VANCOUVER, BC, Feb. 25, 2021 /CNW/ - Elemental Royalties Corp.
("Elemental" or "the Company") (TSXV: ELE) (OTCQX:
ELEMF) is pleased to report record annual revenue for 2020 and
record quarterly revenue in Q4, alongside revenue guidance for 2021
that is the highest in the Company's history. This has been driven
by the transformational acquisition of a portfolio of precious
metals royalties from South32 that will continue to accelerate
Elemental's revenue growth over the coming years.
Full Year and Q4 2020 Revenue
During 2020 Elemental achieved record preliminary
revenue1 of approximately US$5.1
million, a 110% increase year-on-year and recorded
approximately 2,900 attributable zero-cost gold equivalent
ounces.2
During the three months ended December
31, 2020, the Company achieved record preliminary quarterly
revenue1 of approximately US$1.5 million and recorded approximately 770
attributable zero-cost gold equivalent ounces. 2
2020 Highlights
- Royalty revenue more than doubled to US$5.1 million
- Acquired a 1% Net Smelter Return ('NSR') royalty on Teranga
Gold's Wahgnion Mine, which produced 175,261 ounces of gold in
2020
- Completed reverse-takeover on TSX Venture Exchange and
C$24 million fundraise
- Commenced trading on OTCQX market and obtained DTC
eligibility
- Binding agreement to acquire a portfolio of precious metals
royalties in Western Australia
from South32, including:
-
- 2% NSR royalty on Capricorn Metals' under construction
Karlawinda mine, targeting annual production of 110,000 to 125,000
ounces of gold; and
- 2% gross revenue royalty over key parts of Focus Minerals'
Laverton brownfields development project
- Announced C$16 million fundraise
in conjunction with the South32 acquisition
- Amended and increased the existing facility with Sprott
Resource Lending to US$25
million
- Portfolio weighting to Tier 1 jurisdictions increased to
65%
2021 Outlook
In 2021, Elemental expects 4,000 to 4,400 attributable zero-cost
gold equivalent ounces2 from its existing
portfolio, weighted towards the second half of the year, with 94%
of expected revenue derived from gold and silver. At a US$1,800/oz average received gold price, this
would achieve revenue of US$7.2
million to US$7.9 million in
2021.
|
2019
|
2020
|
2021
Guidance
|
Gold equivalent
ounces2
|
1,705
|
2,900
|
4,000 to
4,400
|
Year-on-year
percentage change
|
+49%
|
+70%
|
+38% to
+52%
|
"We are pleased to have achieved our fourth consecutive year
of record royalty revenue since inception." said
Frederick Bell, CEO of Elemental.
"We expect continued revenue growth in 2021 as Capricorn Metals'
Karlawinda mine targets first gold pour in Q2, effectively doubling
our gold royalty revenue from mid-year. With two transformational
transactions now successfully completed, we are better placed than
ever to continue to add value to the portfolio through
2021."
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
For further information about the Company or this news release,
please visit our website at www.elementalroyalties.com or by email
at info@elementalroyalties.com.
Elemental is a proud member of Discovery Group.
Neither the TSX-V nor its Regulation Service Provider (as
that term is defined in the policies of the TSX-V.) accepts
responsibility for the adequacy or accuracy of this press
release.
1 These figures have
not been audited and are subject to change. As the Company has not
yet finished its year-end annual close procedures, and the audit of
its 2020 financial statements is not complete, the anticipated
financial information presented in this press release is
preliminary, subject to final year-end closing adjustments, and may
change materially. The information presented above has not been
audited by the Company's independent accountants, should not be
considered a substitute for audited financial statements, and
should not be regarded as a representation by the Company as to the
actual financial results.
|
2 Elemental has
included certain performance measures in this press release that do
not have any standardized meaning prescribed by International
Financial Reporting Standards (IFRS). The Company's royalty revenue
is converted to an attributable gold equivalent ounce basis by
dividing the royalty revenue received in a period by the average
gold price for the same respective period. The presentation of this
non-IFRS measure is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. Other
companies may calculate these non-IFRS measures differently. The
production forecast was derived using information that is available
in the public domain as at the date hereof, which included guidance
and estimates prepared and issued by management of the operators of
the mining operations in which Elemental holds an interest. The
production forecast is sensitive to the performance and operating
status of the underlying mines. None of the information has been
independently verified by Elemental and maybe subject to
uncertainty. There can be no assurance that such information is
complete or accurate.
|
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX-V
in Canada and provides investors
with lower risk precious metals exposure through a portfolio of
nine high-quality royalties. This enables investors to
benefit from ongoing royalty revenue, future exploration upside and
low operating costs. Elemental's experienced team seeks to secure
royalties in advanced precious metals projects, run by established
operators, from its pipeline of identified opportunities.
Qualified Person
Richard Evans, FAusIMM, is Senior
Vice President Technical for Elemental, and a qualified person
under National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, has reviewed and approved the scientific and
technical disclosure contained in this press release.
Cautionary note regarding forward-looking
statements
This release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are not
limited to, statements with respect to the future growth and
development of the Company. Forward-looking statements and
information are based on forecasts of future results, estimates of
amounts not yet determinable and assumptions that, while believed
by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements and information are
subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of Elemental to control or predict,
that may cause Elemental's actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein, including
but not limited to: the requirement for regulatory approvals and
third party consents, the impact of general business and economic
conditions, the absence of control over the mining operations from
which Elemental will receive royalties, including risks related to
international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and
development of mineral properties; the uncertainties involved in
interpreting exploration data; the potential for delays in
exploration or development activities; the geology, grade and
continuity of mineral deposits; the impact of the COVID-19
pandemic; the possibility that future exploration, development or
mining results will not be consistent with Elemental's
expectations; accidents, equipment breakdowns, title matters, labor
disputes or other unanticipated difficulties or interruptions in
operations; fluctuating metal prices; unanticipated costs and
expenses; uncertainties relating to the availability and costs of
financing needed in the future; the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses, commodity price fluctuations; currency
fluctuations; regulatory restrictions, including environmental
regulatory restrictions; liability, competition, loss of key
employees and other related risks and uncertainties. Elemental
undertakes no obligation to update forward-looking information
except as required by applicable law. Such forward-looking
information represents management's best judgment based on
information currently available. No forward-looking statement can
be guaranteed, and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information.
SOURCE Elemental Royalties Corp.