Gold Royalty Projects Revenue To Double; Universal Stainless Sees Record Sales; Atlas Lithium Gets $30M And More: Thursday's Top Mining Stories

Top Stories for March 28, 2024:

1. Gold Royalty GROY reported revenue of $5.2 million and a loss of $3.9 million (3 cents per share) from 2,703 gold equivalent ounces (GEO), which was below guidance due to production delays at Canadian Malartic. 

The net loss per share for Q4 was 13 cents with adjusted earnings of one cent per share, an improvement from the previous year.

The company expanded from 18 to 240 royalties, including five in production, with acquisitions like Borborema and Cozamin enhancing growth from key projects like Côté and Odyssey. 

For 2024, it expects 5,000 to 5,600 GEOs. Assuming gold at $2,000/oz, that translates to $10 million to $11.2 million in revenue, doubling GEOs compared to 2023 with stable operating expenses and positive cash flow.

The company also projects about 100% revenue growth in 2024 due to major royalties entering production. 

2. Universal Stainless & Alloy Products USAP reported record Q4 2023 sales of $79.8 million, a 12% increase from Q3 2023, and record annual sales of $285.9 million in 2023, up 42% from 2022. 

Premium Alloy sales saw significant growth, with Q4 sales up 28% to $21.1 million and annual sales up 74% to $68.1 million. Aerospace sales increased 15% in Q4 and 57% annually.

Despite raw material costs, the company achieved its highest gross margin since Q2 2018 at 16.4%. 

Net income for Q4 was $2.6 million, marking a 35% increase from Q3 2023 while annual net income turned from a loss in 2022 to $4.9 million in 2023. 

Cash flow from operations was $7.4 million for Q4 and $25.2 million for the year. 

President and CEO Chritopher Zimmer said, "The main drivers of our improving profitability in 2023 were a richer product mix and the benefit of price increases implemented over the past three years, which were partially offset by negative surcharge misalignment due to falling commodity prices. The misalignment is expected to lessen by the end of the second quarter of 2024."

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3. Atlas Lithium ATLX secured a $30 million investment and offtake agreement from Mitsui & Co. MITSF. 

This deal involves Mitsui buying Atlas Lithium shares at a 10% premium and agreeing to purchase up to 75,000 tons of lithium concentrate from Atlas’s Neves Project in Brazil. 

The funds will expedite Atlas Lithium's development toward operating a lithium mine and spodumene concentrating facility by late 2024. 

This strategic partnership follows a Memorandum of Understanding and extensive mutual due diligence, reinforcing Mitsui’s longstanding and profitable mining presence in Brazil since 1960.

4. Solitario Resources XPL announced the discovery of a high-grade gold zone, named Sleeping Beauty, at its Golden Crest project, reporting assay results as high as 39.6 grams per ton of gold.

Situated on a limestone plateau adjacent to the Geyer gold zone, Sleeping Beauty has yielded 28 samples exceeding 1 gram per ton of gold and 65 samples above 0.2 grams per ton across a 1,600-meter trend.

The area with the highest grades remains open in all directions, with an average of 7.12 grams per ton of gold from 14 samples.

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