elemental Altus's royalty exposure is to copper and gold, both of which have positive demand drivers and outlooks.

For investors seeking royalty exposure and a mix of income and growth, Elemental presents an appealing opportunity given its portfolio composition, deal-making track record, strong balance sheet, and leverage to key commodities.