Canada's Altius Minerals Q1 revenue up on higher lithium, electricity royalties

Overview

• Canada royalty company reported Q1 revenue up yr/yr, driven by higher lithium and electricity royalties

• Adjusted EPS for Q1 missed analyst expectations

• Company completed acquisition of Lithium Royalty Corp, incurring one-time post-closing expenses

Outlook

• Company expects full ramp-up of Voisey’s Bay nickel expansion by H2 2026

• Altius anticipates commencement of Curipamba copper-gold production in mid 2027

• Company notes initial industry expectations for record global potash shipments in 2026

Result Drivers

• LITHIUM ROYALTIES - Addition of four operating lithium royalties and higher lithium revenue following LRC acquisition drove revenue growth

• ELECTRICITY ROYALTIES - Higher electricity royalty revenue contributed to increased overall royalty revenue

• ONE-TIME EXPENSES - One-time post-closing expenses related to the LRC acquisition and higher general and administrative costs weighed on net earnings and operating cash flow

Company press release: ID:nBw8kKbH8a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining & metals peer group is "buy"

• Wall Street's median 12-month price target for Altius Minerals Corp (AB) is C$53.00, about 3.8% below its May 11 closing price of C$55.10

• The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 72 three months ago

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