Elemental Altus Royalties (TSXV: ELE) reported quarterly revenue of $9.1 million in Q2 2025, a 142% jump from $3.8 million in Q2 2024.
Gross profit doubled to $5.5 million from $2.1 million, lifting gross margin to 60% from 56%. On operating costs, general and administrative expense was essentially flat year over year at $1.8 million, but project evaluation spending rose to $0.4 million from $0.07 million, and share-based compensation increased to $0.6 million from $0.35 million. A $1.83 million loss on disposal (versus a $0.28 million gain last year) further weighed on results, leaving operating profit at $1.44 million—up from $0.77 million but with a lower operating margin of 16% vs 21% last year.
Pre-tax income improved to $1.35 million from $0.36 million last year, but an unusually high $1.19 million tax charge left net income at $0.16 million. However, this is an improvement from last year’s loss of $0.14 million, including $0.07 million from discontinued operations.
Adjusted EBITDA rose 155% to $8.8 million from $3.4 million. Attributable GEOs were 3,184 ounces this quarter versus 2,211 ounces in Q2 2024.
Operating cash flow surged to $13.2 million from $0.38 million last year. Investing activities added $6.3 million of inflow, including $5.1 million from sales of equity investments and $1.2 million of distributions from associates. Financing cash flow was close to neutral in the quarter versus a $5.47 million outflow last year, reflecting the absence of principal repayments in Q2 after the company repaid $3.0 million of loans in the first half. Net cash rose $19.6 million in Q2, lifting period-end cash to $24.5 million from $4.45 million at the end of 2024.
Operationally, at Karlawinda (2% NSR), Q2 gold production of 32,216 ounces outpaced last year’s 26,835 ounces. Regulatory approval was received for an expansion targeting around 150,000 ounces per year, which Elemental Altus estimates could yield 3,000 GEOs per year to the company.
Caserones contributed $1.4 million of accrued adjusted royalty revenue, flat year over year, tied to 29,290 tonnes of copper sales, with guidance of 115,000–125,000 tonnes for 2025 maintained and higher grades expected in the second half.
Korali-Sud began co-processing with Sadiola on May 6, 2025 and delivered 26,783 ounces of sales in Q2 versus nil a year ago, with roughly 120,000 ounces of attributable production remain at the 3% NSR rate. On the other hand, Bonikro attributable sales improved to 23,469 ounces from 17,753 ounces on higher-grade zones and stable plant performance.
The outlier is Wahgnion, where an external audit has paused royalty statements and payments. Elemental Altus has accrued $1.1 million post-tax in receivables as of June 30 and expects full payment in 2025 once statements are issued.
The company now guides higher adjusted revenue of $35–$40 million at a $3,000 per ounce gold price (from $30.1–34.3 million assuming gold at $2,600 per ounce) and 11,600–13,200 GEOs for the year, with production weighted to the first half because of Korali-Sud’s early contributions.
Elemental Altus Royalties last traded at $2.00 on the TSX Venture.
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