Altius Minerals (OTCQX: ATUSF) Q4 And Full Year 2023 Earnings Highlights – Two Development Royalties Catch Attention

Altius Minerals Corporation ATUSF ALS ("Altius") has released its financial report for the full year of 2023. The company had cash and cash equivalents of  $130.4 million at the end of 2023, compared to $82.4 million at the end of 2022. In both years, cash includes cash held by ARR, which was $117.6 million at the end of 2023. Revenue was $69.0 million compared to $102.0 million in 2022. For the fourth quarter of 2023, Altius recorded $13.8 million in revenue, compared to $21.7 million in the same period in 2022. 

Brian Dalton, CEO of Altius commented, "The decline in revenue for the year primarily reflects lower realized potash prices relative to the record levels recorded last year, the scheduled closure of the 777 mine in 2022 and fading thermal coal royalties as the Genesee power plant continued its conversion to natural gas based fueling. Our potash operators have both reported a return to higher volumes in 2024 that, if realized, will approximate requirements predicted by historic demand growth trends and is reflective of price moderation-based affordability for farmers as well as soil nutrient depletion factors. While prices now appear to have stabilized, we continue to believe that prices remain below what is required to incentivize growth investment and to offset projected medium and longer-term market supply deficits as demand growth continues to compound."

In January 2024, Champion Iron Limited CIAFF shared the findings of an updated project study for the Kami project. Altius Minerals has a 3% gross sales revenue royalty in the Kami Project, or a 2.6% gross sales revenue royalty after deducting the amount that goes to the province. Altius reports that the Kami Project stands out as a promising DR-grade iron ore project situated strategically in the Labrador Trough geological belt. Positioned just a short distance from the company’s operating Bloom Lake mine, the project benefits from existing infrastructure and a high-purity iron resource that has been significantly de-risked by its previous owners. 

Dalton also shared, "The most significant highlights for our royalty portfolio came after year end, with release of the Kami project study and the announcement of increased resources and expected production levels at Silicon Merlin. These two development stage royalties each hold the potential to meaningfully drive our growth profile for decades to come."

Silicon-Merlin is part of the AngloGold Ashanti (AGA) gold discovery in Nevada which Altius Minerals reports is shaping up to be one of the largest gold discoveries. A gold resource of over 13 million ounces has been published by AGA on Silicon and Merlin alone in early 2024, in addition to the other deposits that AGA intends to develop in the Beatty, Nevada district. Depending on the potential starting production rate, this could become one of Altius's large revenue contributors, as Altius holds a 1.5% NSR royalty. 

Altius Minerals Corporation also received its first royalty revenue from the Grota do Cirilo lithium asset in 2023. Two other lithium assets, Tres Quebradas and Mariana, are expected to start production in 2024. Altius is a minority shareholder in Lithium Royalty Corporation, which successfully completed an initial public offering (IPO) during the year. This IPO provided significant liquidity to the company, allowing it to invest in new royalties as the market conditions for lithium deployment became more favorable.

The company has strategically invested in royalties that will be instrumental in the 21st century like green steel, potash, copper and lithium, to name a few. Altius seems well-positioned to expand its portfolio and prospects as it enters 2024. 

Featured photo by Shane McLendon on Unsplash.

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