The following is a summary of the ELEMENTAL ALTUS ROYALTIES CORP. (ELEMF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Elemental Altus Royalties Corp reported Q2 revenue of $5.2 million, which is a 10% increase over the same quarter last year.
Adjusted EBITDA was $3.4 million, marking a 4% rise from the previous year, with margins improving towards pre-merger levels.
Gross operating cash flow was affected by one-off costs but is expected to normalize in H2.The company expanded its revenue with the first royalty revenue from Diba expected in Q3, and reported a standout quarter for Karlawinda and increased guidance from Lundin Mining for Caserones.
Business Progress:
Marked increase in Bonikro's revenue, expecting further growth with access to higher-grade ore in 2025 and 2026.
Commencement of a study by Capricorn at Karlawinda for a major expansion to increase throughput by approximately 50%.
Acquisition of new royalties, including a high-potential royalty on the Mactung Tungsten project, expected to add significant value.
Development and expansion efforts at Diba by Allied Gold set to generate first production, with exploration programs aimed at resource growth.
Opportunities:
Expectation of continued solid quarterly revenue growth into 2025, driven by robust gold prices and new royalty streams becoming active.
Debt repayment strategy providing financial flexibility and lower debt costs, enabling potential new acquisitions, dividends, or share buybacks.
Milestone payments of $19.2 million expected by mid-2025 enhancing the financial position.
Strong deal pipeline with potential for both individual and portfolio acquisitions.
Risks:
Exposure to fluctuations in copper prices affecting gold equivalent ounces from the Caserones mine.
Anticipated volatility in gold prices could impact operational plans and royalty income from key assets.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
