Elemental Altus Royalties Corp. Gains Strategic Growth with Tether Investments Stake Acquisition
- Elemental Altus Royalties Corp. strengthens growth with Tether Investments acquiring 31.9% stake for C$1.55 per share.
- Tether's backing enhances Elemental's market positioning and supports its disciplined growth strategy in the gold royalty sector.
- Elemental projects significant revenue growth, aiming for US$30.1 million to US$34.3 million by 2025, with zero debt.
Elemental Altus Royalties Corp Welcomes Major Stakeholder in Strategic Growth Initiative
Elemental Altus Royalties Corp., a key player in the global mining royalty sector, strengthens its growth potential with the recent acquisition of a significant stake by Tether Investments S.A. de C.V. This strategic move sees Tether acquiring 78,421,780 common shares from La Mancha Investments at C$1.55 per share, representing approximately 31.9% of Elemental's outstanding shares. With Tether now holding a total of about 33.7% of the company, this partnership is poised to enhance Elemental's market positioning in a rapidly evolving industry. The deal signals Tether's commitment to investing in real-world assets, aligning with Elemental's focus on acquiring uncapped royalties and streams over producing or near-producing mines.
Frederick Bell, CEO of Elemental Altus, expresses enthusiasm about the collaboration, emphasizing Tether's robust support for the company's ambitious growth strategy. The partnership is viewed as a significant endorsement of Elemental’s disciplined approach to navigating the complexities of the gold royalty sector amid an uncertain global economic landscape. Tether's CEO, Paolo Ardoino, also underscores the investment as part of Tether's broader strategy to empower financial growth through real assets, reinforcing the synergy between the two companies. With Tether's backing, Elemental is well-positioned to leverage its diversified portfolio, which includes eleven producing royalties, to appeal to a growing base of investors seeking stability and reduced risk in their investment choices.
In addition to Tether’s current stake, the company has an option agreement with AlphaStream Limited to acquire an additional 34,444,580 common shares. Should this option be exercised, Tether's ownership in Elemental could rise to 47.7%, further solidifying its influence within the company. This potential increase in ownership not only enhances Tether's position but also signals confidence in Elemental's operational strategy, which anticipates significant revenue growth in the coming years. With projections of adjusted revenues between US$30.1 million and US$34.3 million in 2025, Elemental Altus is committed to maintaining its trajectory of robust cash generation and value creation for shareholders.
As Elemental Altus Royalties Corp. looks ahead, the company’s strategic focus on high-quality, revenue-generating royalties positions it favorably for sustained growth. With zero debt and a strong cash-generating portfolio, including a recent cash growth of US$6.6 million from its Kola-Sud royalty, Elemental demonstrates operational flexibility and resilience. The company also has access to over US$50 million in non-dilutive capital, including an undrawn credit facility, enabling it to navigate market fluctuations effectively while pursuing organic growth opportunities. This strategic alignment with Tether reaffirms Elemental's commitment to enhancing shareholder value and securing a leading position in the gold royalty market.
