Elemental Royalties, Altus Strategies merge, creating global gold royalty company

“The boards of Elemental and Altus believe that the merger has compelling strategic logic and represents an attractive opportunity for both companies to create a global gold royalty company: New Elemental Altus Group with a combined portfolio of 69 assets across 13 jurisdictions, concentrated in tier-1 mining jurisdictions, of which 11 are in production, and primarily focused on gold,” the companies said in a joint statement.

Elemental’s portfolio includes a 1% net smelter return (NSR) on Endeavour Mining’s Wahgnion mine in southwest Burkina Faso, a 2% NSR on Capricorn Metals’ Karlawinda project in Australia and a 1% NSR on Equinox’s 700 km2 Mercedes gold-silver mine in Mexico.

Estimated combined adjusted 2022 revenue of the New Elemental Altus Group is $19.6 million, estimated to lead to combined adjusted 2023 revenue of $24.6 million, the companies said.

New Elemental Altus Group’s NAV will be based on producing assets in La Mancha and Condire having provided shareholder irrevocable undertakings over 44.6% of Altus’s issued share capital; and South32 and La Mancha having entered into voting and support agreements in respect of 25.9%. of Elemental’s issued share capital.

An eight member board will be constituted from a combination of existing directors from both Elemental and Altus.

Earlier this year Gold Royalties attempted unsuccessfully to acquire Elemental Royalties. Its all-share hostile takeover bid expired on May 12, bringing an end to a saga that began last October.