Altius Renewable Royalties Corp.

GBR revenue for Q2 2024 was $3.1 million, up from $2.0 million in Q2 2023, a 55% increase. Operating cash flow was $0.9 million in Q2 2024 versus $1.0 million in Q2 2023, reflecting interest paid on new credit facilities. Management reiterated full-year 2024 revenue guidance of $13 million to $16 million. So far in 2024, GBR has made new investment commitments of approximately $116 million, and Brian Dalton said the joint venture level is approaching US$500 million deployed. On project timing, El Sauz slipped from Q2 to Q3 COD, but another project, Canyon Wind, came on earlier, so management said the company should still be fine for the year.

Brian Dalton’s message was that the company is leaning into a weak renewable-sector equity market and using its capital advantageously while long-term power demand strengthens. He emphasized scale, diversification, and the ability to keep deploying capital even as public-market funding remains difficult. Dalton also said the company is willing to use up liquidity rather than dilute per share, and is actively looking for new long-term capital sources.

Frank Getman focused on the quarter’s growth in royalty revenue and the expanding portfolio of investments. He highlighted Q2 revenue of $3.1 million, operating cash flow of $0.9 million, and reiterated the $13 million to $16 million 2024 revenue guide. He also pointed to approximately $116 million of new investment commitments year-to-date, including a $30 million Nokomis investment, a $6.1 million Red Stone interconnection deposit loan, and a recently announced $40 million Nova follow-on investment. He said the interconnection facilities are being structured around fully refundable deposits and that the company is seeking a larger, lower-cost capital partner to scale that program.

Analysts focused on where capital could be deployed next, especially into operating assets versus development-stage projects, and how interconnection delays are affecting timing. Management said the best opportunities are still being driven by developers needing capital, that recent deals are at the top end of historical return thresholds, and that operating royalties are now a priority, though opportunities like Nokomis and Nova arose opportunistically. Questions also covered the Red Stone and PJM interconnection facility, where Getman said the structure took over a year to work through because the rules are complex and the firm has built a competitive advantage in understanding RTO processes and handling fully refundable deposits. On Hodson, management said interconnection delays forced a restructuring into a member loan for added protection and a somewhat better return.