Mining Stock Daily Elemental Altus Royalties Highlights Record Guidance for 2025
Apr 22, 2025
Fred Bell, CEO of Elemental Altus Royalties, shares insights into the company's impressive financial performance and bright future outlook. He highlights a significant revenue boost anticipated for 2024, driven by surging gold prices and the impact of their Korali-Sud asset. The conversation also delves into the potential for mergers and acquisitions in the royalty sector, reflecting on recent transactions like Triple Flag's acquisition. Bell emphasizes the importance of strategic positioning for long-term success in an evolving market.
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Strong 2024 Revenue Growth
- Elemental Altus Royalties is projecting a 50% year-on-year increase in adjusted revenue for 2024 at forecast commodity prices.
- The company's revenue growth translates to an even larger increase in free cash flow due to controlled costs and taxes.
Corali Sud Production Boosts Royalties
- Corali Sud came into production in Q4 2024, with revenue sales beginning in early 2025, contributing significantly to future royalties.
- This royalty benefits from an uncapped 3% royalty rate, making it a high-potential asset alongside the large Sadiola deposit.
Spot Gold vs Consensus Pricing Gap
- There's a significant gap between spot gold prices and long-term consensus prices used for economic forecasts.
- Elemental uses conservative consensus pricing around $2200/oz, making current spot prices an advantageous environment for acquisitions.