Altius Reports Q3 2023 Expected Attributable Royalty Revenue(1) of $17.9M

Rhea-AI Summary

Altius Minerals Corporation expects to report Q3 2023 attributable royalty revenue of $17.9 million. Revenue for base & battery metals, potash, iron ore, renewable energy, thermal coal, and interest and other sources are provided. Notable changes include lower revenue for base & battery metals and potash compared to the same quarter in 2022, and the first lithium royalty revenue from Groto do Cirilo. The operator of the Genesee power plant plans to end coal usage by early next year.

Positive

• Altius Minerals expects to report Q3 2023 attributable royalty revenue of $17.9 million

Negative

• Lower revenue for base & battery metals and potash compared to Q3 2022

 

ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)-- Altius Minerals Corporation (ALS: TSX) (ATUSF: OTCQX):

All references in thousands of Canadian dollars, except per share amounts, unless otherwise indicated.

Altius Minerals Corporation (ALS: TSX) (ATUSF: OTCQX) (“Altius” or the “Corporation”) expects to report Q3 2023 attributable royalty revenue⁽¹⁾ of $17.9 million.

Royalty Revenue Summary

Summary of attributable royalty revenue(1)		Three months ended
		September 30, 2023			June 30, 2023			September 30, 2022
Base & battery metals			4,231			4,834			5,535
Potash			3,870			6,081			10,276
Iron ore#			3,553			2,431			3,740
Renewable energy			2,607			1,310			2,089
Thermal (electrical) coal			2,000			2,626			3,768
Interest and other			1,608			1,416			827
		$	17,869		$	18,698		$	26,235
(#) Labrador Iron Ore Royalty Corporation dividends received

Base and battery metals (primarily copper) revenue of $4.2 million for the quarter compares to $5.5 million reported for the comparable quarter of 2022 due primarily to the scheduled closure of the 777 mine in Q2 of 2022 and lower copper stream deliveries from Chapada. The Corporation recognized a small royalty from the ramp up of Groto do Cirilo during the quarter marking its first lithium royalty revenue.

Potash portfolio revenue during the quarter was $3.9 million, which compares to $10.3 million in the comparable quarter of 2022, reflecting significantly lower average realized prices.

Iron ore royalty revenue in the form of dividends from Labrador Iron Ore Royalty Corp., which serves as a pass-through vehicle for royalty income and equity dividends related to the operations of Iron Ore Company of Canada (IOC), was $3.6 million, as compared with Q3 2022 iron ore revenue of $3.7 million.

Renewable energy royalty revenue of $2.6 million compares to $2.1 million recorded in the same period last year.

Thermal coal royalty revenue of $2.0 million was received in Q3 2023 compared to $3.8 million during the comparable quarter of last year reflecting lower attributable production volumes at the Genesee Mine that were partially offset by a higher inflation-linked royalty rate. The operator of the Genesee power plant continues to invest in a conversion to natural gas-based fuelling and plans to bring an end to coal usage by early next year.

The Corporation's preliminary cost of sales on the Chapada copper stream, excluding any depletion for the quarter, is $1.1 million compared to $1.3 million in the prior year quarter. All other royalty assets owned by the Corporation have no associated cost of sales.

Non‐GAAP Financial Measures
1.		Management uses the following non-GAAP financial measures: attributable revenue, attributable royalty revenue, adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA), adjusted operating cash flow and adjusted net earnings (loss). Management uses these measures to monitor the financial performance of the Corporation and its operating segments and believes these measures enable investors and analysts to compare the Corporation’s financial performance with its competitors and/or evaluate the results of its underlying business. These measures are intended to provide additional information, not to replace International Financial Reporting Standards (IFRS) measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. As these measures do not have a standardized meaning, they may not be comparable to similar measures provided by other companies. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of our MD&A.

Third Quarter 2023 Financial Results Conference Call and Webcast Details
Date: November 09, 2023
Time: 9:00 AM ET
Toll Free Dial-In Number: (+1) 888 396 8049
International Dial-In Number: (+1) 416 764 8646
Conference Call Title and ID: Altius Minerals Q3 2023 Financial Results, ID 35071568
Webcast Link: Q3 2023 Financial Results

About Altius

Altius’s strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These macro-trends each hold the potential to cause increased demand for many of Altius’s commodity exposures including copper, renewable based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore, and potash. In addition, Altius runs a successful Project Generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius has 47,307,003 common shares issued and outstanding that are listed on Canada’s Toronto Stock Exchange. It is included in each of the S&P/TSX Small Cap, the S&P/TSX Global Mining, and the S&P/TSX Canadian Dividend Aristocrats indices.

Forward-looking information

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Altius provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Altius believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not place undue reliance on forward-looking information. Altius does not undertake to update any forward-looking information contained herein except in accordance with securities regulations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231018517008/en/

Flora Wood

Email: Fwood@altiusminerals.com

Tel: 1.877.576.2209

Direct: +1(416)346.9020

Ben Lewis

Email: Blewis@altiusminerals.com

Tel: 1.877.576.2209

Source: Altius Minerals Corporation

What is Altius Minerals' Q3 2023 attributable royalty revenue?

Altius Minerals expects to report Q3 2023 attributable royalty revenue of $17.9 million.

What are the sources of revenue for Altius Minerals?

The sources of revenue for Altius Minerals include base & battery metals, potash, iron ore, renewable energy, thermal coal, and interest and other sources.

How does the Q3 2023 revenue compare to the same quarter in 2022?

The revenue for base & battery metals and potash is lower in Q3 2023 compared to the same quarter in 2022.

What is the significance of Groto do Cirilo in the Q3 2023 revenue?

Groto do Cirilo contributed to Altius Minerals' revenue as the first lithium royalty revenue.

What are the plans for the Genesee power plant?

The operator of the Genesee power plant plans to end coal usage by early next year.