Disclosure: Bullpen receives compensation from Altius Minerals for research coverage.

Altius Minerals (ALS) reported a strong Q2, with attributable royalty revenue increasing 137% Y/Y to a record $30M…

… which flowed through to profitability, with adjusted EBITDA margins expanding 390 bps sequentially and 1,820 bps Y/Y to ~78% - a trend we expect will continue…

… as contributions from mine expansions, new starts, a healthy renewable energy construction pipeline, and future capital deployment fuel royalty momentum.

In minerals, lithium is the primary near-term growth driver - with management revising estimates upwards on indicated project expansions, restarts, and new builds…

… which should be balanced by renewable energy, with the company’s 50% stake in GBR set to benefit from the delivery of 2.3 GW under construction and strong deal flow.

With $500M of available liquidity after a recent $182M equity raise and $125M increase to the credit facility, Altius has ample funding capacity for new deals…

… in both renewable energy and minerals, with management highlighting attractive opportunities in both - which represent upside to our estimates in the full report:

Altius Q2-26 Earnings.pdf

Altius Q2-26 Earnings

644.27 KB • PDF File

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…