Q1 2025 Elemental Altus Royalties Corp Earnings Call

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Operator: Thank you everyone who's coming today for Elemental Altus' Q1 2025 earnings call. We're just giving it a little bit of time as we've got a few people still joining, but in the meantime, thank you for those in all the way in Vancouver, morning time, and I see we've got some Australian shareholders as well, so well represented across the different time zones.

Thank you everyone.

Today.

In Q1.

E 25 earnings call.

Just kidding.

A little bit of time, there's quite a few people still joining.

In the meantime.

Thank you morning timing.

In Australia and channel as well.

And across the different timeframes.

Frederick Bell: And today you have got myself, Frederick Bell, the CEO of Elemental Altus, and you've got David Baker, our CFO, who is going to take the majority of this call and walk you through. Look, it was, I think, I think we're good to begin now. And I would say that Q1 2025 was the strongest quarter in the company's history. We had record adjusted revenue of $13.3 million. And for comparison, Q1 in the equivalent period 2024 was $4.7 million. And on top of that revenue, we, subsequent to the quarter end, we received approximately $9.6 million US dollars related to the mainstream that we have.

Speaker Change: Today, you have got myself.

Seattle Office.

And you've got baked in Bangkok.

Speaker Change: It's going to take the majority of this call in Waukesha.

Speaker Change: Look it was I think I can make it to begin now in.

Speaker Change: Q1, 2025 was the strongest sculpsure in the company's history, we had record adjusted revenue of $13 3 million U S dollars.

Speaker Change: Importantly, Q1 in the equivalent period in 2024 was $4 $7 million.

And on top of that revenue, we saw physical trend, we received approximately $9 6 million U S dollars related to the maintenance training that we have.

Frederick Bell: And I think it's worth mentioning our newest producing royalty, Kerali Sud, that also made a strong contribution this quarter. And that was about $6.6 million US dollars. And it puts us in a position today where we have over $70 million available to the company in non dilated capital to deploy. And that is from a combination of cash and undrawn credit facilities. And that is by a long distance, the largest in the history of the company. And it's worth mentioning that we do have flexibility. We have a normal course issue a bit that we put in place earlier in the year and is available for us to use going forward.

Speaker Change: And.

Speaker Change: I think it's worth mentioning.

Speaker Change: <unk> is producing royalty karate says it also made a strong contribution this quarter.

Speaker Change: It was about $6 6 million U S dollars.

Speaker Change: Puts us in a position today, where we have over $70 million available to the company a knowledge of capital to deploy and that's from a combination of cash and Undrawn credit facilities and that is part of our.

Speaker Change: Long distance the largest in the history of the company.

Speaker Change: It's worth mentioning that we do with our flexibility we have a normal course issuer bid that we put in place.

Speaker Change: And the yen and dollar.

Speaker Change: Is available for us to use paperless.

Frederick Bell: a bit more detail and color than on on some of the on some of the numbers coming out from Q1. So it was a record both in terms of revenue EBITDA and operating cash flow. We had Q1 royalty revenue of 11.6 million US dollars and the adjusted revenue as mentioned was 13.3 million and for those not so familiar the adjusted revenue includes our Casarones royalty and that is up about 179 percent on the equivalent quarter in 2024. we had Q1 adjusted EBITDA of circa US $11.5 million, which is up 259% on the same period in 2024.

Speaker Change: A bit more detail and color.

Speaker Change: On some of the AUM from the numbers coming out from Q1 that was a record base in terms of revenue EBITDA and operating cash flow. We had Q1 royalty revenue of 11 6 million U S dollars and the adjusted revenue as mentioned was touching 3 million and for those not familiar with the adjusted revenue increase on customer and as Rohit.

Speaker Change: And that is off about 179% on the equivalent quarter in 2024.

Speaker Change: We had Q1 adjusted EBITDA of soccer U S $11 $5 million, which is up 259% on the same period in 2020 goal.

Frederick Bell: And then the Q1 adjusted cash flows from operations with 3.3 million US dollars, up 182% on the same period in 2024. I would just note that the difference between the revenue and the cash flow there reflects the fact that typically we get a lot of these royalty payments post-quarter end and they convert into cash flow from operation in the following quarter. In terms of gold equivalent ounces then, that was another record at 4,606 gold equivalent ounces for the quarter, up over 100% from the respective period in 2024. The company remains on track to meet its guidance for this year, and just to reiterate, our guidance was 11,600 to 13,200 gold equivalent ounces, about a 38% increase on 2024 at the midpoint.

Speaker Change: Q1, adjusted calculation operations of $3 3 million new households, 100 agencies defense.

Speaker Change: On the same period in 2024, I would just note that the difference between the revenue and the cash flow that reflects the fact that typically weak ethanol these royalty payments fiscal trend.

Speaker Change: They convert into all aspects of operations in the following quarter.

Speaker Change: In terms of gold equivalent ounces that Matt was another record at 4606 gold equivalent ounces for the quarter up over 100% from the respective period in 2024. The company remains on track to meet its guidance for this year and just to reiterate our guidance was $11 six Congress to vaccine.

Speaker Change: 200.

Speaker Change: Gold equivalent ounces about a 38% increase on 2024 at the midpoint.

