All references in thousands of Canadian dollars, except per share amounts, unless otherwise indicated

ST. JOHNâ tmS, Newfoundland and Labrador--(BUSINESS WIRE)--August 11, 2025-- 

Altius Minerals Corporation (TSX: ALS; OTCQX: ATUSF) ("Altius" or the "Corporation") reports its Q2 2025 revenue of $9.8 million compared to $19.5 million in Q2 2024. Attributable royalty revenue(1) of $12.7 million ($0.27 per share(1) ) compares to $20.4 million ($0.44 per share) reported in Q2 2024. The current quarter reflects lower attributable potash volumes and lower dividends from iron ore partially offset by higher base metal prices. Revenue in Q2 2024 included additional investment income of $3.6 million related to settlement of a loan receivable.

Operating Royalty Portfolio Performance

 
Summary of attributable royalty 
            revenue                 Q2 2025    Q1 2025    Q2 2024 
--------------------------------   ---------  ---------  --------- 
Base and battery metals            $   4,694  $   6,840  $   5,474 
Potash                                 4,115      3,894      4,755 
Renewable energy (1)                   2,100      1,648      1,219 
Iron ore (2)                           1,122      1,870      4,114 
Interest and investment (1)              638        703      4,806 
---------------------------------   --------   --------   -------- 
Attributable royalty revenue       $  12,669  $  14,955  $  20,368 
---------------------------------   --------   --------   -------- 
(1) ARR and GBR amounts are presented at their effective ownership 
percentages of 57% and 29%, respectively 
(2) Labrador Iron Ore Royalty Corporation dividends 
 

Quarterly Highlights & Subsequent Events

   --  Lundin Mining Corporation ("Lundin") continues to delineate its 
      Saúva copper-gold deposit discovery, located 15 kilometers north of 
      the Chapada Mine on lands encompassed by our copper stream interest. 
      Lundin recently provided an update with respect to preliminary plans to 
      incorporate higher grade Saúva ore into its current mining and 
      milling operations at Chapada, while indicating that this could result in 
      an approximately 50% increase in annual copper production. Permitting and 
      technical work is ongoing to further define the project and a 
      pre-feasibility study is anticipated to be completed by the end of this 
      year. 
 
   --  Both operators of Altius's potash royalty mines have reported strong 
      first half sales and indicated expectations for record global potash 
      demand in 2025 in addition to firmer pricing while noting reported 
      production constraints as well as significant development project delays 
      by several competing producers. 
 
   --  On April 23, 2025 Silvercorp Metals Inc. ("Silvercorp") updated its 
      construction progress and budget for the development of the Curipamba 
      copper-zinc-gold-silver project citing an estimated capital cost of 
      $240.5 million while noting that it is targeting production by the end of 
      2026. Altius holds a 2% NSR royalty relating to the project. 
 
   --  On July 23, the Corporation announced that Altius Royalty Corporation 
      ("ARC"), a wholly-owned subsidiary of Altius, completed the sale of a 1% 
      NSR royalty covering the Silicon and Merlin gold deposit discoveries in 
      Nevada ("1% Silicon Royalty") to a wholly owned subsidiary of 
      Franco-Nevada Corporation ("Franco-Nevada") (TSX & NYSE: FNV), pursuant 
      to a royalty purchase agreement entered into by ARC and Franco-Nevada 
      (the "Agreement"). ARC will continue to hold a remaining 0.5% NSR royalty 
      interest in Silicon (recently renamed to the Arthur Gold Project by 
      AngloGold Ashanti plc) as a long-term component of its diversified 
      portfolio. The purchase price for the 1% Silicon Royalty interest is 
      US$275 million (C$ 375 million) comprised of US$250 million in upfront 
      cash paid at closing and a further payment of US$25 million in cash 
      payable upon the conclusion of an ongoing arbitration process (described 
      earlier this year) confirming that the Silicon Royalty applies to (a) all 
      claims designated by the parties as a "Critical Area" and (b) at least 
      90% of the total claims (on an aggregate number of claims basis) 
      comprising the list of properties specified in the Agreement. 
 
