Mr. Brian Dalton reports

ALTIUS REPORTS Q2 2023 ATTRIBUTABLE ROYALTY REVENUE OF $18.7M AND ADJUSTED EARNINGS (1,2) OF $2.7M

Altius Minerals Corp. had second quarter revenue of $17.3-million compared with $27.4-million for the same period in 2022, while attributable royalty revenue of $18.7-million (39 cents per share) compares with $28.6-million (61 cents per share) reported in 2022.

Brian Dalton, chief executive officer, commented: "Second quarter revenues primarily reflect lower realized prices on a year-over-year basis but also the scheduled closure of the 777 mine during the year. We continue to believe that most prices remain below those required to incentivize growth investment and to offset projected market deficits over coming periods. The highlight from within our royalty portfolio related to the release by AngloGold Ashanti of an exploration target estimate of six million to eight million ounces of gold from the Merlin deposit that is located adjacent to the south of the Silicon deposit, for which a resource estimate of more than four million ounces was published earlier this year."

Quarterly highlights:

• AngloGold Ashanti (AGA), on Aug. 4, provided an update on the rebranded expanded silicon project, which now includes both the Silicon and Merlin gold deposits. AGA has stated an exploration target for Merlin of six million to eight million ounces, with a grade-tonnage range estimate of 230 million to 250 million tonnes of 0.8 to 1.0 gram per tonne gold. An initial inferred mineral resource estimate and concept study for the known mineralization is expected in second half 2023. Merlin is located adjacent to the south of the Silicon deposit for which a more-than-four-million-ounce inferred resource estimate was published by AGA earlier this year. It also announced that it expects to complete a prefeasibility study by year-end that considers both Silicon and Merlin and expects that it will include synergies from the increased economy of scale and integrated infrastructure, with potential for large-scale mining. Altius Minerals holds a 1.5-per-cent net smelter return royalty related to the project.
• Lithium Royalty Corp. (LRC) distributed $8.9-million to the corporation as a return of capital to its preinitial public offering shareholders.
• Q2 annual recurring royalty revenue of $1.3-million was up 72 per cent from the same quarter last year, as a result of continued renewable royalty portfolio growth.
• Nutrien has lowered potash production guidance for this year, following the temporary curtailment of production at Cory and Rocanville due to the strike at the Port of Vancouver. Nutrien also announced that it will pause its potash portfolio production expansion program in light of market conditions and capital allocation prioritization decisions.
• Mosaic announced an increase in total nameplate capacity to 7.8 million tons at the Esterhazy potash mine, which compares with six million tons in 2022. Further debottlenecking at Esterhazy is expected to add an additional 400,000 tonnes of capacity.
• Lundin Mining continued an aggressive delineation and expansion drilling program at the Sauva copper discovery within the Chapada district and commented that it expects the work to result in increasing resource estimates in coming periods.
• Champion Iron continued to work toward completion of an updated feasibility study for the Kami iron ore project located in western Labrador, which is targeting production of direct-reduction-grade pellet feed. Altius Minerals holds a 3-per-cent gross sales royalty on the Kami project.

Adjusted earnings before interest, taxes, depreciation and amortization of $13.7-million or 29 cents per share during Q2 2023 compares with $24.4-million or 52 cents per share during the prior-year quarter. The adjusted EBITDA margin in the second quarter was 73 per cent versus 85 per cent in last year's comparable quarter owing to the lower revenue. The mineral royalties segment had an EBITDA margin of 81 per cent and 90 per cent for the current- and prior-year quarters, respectively.

Q2 2023 adjusted operating cash flow of $14.1-million or 30 cents per share compares with $16.6-million or 35 cents per share in last year's comparable quarter. The decrease is largely reflective of higher taxes and interest paid, as well as lower royalty revenues.

Net earnings of $3.3-million or six cents per share for Q2 2023 compare with net earnings of $8.7-million or 18 cents per share in Q2 2022. Adjusted net earnings per share of six cents in the current quarter compare with adjusted net earnings per share of 23 cents per share in Q2 2022. The main adjusting items in the second quarter of this year are unrealized losses on derivatives related to the revaluation of share purchase warrants on junior mining equities, realized gains on the disposal of such share purchase warrants, foreign exchange and gains on disposal of mineral properties.

Base and battery metals contributed $4.8-million to revenue compared with $8.3-million in Q2 2022. Revenue decreased compared with the second quarter of 2022 after the scheduled closure of the 777 mine in Q2 of 2022, partially offset by higher revenue and volumes from Chapada.

At Voisey's Bay, production was impacted by longer-than-anticipated annual maintenance at the Long Harbour processing facility.

On May 1, 2023, Altius Minerals received $8.9-million from LRC as a return of capital distribution to its preinitial public offering shareholders. Altius Minerals expects to receive a combination of cash and shares over the next 24 months as described in LRC's prospectus. In the first quarter of 2023 LRC, of which Altius Minerals is a co-founding investor, completed an initial public offering to raise $150-million. The corporation indirectly holds a 9.55-per-cent interest in LRC.