Frederick Bell: And for that guidance, we're using a $2,600 gold price and a $4 copper price. We expected our 2025 adjusted revenue to be between 30 million and 34 million US dollars approximately. And at the midpoint, that's about a 50% year-on-year increase in adjusted revenue. Clearly, we've seen the impact of higher commodity prices coming in over Q1, but more particularly coming into Q2, and the longer that stays above our guidance level of $2,600 gold and $4 copper, we expect to see a very positive impact on the revenue numbers coming in. And then in terms of Karali Sud, that generated, as we said, 6.6 million in the first quarter, and that was about 2,309 gold equivalent ounces.

Speaker Change: And for that guidance, we using a 2600 dollar gold price and a full dollar copper price.

Speaker Change: We expected our 2025 adjusted revenue to be between 30 million and 34 million U S. Dollar is approximately at the midpoint, that's about a 50% year on year increase in adults, Germany, clearly, we're seeing net impact of higher commodity prices coming in a bit.

Speaker Change: Q1, but more particularly coming into see tape and the longer that stays above our guidance up a tick off a 600 on the golf and full dose cohort, we expect to see a very positive impact on the revenue numbers coming in.

And then in terms of karate fit that generated as we said $6 6 million in the first culture and that was about 2000 and 309 gold equivalent ounces.

Frederick Bell: We'd note that that production covered the period coming from Q4 last year into Q1 and the first sales, but it's a really important milestone for us. And as a reminder for people, this is an asset that we sold to Allied Gold. They brought very quickly into production, and this has been the first time that we have got a royalty payment from it, and I think we see a lot of potential for it going into the future, and we can talk to that. We also have some milestone payments related to the royalty, and those are both on commercial production and also subsequent production milestones as it progresses.

Speaker Change: Would note that that production cup into period coming from Q4 last year in Q1, and the first sales, but it's a really important milestone for us and as.

Speaker Change: As a reminder for people. This is an asset that we sold to ally Cold April frankly came to production and this has been the first time that we have got a royalty payment from it and.

Speaker Change: We see a lot of potential for the future and we can we can talk to that we also have some milestone payments related to the royalty.

Speaker Change: And those are based on commercial production.

Speaker Change: I'll say subsequent production of all segments as it progresses.

Frederick Bell: And so look, at the end, post end of the quarter, as of today, the 20th of May, we have over 22 million US dollars in cash, plus undrawn credit.

Speaker Change: That said look at the end.

Speaker Change: Price end of the quarter other than today in trenches of May we have over 22 million U S dollars and cash.

Speaker Change: Plus our Undrawn credit facility.

Frederick Bell: Then I will touch on this slide on Karali Sud to hand over to David Baker, RCFO. So this is our newest royalty and as we said made a really material contribution in Q1. It is a 3% net swell to return royalty on the licenses highlighted in that map there called Karali Sud in the Capital Central. And look, we had an Allied started production from this in Q4-24 and continued through an ongoing production there. And this first royalty payment really reflected production from that Q4 and Q1 period combined. So expecting the contribution from Karali Sud to be heavily weighted to H1-2025 for us.

Speaker Change: Then I'll touch on this slide on chronic handover to David Baker, our CFO.

Speaker Change: This is arduous royalty yet because he's had made a really material contribution in Q1. It is a 3% net smelter return royalty on the licenses highlighted in that map that cold karate sit in the capital of central.

Speaker Change: And look we had a alloy started production from this in Q4 of 24.

Speaker Change: And continued through and ongoing production that.

Speaker Change: This past royalty payment radio reflected production from that Q4, and Q1 period combined say expecting the contribution from karate said to be heavily weighted to a <unk> 2025 for us, but I think what is really encouraging here is the lack of exploration that is that has really come.

Frederick Bell: But I think what is really encouraging here is I think the lack of exploration that has really gone on across Karali Sud and the Council historically and the opportunity for Allied. And we sold this asset approximately I think over 18 months ago to Allied. And in that time they have managed to declare a made in measurement indicated resource, convert it to reserves. They have got a mining convention with the government. They have started their first mining under the new code, which they have to negotiate in parallel. And they've got it up in Q4. They did just under 50,000 ounces just from Karali Sud.

Speaker Change: Across karate system accomplished historically.

Speaker Change: And the opportunity for for Allied and we sold this asset approximately.

Speaker Change: For 18 months ago to outlined and in that time, they have managed to the class a maiden measured and indicated resource convert it to reserve based upon our mining convention with the government. They have started that first mining under the new code, which they have to negotiate in parallel.

Speaker Change: Got it up in Q4, they did just under 50000 ounces jumps from currently sit side I think.

Frederick Bell: So I think in terms of the geological prospectivity... It's excellent in terms of the asset. I think it's a lot of potential for us going into the future and as Allied continue to advance the ground and explore it. I think even though it is partial coverage and we'll have displacement risk on this royalty, I think we see a lot of value for it over the medium to longer term going forward.

Speaker Change: If the geological productivity.

Speaker Change: Its excellent in terms of the debt the asset I think it's a lot of potential for us going into the future.

Speaker Change: Gum is allied continue to advance ground and exploring I think even though it is partial coverage and will have displacement risk on this royalty I think we see a lot of value for it over the medium to longer time drank voids.

David Baker: And with that, I will hand over to Dave to walk through some of the details on the financial... Thanks, Fred. Yeah, portfolio continues to be underpinned by two cornerstone cash flowing assets and royalties, Karlawinda and Casaronas. Both in the quarter delivered strong operational performance and then that continuing upside potential. At Karlawinda, we had gold production of over 30,000 ounces that led to over 1.8 million US dollars of revenue that was driven by its tithe and expected volumes from the Bibra open pit combined with record gold prices. Capricorn has maintained production guidance of 110,000 to 120,000 ounces of gold for the year to June 2025, so in line with our estimates.