   --  On July 9, 2025, Orogen Royalties Inc. ("Orogen") completed a plan of 
      arrangement with Triple Flag Precious Metals Corp. ("Triple Flag") 
      resulting in Triple Flag's acquisition of Orogen's 1.0% NSR royalty on 
      the Expanded Silicon project in Nevada. Triple Flag acquired all the 
      issued and outstanding common shares of Orogen for total consideration of 
      approximately $421 million, or $2 per share. In exchange for Orogen 
      shares, Altius received cash of $29,545,000, 1,147,710 Triple Flag shares 
      (which were subsequently monetized for gross proceeds of $37 million) and 
      9,889,490 shares (16.7%) of a spin out company ("Orogen SpinCo") that 
      will hold all of Orogen's assets and liabilities other than the 1.0% NSR 
      royalty on the Expanded Silicon project. This resulted in total gross 
      proceeds to Altius of approximately $81 million. Orogen SpinCo will 
      continue to operate as Orogen Royalties and remains as a publicly listed 
      company. Altius also continues to conduct exploration work in partnership 
      with Orogen SpinCo in Nevada including targeting Silicon-like gold 
      projects as well as copper projects. 
 
   --  In July Champion Iron Limited ("Champion") announced that it has 
      entered into a definitive framework agreement implementing the agreement 
      signed in December 2024, with Nippon Steel Corporation ("Nippon") and 
      Sojitz Corporation ("Sojitz") pursuant to which the two parties have 
      agreed to initially contribute $245 million for an aggregate 49% interest 
      in Kami Iron Mine Partnership (the "Partnership"), a new entity formed 
      for the ownership and potential development of the Kami Project. Nippon 
      also announced on May 30 its sanctioning of a US$6 billion investment to 
      convert more of its traditional blast furnace steelmaking units in Japan 
      to electric arc furnace based plants that will require high purity iron 
      ore inputs of the type that Kami is being designed to produce. Altius 
      originated the Kami project within its PG business and retains a 3% gross 
      sales royalty interest. 

Adjusted EBITDA(1) of $7.5 million ($0.16 per share(1) ) during Q2 2025 compares to $14.5 million ($0.31 per share) during Q2 2024.

Q2 2025 adjusted operating cash flow(1) of $4.7 million ($0.10 per share(1) ) compares to $8.3 million ($0.18 per share) in Q2 2024. The decrease reflects lower taxes paid offset by lower royalty revenue receipts as well as working capital changes.

Net earnings of $5.5 million ($0.12 per share) for Q2 2025 compares to net earnings of $8.3 million ($0.18 per share) in Q2 2024. Net earnings for the current quarter reflects lower costs and expenses, amortization and interest offset by lower revenues. Adjusted net earnings per share(1) of $0.03 for Q2 2025 is lower than $0.09 per share for Q2 2024 and follows the trend of revenue. The main adjusting items are summarized in the below table and include a $1.9 million tax recovery relating to the recognition of certain tax losses.

 
       Adjusted Net Earnings                  Three months ended 
----------------------------------- 
                                       June 30, 2025     June 30, 2024 
-----------------------------------   ---------------  ----------------- 
Net earnings attributable to common 
 shareholders                          $       5,347    $       8,443 
 
Addback (deduct): 
    Unrealized (gain) loss on fair 
     value adjustment of 
     derivatives                                (802)           3,465 
    Foreign exchange (gain) loss              (1,754)             289 
    Exploration and evaluation 
     assets abandoned or impaired                 12              161 
    Realized gain on disposal of 
     derivatives                                  --           (3,340) 
    Non-recurring other income                    --           (4,259) 
    Impairment of associate                       --            1,579 
    Tax impact (1)                            (1,215)          (2,336) 
------------------------------------      ----------       ---------- 
Adjusted net earnings                  $       1,588    $       4,002 
------------------------------------      ----------       ---------- 
(1) Includes tax recovery from recognition of certain tax losses 
 

Liquidity and Capital Allocation Summary

Cash and cash equivalents at June 30, 2025 were $11.1 million, compared to $15.9 million at the end of 2024. At June 30, 2025 the approximate market value of various public equity holdings included:

   --  $106 million for shares of Labrador Iron Ore Royalty Corp. 
 
   --  $25 million for the value of the indirectly held interest in the shares 
      of Lithium Royalty Corporation. 
 
   --  $87 million for publicly traded shares held within the Project 
      Generation equity portfolio, including $75.6 million in Orogen Royalties 
      Inc. which subsequent to June 30 was acquired by Triple Flag. 

During the quarter the Corporation made scheduled debt repayments of $2.0 million, paid cash dividends of $3.8 million and issued 14,058 shares under the dividend reinvestment plan. The Corporation did not repurchase any shares under its normal course issuer bid. At June 30, 2025 the Corporation carried a balance of $93.3 million under its term debt facilities and $9.0 million under its revolving credit facility.

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August 11, 2025 17:05 ET (21:05 GMT)