Elemental Altus Royalties (TSXV: ELE) posted a turnaround in Q1 2025 fueled by a 179% increase in adjusted revenue and a 259% spike in adjusted EBITDA, with CEO Frederick Bell referring to it as “a standout first quarter.”
Total revenue jumped to $11.64 million, more than tripling the $3.33 million posted in Q1 2024. Adjusted revenue reached $13.26 million, bolstered by a maiden $6.6 million contribution from the Korali-Sud royalty.
Gross profit rose to $6.27 million from $1.70 million, despite a 230% increase in depletion expenses ($5.37 million vs. $1.63 million).
Net income came in at $3.45 million, reversing a $1.01 million loss in the same quarter last year. But tax expense also ballooned to $1.17 million, up from $302,000.
Despite strong earnings, cash flow from operations was just $2.37 million, up from a meager $175,000 in Q1 2024. Adjusted cash flow of $3.29 million reflects some normalization but still lags significantly behind the revenue surge.
A $5.87 million rise in accounts receivable suggests delayed royalty receipts, reinforcing that much of Q1’s revenue hasn’t yet been realized in cash.
Net change in cash was modest—leaving $4.80 million in cash on March 31, 2025. However, management later disclosed $22+ million on hand as of May 20 as per post-quarter collections.
Attributable gold equivalent ounces (GEOs) doubled year-over-year to 4,606 ounces, supported by Korali-Sud and other contributors.
The company reaffirmed guidance of 11,600–13,200 GEOs for 2025 and adjusted revenue between $30.1–34.3 million, a 50% increase year-on-year at mid-point, assuming gold at $2,600 per ounce and copper at $4.00 per pound.
Elemental Altus Royalties last traded at $1.39 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
