In This Article:
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Altius Minerals Corp (ATUSF) reported a significant increase in net earnings for Q4 2024, reaching $85.5 million compared to a net loss in the same period of 2023.
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The company recognized a substantial gain of $87.1 million from the deconsolidation of ARR, enhancing its financial position.
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Altius Minerals Corp (ATUSF) has a strong liquidity position with $16 million in cash and $116 million in unused revolver room.
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The company is experiencing growth in its renewable royalty portfolio, supported by higher base metal prices and dividends from iron ore.
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The Silicon area has been confirmed as a new major gold district discovery in Nevada, with significant resource expansion potential.
Negative Points
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Royalty revenue for Q4 2024 decreased to $13.5 million from $14.7 million in 2023, indicating a decline in this income stream.
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Full-year revenue also saw a decline, dropping to $64 million from $69.4 million in 2023.
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Adjusted operating cash flow decreased significantly in Q4 2024 to $2.3 million from $7 million in the previous year.
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The company faced lower potash prices and no coal revenue due to the closure of the Genesee mine in 2023.
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There is uncertainty regarding the final arbitration award for the Silicon project, which could impact future valuations and strategic decisions.
Q & A Highlights
Q: Can you provide guidance on revenue growth for Altius Renewable Royalties (ARR) now that it's private? A: (Unidentified_4) Revenue growth last year was around 60%. It might be slightly lower next year and potentially higher the following year. We plan to provide a detailed update on ARR's growth trajectory mid-year to give shareholders and analysts more visibility.
Q: Is the growth rate for ARR expected to be back-end weighted this year? A: (Unidentified_4) We don't provide specific guidance for ARR, but we will offer more detailed insights mid-year, including a multi-year outlook.
Q: What are your expectations for potash volume growth this year? A: (Unidentified_4) Historically, our royalties have outpaced the global growth trend of about 2.5%. This year, given some competitors' issues, there might be an opportunity for significant production increases. Potash prices have firmed, but there's typically a one-quarter lag in realization.
Q: Could you provide more details on the strategic options for the Silicon project? A: (Unidentified_4) We are evaluating proposals that cover various strategic options for Silicon. We have a good understanding of its potential and are considering all options, including potential transactions.