What Altius Minerals (ALS) Said on Its Q3 Earnings Call

Key Points

• Altius reported record Q3 royalty revenue of $33.3 million, with net earnings of $10.1 million and adjusted EBITDA of $27.1 million. Higher realized prices, copper-stream delivery timing, new lithium royalties and electricity royalties supported results.
• The proposed TNR Gold acquisition would add a royalty on the Los Azules copper project and consolidate Altius’s interest in the producing Mariana lithium project. Mariana revenue from the added interest is expected soon; Los Azules royalty revenue could begin around 2031 if development proceeds as planned.
• Altius raised CAD 174 million through a share offering, expanded its credit facility to CAD 350 million and increased its stake in Great Bay Renewables to 50%. Management also cited growth prospects from renewable projects under construction and mining assets ramping up or expanding.

Altius Minerals TSE: ALS reported record third-quarter royalty revenue of $33.3 million as higher realized prices, copper stream delivery timing, new lithium royalties and increased electricity royalty revenue lifted results.

The company reported net earnings of $10.1 million, or $0.17 per share, and adjusted EBITDA of $27.1 million. On its November 11 earnings call, Altius also discussed a newly announced agreement to acquire TNR Gold, which would add exposure to the Los Azules copper project and consolidate an interest in the Mariana lithium project.

CEO Brian Dalton said operating royalty revenue was increasing in line with, or slightly ahead of, the company’s five-year growth outlook. He also pointed to progress at pre-production projects that could support growth beyond that period.

Quarterly Results and Financing

CFO Stephanie Hussey said third-quarter operating cash flow was $11.8 million. Higher royalty receipts and interest income were offset by higher tax payments, interest paid and working capital changes. Adjusted net earnings were $0.18 per share, above the year-earlier quarter, with foreign exchange and derivative revaluations among the main adjustments.

Hussey said expenses rose from a year earlier, including cost of sales, share-based compensation and amortization. She noted that earnings in the third quarter of 2025 included a gain from the partial sale of the Arthur royalty.

During the quarter, Altius closed a public offering of 3 million common shares at CAD 60.50 apiece, generating net proceeds of CAD 174 million. It also expanded its credit facility to CAD 350 million from CAD 225 million and extended its maturity to July 2030.

Altius increased its effective interest in Great Bay Renewables, or GBR, to 50% from 29% through a $167 million transaction funded with cash and debt. Hussey said current available liquidity was approximately CAD 500 million, including CAD 150 million potentially available through an accordion feature subject to credit facility criteria.

The board approved a quarterly dividend of CAD 0.11 per share, payable December 15 to shareholders of record on November 30. Altius did not repurchase shares under its normal course issuer bid during the quarter.

TNR Deal Adds Copper and Lithium Exposure

Dalton said the proposed TNR acquisition’s principal attractions are a royalty on the advanced-stage Los Azules copper development project and the remaining portion of a Mariana lithium royalty interest that Altius already partly held.

Mariana is in production and ramping up, and revenue from the additional interest should begin flowing “very, very soon,” Dalton said. For Los Azules, he cited developer McEwen Copper’s target of a final investment decision around the middle of next year and a roughly three-year construction period. If that plan proceeds, Dalton said, royalty revenue would probably begin in 2031.

The TNR assets also include a net profits interest on two claim units in the Josemaria area. Dalton described it as longer-term optionality, saying it does not cover known mineralization, though the southeast corner of the Josemaria deposit touches the area.

Asked whether Altius would continue its recent pace of transactions through 2027, Dalton said further deals were possible but not imperative. “If something really attractive comes along, sure, we will be there,” he said.

Renewables and Project Updates

GBR and Altius Renewable Royalties made their largest portfolio contribution to Altius to date in the quarter, Dalton said, reflecting both increased ownership and the commissioning of royalty projects. Fifteen electricity royalty projects were under construction and expected to be commissioned over the next couple of years.

A significant share of GBR’s quarterly revenue came from financing refundable interconnection deposits for project developers. Dalton said the business generates a spread over financing costs and could lead to royalty investments as projects advance, but he cautioned that its long-term sustainability depends on how grid congestion and deposit requirements evolve.

Across the mining portfolio, Dalton said Sigma’s lithium operation had resumed production after a permitting-related shutdown and was advancing its stage two expansion. He said Mariana, Tres Quebradas and Goulamina continued to ramp up and pursue expansion plans.

In copper, Dalton said Chapada had another strong production quarter and had begun infrastructure construction to expand operations and incorporate higher-grade ore from the Saúva discoveries. Following the quarter, Altius also acquired royalty interests in a Saskatchewan potash project being advanced by Buffalo Potash.

At the Arthur Gold Project, AngloGold Ashanti continued feasibility work and has targeted decades of production at approximately 500,000 ounces annually, Dalton said. He added that the operator’s exploration targets could potentially expand the district’s annual production capacity.

About Altius Minerals (TSE:ALS)

Altius's strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with global growth trends including increasing electricity-based market share within energy usage, global infrastructure build and refurbishment growth, increased EAF based steelmaking, steadily increasing agricultural fertilizer requirements and the enhanced appetite for financial asset diversification through precious metals ownership.

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