Carlton Precious Inc.

Q2 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 from about $1.5 million a year ago. GEOs were nearly 3,200 in Q2, up 44% year over year, and nearly 7,800 for H1. The company reported free cash flow of $9.7 million, cash of $24.5 million at quarter-end versus $4.8 million at the start of the quarter, and $30 million in cash as of the call, with $50 million undrawn on its credit facility. Management increased 2025 revenue guidance to $35 million-$40 million and reiterated GEO guidance of 11,600-13,200.

Fred Bell framed the quarter as part of a multi-quarter pattern of cash build, debt paydown, and record revenue, saying the company is in its strongest financial position ever. He emphasized that Tether’s investment strengthens the company’s ability to pursue acquisitions and build the portfolio, while also noting a newly improved ability to act on opportunities without the capital constraints that limited earlier years. He also highlighted the potential for organic growth and future portfolio additions, including the Laverton royalty under a new operator.

David Baker said Q2 was an excellent quarter across all metrics, with adjusted revenue of $10.5 million, adjusted EBITDA of $8.8 million, and operating cash flow of $14.4 million. He pointed to nearly 3,200 GEOs in the quarter, record H1 GEOs of nearly 7,800, and free cash flow of $9.7 million, all supported by strong production at Korali-Sud and Cornerstone assets. He also detailed the liquidity position: $30 million cash, $50 million undrawn on the CIBC/RBC facility, and about 4% interest on the cash balance, while noting a $1.46 million noncash impairment related to reclassifying Aterian below 20%.

On the unused credit facility, 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 cost of immediate access to capital. On Korali-Sud/Diba milestone payments, Fred said the company expects an update imminently and that the remaining payments should be sorted out this quarter, helped by permit progress in Mali and the start of co-processing. Management also said a U.S. listing is a matter of "when, not if," and that it should improve liquidity because the U.S. accounts for most trading in peers; they are working on it but did not give a timeline.