Elemental Altus Royalties – Financial Strength, Key Royalty Partner Updates, Looking Ahead To Growth In 2025
Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins us to review some of the key partner projects in their royalties portfolio, how things wrapped up in 2024, and looks ahead to where the growth will come from in 2025.
We have Fred break down the financial strength of the company, and the leverage to it’s balance sheet to rising production and revenues, their net cash position as a company, and a rough estimate of how revenues could grow in the year to come. The fourth quarter will also be the first one to see the increased production from the assets acquired from AlphaStream Limited in September.
One of the key royalty assets is the 3% Net Smelter Return ("NSR") royalty on the first 226,000 ounces of gold produced, and an uncapped 2% NSR thereafter, at the Korali-Sud (formerly Diba) project operated by Allied Gold Corporation (TSX: AAUC). On January 27th Allied Gold announced approximately 48,000 ounces of gold was produced from Korali-Sud during Q4 20241, but it is likely that this will hit revenues in Q1 2025.
Next we got an update on two of the other cornerstone royalty assets, Karlawinda and Caserones, and their expansion in the year to come. Additionally we got an update on Fireweed Metals Corp (TSXV: FWZ) being granted up to C$35.4 million in US and Canadian Government funding to advance its assets and supporting infrastructure at Macmillan Pass, including the Mactung Project, with which Elemental Altus holds an uncapped 4% Net Smelter Return ("NSR") royalty.
We wrap up discussing the valuation and potential for a rerating, considering the financial health of the company, the net cash position allowing for a buildup of capital to deploy on the balance sheet in the year to come, as well as the $50 million revolving credit facility on tap to execute more accretive acquisition transactions.
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email them in to us at Shad@kereport.com or Fleck@kereport.com.
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