For complete details, please refer to the Financial Statements and associated Management Discussion and Analysis ('MD&A') for the three and twelve months ended
Full Year 2022 Financial Highlights: Record revenue of
Record adjusted revenue of
Record Gold Equivalent Ounces ('GEOs') of 5,834 ounces up 59% on FYE
Full year record adjusted EBITDA of
Fourth Quarter 2022 Financial Highlights:
Q4 revenue of
Q4 adjusted revenue of
Q4 attributable GEOs of 1,621 ounces up approximately 25% on FYE
Cash position of
Highlights and Key Developments
On
On
On
Materially decreased the Company's cost of capital and reduced the total amount drawn, resulting in saving over
2023 Guidance and Highlights Subsequent to
The Company announced 2023 guidance of between 9,000 to 10,200 GEOs representing at its midpoint an approximate 65% increase on the 5,800 GEOs received in 2022
In the first quarter of 2023, the Company acquired a portfolio of 19 royalties from a wholly owned subsidiary of
In the first quarter of 2023, the Company entered into a binding agreement to acquire an additional 0.025% effective net smelter return royalty on the producing Caserones Copper-Molybdenum mine, located in the Atacama region of northern
On
Operating Asset Highlights
Adjusted revenue also includes royalty revenue from equity investments for the same periods. Royalty revenues are at zero cost and Ming stream revenues are subject to a 20% cost of sales.
Karlawinda
In the fourth quarter of 2022 GEOs were comparable relative to the fourth quarter of 2021.
In 2022 Karlawinda produced an attributable 2,404 GEOs generating
Capricorn expects to continue its strong operational performance in FY2023 with unchanged gold production guidance of 115,000 - 125,000 ounces.
Caserones
In the fourth quarter of 2022 GEOs were lower relative to the fourth quarter of 2021 primarily due to significant weather-related events which impacted the concentrate plant and tailings facility capacity.
Substantial production recovery is expected in the first quarter of 2023 as throughput, grades and recoveries return to historical levels.
Subsequent to
Wahgnion
In the fourth quarter of 2022 GEOs were broadly in line relative to the fourth quarter of 2021.
Production increased from 32,000 ounces in the third quarter to 36,000 ounces in the fourth quarter of 2022 due to higher processed grades which were partially offset by slightly lower tonnes milled, while gold recovery rates remained flat.
Total tonnes mined increased due to increased mining productivity following the end of the wet season and the benefit of a full quarter of mining at the Samavogo pit. In addition, mining continued at the Nogbele North and South pits while mining at the current stage of the Fourkoura pit ended during the quarter.
Mercedes
In the fourth quarter of 2022 Elemental Altus received the first full quarter of production from Mercedes.
On
Bonikro
Allied Gold is expected to target full production from the royalty area starting H2 2023.
The Company owns an NSR royalty on an area of the mine known as Pushback 5 at Allied Gold's open pit Bonikro gold mine in
In 2022 Elemental received 408.4 gold ounces from the Ming Gold Stream with gross value of approximately
On
In the fourth quarter of 2022 GEOs were slightly higher compared to the fourth quarter of 2021, mainly due to operational efficiencies, higher gold grades, and an increase in the number of tonnes of ore processed.
Austral reported that they intend to continue to review exploration opportunities to increase mineral reserves in the Guanaco and Amancaya district.
Ballarat
The Company owns an NSR royalty on the underground Ballarat mine at a rate of 1.25% and also holds ownership of approximately
While mining continued uninterrupted, the
Contact:
Tel: +1 604-243-6511
Email: j.zerb@elementalaltus.com
About
Elemental Altus is an income generating precious metals royalty company with 10 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties, as well as generating royalties on new discoveries. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.
Notes
Non-IFRS Measures
The Company has included certain performance measures which are not in accordance with International Financial Reporting Standards ('IFRS'). Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standard meaning under IFRS and other companies may calculate measures differently.
Elemental has included certain performance measures in this press release that do not have any standardized meaning prescribed by IFRS. The Company's royalty revenue is converted to an attributable gold equivalent ounce, or GEO, basis by dividing the royalty revenue received in a period by the average gold price for the same respective period. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental and maybe subject to uncertainty. There can be no assurance that such information is complete or accurate.
Royalty revenue is received at zero cost. Elemental Altus pays 20% per ounce on streaming revenue from the Ming mine.
Adjusted Revenue
Adjusted revenue is a non-IFRS financial measure, which is defined as including gross royalty revenue from associated entities holding royalty interests related to Elemental's effective royalty on the Caserones copper mine. Management uses adjusted revenue to evaluate the underlying operating performance of the Company for the reporting periods presented, to assist with the planning and forecasting of future operating results, and to supplement information in its financial statements. Management believes that in addition to measures prepared in accordance with IFRS such as revenue, investors may use adjusted revenue to evaluate the results of the underlying business, particularly as the adjusted revenue may not typically be included in operating results. Management believes that adjusted revenue is a useful measure of the Company performance because it adjusts for items which management believes reflect the Company's core operating results from period to period. Adjusted revenue is intended to provide additional information to investors and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. It does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers.
Gold Equivalent Ounces
Elemental's adjusted royalty, streaming, and other revenue is converted to an attributable gold equivalent ounce, or GEO, basis by dividing the royalty and other revenue from associates in a period by the average gold price for the same respective period, plus the net gold ounces received in the period from streaming investments. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental and may be subject to uncertainty. There can be no assurance that such information is complete or accurate.
Cautionary note regarding forward-looking statements
This news release contains certain 'forward looking statements' and certain 'forward-looking information' as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as 'may', 'will', 'should', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'continue', 'plans' or similar terminology.
Forward-looking statements and information include, but are not limited to, statements with respect to the Company's ability to deliver a materially increased revenue profile, the future growth, development and focus of the Company, and the acquisition of new royalties and streams. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may cause Elemental Altus' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the impact of general business and economic conditions, the absence of control over the mining operations from which Elemental Altus will receive royalties, risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of the Company for the year ended
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