Interview with David Baker, CFO of Elemental Altus Royalties Corp.

Our previous interview: https://www.cruxinvestor.com/posts/elemental-altus-royalties-tsxvele-15m-revenue-boost-from-new-mine-development-3915

Recording date: 5th February 2024

Precious Metal Royalties Provide Leveraged Commodities Exposure

Royalty and streaming companies have garnered increasing investor attention recently as an alternative avenue to gain exposure to the upside in commodity prices. By financing miners in exchange for royalty payments on production, these royalty vehicles avoid the substantial operating risks involved directly in mining. Instead, they benefit from the upside if projects prove successful.

Elemental Altus Royalties illustrates the potential of the royalty model. The company holds a portfolio of 90 royalties globally, delivering steady cash flow from core assets like the Cerro Dominador copper mine operated efficiently by Lundin Mining. Disciplined capital allocation allows Elemental Altus to fund additional royalty deals on quality development-stage assets that offer accretion potential over time. The company maintains a focus on gold but also holds royalties on copper mines.

Diversification reduces risk while concentrated positions in Tier 1 mines provide stability. Further consolidation makes strategic sense to management, who believe the subsector remains overly fragmented currently. Additional deals may offer opportunities to bolster upside. Organic growth also drives potential catalysts. Key royalty-linked assets operated by established miners like Allied Gold have near-term production expansion plans that could increase royalty revenues.

In summary, Elemental Altus Royalties offers investors interested in commodities a disciplined vehicle providing royalty exposure across precious and industrial metals. The diversified portfolio combines assets with near-term cash flow and developmental upside potential. Hence, the company may appeal to investors seeking leveraged yet risk-managed mining exposure.

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View Elemental Altus Royalties' company profile: https://www.cruxinvestor.com/companies/elemental-altus-royalties

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