In This Article:
All amounts in Canadian dollars unless otherwise stated
VANCOUVER, BC / ACCESSWIRE / May 30, 2024 / RE Royalties Ltd. (TSX.V:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, is pleased to announce the financial results for the first quarter ended March 31, 2024 ("Q1 2024"). For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for Q1 2024, filed on SEDAR+ at www.sedarplus.com.
Key financial highlights for Q1 2024 include:
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Quarterly revenue and income for the three months ended March 31, 2024, of $2,637,000, an increase of $813,000 or 45% over the similar period in the prior year. The increase was attributable to an increase in the number of investments made during the last 12 months.
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Quarterly gross profit, including changes in fair value of financial assets, of $2,538,000, an increase of $785,000 or 45% over the similar period in the prior year.
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Quarterly Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") for Q1 2024 of $1,797,000, an increase of $451,000 or 34% over the similar period in the prior year.
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Quarterly net income after income tax of $659,000, an increase of $101,000 or 18% over the similar period in the prior year.
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Cash and cash equivalents of $14,614,000, including restricted cash, as of March 31, 2024.
Key business highlights for Q1 2024 include:
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In January 2024, the Company entered into an agreement with Clean Communities Corporation ("CCC"), an Alberta-based Indigenous-led clean energy company, to provide a $1.7 Million secured loan (the "CCC Loan") to support the construction of a 4MW solar project ("Sunrise Solar") in Cardston, Alberta. The CCC Loan has a 60-month term and an interest rate of 13% per annum, compounded monthly. The Company will receive a gross revenue royalty of 5.0% on Sunrise Solar for 20 years after reaching commercial operations.
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In February 2024, the Company closed a loan and royalty agreement with Revolve Renewable Power Corp. ("Revolve") to support Revolve's acquisition of a portfolio of two operational run-of-river hydro projects in British Columbia, and one operational wind project in Alberta with a combined gross capacity of 23 MW (the "Operational Projects").The Operational Projects receive revenue from Power Purchase Agreements ("PPAs") with BC Hydro and the City of Medicine Hat, for the hydro projects and the wind project, respectively. The Operational Projects have PPAs with remaining terms ranging from 32-35 years for the hydro projects and 11 years for the wind project. The Loan has a term of 36 months and bears interest at the rate of 12% per annum, compounded monthly, and payable semi-annually. The Company received a structuring fee of 1.0% on the Loan value at closing, and holds a gross revenue royalty of 0.5% on the Operating Projects during the term of the Loan, increasing to a gross revenue royalty of 1.0% upon repayment of the Loan for the remaining life of the PPAs.
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In March 2024, the Company entered a $415,000 secured loan (the "Revolve DG Loan") with Revolve to enable their continued expansion into the Mexican distributed generation market. The Revolve DG Loan will be used to fund construction of a new 450kW rooftop solar project (the "Project"), which will be installed on the site of a food manufacturing business (the "Customer") in Central Mexico. The Project will receive revenue from a 15-year Power Purchase Agreement ("PPA") between Revolve and the Customer. The Revolve DG Loan has a term of two years, is secured against the assets of the Project, bears interest at 12% per annum, payable quarterly, and Revolve paid a 1% closing fee on the total Loan value. A gross revenue royalty of 5% will apply to all revenues received by Revolve from the Project for the 15-year term of the PPA.
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In March 2024, the Company received an early repayment of the five-year USD $5.6 million senior secured working capital loan (the "NOMAD Loan") extended to Nomad Transportable Power Systems Inc. ("NOMAD") on April 1, 2022. Under the terms of the agreement, NOMAD, a pioneer in the mobile energy storage sector, utilized the loan to manufacture mobile energy storage systems ("Units"), including the NOMAD Traveler (2 MWh) and NOMAD Voyager (1.2 MWh). The NOMAD Loan has been repaid in full, including any outstanding interest. RE Royalties will continue to receive a gross revenue royalty of 3.5% on the sale of an additional 42MWh of NOMAD's Units. This translates to ongoing revenue for RE Royalties, providing a recurring income stream as NOMAD's battery systems continue to make an impact in the market.