Speaker Change: With that I will hand over to Dave to walk through some of the details on the financial side.

Dave: Thanks, Brian.

Dave: Yeah portfolio continues to be underpinned by say cornerstone cash zero asset and royalties calendar and Katherine at.

Dave: But in the quarter delivered strong operational performance and then that continuing upside potential.

Linda: Linda our gold production of over 33000 ounces that led to that one 8 million U S. Dollars. The revenue that was driven by tighter than expected volume from the Bieber I can take a combined with record gold prices Capricorn itself that maintain production guidance of 110 down to 20000 naphtha the Gulf for the year to June 2025.

Linda: So in line with our estimates and as we say can take previously capital and have announced the major expansion of camera at Catalina targeting a 150000 ounces of gold annually as a 30% increase on what the economy doing while still maintaining that titanium mine life, which we think has plenty of room for expansion.

David Baker: As we've spoken to previously, Capricorn have announced a major expansion at Karlawinda targeting 150,000 ounces of gold annually. That's a 30% increase on what they're currently doing while still maintaining that current 10-year mine life, which we think has plenty of room for expansion. Casaronas, also strong performance in the quarter, revenue of 1.6 million US dollars that benefited from higher mill throughput and some of those delayed December shipments that we've spoken to previously that were completed in Q1. Lundin has reiterated 2025 production guidance of 115,000 to 125,000 tons of copper and that's pretty consistent with previous years.

Linda: The writers or sustaining a strong performance in the quarter revenue was $1 6 million U S dollars.

Linda: That benefited from higher mill throughput.

Linda: Some of those delayed that December shipments that we've spoken to you previously that were completed are completed in Q1 lending as reiterated 2025 PRASM guidance at 108 to 10 225000 tons of copper, it's pretty consistent with previous years.

David Baker: These two royalties are core to our cash flow base. We've got clear visibility on growth and mine life expansion, which leaves us well positioned to benefit from both commodity upside and operational scale.

Linda: They see royalties, our Kodiak SMA no clear visibility on growth and mine life expansion.

Linda: <unk> is well positioned to benefit from both commodity upside and operational scale.

Linda: We also see strong contributions from the political fallout.

David Baker: We also see strong contributions from the broader portfolio, as Fred said, including the commencement of revenue from Coralie Hood, continued strong performance at Bonnecoe, and also like to give you an update on Wanyan. Bonacro contributed Q1 royalty sales on nearly 19,000 ounces, slowing slightly year-on-year, but we'd expect stronger performance ahead as Ireland expects to process high-grade material from H2 2025 through 2026 and 2027. So we're expecting that to drive growth in our royalty revenue over the short and the medium term. As we've spoken to, we had first revenue from Keralisud in Q1 2020-25 with 80,000 ounces, more than 80,000 ounces of royalty attributable answers sold.

Linda: I would say, including the commencement of grant revenue from our from Crawley sued a continuous strong performance of <unk> and that will give you an update on one Jan.

Linda: <unk> contributed to Q1.

Linda: As royalty sales on a nearly 19000 ounces flattish slightly year on year, but we would expect stronger performance ahead.

Linda: Ed as Allied expects to price at high grade material from age to 2025 through 2026 and 2027, so we're expecting that to drive that growth in our royalty revenue over the short and the medium term as I said I can tell you. We had first revenue reaffirmed Crowley said in Q1 'twenty 2025.

Linda: With 80000 ounces more than 80000 ounces of royalty attributable ounces sold.

David Baker: And that includes some of the catch-up sales from Q4 2024. We are expecting that revenue from Crowley Food to be heavily weighted towards the first half of this year. But we are expecting towards updates from Allied in terms of future production and performance from Allied.

Linda: That includes some of the catch up South stream from Q4 2024.

Linda: We are taking that revenue from Carly soon to be heavily weighted towards the first half of this year, although we are expecting towards updates from allied intensive feature <unk>.

Linda: Production performance from from ally.

David Baker: At Wanyon, Wanyon is currently undergoing an external audit following the sale of the maligned to the estate of Bikina Faso from William & Ann Endeavor, and they have put a temporary pause on royalty payments. We haven't received the Q1 royalty payment. So as a conservative approach, we haven't accrued revenue in Q1. But once we receive that statement, that royalty revenue earned in Q1 will be recognised once statements have been received. We are in active dialogue with the management team at Wanyon and their external auditors. I've spoken personally to the external auditor. And based on those discussions, we expect payment in 2025.

Linda: At one young Guineans currently undergoing an external audit following the sale of them aligned to the state of Makena phosphate from from William and then endeavor and.

Linda: And they have put a temporary pause on royalty payments.

Linda: We haven't received the Q1 royalty payment so as a conservative approach, we haven't accrued revenue in Q1.

Linda: But once we receive that statement that royalty revenue and in Q1 will be recognized once statements has that has that been received well.

Linda: We iron active dialogue with the management team and one Jan and Eric's downloaded as I expect personally to the external auditor.

Linda: And based on those discussions we expect payment came in 2025.

David Baker: We see Wanyon as a timing issue rather than a frustration issue. And we'll just keep shareholders posted on payments at Wanyon.

Linda: Librizzi whiny on it the timing issue rather than anything infiltration issue and we'll just take back shareholders posted on payments and why now.