In addition, Altius Minerals holds minority partnership-based interests in each of LRC's Grota do Cirilo (commenced production during the quarter), and Tres Quebradas and Mariana royalties (both of which are expected to complete construction and begin operations later this year or early next year). These will collectively add three new operating stage mines to the corporation's portfolio and introduce its first ever royalty revenue related to lithium production.

Potash royalty revenue of $6.1-million in Q2 2023 decreased from $11.5-million reported during the comparable quarter last year, reflecting lower average realized prices and price reconciliation adjustments of $900,000 that were recorded in the second quarter of 2022 relating to 2021 production.

Iron ore royalty revenue, in the form of dividends received from Labrador Iron Ore Royalty Corp. (LIORC), of $2.4-million was received in Q2 2023 compared with $2.9-million in the second quarter of 2022. The decrease related to higher levels of sustaining and growth capital investments that limited Iron Ore Company of Canada (IOC) equity dividends, partially offset by a higher LIORC share ownership level. These capital investment levels are expected to continue to impact near-term dividend distributions from IOC while enhancing reliability and production levels in the medium and longer term.

Champion Iron is expected to announce the results of an updated feasibility study for the Kami project later in 2023, which is located near its Bloom Lake mine and is subject to a 3-per-cent GSR royalty in favour of Altius Minerals. It noted during the quarter that preliminary metallurgical results indicate potential for the production of DR pellet feed quality concentrates, which are projected to meet with increasing demand as the global steelmaking sector transitions toward electric-arc-furnace-based (no coal input requirements) manufacturing processes.

Thermal coal royalty revenue of $2.6-million was received in Q2 2023 compared with $4.5-million during the second quarter of last year, reflecting lower attributable production volumes at the Genesee mine that were offset by a higher inflation-linked royalty rate. The operator of the Genesee power plant continues to invest in a conversion to natural-gas-based fuelling and plans to bring an end to coal usage by early next year.

Altius Renewable Royalties Inc. released its Q2 2023 results on Aug. 1, 2023. The corporation holds 58 per cent of the common shares of ARR. ARR reported increased Q2 2023 attributable royalty revenue of $1.0-million (U.S.) relating to its 50-per-cent joint venture interest in Great Bay Renewables. The increase reflects recently acquired operating-stage royalties, as well as the commencement of operations at two previously acquired development-stage projects. Electricity prices in the first half of 2023 have been lower due to a mild winter and lower competing natural gas prices; however, prices have increased in recent weeks due to warmer summer weather and increased power demand in certain of the markets in which the GBR joint venture has operating-stage royalty interests. ARR also indicated that it continues to advance a strong pipeline of new royalty investment opportunities, which could potentially further augment its growth profile. Further details regarding ARR and its activities can be found in the ARR management's discussion and analysis and financial statements.

Dividend declaration

The corporation's board of directors has declared a quarterly dividend of eight cents per share. The current quarterly dividend is payable to all shareholders of record at the close of business on Aug. 31, 2023. The dividend is expected to be paid on or about Sept. 15, 2023.

This dividend is eligible for payment in common shares under the dividend reinvestment plan (DRIP) announced by press release May 20, 2020, and available to shareholders who are Canadian residents or residents of countries outside of the United States.

To be eligible to participate in respect of the Sept. 15, 2023, dividend, non-registered shareholders must provide instruction to their brokerage, and registered shareholders must provide completed enrolment forms to the transfer agent by Sept. 8, 2023, five business days prior to record date. Stock market purchases made under the DRIP for the Sept. 15, 2023, payment will be satisfied by issuance from treasury at the five-day volume-weighted average price ending at the close of trading the day before payment date. Shareholders who have already provided instruction to be enrolled earlier this year will continue to be enrolled unless they direct otherwise. Participation in the DRIP is optional and will not impact any cash dividends payable to shareholders who do not elect to participate in the DRIP. The declaration, timing and payment of future dividends will largely depend on the corporation's financial results, as well as other factors. Dividends paid by Altius Minerals on its common shares are eligible dividends for Canadian income tax purposes unless otherwise stated.

Second quarter 2023 financial results conference call and webcast details

Date:  Aug. 9, 2023

Time:  9 a.m. ET

Toll-free dial-in number:  1-888-396-8049

International dial-in number:  1-416-764-8646

Conference call title and ID:  Altius Minerals Q2 2023 financial results, ID 46475901

A webcast will be available.

About Altius Minerals Corp.

Altius Minerals' strategy is to create per-share growth through a diversified portfolio of royalty assets that relate to long-life, high-margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends, including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These macrotrends each hold the potential to cause increased demand for many of Altius Minerals' commodity exposures, including copper, renewable-based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore and potash. In addition, Altius Minerals runs a successful project generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius Minerals has 47,497,343 common shares issued and outstanding that are listed on Canada's Toronto Stock Exchange. It is included in each of the S&P/TSX Small Cap, the S&P/TSX Global Mining and the S&P/TSX Canadian Dividend Aristocrats indices.

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