Mr. Frederick Bell reports

ELEMENTAL ALTUS ROYALTIES 2023 FULL YEAR RESULTS: RECORD ANNUAL REVENUE, GOLD EQUIVALENT OUNCES, EBITDA, AND MAIDEN QUARTERLY PROFIT

Elemental Altus Royalties Corp. has released its operating and financial results for the fourth quarter and full-year ended Dec. 31, 2023.

For complete details, please refer to the financial statements, and associated management's discussion and analysis (MD&A) for the year ended Dec. 31, 2023, available on SEDAR+ and the company's website. All amounts are in United States dollars unless otherwise indicated.

Full-year 2023 highlights:

• Record revenue of $11.7-million and record adjusted revenue of $17.9-million, up 69 per cent on 2022;
• Record gold equivalent ounces (GEOs) of 9,122 ounces, up 56 per cent on 2022;
• Record operating cash flow plus Caserones dividends of $6.1-million, up 894 per cent on 2022, and record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $9.8-million, up 47 per cent on 2022;
• $20-million of accretive royalty acquisitions.

Fourth quarter 2023 highlights:

• Record Q4 revenue of $4-million and record adjusted revenue of $5.6-million, up 101 per cent on Q4 2022;
• Record Q4 attributable GEOs of 2,843 ounces, up 75 per cent on Q4 2022;
• Record operating cash flow plus Caserones dividends of $2.2-million, compared with a loss in Q4 2022, and record Q4 adjusted EBITDA of $2.8-million, up 175 per cent on Q4 2022;
• Maiden quarterly net profit of $2.2-million, compared with a $11.5-million loss in Q4 2022.

Two thousand twenty-four outlook:

• Record guidance of 10,000 GEOs to 11,700 GEOs, representing at its midpoint a 19-per-cent increase on 2023, and top-line exposure to gold and copper prices;
• Significantly lower general and administrative (G&A) expenditure following asset sales, which are also expected to generate milestone payments placing the company in a position to generate material cash flow;
• Repaid $5-million debt in Q1 2024, leaving a strong balance sheet for royalty acquisitions with $25-million undrawn on the credit facility and approximately $10-million of cash as of April 16, 2024.

Frederick Bell, chief executive officer of Elemental Altus, commented:

"With the gold price hitting all-time highs and copper appreciating strongly, our cash-flowing royalty portfolio continues to provide investors with top-line exposure to commodity prices today. Our portfolio is leveraged approximately 70 per cent to gold and 30 per cent to copper, where our 2024 guidance used prices of $2,000 an ounce of gold and $3.90 per pound of copper.

"While the team continues to focus on NAV [net asset value] accretive deals with multiple opportunities being progressed, we are also able to improve the strength of the balance sheet and enhance the company's ability to execute on high-priority transactions. As part of this strategy, we have realized $3.5-million in cash through sales of non-core equity holdings and subsequently paid down $5-million of debt, reducing interest payments while still maintaining a strong cash balance.

"With the recently announced 2024 guidance expected to result in a seventh consecutive year of revenue growth, Elemental Altus continues to deliver on key strategic milestones and we look forward to updating the market on continued progress in the near future."

FY 2024 and Q4 2024 results

The associated table sets forth selected financial information for the full year and three months ended Dec. 31, 2023.

Share sales

In the first quarter of 2024, Elemental Altus received $3.5-million from the sale of non-core equity holdings. The company retains equity exposure through a number of public and private companies. Share sale proceeds were partially used to repay $5-million of the company's credit facility, leaving $25-million drawn and $25-million undrawn as at March 31, 2024.

Royalty investments

Elemental Altus invested approximately $20-million in new royalty investments in 2023, using approximately $8.5-million in cash and the remainder in company equity. Material accretive investments for the year include the $10-million acquisition of an existing 0.68-per-cent net smelter return royalty on the Cactus copper project in Arizona, operated by Arizona Sonoran Copper Company, a portfolio of development gold royalties, and two further royalties on the Caserones copper-molybdenum in Chile, operated by Lundin Mining, taking the company's royalty to 0.473 per cent.

About Elemental Altus Royalties Corp.

Elemental Altus is an income-generating precious metals royalty company with 10 producing royalties, and a diversified portfolio of preproduction and discovery-stage assets. The company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counter parties. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

Qualified person

Richard Evans, FAusIMM, is senior vice-president, technical, for Elemental Altus, and a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release.

We seek Safe Harbor.