David Baker: In terms of Q1, understandably, because of Corrales, it was a record quarter for Elemental Altus. Adjusted revenue up 179% year-on-year to US$13.3 million. We just know there that Casarone is reported separately due to our equity accounting treatment. As a result, we had a 102% increase in gold equivalent ounces over the quarter. Adjusted EBITDA rises nearly 160% to US$11.5 million. Profitability scaling alongside our revenue. We had delivered a negative income of US$3.4 million compared to a loss last year. Cash flow was also robust. Operating cash flow is up 182% to US$3.3 million. Record revenue, record profitability, record cash flow.

Linda: In terms of in kind of Q1.

Linda: Understandably was because of Crowley said it was a record quarter for Ah.

Linda: For elegant cloud FIS adjusted revenue up 179% year on year to $13 three nine U S dollars with just an idea of the Castlereagh news is reported separately due to our equity accounting treatment.

Linda: As a result, we had a 100 capes and increase in Gulf could one ounces over the quarter. Our adjusted EBITDA rises that daily charter to kick sent two at 211 5 million U S dollar.

Linda: <unk> ability scaling alongside our revenue.

Linda: We have delivered an income of $3 4 million U S dollars compared to a loss last year and.

Linda: And cash flow was also robust operating cash flows of 182% to take my 39 years Telus <unk>.

Linda: Revenue in Franco profitability record cash flow at Q1 marks a step change in our growth trajectory, which is in line with our estimate but really underscores the strength of that royalty model demonstrates the cash Janet power out portfolio, except that strong foundation for 2025.

David Baker: Q1 marks a step change in our growth trajectory, which is in line with our estimates, but really underscores the strength of our royalty model. Demonstrates the cash-generated power our portfolio and sets that strong foundation for 2025. We generated $3.2 million in free cash during Q1, as you can see in the waterfall chart there. See that as a really solid result with some timing or other considerations. As Fred spoke to at the start of the call, that $7.5 million working capital movement mostly reflects the timing of issues of Q1 revenue, cash receipts falling into Q2. So we'd expect that to be all caught up in Q2.

We generated sequence 8 million I rehashed. Thank you wanted to you can see in the Atwood, if a child that see that as a really solid result, with some timing related considerations.

Speaker Change: As Frank spoke to at the start of the call that $7 $5 million working capital movement nicely reflects the timing of issues of Q1 revenue cashless ate falling into Q2. So we expect that to be all caught up in Q2, and we've got the same cutbank Crowley said cashing in the bank.

David Baker: And as I say, we've got that Corralesuit cash in the bank. G&A expenses in line with expectations and interest costs are down 86% year-on-year thanks to our ongoing debt reduction. And we are debt-free as of the end of the quarter. NDQ1 with US$4.8 million in cash up from US$4.5 million and that includes fully repaying the remaining US$3 million of debt that we had on the facility at the end of the year. So we are fully debt free, full US$50 million available on that facility. Pre-cash flow grew more than five times quarter-on-quarter, reaching US$3.2 million. That's driven by strong royalty income and lower costs.

Linda: G&A expenses in line with expectations.

Linda: And the interest costs are down 886% year on year, thanks to our ongoing debt reduction and we add that Dod debt free as of the end of the quarter.

Linda: Great.

Linda: And in Q1 with $4 8 million U S in cash up from $4 $5 million and that equates fully repaying the remaining $3 million of debt that we had on the facility at the end of the year. So we are we are fully fully debt free for $50 million available on that facility free cash flow grew more than five times quarter on quarter.

Linda: Breaking out frequency of $9 has driven by strong strong royalty income and adding that level costs.

Linda: Yes.

Linda: Sorry, just a stat.

David Baker: Sorry, I just lost that. So Q1 marks a major uplift in operating financial performance, strong margins and growing profitability across the board. Operating profit reached $4.4 million, reversing a small operating loss a year ago. That's driven by higher revenues, inline G&A and no expense transaction costs for the quarter. We also saw a significant increase in adjusted EBITDA to $11.5 million for Q1. I haven't included this on the slide, but that $11.5 million compares with $15.1 million for the whole of 2024. So nearly caught up to all of 2024 in one quarter for the year. So really set this off for an excellent, excellent 2025.

Linda: So Q1 mass Omega major uplift in operating financial performance strong margins and growing profitability across the board.

Linda: Operating proper reached 4.4 million U S. Reverting a small operating loss a year ago measured by high revenues in line DNA and no expense transaction cost for the quarter. We also saw a significant increase in adjusted EBITDA to $11 5 million U S. Dollar for Q1 have any created this on the slide but that 11 $5 million compared with 15.

Linda: Point $1 million for the whole of Keefe outlook 2024 took nearly caught up to the whole of 2024 and one quota for the year to really set us up for a for an excellent excellent 2025.

David Baker: Q1 2025, the strongest quarter in the history of the company. Adjusted revenue more than doubling to $13.3 million and that's driven by that material contribution from Crowley Seward. Likewise, we've got that new record high in gold equivalent ounces of 4,600 GEOs doubled year over year. This is a significant inflection point for the company. Continued tailwinds going forward from stronger gold prices and cast-iron royalties. We are seeing that margin increases revenue scales. EBITDA margin is 87%, that's a record for the company, driven by increased revenue and cost discipline. I mean, even with that Coralie Sood larger revenue for the quarter, the Clark chart clearly shows an upward trend in both EBITDA and margins over the past year.

Linda: Do you have any seventy-five strongest quarter in the history of the company adjusted revenue more than doubling the second quite say $9 and that's driven by that type of material contribution from crowded third line.

