Elemental Altus Royalties – Record Annual Revenue In 2024 And Growth Strategy In 2025
Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to review the key takeaways from the Q4 and full year 2024 financials, including record quarterly and annual revenues and cash flows, marking their seventh consecutive year of revenue growth. We also discuss the financial and development growth on tap for 2025, with updates at key royalty partner operations.
Full Year 2024 Highlights:
- Record revenue of US$16.3 million and record adjusted revenue1 of US$21.6 million, up 39% on 2023
- Gold Equivalent Ounces1 ("GEOs") of 8,987 ounces (9,122 GEOs in 2023) with production from Korali-Sud pushed into Q1 2025
- Record Operating Cash Flow plus Caserones dividends of US$8.7 million, up 42% on 2023, and record adjusted EBITDA1 of US$15.1 million, up 53% on 2023
- US$33.5 million of accretive royalty acquisitions including producing gold royalties over Bonikro, Ballarat and SKO mines
- Repayment of US$27 million of debt, with remaining debt repaid in full in Q1 2025 leaving a fully undrawn US$50 million facility with NBC, CIBC and RBC
Fourth Quarter 2024 Highlights:
- Record Q4 revenue of US$5.5 million and record adjusted revenue1 of US$6.8 million, up 21% on Q4 2023 and with no contribution from Korali-Sud
- Q4 attributable GEOs1 of 2,552 ounces (2,843 GEOs in Q4 2023)
- Record Operating Cash Flow plus Caserones dividends of US$3.3 million, up 54% on Q4 2023, and record Q4 adjusted EBITDA1 of US$4.8 million, up 72% on Q4 2023
2025 Outlook
- Record guidance of 11,600 to 13,200 GEOs, translating to record adjusted revenue of US$30.1 million to US$34.3 million, based on a gold price of US$2,600/oz and a copper price of US$4.00/lb
- This represents a 38% increase in GEOs and 50% year-on-year increase in adjusted revenue at the mid-point of guidance, with full exposure to higher gold prices
- Production is anticipated to be weighted towards the first half of the year, driven by first gold sales at the Korali-Sud royalty and Caserones shipments delayed from Q4 2024 into Q1 2025
- Up to US$15 million in one-off payments, with over US$10 million expected in the first half of the year
Fred breaks down the financial strength of the company, and the leverage of it’s balance sheet to rising production and revenues in a higher metals price environment. He also highlighted with the roughly $5 million in cash on hand, the expected revenues over $30 million this year, a number of additional incoming $15 million in one-off payments, and the $50 million credit facility on hand, that the company is in a great position to keep reviewing acquisition transactions in the year to come.
Wrapping up we cover some of the anticipated growth of the projects at their key cornerstone royalty assets: Caserones, Karlawinda, Korali-Sud, as well key royalties on compelling development projects in their portfolio like Arizona Sonoran’s Cactus project in Arizona, Focus Minerals’ Laverton project in Western Australia, and Firefly Metals Pickel Crow project in Ontario.
If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email them to me at Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording, and may choose to buy or sell shares at any time.
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