Mr. Brian Dalton reports

ALTIUS REPORTS 2023 ATTRIBUTABLE ROYALTY REVENUE OF $73.9M AND ADJUSTED EARNINGS OF $11.2M

Altius Minerals Corp. had full year revenue of $69.0-million compared with $102.0-million in 2022 and $13.8-million for the fourth quarter compared with $21.7-million in the same period in 2022.

Full year attributable royalty revenue of $73.9-million ($1.56 per share) compares with $103.5-million ($2.27 per share) reported in 2022. Fourth quarter attributable royalty revenue of $16.0-million (34 cents per share) compares with $23.1-million (49 cents per share) in Q4 2022.

Brian Dalton, chief executive officer, commented, "The decline in revenue for the year primarily reflects lower realized potash prices relative to the record levels recorded last year, the scheduled closure of the 777 mine in 2022 and fading thermal coal royalties as the Genesee power plant continued its conversion to natural gas based fueling.

"Our potash operators have both reported a return to higher volumes in 2024 that, if realized, will approximate requirements predicted by historic demand growth trends and is reflective of price moderation-based affordability for farmers as well as soil nutrient depletion factors. While prices now appear to have stabilized, we continue to believe that prices remain below what is required to incentivize growth investment and to offset projected medium- and longer-term market supply deficits as demand growth continues to compound.

"The most significant highlights for our royalty portfolio came after year-end, with release of the Kami project study and the announcement of increased resources and expected production levels at Silicon Merlin. These two development-stage royalties each hold the potential to meaningfully drive our growth profile for decades to come."

Quarterly and annual highlights

• AngloGold Ashanti (AGA) provided an update for the expanded Silicon project, which includes both the Silicon and Merlin gold deposits, that was highlighted by the announcement of an initial inferred mineral resource of 9.05 million ounces at the Merlin deposit (283.9 Mt at 0.99 gram per tonne). This is in addition to the more than four-million-ounce total mineral resource estimate (121.56 Mt at 0.87 g/t indicated mineral resource for 3.4 Moz and 36.03 Mt at 0.70 g/t inferred mineral resource for 0.81 Moz) previously published for the Silicon deposit. AGA has also stated the district-scale project has "the potential for production to average more than 500,000 oz per year over a multiyear period," which compares with the more than 300,000 oz per annum level it had previously indicated. A prefeasibility study (PFS) for the expanded Silicon project is currently in progress. The basis of the PFS targets upper oxide ore only while AGA recently stated there is "significant upside potential from deeper ore horizons and nearby exploration targets" and that infill and extension drilling programs continue.
• At the end of January, 2024, Champion Iron Ltd. announced the results of an updated project study for the Kami project. The Kami project Study evaluated the potential for Kami's high-purity iron ore concentrates (DR quality, greater than 67.5 per cent Fe) to supply the growing electric arc furnace steel-making segment and included various pricing and investment return scenarios. Its illustration of the economic potential of the project included various pricing scenarios including the trailing-three-year average price for 65 per cent Fe content ore plus an estimated premium for Kami's indicated higher quality above this benchmark. Altius originated the Kami project within its project generation business and retains a 3-per-cent gross sales royalty interest.
• The Sauva deposit maiden resource estimate announced by Lundin Mining Corp. was another key highlight during the year as it adds life extension and/or production rate increase potential to Altius's copper stream and confirms the district-scale potential of the Chapada project. Lundin has published an open-pit indicated mineral resource of 244.6 Mt at 0.29 per cent copper and 0.17 g/t gold (721,000 t or 1.59 Blb (billion pounds) of copper) and an underground inferred mineral resource of 53.3 Mt at 0.41 per cent copper and 0.26 g/t gold (221,000 t or 0.49 Blb of copper) for Sauva. This compares with measured and indicated mineral resources at Chapada of 920.7 Mt at 0.24 per cent copper and 0.12 g/t gold (2,169,000 t or 4.77 Blb copper). Lundin highlighted continuing exploration work in 2024 at Sauva as it continues to advance expansion studies for the district, which have now been expanded in scope to include this new discovery.
• ARR continued to ramp up its royalty revenue growth trajectory and to add new operating and development-stage royalties to its portfolio. It also completed a significant new debt financing package that has positioned it to better capture the opportunity presented by the more difficult status of competing equity and debt markets. On Feb. 28, 2024, the GBR joint venture entered into a new $30-million (U.S.) royalty investment with Apex Clean Energy related to Apex's 195 MWac (megawatt capacity) Angelo solar project in Texas which is anticipated to achieve commercial operations in May and will begin generating revenue later this year.
• Altius recorded its first lithium royalty revenue on the Grota do Cirilo asset this year, with two others (Tres Quebradas and Mariana) expected to start production in 2024. Lithium Royalty Corp., of which Altius is a minority shareholder, also completed an IPO (initial public offering) during the year and added significant liquidity that it has been successfully turning into new royalties as lithium market deployment conditions have become more attractive.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $56.2-million or $1.18 per share during 2023 compares with $89.7-million or $1.97 per share during the prior year. Adjusted EBITDA for the fourth quarter was $11.0-million or 23 cents per share, which compares with adjusted EBITDA of $18.0-million or 38 cents per share in Q4 2022. The adjusted EBITDA margin of 74 per cent versus 82 per cent last year reflects lower revenue against relatively stable fixed costs. The mineral royalties segment had an EBITDA margin of 81 per cent and 87 per cent for the current and prior year, respectively.