Linda: Likewise, we got that done new a new record high in gold equivalent ounces out of 4600 G I doubled year over year.

Linda: This is a significant inflection point for the company continue tallies are going for Tristan the gold prices in Casablanca royalties.

Linda: We are seeing that margin increase as revenue scales EBITDA margin, 87% at the record for the company driven by increased revenue and cost is to add discipline I mean, even with that Crowley should larger revenue for the quarter the.

Linda: The car chart clearly shows an upward trend in both EBITDA and margins over the past year, and that's a real testament to our portfolio scale operating leverage and cost discipline.

David Baker: And that's a real testament to our portfolio scale, our operating leverage and cost discipline. A customer growth remains strong with further upside ahead as we receive Coralie Sud receipts and higher gold prices are flowing through to Q2 and beyond.

Linda: Our customer growth remains strong with further upside ahead as we receive Crowley suit receipt and high gold prices offline 30, Korea Q2 and beyond.

David Baker: In terms of the corporate structure and the balance sheet, we've got $50 million of available credit from three large Canadian banks, that's National, CIBC and RBC. We have no debt on the balance sheet, that's fully undrawn and available as of today, and $22.6 million US in the bank as of today. That gives us excellent flexibility for non-dilated growth. with a strong institutional shareholder base as we've spoken to before, market cap about $250 million as of today, EV about $225 million US dollars. I think that presents a compelling valuation versus up years and also gives us a great positioning to move quickly on the right royalty opportunities.

Linda: In terms of the corporate structure and the balance sheet, we've got $50 million available credit from three after a large Canadian banks, that's national CIBC and RBC and had no.

Linda: No debt on the balance sheets at fully undrawn and available as of today and $22 $6 million U S. In the bank as of today I'd like to just add contact ability cannot dilated growth.

Linda: With a strong institutional shareholder basis, we expected to default.

Linda: <unk> got about $250 million as of today <unk> about $225 million I think that prevents presents a compelling valuation versus our peers and also gives us a great position. He has made quickly on the right royalty opportunities.

Linda: Yes.

Frederick Bell: And then on that basis, I'll head back to Fred to summarise and then we'll allow room for Q&A.

Speaker Change: And then on that basis, a lot I'll get back to a to Fred Taylor to summarize and then we'll allow ranked third for Q&A.

Frederick Bell: Thank you, David, and also to the team for bringing that together and all the work. And where it puts us is it puts us in a position where 2025 will be a record year, both in terms of gold equivalent ounces, but also with the corresponding exposure to the gold price and that leverage to it day to day. And I think where the gold price is today gives us material room for improvement on the guidance in terms of revenue numbers that we had at the start of the year. We also have the milestone payments of which we're expecting the majority to land in the first half of the year and we have received that first large payment on the means.

Speaker Change: So looking thank you David and also to the teams bring all together in one block and where it puts us as it puts us in a position where 2025 will be a record year. Both in terms of gold equivalent ounces, but also with the corresponding exposure to the gold price and that leverage to a day today.

Speaker Change: And I think where the gold prices today gives us material room for improvement on the guidance in terms of revenue numbers that we haven't started yet.

Speaker Change: We also have the milestone payments of which we're expecting the majority to land in the first half of the App and we have received.

Speaker Change: Fast large payment on the maintenance stream.

Frederick Bell: In terms of the portfolio, we continue to be anchored by two really high quality iron cap royalties in Casarones with Lundin Mining in Chile and Carl Winder with Capricorn Metals in West Australia. We have continuing growth from the portfolio with the addition of the second half of the Altustream portfolio contributing coming into 2025 with the first revenue from the Karali Sud royalty and then looking ahead actually even into 2026 with the expansion underway at the Karlawinda Gold Project. We have a track record of value creating transactions, and if you look at our presentation, we update that as every quarter goes by with revenue numbers that we can incorporate.

Speaker Change: In terms of the portfolio, we continue to be anchored by by two really high quality on caf royalties in Casar Rnas of limping mining in Chile, and cold winter with chemical metals aim at West Australia.

Speaker Change: We have continuing growth from the portfolio with the addition of the second half of the Alpha stream portfolio contributing coming into 2025.

Speaker Change: With the faster revenue from the Corona. He said royalty and then looking ahead actually even into 2026 with the expansion underway at the Carlo into gold projects.

Speaker Change: We have a track record of finding creating transactions and if you look at our presentation. We are Paypal as every quarter goes by where the revenue numbers that we can incorporate and I think what it shows is overtime.

Frederick Bell: And I think what it shows is over time, those returns tend to get better, and it shows the value of the royalty model and the value of the optionality that comes through that. We are in terms of financial positioning and positioning to transact and opportunities. We are in the strongest position the company has ever been in. And to put that into perspective, I think the company deployed approximately 18 million dollars in the first four years of its history. And we have more than that in the bank today. And we can deploy up to 70 million without needing to raise any further capital.

Speaker Change: <unk> returns tend to get better at.

Speaker Change: And it shows the value of the royalty model and the value of the Optionality there.

Speaker Change: $3.

Speaker Change: We are in terms of.

Speaker Change: Financial positioning our positioning to transact and opportunities we are in the strongest position the company has ever been at and to put that into perspective.

Speaker Change: I think the company deployed approximately $18 million in the first four years of its history and we have more than that in the bank today, and we can deploy up to $70 million without needing to raise any part of the capsule.

