The following is a summary of the Elemental Altus Royalties Corp. (ELEMF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Elemental Altus Royalties Corp. reported a strong Q3 2024 with revenue growth of 32% year-over-year, reaching $4.8 million in adjusted revenue.
Adjusted EBITDA rose by 70% compared to the same quarter in the previous year, totaling $3.7 million.
Adjusted cash flows from operations were up by 44% year-over-year, amounting to $2.8 million.The company forecasts revenue between $21.6 million and $23.1 million for the year, adjusted due to delays but expects a significant contribution from emerging royalties in 2025.
Business Progress:
Elemental Altus successfully expanded their portfolio through the acquisition of AlphaStream, doubling their interest in key royalties such as Bonikro, Ballarat, and SKO.
They entered a net cash position for the first time in years, enhancing financial stability and operational freedom.
Future revenue growth is supported by the newly operational Korali-Sud royalty, which began production in Q4 2024.
Announced significant operational expansion at Karlawinda with a projected 30% increase in gold production.
Opportunities:
Elemental Altus sees growth opportunities through the enhancement and operation of acquired royalties, specifically citing the impending financial impacts of royalties from Ballarat and Karlawinda expansions and the newly operational Korali-Sud.
The addition of AlphaStream significantly boosts potential revenue with $6 million expected in 2025, enhancing the company's robust growth trajectory.
Risks:
Reduced gold equivalent ounce (GEO) guidance for 2024 due to operational and permitting delays at Korali-Sud in Mali, now adjusted to 9,000 to 9,500 GEO from an earlier forecast of 10,000 to 11,500.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
