Altius Minerals (ALS) Q4 2024 earnings summary

Executive summary

• 2024 attributable royalty revenue was $64M, down from $69.4M in 2023, mainly due to lower potash and coal prices, partially offset by higher copper and renewables growth.

• Net earnings for 2024 were $101.8M, up from $10.1M in 2023, driven by an $87.1M gain on deconsolidation of ARR after its take-private transaction.

• Adjusted EPS rose to $0.27, up from $0.24 in 2023, with Q4 adjusted net earnings of $2.7M.

• Project generation portfolio value increased to $60M at year-end, up from $45M, with $15M in net monetizations.

• Strong balance sheet at year-end: $15.9M cash, $87M in public equities (excluding $108M LIORC), and $8M in debt repaid.

Financial highlights

• Adjusted EBITDA for 2024 was $44.1M, down from $53.7M in 2023; Q4 adjusted EBITDA was $9.3M.

• Adjusted operating cash flow for 2024 was $24.8M, down from $34.8M in 2023.

• $14.8M in dividends paid and $16.2M spent on share repurchases (761,500 shares canceled).

• Renewable royalty revenue grew 68% year-over-year to $7M, reported on an attributable basis.

• Full year revenue was $58.2M, down from $69M in 2023; Q4 revenue was $11.7M.

Outlook and guidance

• Potash prices, though lower in 2024, are showing signs of firming; operators expect increased sales and strong demand into 2025.

• Several pre-production royalty projects, including Silicon, Kami, Curipamba, and lithium, show strong growth potential.

• Pre-feasibility study for the Expanded Silicon Project expected in H2 2025.

• Too early to provide guidance on when ARR will begin contributing cash flow, with further strategic discussions planned.

• Geothermal energy is considered a permissible addition to the renewables portfolio, though not an alternative to wind and solar.