Hello, everyone, and welcome to the Elemental Altus Q3 2024 results presentation. With me today is Dave Baker, our CFO, and I'm Frederick Bell, the CEO, and we will walk through the slides together, and at the end we'll open it up to a Q&A. We'll be making some forward-looking statements in the course of this webinar, and please, again, any questions at the end, happy to run through where we can. As mentioned, myself and Dave here will walk you through it. So, getting straight into it, Q3 2024, it was a strong quarter of revenue, up 32% on the comparable quarter in 2023, and that was adjusted royalty revenue of $3.7 million and adjusted revenue of $4.8 million.
Adjusted EBITDA of $3.7 million, that's about 70% up on Q3 2023, and adjusted cash flows from operations of $2.8 million, which is up about 44% on Q3 2023. What we saw here was we saw significant margin growth on EBITDA and cash flows on revenue coming in this quarter versus 2023 Q3. In terms of guidance, I think we tightened the range on the revenue side, so it's now $21.6 million- $23.1 million. In terms of gold equivalent ounce guidance, that's GEO guidance, we've reduced that slightly from 10,000- 11,500 to 9,000 - 9,500.
A large driver of that was Diba, which is now known as Korali Sud from the operator Allied, and I think, look, it's been fairly well publicized that there have been delays in Mali around permitting, and we were originally expecting this royalty to kick in as per Allied guidance mid-year. They said in their results that it came in, started production at the end of Q3 and coming into Q4, but I think for us, look, we'll give a full year guidance for it for 2025 when we expect it to materially kick in, and so we've effectively excluded that for now from our guidance to 2024 until we get some better updated information there.
In terms of the balance sheet, we, in conjunction with the AlphaStream acquisition, where we doubled our interest in a number of royalties, Bonikro, Ballarat, SKO, alongside other ones in Australia, La Mancha exercised her anti-dilution right and put the company in a net cash position as of November, so that's the first time, I think, in a number of years that we've actually been in a net cash position. And we subsequently announced Royal Bank of Canada joining our credit facility alongside National Bank and CIBC, and that takes us to a position today where we effectively have $50 million between cash and undrawn amount on the credit facility to deploy going forwards, and an increasingly strong position financially with that margin expansion that we've started to see in Q3 and that should continue into Q4 and Q1 next year as that royalty revenue ramps up.
Lastly, continue then to look at strong opportunity pipeline that we see going forward, and we're actually in a very good position to be able to execute on. One quick slide here to remind everyone, the acquisition that we announced in October that was the consolidation of the AlphaStream portfolio, and for those who aren't aware, this was the remaining 50% on a number of royalties that we had managed, but only owned half of with AlphaStream, and they came in as an equity holder as part of that transaction, and they are today about a 14% shareholder, and we've worked with them on this portfolio for the last two years, but it immediately adds approximately the royalty revenue is attributable to us from the 1st of October, and it immediately adds about $6 million in revenue for 2025, and that's at no additional cost.
I think when we see that margin expansion in Q3, that was before the contribution from AlphaStream, and it was before the contribution from Diba. Those assets coming in and all cash flowing should add material revenue, but also really importantly, all that margin growth we've just started to see going forwards, and we will put out our official guidance at the beginning of 2025, but consensus at the moment, pro forma 2025 revenue is about $37 million versus the, I think, sort of $20 million-$22 million that we're guiding for this year. I might hand over for the next couple of slides to Dave, our CFO, and he can walk through some of the asset-specific updates and also a bit more detail on the financials.
Thanks, Fred. Yeah, so as a strong quarter from the assets, I think we're definitely benefiting from a higher gold price. Definitely seen that at Karlawinda, where revenue continues to be over that $1.2 million . I think most excitingly for the asset there is the expansion that they've announced, a 30% expansion there to 150,000 ounces of gold targeting from 2026, and that's all would be directly attributable to us, and then obviously still maintaining a 10-year mine life out of an extremely long life Tier one asset, so plenty of growth in that portfolio there, guiding to 110,000-120,000 ounces for the year to June 2025. Caserones, we have a little lower there, and that's really just a difference between timing of production and sales. As a royalty company, we get paid on sales, not production.
Lundin has said in their guidance that that will unwind through Q4, so we expect to catch up for that in Q4 with copper prices remaining strong. Guidance, again, very happy to see that they're guiding to that 121 to 125,000 tons of copper, a bit lower than when they upgraded in Q2. They've been a bit affected by the labor dispute since resolved, but it's really in line with that original 2024 guidance of 120 to 130,000 tons, aiming for sort of $6 million of revenue plus from Caserones. They're doing really well there under Lundin ownership. Diba is going to be the real contributor. As Fred says, we're just awaiting guidance from Allied for production in Q4, so we have taken that out of our guidance for 2024. Any royalty revenue that we get will be incremental and all upside to us.
