Elemental Altus Royalties Corp.

Elemental Altus Royalties Corp. is a junior gold royalty and streaming company headquartered in Vancouver, Canada, operating primarily in Australia and South America. Key assets include Bonikro, Caserones, and Karlawinda. Portfolio composition includes 9 cash-flowing royalties, 6 development royalties, and 72 exploration royalties. The company's core business is the acquisition of royalties, streams, and other rights over mining projects, providing shareholders with exposure to commodity price movements without direct operational, capital, or exploration risk. Revenue is derived from payments made by third-party owners and operators of the underlying mineral properties. This business model makes the enterprise dependent on the operational performance, financial viability, and production decisions of its counterparties. The company has limited or no control over the exploitation of the properties, including decisions on production levels, mine expansion, or suspension of operations. As a royalty holder, the organization has restricted access to operational data and relies on public disclosures and contractual reporting from operators for performance monitoring and revenue calculation. While the portfolio is diversified, the company identifies 2 assets as material to its business, concentrating a degree of its risk profile. The competitive landscape for acquiring desirable royalties is significant, involving competition from other royalty companies and alternative financing providers.

The company's objective is to become a leading precious metals royalty company by growing its portfolio through both organic and acquisitive means. A key element of the organic growth strategy involves generating new royalties by vending out exploration-stage assets, a method used to create 16 new royalties in a single 2022 transaction and 2 additional royalties in 2023. This approach allows the entity to monetize early-stage projects while retaining long-term upside through royalty interests. The acquisition strategy focuses on identifying and purchasing accretive, cash-flowing, and development-stage royalties and streams. This is demonstrated by the 2023 acquisition of a 19-royalty portfolio from a subsidiary of First Mining Gold Corp. and the purchase of royalties from RCF Opportunities Fund L.P. Capital allocation for these transactions is flexible, utilizing cash, the issuance of common shares, or a combination. The enterprise actively manages its balance sheet, as evidenced by the establishment of a US$50 million credit facility in 2022 to refinance prior debt and the strategic sale of non-core equity holdings in 2023 to repay a portion of the facility and enhance liquidity.

The board of directors is composed of 8 members and provides oversight through specialized committees, including an Audit Committee and a Remuneration Committee. The Audit Committee consists of 3 directors, all of whom are independent and financially literate, ensuring robust financial oversight as detailed in the committee's charter. This charter mandates direct reporting lines from external auditors, pre-approval of all non-audit services, and regular private sessions to ensure auditor independence and effective communication. The board possesses extensive industry expertise, with several directors having over 40 years of experience in mining engineering, project development, and investment management. Executive leadership is provided by the Chief Executive Officer, with strategic direction guided by a Chairman who is also a co-founder of a recognized mineral exploration investment group. A significant shareholder, La Mancha Resource Capital LLP, holds strategic influence through an Investor Rights Agreement granting it the right to nominate directors proportionate to its ownership, with 2 of its partners currently serving on the board.

The current corporate entity was formed through a merger of equals between Elemental Royalties Corp. and Altus Strategies plc in August 2022, a transaction that combined their respective royalty portfolios and created a more diversified company. A significant structural component is the equity position held by La Mancha Resource Fund SCSp, which became a major shareholder following a debt-for-equity conversion in December 2022. This relationship is governed by an Investor Rights Agreement that provides La Mancha with board representation, anti-dilution rights, and other customary investor protections. The organization actively shapes its portfolio through M&A, including the 2023 acquisition of a 19-royalty portfolio from a subsidiary of First Mining Gold Corp. and the acquisition of royalties from RCF Opportunities Fund L.P. in exchange for common shares. Strategic partnerships and divestitures are also key, as seen in the 2023 sale of project licenses to Allied Gold Corporation for a royalty and milestone payments. In another 2023 transaction, the company partnered its Egyptian assets with In2Metals by selling a majority interest in its subsidiary, Akh Gold Ltd., to fund exploration while retaining a royalty and an equity stake.