Q3 2023 Proportionate Royalty Revenue Jumps To $1.9M For Altius Renewable Royalties And ARR Secures A $247M Credit Facility

Altius Minerals ATUSF ALS has strategically positioned itself within the mining sector by developing an environmentally friendly royalty portfolio, showcasing its commitment to sustainable practices. While the mining industry has faced criticism for its detrimental environmental impact, Altius aims to address these concerns by focusing on minerals that are vital to modern infrastructure while minimizing exposure to environmentally harmful commodities.

In addition to its core holdings, Altius owns 58% of Altius Renewable Royalties ATRWF ARR which provides royalty financing to the U.S. renewable energy sector. 

ARR last week announced its Q3 2023 proportionate royalty revenue of $1.9 million, excluding interest income. This revenue represented an increase from $1.6 million recorded in Q3 2022 and $1.0 million last quarter, indicating ARR's growth trajectory.

The Q3 2023 royalty revenue reflects ARR's 50% ownership interest in Great Bay Renewables (GBR), which the company reports is rapidly building a customer base with U.S. renewable energy counterparties. The revenue generated by ARR through its ownership stake in GBR highlights the performance of the partnership. ARR also just recently announced that GBR has secured senior secured credit financing agreements totaling $247 million. The financing consists of an initial term facility (ITF) worth $123.5 million, a delayed draw term facility (Delayed Draw Facility) worth $100 million, and a letter of credit facility (L/C) worth $23 million. Both term facilities meet the requirements for green loan eligibility. Great Bay is managed jointly by ARR and funds managed by Apollo Global Management, Inc.

Commenting on the quarter and the credit facility, Frank Getman, CEO of GBR, shared, “With the recent closing of our new debt facility, we have demonstrated the underlying strength of our current asset portfolio in the eyes of sophisticated global lenders and have positioned ourselves to continue to seize upon our strong pipeline of growth opportunities. In a few short years, we have scaled up a portfolio of renewable royalties on over 2.3 GW of operating projects and a pipeline of development stage royalties of over 15 GW, providing an embedded stream of future cash-flowing royalties that ensures strong revenue growth for GBR through the remainder of the decade."

This financial milestone seems to reinforce ARR's position as a key player in the industry, demonstrating an ability to continue to deploy capital in new, accretive investments without having to return to the equity market. With a track record of revenue growth, ARR seems to prove its commitment to driving innovation and contributing to the sustainable development of the renewable energy sector. As the global shift towards clean and sustainable energy continues, ARR's strategic positioning within the industry could help it capitalize on this growing market opportunity.

Featured photo by Dim Hou on Unsplash.

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