Elemental Altus Royalties Corp.

Adjusted revenue was $10.5 million, up 100% year over year. Adjusted EBITDA was $8.8 million, up 150% year over year, and operating cash flow was $14.4 million, up about $1.5 million from the prior year period. The company said GEOs were nearly 3,200 in Q2, up 44% year over year, and nearly 7,800 in H1, with full-year GEO guidance reiterated at 11,600-13,200. Revenue guidance for 2025 was raised to $35 million-$40 million, using a $3,000 gold price. Free cash flow was $9.7 million; cash rose from $4.8 million at the start of the quarter to $24.5 million at quarter-end, and management said cash is now $30 million with a fully undrawn $50 million facility, for $80 million of liquidity. Korali-Sud generated $9.1 million year-to-date in royalty revenue and triggered $3 million of milestone payments. The company also noted a $1.46 million noncash impairment tied to reclassifying Aterian below 20% ownership.

Fred Bell said the quarter confirmed the company’s strongest financial position yet, driven by continuing cash build, debt paydown, record revenue, and new capital support from Tether Investments. He emphasized that Elemental Altus now has enough capital and balance sheet flexibility to pursue acquisitions and build the portfolio more aggressively than it could historically. His tone was upbeat and opportunistic, but still focused on execution, liquidity, and portfolio development rather than broad macro commentary.

David Baker framed Q2 as an across-the-board strong quarter, with adjusted revenue of $10.5 million, adjusted EBITDA of $8.8 million, operating cash flow of $14.4 million, and free cash flow of $9.7 million. He said the results were driven by Korali-Sud, Karlawinda, Caserones, and other producing royalties, with record H1 GEOs and record margins for the company. He also highlighted the balance sheet, citing $30 million in cash and a $50 million undrawn facility, while noting a modest cost of less than 1% for the unused credit line and around 4% interest on excess cash. He explained the $1.46 million Aterian impairment and said the company remains unhedged, benefiting directly from higher gold and copper prices.

Analysts asked about the cost of the unused credit facility, and management said there is a standby fee of a bit more than 0.5% and a bit less than 1% on the unused line, which they view as the price of having immediate access to capital. Questions also focused on the timing of Korali-Sud/Diba milestone payments; management said an update is expected imminently and that the backlog tied to permits and co-processing in Mali should be sorted in the current quarter. Another area of interest was a possible U.S. listing and consolidation in the royalty sector: management said a U.S. listing is a matter of “when, not if” and would improve liquidity, while also saying the company is open to acquisitions and consolidation where it makes sense. On gold-price and inflation concerns, management said the royalty model is largely insulated from cost inflation unless mine economics are materially affected, and they do not see direct evidence of accelerating cost inflation across the portfolio.