Frederick Bell: And if you if you look at the the opportunities in front of us, I think that. where we are today, the same team that we have here would be able to manage a portfolio that is materially larger than what we have today at really insignificant additional cost. And so that margin expansion that we see in this quarter and we'll see in the next quarter, that is, I think, part of the benefit of a model like this where you can scale the business really quickly.

Speaker Change: And if you if you look at the the opportunities in front of US I think that.

Speaker Change: Where we are today the same team that we have hit would be able to manage a portfolio that has returned to larger than what we have today are really.

Speaker Change: Insignificant additional cost and so that margin expansion that we see in this quarter, we will see in the next quarter.

Speaker Change: Is I think part of the benefit of our model like best way you can scale the business pretty quickly.

Frederick Bell: And then compelling valuation and entry point. And quite aside from the producing assets that we have and aside from the development and exploration portfolio, which we really don't talk to in this presentation, and the progress that is being made and the partners who are drilling and adding value across our licenses there. I think the other point that is worth mentioning is also the current gap between the long-term consensus gold price and where we are at spot gold. And we don't make predictions on the long-term going forwards on the gold price, but what we can say is that every week, every month, the gold price stays above the consensus and above where our guidance is.

Speaker Change: And then compelling valuation of entry points.

Speaker Change: Right aside from the producing assets that behalf and aside from the development and exploration portfolio, which we really don't talk to in this presentation and the progress that is being made and the partners who were drilling and adding value across our licenses that I think the other point that is worth mentioning is all sites.

Speaker Change: Our gap between the long term catalysis Coke prices are where we are a spot gold.

Speaker Change: We don't make predictions on the wrong type going forwards on the gold price, but what we can say is that every week every month as the gold price stays above the consensus and above where our guidance is we have a portfolio that is immediate deleveraged and benefits from that.

Frederick Bell: We have a portfolio that is immediately leveraged and benefits from that.

Frederick Bell: So look, I think that is really the conclusion there of the presentation and a summary on the company and happy to take any questions if there are. Thanks, Fred.

So look I think that is really the conclusion there of the presentation.

Speaker Change: Around the company.

Speaker Change: Happy to take any questions. If there are awesome.

Speaker Change: Thanks, Fred who got tell we laid off with one question, which is on correctly. So it just a breakdown of.

Frederick Bell: We got to lead off with one question, which is on Kerali. So just a breakdown of ounces for Q4 and Q1 and the expected quarterly run rate. I can kick off with that. So in terms of the production line or the sales, royalty sales, because we get paid on sales, not production, we had about 49,000 ounces that was unsold in Q4 that contributed to Q1. And then let's say approximately 80,000 ounces that were in Q1. So that would be the difference. So we're looking at approximately 30,000 ounces in Q1.

Speaker Change: Ounces for Q4, and Q1 and the expected quarterly run rate I think you called for that so in terms of the production line of the sales erosion T South Korea paid on sales not production.

Speaker Change: We had about 49000 ounces that was.

Speaker Change: Sold in Q4.

Speaker Change: They contributed to Q1 and then represent approximately 80000 ounces that were in Q1, so that would be the difference we're looking at roughly 30000 ounces.

Speaker Change: In Q1, we don't guide on an asset we gain.

Frederick Bell: We don't guide on an asset. We don't guide any, we don't guide revenue by, or GEOs by asset, but we had approximately, based on discussions and publicly available information from Allied, we had about 100,000 ounces for the year from Kerali Sued in terms of our internal expectations. So we're about 80,000 ounces of that at the moment. Again, you still expect that to be weighted to the first half of the year. I would say that does leave a lot of room for exploration upside, commingling potential of a Kerali Sued as well. So I think there's upside to that.

Speaker Change: Guide any are we don't guide revenue by Oh, Gee is by asset, but we had approximately and based on discussions and then publicly available information from Allied we had about 100000 ounces for.

Speaker Change: For the year.

Speaker Change: From from Crowley soil in times of airtime expectations. So are about 80000 ounces of that at the moment I still expect that to be weighted to the first half of the year I would say that does leave a lot of room for exploration upside commingling potential of a corollary suite as well so I think there's upside to that.

Frederick Bell: So say about 49,000 ounces in, in 40,000 ounces in Q4, about 30,000, 31,000 ounces in Q1, and then expecting about another 20,000, 25,000 ounces for the rest of the year. But again, we're still awaiting updates from the operator on the upside there.

Sorry, say about 49000 ounces Inc.

Speaker Change: And 40000 ounces in Q4.

Speaker Change: 30, 31000 ounces in Q1, and then expecting about another 25000 ounces for stds.

Speaker Change: But again, we're still awaiting a update to me operator on the on the upside of that.

Speaker Change: Okay.

David Baker: Hi Brian, it's a question for Brian O'Carther, I hope you're well. We talked about cash flow from Wanyan, we didn't book revenues in Q1, when did we lay our last cash payment and how much is owed? Thanks Brian.

Greg: Hi, Brian it's a progression of Orion copper hit have the well I'll talk about catch up in one Jan Woodinville, Greg and you can see one when do we laid out last cash payment and how much is I'd. Thanks. Thanks, Brian Stech, we received cash payments in Q3 2024.

David Baker: So we received a cash payment in Q3 2024 and that was related to Q2 production. So the current receivable on the books relates to Q3 and Q4. That's just a bit over a million dollars in post-tax revenue. And we have booked that as a receivable. And so we haven't booked anything in Q1. So our view is that that receivable is full and payable. We've heard nothing to the difference from either the company's external auditor or the operators.

