VANCOUVER, BC, April 27, 2021 /CNW/ - Elemental
Royalties Corp. ("Elemental" or "the Company") (TSXV:
ELE) (OTCQX: ELEMF) is pleased to announce its operating and
financial results for the year ended December 31, 2020.
For complete details please refer to the Financial Statements
and associated Management's Discussion and Analysis for the year
ended December 31, 2020, available on
SEDAR (www.sedar.com) or the Company's website
(www.elementalroyalties.com).
Full Year 2020 Financial Highlights
All amounts are in
U.S. dollars unless otherwise indicated.
- Record revenue of $5.1 million, a
112% increase on 2019
- Record total attributable gold equivalent ounces1 of
2,889 ounces, a 69% increase on 2019
- Record adjusted EBITDA1 of $3.6 million, a 110% increase on 2019
- Cash and cash equivalents balance of $10.9 million as of December 31, 2020, plus royalty receivables of
$1.1 million
Q4 2020 Financial Highlights
- Record revenue of $1.5 million, a
125% increase on Q4 2019 and a 27% increase on Q3 2020
- Record total attributable gold equivalent ounces1 of
778 ounces, a 79% increase on Q4 2019 and a 24% increase on Q3
2020
- Record adjusted EBITDA1 of $1.1 million, a 203% increase on Q4 2019 and a
32% increase on Q3 2020
Frederick Bell, CEO, commented,
"Elemental has advanced beyond recognition over the course of
2020. We started the year as a private company undertaking the
acquisition of our largest royalty to-date, on Endeavour Mining's
Wahgnion mine. That was followed with the successful listing of the
Company on the TSX-V alongside the largest fundraise in our
history. Finally, our acquisition of a portfolio of precious metals
royalties from South32 provides the company with the strongest
organic growth pipeline we have ever had. Our largest 2% NSR
royalty at Karlawinda is expecting first gold pour this quarter and
based on that and the Mercedes royalty alone, we have significantly
de-risked revenue growth through to 2023.
We continue to focus on further accretive royalty
acquisitions and building out the portfolio alongside continued
positive updates from some of our major operating partners,
emphasising the optionality we have embedded in our existing
uncapped portfolio of producing royalties."
2021 Outlook
In 2021, Elemental expects 4,000 to 4,400 attributable zero-cost
gold equivalent ounces1 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$1,750/oz to US$1,800/oz average received gold price, this
would achieve revenue of US$7.0
million to US$7.9 million in
2021.
On behalf of Elemental Royalties Corp.
Frederick Bell
CEO and
Director
Elemental is a proud member of Discovery Group. For more
information please visit: www.discoverygroup.ca or contact
604-653-9464.
TSX.V: ELE | OTCQX: ELEMF | ISIN: CA28619L1076
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.
Notes
1. Non-IFRS Measures
The Company has included certain performance measures which are
non-IFRS and 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. These
non-IFRS measures do not have any standard meaning under IFRS and
other companies may calculate measures differently.
Adjusted EBITDA excludes the effects of certain other
income/expenses and unusual non-recurring items. Adjusted EBITDA is
comprised of earnings before interest, taxes, depletion, share
based compensation, and the non-cash portion of the listing
expense. Management believes that this is a useful measure of the
Company's performance because it adjusts for items which may not
relate to underlying operating performance of the Company and/or
are not necessarily indicative of future operating
results.
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 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 may be subject to uncertainty. There can be no
assurance that such information is complete or accurate.
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.
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.