Full year 2023 adjusted operating cash flow of $37.3-million or 78 cents per share compares with $75.9-million or $1.65 per share in 2022. Adjusted operating cash flow for the quarter was $7.7-million or 16 cents per share compared with $19.2-million or 40 cents per share in Q4 2022. The decrease is largely reflective of lower royalty revenues, higher interest rates and timing of taxes paid.

Net earnings of $10.1-million or 20 cents per share for 2023 compares with net earnings of $39.5-million or 82 cents per share in 2022. Loss in joint venture includes $2.9-million of losses associated with an equity investment in an early-stage renewable energy development entity that has not yet achieved meaningful revenue. Adjusted net earnings per share of 24 cents in the current year compares with adjusted net earnings per share of 74 cents per share in 2022. Net loss of $2.2-million (five cents per share) was recognized in the fourth quarter and on an adjusted basis net earnings of $2.3-million (six cents per share). This compares with net earnings of $6.8-million (14 cents per share) for the fourth quarter in 2022 and $4.7-million (10 cents per share) on an adjusted basis.

Liquidity and capital allocation summary

Cash and cash equivalents at Dec. 31, 2023, were $130.4-million, compared with $82.4-million at the end of 2022. Cash, excluding $117.6-million held by ARR, was $12.8-million.

At Dec. 31, 2023, the approximate market value of various public equity holdings included:

• $149.4-million for shares of ARR (including the in-the-money value of share purchase warrants);
• $119.3-million for shares of LIORC;
• $40.5-million for the value of the indirectly held interest in the shares of Lithium Royalty Corp.;
• $45.1-million for publicly traded shares held within the project generation equity portfolio.

During the year, the corporation made scheduled debt repayments of $8.0-million and paid total cash dividends of $14.3-million. The corporation also expended $12.5-million during the year in the repurchase and cancellation of 611,800 shares under its normal course issuer bid. At Dec. 31, 2023, the corporation carried a balance of $32.0-million under its fixed rate term debt facility and $80.7-million under its floating rate revolving credit facilities.

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 March 18, 2024. The dividend is expected to be paid on or about April 1, 2024.

This dividend is eligible for payment in common shares under the dividend reinvestment plan (DRIP) available to shareholders who are Canadian residents or residents of countries outside the United States.

In order to be eligible to participate in respect of the April 1, 2024, dividend, non-registered shareholders must provide instruction to their brokerage and registered shareholders must provide completed enrolment forms to the transfer agent by March 11, 2024, five business days prior to record date. Stock market purchases made under the DRIP for the April 1, 2024, 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 previously will continue to be enrolled unless they direct otherwise. For more information, please see Altius Minerals Corp. dividend reinvestment plan. 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 on its common shares are eligible dividends for Canadian income tax purposes unless otherwise stated.

Fourth quarter and year-end 2023 financial results conference call and webcast details

Date:   March 12, 2024

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 2023 financial results, ID 46475901

About Altius Minerals Corp.

Altius's 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 macro trends each hold the potential to cause increased demand for many of Altius's commodity exposures including copper, renewable-based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore and potash. In addition, Altius runs a successful project generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius has 46,810,585 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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