Speaker Change: And that was related to Q2 production.

Speaker Change: So the kind of receivables on the books relates to Tiki three in Q4 that could be down just a bit over a million dollars in pretax revenue.

Speaker Change: And we have booked that is as a receivable.

Speaker Change: And he said we haven't bought anything in Q1, sorry, our view is that that receivable is fully payable with had nothing.

To to the different from either the company's external loaded up all the operators and so we're looking to together is paying three started post pace toward it.

David Baker: So we're looking to get those payments restarted post-audit.

Frederick Bell: Fred, I might pass this over to you.

Speaker Change: Prior to my tough process of Itchy another question from from Pacer, Dewey our Gulf of metals exposure a longtime.

Frederick Bell: Another question from Piers there. Do we have a goal for metals exposure long-term? Is that gold? Is that silver? Is that anything else? That's a good question. Thank you, Pierce. And I think that currently we have approximately 85% in terms of our revenue exposure to gold, and 15% to copper. And our portfolio has a heavy weighting to copper with some of the development assets. I think that long term we'd like to keep the majority of the portfolio weighted towards precious metals and include silver in that, and not as many silver opportunities in the market as we have discussed, but it is primarily gold and silver.

Speaker Change: That goes that silver is that is that anything else.

Look it's a good question. Thank you pay us and I think that currently we have approximately 85% in terms of our revenue exposure to gold and 15% copper.

Speaker Change: And our portfolio is a heavy weighting to Copa with some of the development assets.

Speaker Change: I think that long term, we'd like to keep the majority of the portfolio weighted towards precious metals.

Speaker Change: Overlaps and not as many similar opportunities in the market is as we have discussed but it is primarily gold and silver, but I think what it what it does do and where we are today is it also allows us the flexibility to Opportunistically look at.

Frederick Bell: But I think what it does do, and where we are today, is it also allows us the flexibility to opportunistically look at assets and royalties that are in different commodities where we see compelling value. And so broadly speaking, that is that is how we'll approach it, which is a focus on precious metals, but also a willingness to look at other opportunities where we where we see really compelling value. And with the basis that we have a majority of the portfolio weighted already towards precious metals.

Speaker Change: Asset some royalties that are in different commodities, where we see compelling value.

Speaker Change: I'd say broadly speaking that is started how we'll approach it which is a focus on precious metals, but all sites a willingness to look at other opportunities while we when we see really compelling values.

Speaker Change: With the basis that we have a majority of our portfolio weighted already towards precious metals.

David Baker: Right, and then there was one question, Dave, just in the chat from Kevin, which was around the, thank you for the comment, but it was also around the 10.8 million that's accrued royalty income and how much of that is related to Wang Yon. Yeah, so thanks, Adam. It's an excellent question. Yeah, so we've accrued nothing for Wanyan for the quarter, taking a conservative approach, given that we don't we don't have the statements available. Certainly, that was a very considered approach by management. We decided to take a very conservative view there. But what we would look to do is when we have those statements available to us, that we will accrue that revenue in a subsequent in a subsequent quarter.

Speaker Change: Great and then there was one question Dave just in the chat from carbon which was around the thank you for the comment but it was also around the $10 8 million, that's accrued royalty income and how much of that is related to annual.

Dave: Yeah. Thanks, Adam It's I, it's an excellent question, yes, the Weaver, we've accrued we accrete nothing.

Speaker Change: For wind down for the quarter taken taken a conservative approach given that we don't.

Speaker Change: We don't have D. At the statements available we certainly that was at a very considered a price by management, we decided to take a very conservative view that.

Speaker Change: But what we would look to do is when we have those statements.

Speaker Change: Payable to us that we will accrue that revenue in a subsequent in a subsequent quarter.

David Baker: So, yeah, at this stage, we've accrued no revenue, a new revenue in Q1 for Wanyan. And it might just be worth saying that we have accrued approximately 1.1 million US in post-tax royalty revenue from Wang Yon today. Dave, correct me if that's correct, but we have not for Q1. Yeah, exactly right.

Speaker Change: So yeah, we've had to add to this stage, we've accrued in our revenue in EMEA revenue in Q1 for one young.

Speaker Change: And it might just be worth paying the appetite that we have accrued approximately.

Speaker Change: $1 1 million U S. In post tax royalty revenue from one young today, Dave cartoon your thoughts yet correct.

Speaker Change: But we have not for chemo.

Speaker Change: Yes exactly right.

Operator: At the moment, that is all the questions we have. So I'll just ask if anyone else has a question, please add it.

Speaker Change: At the moment that is all the questions we have.

Speaker Change: So I'll just ask if anyone else has a question.

Speaker Change: On it.

Speaker Change: Our heavy guy, yes, we have all of them. We have a question here for Mark. Thank you Mark relating to can you talk to any promising developments in the non producing royalties, perhaps looking ahead over the next 12 months.

Frederick Bell: Yes, we have a question here from Mark. Thank you, Mark, relating to, can you talk to any promising developments in the non-producing royalties, perhaps looking ahead over the next 12 months? Look, I think that's a good question because we don't often get the chance to talk about the other 60 to 70 royalties in our portfolio. I think on these quarterly calls, the focus is largely on the producing assets and the cash flow, but it is a large part, the majority of our portfolio actually, on assets that are in the pre-production stage. And I think there are some exciting events on some of those.