So yeah, really encouraged to see what production and sales we're going to get out of Korali Sud, new name for Diba, and Allied have been quite clear how significant that mine and that deposit is going to be as they look to fund the CapEx for the sulfide circuit at the Sadiola complex. As we say there, production, initial production there has been better grades, better recovery, so very encouraging. I think this will turn into one of our largest royalties particularly quickly. Great quarter, Bonikro, we're now getting more than 98% of the ounces coming from areas linked to our royalty, so that's very exciting.
Allied have also been clear that they're exposing higher grade materials in 2025 and 2026, so with that combined with effectively doubling that revenue from Q4 means that we're, yeah, this will become on a rolling basis our largest royalty in the portfolio with that full exposure to gold prices. Wahgnion, it's had a bit of change of ownership from Endeavour to Lilium, now operated by the state of Burkina. Production a little bit lower in Q3, but they are continuing to explore, continuing to aim for that 120,000-140,000 ounces of gold a year. We still talk to the same people inside and still get paid by the same group, so yeah, very encouraging to see the outcome of what happens to Wahgnion.
In terms of where we're going, so as Fred said, just to be extremely conservative, we have taken Korali Sud, Diba out of the guidance, and so that results in an adjusted guidance of 9,000 to 9,500 ounces. That will result in record 2024 revenue, and there's significant organic growth in the portfolio in 2025 and 2026. The real near-term too will be Bonikro, which is obviously performing extremely well, and now we've got a full 4.5% royalty there, first production and first royalty revenue at Diba, expecting a full contribution, full year contribution in 2025, quickly becoming one of our largest royalties. Likewise at Ballarat, now they're well settled under new owners, and we're doubling up that royalty through the AlphaStream transaction. We're looking forward to seeing what they can do to increase production and implement mine upgrades to get costs lower, increase production.
Slightly longer term, I think into 2026, we've got the incredibly exciting expansion plans at Karlawinda, so 50% throughput, reducing rehandling of lower grade material, so we should result in a 30% expansion up to that 150,000 ounces a year, still maintaining that 10-year life, and the operators there have been exceptional at reserve replacement even in the short time that that mine has been operating. In terms of the financials, I think it really does show a couple of things. It's number one, the exposure to gold price, so while we have gold equivalent ounces are up 3% this time last year, we've got adjusted revenue, that's including Caserones, up 32% to 4.8 million.
I think we're really proud of that. EBITDA is a record for the company, adjusted EBITDA there of $3.7 million, and it's a quarterly record, up 72% from this time last year, and that's really reflecting the lower cost base of the company and the lower costs we're accruing, which will translate into more cash flow. Likewise, operating cash flow after working capital adjustments there of $2.8 million, that's up 44% from this time last year, so it's a real strength of the model where we're getting costs lower, and then we've got that full exposure to gold price, which should deliver extraordinary growth in margins. Yeah, and so in terms of that bridge, so we've got obviously revenue plus Caserones, dividends after tax, G&A is considerably lower year- on- year following the monetization of the royalty generation business, and that's into some of the core assets for the company.
Most of the tax we pay is at Caserones, which is obviously included in that post-tax dividend number, and yeah, it's a bit lower this quarter just because of timing. We've had a couple of one-off working capital outflows in the quarter, they'll be non-recurring, and I think importantly, the rapid deleveraging of the company is showing that net interest number coming considerably down. Would have thought, given we're in a net cash position as of today, I'd expect that interest paid to be negligible going forward, subject to obviously transactions that we do. And so how does that work for cash evolution for the group for the quarter? So we generated $2.5 million of free cash flow in the bank.
We completed a royalty acquisition in the quarter, that was the acquisition of the two tungsten royalties operated by Fireweed, and so that's a $3 million initially upfront, and then yeah, some small proceeds from disposal representing the final monetization of the royalty generation business there. To leave us with $6 million as of 30th of September, but as of today, that's $20.1 million in the bank following the La Mancha private placement. A couple of things is how we think about the P&L, just for accounting reasons with Caserones, we don't report that as revenue, we've got to do equity account that, so you'll see that at 0.1 of the share of profit from associates, so we represent the profit, so that's after tax and depletion as a separate line.
We've got a couple of gains on disposals, these will unwind over time, historically we've had a few losses as well, that's 0.2 there, again these are non-recurring, and then you see how we back out that adjusted EBITDA number, so we have our unadjusted EBITDA there at the bottom, and then back out the depletion and tax that we have at Caserones to get that $3.7 million, which again I'd say is a record for the company for a quarter. I guess not included in some of our forecasts are the milestone payments and buybacks that we're expecting. I think the key ones there are going to be the $1 million after 90 days after commercial production at Korali Sud.
