53% Increase in Revenue for Q4 2021 Results Reinforce Recommendation to REJECT the Hostile Bid
Vancouver, British Columbia--(Newsfile Corp. - February 22, 2022) - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ("Elemental" or "the Company") today announced preliminary revenue1 of approximately US$2.3 million for the fourth quarter of 2021, up approximately 53% from US$1.5 million a year earlier.
The preliminary revenue is a quarterly record for Elemental and is based on sales volume of approximately 1,300 attributable gold equivalent ounces2 ("GEOs") from royalty contracts for the fourth quarter of 2021, up approximately 67% from 778 GEOs a year earlier.
For the full year 2021, Elemental's preliminary revenue is a record of approximately US$6.6 million, up approximately 29% from US$5.1 million a year earlier and the fourth successive year of record revenue for the Company. The full year preliminary revenue is based on sales volume of approximately 3,700 GEOs, up approximately 28% from 2,889 GEOs a year earlier.
Preliminary revenue and GEOs are subject to audit and therefore might change. These results should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2021 when publicly disclosed.
2021 Highlights
- 2021 GEOs was near the upper end of Elemental's updated guidance of 3,400 to 3,800 GEOs
- 2021 preliminary revenue exceeded the mid-point of updated guidance, which was a range of US$6.1 to US$6.8 million based on the above GEO guidance and an assumed US$1,800 per ounce average received gold price
- Elemental completed the acquisition of a portfolio of precious metal royalties from a wholly owned subsidiary of South32 Limited
- Capricorn Metals declared steady state operations at the Karlawinda mine, on time and on budget. Capricorn noted that Karlawinda is on track to achieve guidance of 110,000 to 120,000 ounces for the year ending June 30, 2022 that included commissioning. Elemental has a 2% net smelter return royalty on Karlawinda, a cash flow-producing asset
- Endeavour Mining announced that it has established a target of discovering, by 2025, between 1.5 million and 2.0 million ounces of Indicated Resources at the Wahgnion mine with an exploration budget of US$9 million allocated for 2022. Elemental has a 1% net smelter return royalty on Wahgnion, a cash flow-producing asset
- Austral Gold announced it discovered exciting new vein and breccia hosted gold mineralisation outside of the previously defined main vein and engaged SLR Consulting (Canada) Ltd to update the Mineral Resource and Mineral Reserve estimates at its Guanaco-Amancaya mine complex. Austral expects the updated report to be completed and filed during Q1 2022. Elemental has a 2.25% net smelter return royalty on Amancaya, a cash flow-producing asset
- The commencement of high-grade gold production from the Tuart underground mine at Mount Pleasant, where Zijin Mining's fully owned subsidiary Norton Goldfields runs the Paddington Operation in Western Australia. Elemental has a 5% net profits interest or a royalty of AU$10/ounce on Mount Pleasant, a cash flow-producing asset
- A major drilling campaign was launched at the 2.2 million ounce PGE Panton project in Western Australia. Panton is a cornerstone asset for recently listed Future Metals NL, who quickly announced the discovery of low-grade open pit potential mineralization immediately adjacent to the existing high-grade reefs. Elemental has a 0.5% net smelter return royalty on Panton, a feasibility-stage asset