Elemental Altus – 2023 Delivered Many Record Financial Metrics - 2024 Guidance And Royalty Partner Updates
Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE – OTCQX:ELEMF), joins me to review the record Q4 and record full year 2023 financial metrics, along with a number of royalty partner updates, and the 2024 guidance and acquisition strategy with the optionality from being cashed up, cash-flowing, and evaluating at an opportunistic range of mid-tier deal flow.
Full Year 2023 Highlights:
- Record revenue of US$11.7 million and record adjusted revenue1 of US$17.9 million, up 69% on 2022
- Record Gold Equivalent Ounces ("GEOs") of 9,122 ounces, up 56% on 2022
- Record Operating Cash Flow plus Caserones dividends of US$6.1 million, up 894% on 2022, and record adjusted EBITDA1 of US$9.8 million, up 47% on 2022
- US$20 million of accretive royalty acquisitions
Fourth Quarter 2023 Highlights:
- Record Q4 revenue of US$4.0 million and record adjusted revenue of US$5.6 million, up 101% on Q4 2022
- Record Q4 attributable GEOs of 2,843 ounces, up 75% on Q4 2022
- Record Operating Cash Flow plus Caserones dividends of US$2.2 million, compared with a loss in Q4 2022, and record Q4 adjusted EBITDA1 of US$2.8 million, up 175% on Q4 2022
- Maiden quarterly net profit of US$2.2 million, compared with a US$11.5 million loss in Q4 2022
2024 Outlook
- Record guidance of 10,000 to 11,700 GEOs, representing at its midpoint a 19% increase on 2023 and top-line exposure to gold and copper prices
- Significantly lower G&A expenditure following asset sales, which are also expected to generate milestone payments placing the company in a position to generate material cash flow
- Repaid US$5 million debt in Q1 2024, leaving a strong balance sheet for royalty acquisitions with US$25 million undrawn on the credit facility and approximately US$10 million of cash as of April 16, 2024
Fred and I review a number of royalty projects and partner updates from operators on both the production and development side, as well as noting some of the prior year’s accretive options on projects to generate new royalties. We wrap up reviewing how these prior transactions and future acquisition potential tie into their corporate vision and strategy, and give them strong optionality; only further enhanced by rising gold and copper prices.
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording.
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