Fred Bell, CEO of Elemental Altus Royalties (TSX.V:ELE) (OTCQX:ELEMF), joins me to review the key takeaways from news out on May 20th on their Q1 2025 financials, including record quarterly revenues, EBITDA, and cash flows. We also discuss the financial and development growth on tap for 2025, with updates at key royalty partner operations.

Q1 2025 Highlights

• Royalty revenue of US$11.6 million and adjusted revenue1 of US$13.3 million, up 179% on Q1 2024
• Attributable Gold Equivalent Ounces1 ("GEOs") of 4,606 ounces, up 102% on Q1 2024
• Adjusted EBITDA1 of US$11.5 million, up 259% on Q1 2024
• Operating Cash Flow plus Caserones dividends of US$3.3 million, up 182% on Q1 2024 with the majority of royalty revenue received post quarter end
• Final US$3 million of the Company's Revolving Credit Facility ("RCF") fully paid down in the quarter
• Over US$22 million cash on hand as of May 20, 2025 alongside the Company's US$50 million undrawn RCF2025 Outlook

2025 Outlook

• Company remains on track to meet record guidance of 11,600 to 13,200 GEOs, translating to record adjusted revenue of US$30.1 million to US$34.3 million, based on a gold price of US$2,600/oz and a copper price of US$4.00/lb. Production is anticipated to be weighted towards the first half of the year, driven by first gold sales from the Korali-Sud royalty
• This guidance represents a 38% increase in GEOs and 50% year-on-year increase in adjusted revenue at the mid-point of guidance, with full exposure to higher gold prices
• Elemental Altus is in a net cash position, with flexibility for new acquisitions utilising the $50 million RCF and the strong free cash flow being generated
• Elemental Altus has a Normal Course Issuer Bid ("NCIB") in place to purchase up to 12,288,129 common shares in the capital of the Company

Fred breaks down the financial strength of the company, and the leverage of it’s balance sheet to rising production and revenues in a higher metals price environment. He also highlighted with the roughly $20 million in cash on hand, the expected revenues over $30 million this year, a number of additional incoming $15 million in one-off payments, and the $50 million credit facility on hand, that the company is in a great position to keep reviewing acquisition transactions in the year to come.

Wrapping up we cover some of the anticipated growth of the projects at their key cornerstone royalty assets: Caserones, Karlawinda, Korali-Sud, Bonikro, and Wahgnion, the value in their one-off portfolio payments this year, and what types of assets are under consider for future acquisitions.

If you have any follow up questions for Fred regarding Elemental Altus Royalties, then please email them to me at Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Elemental Altus Royalties at the time of this recording, and may choose to buy or sell shares at any time.

Click here to view recent news on the Elemental Altus Royalties website

In this KE Report daily editorial, we welcome back Marc Chandler, Managing Partner at Bannockburn Global Forex and Editor of Marc to Market, to unpack the market-shaking announcement from President Trump: a potential 50% tariff on European Union goods. This policy shift has reignited global trade tensions and is already sending shockwaves through equity, bond, and currency markets.

Marc provides a wide-ranging macro breakdown, covering:

• The market reaction to renewed tariff threats, including the sharp sell-off in European equities and rally in bonds.
• A detailed look at currency market trends, including strength in the euro, pound, Canadian dollar, and Chinese yuan… and a weakening U.S. dollar index.
• Why the dollar's recent weakness is more about the U.S. itself than foreign currency strength.
• How global capital flows are evolving, including surprising Q1 U.S. inflows and a nuanced view on the so-called "Sell America" narrative.
• An emerging trend: the U.S. dollar as a new global carry trade - a role once dominated by the Japanese yen.
• Big-picture risks in bond markets and the potential geopolitical realignment between the EU and China, as Europe grapples with economic and strategic pressure from both the U.S. and Russia.

Visit Marc to Market for more of Marc's analysis.

In this KE Report company introduction, we speak with Rana Vig, President and CEO of Blue Lagoon Resources (CSE:BLLG - OTCQB:BLAGF), a company on the verge of near-term gold production in British Columbia. With production expected to begin as early as July, the company is focused on generating cash flow through a toll milling agreement with Nicola Mining and using those proceeds to fund exploration across its land package.

Key topics covered:

• Roadmap to production and the significance of the recently granted permit - one of only seven hard rock mining permits issued in B.C. in the past decade.
• Toll milling strategy to avoid heavy CapEx and environmental liability.
• Initial production forecast of 15,000 oz gold in year one, ramping up to 20,000 oz annually.
• The company’s 218,000 oz M&I gold resource and why a PEA has been deferred until production cash flow validates the asset.
• Exploration potential from over 50,000m of recent drilling, new high-grade hits below the current resource, and several untested veins across a 22,000-hectare property.
• A look at the insider ownership and key strategic shareholders, including Crescat Capital and Nicola Mining.

Visit the company website: https://bluelagoonresources.com/

Have questions? Leave a comment or email us (Fleck@kereport.com). I will follow up directly with Rana.