Speaker Change: Look I think that said is a good question because we don't often get the chance to talk about the other 60 to 70 royalties in our portfolio I think on these quarterly calls the focuses is largely on the producing assets on the cash flow that it is.

Speaker Change: A large part the majority of our portfolio actually on all assets that are in the preproduction stage and I think there are some exciting events since all of those and one or two we can perhaps talk to in a bit more detail maybe two development assets that we have acquired in the last 18 months one of those.

Frederick Bell: And one or two, we can perhaps talk to in a bit more detail, maybe two development assets that we have acquired in the last 18 months. One of those is the Cactus Copper Royalty with Arizona and Sonoran. And that is a project where we bought the royalty approximately 18 months ago. We have seen the metal in our royalty area approximately triple over that period. We have seen Hub Bay coming as a strategic investor alongside Rio Tinto and also Tembo. We have seen the company, I think, make a lot of progress across studies, both incorporating Newton, which is a technology Rio Tinto have incubated, but also looking at more traditional processing routes.

Speaker Change: There's the cactus corporate royalty with our learnings in Oregon and that is a project where important royalty approximately 18 months ago, we have seen that the macro com and on our royalty area approximately triple over that period, we have seen hebei coming as a strategic investor alongside Rio Tinto, Andrew Sorry, 10, but we have seen the company.

Speaker Change: I think make a lot of progress.

Speaker Change: And across our studies, both incorporating Newton.

Speaker Change: As a technology related type of incubated, but authenticate more traditional processing routes.

Frederick Bell: And we recently saw, I think in two to three months ago, Oral Gold actually come in and acquire the sister royalty to ours at about a 65% higher price. So I think that is a good demonstration of the value add on one of those assets where I think we're continuing to see a lot of progress being made over the course of this year.

Speaker Change: And we recently saw it in two to three months ago World Gold actually come in and acquire the SR royalty trials at about a 65% higher price sites I think that is a good demonstration of the value item on one of those assets, where I think we continue to see a lot of progress being made in the course of this year and in May.

Frederick Bell: And maybe another one that we acquired last autumn, which was the Royalty on MacTown. And at the end of last year, we saw the announcement of approximately $25 US million in funding from the US government, DoD, and the Canadian government provisionally to fast track that to a final investment decision. And I think they're targeting a feasibility study for 2027. And from our point of view, that is a really good catalyst there. That is a project that unusually has seen six or seven years of permitting done in Canada. So the time frame from taking that project from feasibility through to construction and FID is a lot shorter than it would be comparatively for any project without that.

Speaker Change: Another one that we acquired last autumn, which was the roadshow knockdown and at the end of last year. We saw the announcement of approximately 25 U S media dollars in funding from the U S government there D and the Canadian government provisionally to fast track now to.

Speaker Change: Financially our final investment decision and I think that targeting a feasibility study for 'twenty.

Speaker Change: 2027.

Speaker Change: Dominance from our point of view look that starts.

Speaker Change: That is a pretty good accomplish that that is a project that an unusually has seen six or seven years.

Speaker Change: Permitting done in Canada say, the timeframe from taking a project from feasibility through to construction.

Speaker Change: Are there is a lot shorter than it would be comparatively for any project without Bob.

Frederick Bell: So those two, I think, really good examples were recent acquisitions on the non-producing phase, and both of those have seen significant catalysts. And in one case, in the case of Cactus, actually a market precedent transaction at a significantly higher price than what we historically paid for it.

Speaker Change: There too I think really good examples where.

Speaker Change: Recent acquisitions on an increasing face and both of those have seen significant catalysts and in one case in the case of cactus actually a market precedent transaction at a significantly higher price than what we historically paid for it I think there's another a number of other assets, particularly some of the brown failed former operating golf.

Frederick Bell: I think there's a number of other assets, particularly some of the brownfield former operating gold mines where we have royalties in Canada and in Australia, where I think we're looking to get updates over the summer on progress on those that I think could be quite encouraging.

Speaker Change: Lines, where we have royalties in Canada and in Australia.

Speaker Change: Where I think the where I'm reluctant to get updates over the summer on progress on those so it can be.

Speaker Change: Quite encouraging.

Speaker Change: We'll see how that guy.

Operator: All right, well, we're just coming up for the half hour mark. So I think that is the last question we've received.

Speaker Change: Alright, well, we're just coming up for the half hour Mark So I think not as the last question we have received.

David Baker: So, Dave, I might hand it over to you to round off.

Speaker Change: So Dave I might hand, it over to you to Randall.

Speaker Change: Thank you everyone for joining.

David Baker: We might have lost your audio, Dave.

Randall: And we might have lots of ODI Dave.

Speaker Change: Apologies.

David Baker: Let's try again. Thanks Fred. Thanks everyone for joining again a record quarter for revenue, EBITDA and profitability for the company. Maiden Revenue at Kerala is sued with our newest producing royalty. I'm looking forward to that trade and continuing with record gold prices and growth in some of our material assets. So thank you everyone, and I look forward to speaking soon.

Speaker Change: Try and try again, thanks, Fred Thanks, everyone for joining us again, a record record quarter for revenue EBITDA and profitability for the company.

Speaker Change: Made in revenue at a corolla sued without our newest producing royalty and looking forward to that trade and continuing with a rash.

Speaker Change: Record gold prices and growth in <unk>.

Speaker Change: Some of that material assets.

Speaker Change: So thanks, everyone and I look forward to speaking to you.

David Baker: Goodbye.

Speaker Change: Goodbye.