Altius Minerals (ALS) Q2 2024 earnings summary

Executive summary

• Q2 2024 royalty revenue reached CAD 21.8 million (USD 21.8M), up from CAD 18.7 million (USD 18.7M) in Q2 2023, driven by higher base metal prices, increased iron ore dividends, and renewable royalty growth, partially offset by lower potash prices and Genesee Coal Mine closure.

• Net earnings for Q2 2024 were CAD 8.3 million (USD 8.3M) or CAD 0.18/share (USD 0.18/share), up from CAD 3.3 million (USD 3.3M) or CAD 0.06/share (USD 0.06/share) in Q2 2023, aided by tax recoveries, investment income, and settlement of a loan receivable.

• Adjusted net earnings per share were CAD 0.09 (USD 0.09), higher than Q2 2023, after adjustments for non-recurring items.

• Portfolio market value at June 30, 2024, was $56M, with net investment proceeds of $4.2M in Q2 and $11.5M year-to-date.

• $3.8M in cash dividends paid, reflecting a 12.5% dividend per share increase announced during Q2.

Financial highlights

• Adjusted EBITDA margin for mineral royalties was 77% in Q2 2024, down from 81% in Q2 2023, impacted by higher professional fees.

• Adjusted operating cash flow was CAD 9.2 million (USD 9.2M), down from CAD 14.1 million (USD 14.1M) in Q2 2023, reflecting timing of royalty receipts and working capital changes.

• Cash at June 30, 2024, was $19.2M (excluding ARR), with public equities valued at $87M; LIORC and ARR holdings valued at $109M and $176M, respectively.

• Attributable royalty revenue per share was $0.47 in Q2 2024, up from $0.39 in Q2 2023.

• IOC revenue was $4.1M in Q2 2024, compared to $2.4M in Q2 2023.

Outlook and guidance

• Nutrien anticipates 8-9% potash volume growth by 2026, with long-term global potash demand expected to grow 2.5-3% annually.

• Renewables segment growth is expected to offset prior coal revenue, with ARR's revenue trajectory set to accelerate as new solar and wind projects commence operations in 2024.

• ARR maintains 2024 GBR revenue guidance of US$13–16M.

• Royalty revenue from Angelo Solar to commence in Q4 2024.

• Chapada production expected to improve in the second half of the year following usual trends.