We're also expecting nearly $10 million in April next year as part of a settlement at Ming, and then towards the end of H1 next year, the right for Arizona Sonoran to buy back that 0.14% of the Cactus royalty, that right expires, we fully expect that to happen as well. So we are looking for considerable payments, nearly $12 million of one-off payments next year, so that should be quite material for us. Yeah, so in terms of performance, as I say, the assets have done okay, obviously benefiting from a higher gold price leading to that $4.8 million of adjusted revenue, and GEOs, I'd say just slightly up quarter on quarter, but I guess this is the benefit of being fully exposed to gold price.
We expect this to improve not just through the AlphaStream acquisition, but obviously maiden production at Korali Sud Diba from sometime in Q4, but the real full year contributor in 2025. The benefit of the real cost reduction and focus on growth in the business has been a growth in margins, so as you can see there, even with a slightly lower revenue for the quarter, we've got record EBITDA and record EBITDA margin, this is even pre-merger days, so up towards 77%, and we'd expect this trend to continue as revenue grows and we maintain or shrink the cost base of the business. In terms of the capital structure, post AlphaStream deal, so this is as of today, market capitalization is about $200 million, we've got $20 million in the bank, leading to an EV of just on $200 million.
La Mancha, with exercising their anti-dilution right, come in at, remain at a 32% shareholding, with AlphaStream joining the register at 14%. As we said before, we've been incredibly well supported from strong institutional shareholders, some of which have been with us since our private days. I think encouragingly in the quarter as well, we've added another analyst, a covering analyst with National Bank, so great to have four banks covering the stock, and as Fred said, we've now got a three-bank syndicate with that $50 million facility, so, led by National and CIBC and RBC, means that we've got, as it stands, $50 million of available liquidity for royalty acquisitions without having to dilute our shareholders' assent, and that will increase every quarter through free cash flow from the company.
We're incredibly attractively valued, obviously with our revenue focus, we look very strong on a market cap to revenue basis, that's using broker consensus, and on a price to NAV, given the focus and the strong focus on producing royalties, we've remained very attractively valued on an NAV basis as well. Fred, I might pass it back to you to summarize just before we pass over to any Q&A.
Thank you, Dave, and thank you everyone for joining.
So looking at conclusion, Q3 I think started to show some of that benefit in free cash flow margin coming through to the business, and with the addition of the AlphaStream half of the portfolio from the 1st of October and with Allied's announcement that Korali Sud, formerly known as Diba, is now in production, that combined really will drive our revenue growth and then our margins going into Q4 and Q1 next year. And I think being in a net cash position, it puts us in the strongest position we've been, as Dave alluded to, to really deploy capital into new acquisitions and to do it in a way that we don't have to be diluting our shareholders to do it.
So that's a really strong position for the company, and I think if you look at the metrics on a per share basis, when Elemental and Altus merged in 2022, I think we had, we're close to a similar number on a revenue per share metric, but the big change since then has been the addition of about 70 royalties in the development and advanced exploration phase. So we've been able to maintain those revenue per share numbers, but at the same time, building out the development pipeline in the portfolio and continuing to add to it. And as we said, we've made one acquisition in the last quarter, building that out, we've done it last year as well, and we'll continue to look at producing and also development advanced exploration assets going forwards. So from where we sit today, we think it's a very compelling case.
We have a very, very strong revenue profile, we have really good organic growth in the portfolio going into 2025 and 2026. We have two really cornerstone assets in Karlawinda and Caserones that will underpin the portfolio in our view for decades to come. We have organic growth coming in from Q4 onwards, we continue to make acquisitions where we see really good opportunities, and the addition of AlphaStream to the register and La Mancha exercising their anti-dilution right, I think has strengthened our shareholder register and exemplified the support that we have, so where we sit today, and particularly looking at current commodity prices, gold and copper principally relevant for us, we're in a very strong position to continue to go out there and really add value to shareholders through making new acquisitions.
And I know a lot of shareholders are on the call and have been supporting us, so thank you for your support, and for anyone new who's listening and looking at the company, we always make ourselves available to talk, and if you have any questions, please feel free to reach out. Thank you everyone for attending the call. I think this is, we did one in Q2, we did one in Q3, and I think part of this is an exercise in translating the accounts and making them simple to understand. We've got a few royalties that fall into different categories such as Caserones, but also part of it is trying to enable us to tell the story and communicate it better in terms of where the business is going, what the outlook is, and what we are, what we're planning to achieve.
And I think it also enables shareholders to ask us in Q4, in Q1 2025, you said you were going to do X on the previous quarterly call, where are you in terms of that? How are you executing on it? Where have you seen success? Where have you had issues? So I think the format of this call, I think it's helpful for us as a management team, but hopefully even more so for you as shareholders and those following the company. And as always, please feel free to reach out to us directly after this call if you have any follow-up questions or would like some more detail on aspects, and we'll always make ourselves available. Thank you all.