Altius Minerals Corp (ATUSF) Q2 2024 Earnings Call Highlights: Strong Net Earnings Growth Amid ...

In This Article:

  • Revenue: $21.8 million in Q2 2024, up from $18.7 million in Q2 2023.

  • Mineral Royalties EBITDA Margin: 77% in Q2 2024, down from 81% in Q2 2023.

  • Adjusted Operating Cash Flow: $9.2 million in Q2 2024, down from $14.1 million in Q2 2023.

  • Net Earnings: $8.3 million or $0.18 per share in Q2 2024, up from $3.3 million or $0.06 per share in Q2 2023.

  • Adjusted Net Earnings: $0.09 per share in Q2 2024.

  • Cash and Liquidity: $19.2 million in cash and $93 million in unused revolver room at the end of Q2 2024.

  • Debt Repayments: $2 million during the quarter.

  • Cash Dividends Paid: $3.8 million during the quarter.

  • Share Repurchase: 119,300 shares repurchased and canceled for $2.5 million.

  • Quarterly Dividend: $0.09 per share approved, payable on September 16, 2024.

Release Date: August 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Altius Minerals Corp (ATUSF) reported an increase in net earnings to $8.3 million or $0.18 per share, up from $3.3 million or $0.06 per share in Q2 2023.

  • Revenue and adjusted EBITDA were positively impacted by higher base metal prices and growth in the renewable royalty portfolio.

  • The company has a strong liquidity position with $19.2 million in cash and $93 million in unused revolver room on its credit facility.

  • Altius Renewable Royalties reported significant progress, with 12 operating stage wind and solar projects totaling more than 2.5 gigawatts.

  • The El Domo Curipamba Project received government approval to begin construction, promising high-grade copper and gold production.

Negative Points

  • The mineral royalties segment's EBITDA margin decreased to 77% in Q2 2024 from 81% in Q2 2023, impacted by higher professional fees.

  • Adjusted operating cash flow decreased to $9.2 million from $14.1 million in Q2 2023, due to timing of royalty revenue cash receipts and working capital changes.

  • Potash prices were lower, affecting revenue despite stable global consumption trends.

  • The closure of the Genesee coal mine negatively impacted revenue.

  • There is uncertainty regarding the arbitration outcome for the Silicon Royalty in Nevada, which could affect future asset valuations.

Q & A Highlights

Q: Can you provide more details on the potential disposition or retention of the Silicon royalty? A: Brian F Dalton, CEO: We received various proposals, some including asset swaps, but I can't provide more details out of respect for the process. There are opportunities for a blend of cash and assets if we decide to sell.