Altius Minerals Corporation

Good morning, ladies and gentlemen, and welcome to the Altarius Minerals Corporation Q1 2024 conference call and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require assistance, please press star zero for the operator. This call is being recorded on Thursday, May 9, 2024. I would now like to turn the conference over to Stephanie Hussey, VP of Finance, who is substituting in for Ms. Flora Wood in Investor Relations. Please go ahead.

Thank you, and good morning, everybody. Welcome to our Q1 2024 conference call. Our press release and interim filings were released yesterday after the close and are available on our website. This event is being webcast live, and you'll be able to access a replay of this call along with the presentation slides that have been added to our website at altiusminerals.com. Brian Dalton, CEO, and Ben Lewis, CFO, will speak on the call. The forward-looking statement on slide two applies to everything we say in our formal remarks and during our Q&A session. And with that, Ben will take you through the numbers.

Thank you, Stephanie, and good morning, everyone. Royalty revenue for Q1 2024 was $17.4 million compared to $21.4 million in Q1 2023. Revenue and adjusted EBITDA for the quarter were impacted by lower coal and potash revenue and partially offset by the growth of renewable royalty revenue, which we present on a consolidated 100% basis. The minerals royalty segment had an EBITDA margin of 75% in Q1 2024 compared to 86% in Q1 2023. The current quarters margin was also impacted by higher professional fees associated with the Silicon arbitration. The renewable royalties segment had an EBITDA margin of 75% and 36% for the current and prior year quarters, respectively, reflecting the growth in the renewable royalty revenue. Q1 2024 adjusted operating cash flow of $5.5 million compares to $4.5 million in Q1 of last year. The increase is largely reflective of lower cash taxes. Q1 2023 included foreign taxes paid of $903,000 to Chilean tax authorities in relation to a distribution of funds received in 2022. Net earnings of $4.8 million, or $0.10 per share, compares to net earnings of $5.5 million, or $0.11 per share, in Q1 of 2023. The renewable royalties segment included GBR's non-cash equity losses of $1.9 million related to early-stage development investments, as well as $1.6 million in interest expense related to GBR's new credit facility. Net earnings per quarter were also affected by a the higher cost of sales on our Chapada Copper Street. Q1 2024 adjusted net earnings of $0.07 per share is consistent with the first quarter of 2023 and includes adjustments for realized and unrealized gains associated with derivatives as well as foreign exchange revaluations. ARR reported its Q1 2024 results on May 2nd, and details can be found on ARR's website. ARR is expected to continue its trend of revenue growth with the Q1 commencement of operations at the Canyon Wind Project, the expected near-term commencement at the El Sal's Wind Project, and the recently acquired Angelo Solar Project. which is expected to contribute revenue in Q4 of this year. I'll now turn to capital allocation and liquidity. During the quarter, we made our scheduled debt repayments of $2.0 million, paid cash dividends of $3.6 million, and issued 7,800 common shares under the corporation's dividend reinvestment plan. The corporation repurchased and canceled 429,000 shares under its normal course issuer bid for a total cost of $8.2 million during the quarter. The Board of Directors also approved a $0.09 quarterly dividend, an increase of 12.5% from the previous quarterly dividend. This dividend will be paid to shareholders of record on May 31st with a payment date of June 14th. Our current liquidity consists of 10.5 million in cash at the end of Q1 2024. And we have 93 million in non-use revolver room on our credit facility. ARR held cash of U.S. 67 million at the end of Q1. In addition, on May 2nd, obvious minerals received 9.6 million from Adventist Mining Corp. On settlement of an outstanding loan receivable, all part of the Ventas' plan of arrangement with the Silver Court, announced on April 25th. We continue to hold a 2% net smelter return royalty on the Three Palms at El Domo project, which, with the acquisition by Silver Court, appears to be fully funded and awaiting a construction decision. And with that, I'll turn it over to Brian.