Altius Minerals Q2 Earnings Call Highlights

Altius Minerals (TSE:ALS) reported record royalty revenue in the second quarter of 2026, supported by higher realized commodity prices, copper stream delivery timing, new lithium royalties and increased electricity royalty revenue. The company also outlined a series of financing and ownership transactions completed during and after the quarter that increased its interest in Great Bay Renewables and expanded available liquidity.

Chief Financial Officer Stephanie Hussey said Altius recorded net earnings of C$8.6 million, or C$0.16 per share, for the quarter. Revenue gains were partly offset by higher cost of sales, general and administrative expenses, share-based compensation and amortization compared with the same period in 2025.

Royalty revenue totaled a record C$30 million, while adjusted EBITDA was C$23 million. Operating cash flow reached C$14 million, reflecting higher royalty receipts and interest income, offset by higher tax payments and working-capital changes. Adjusted net earnings were C$0.14 per share, with foreign exchange, derivative revaluations and non-recurring costs associated with the Lithium Royalty Corporation acquisition among the principal adjustments.

Capital Allocation and Liquidity

During the quarter, Altius invested US$12.4 million in ARR as its contribution toward the acquisition of Coles Wind, a 311-megawatt project in the construction stage. The company also acquired C$15 million of other investments, including positions in TNR Gold and Blue Moon.

Altius received C$42 million from its original investment in royalty capital funds controlled by Waratah capital. Hussey said those investments were made during the founding and early development of Lithium Royalty Corporation, and distributions were made to fund unit holders as the funds were wound up.

After quarter-end, the company completed a public offering of 3 million common shares at C$60.50 each, generating net proceeds of C$174 million. It also amended and expanded its credit facility to C$350 million from C$225 million. The former term and revolving facilities were replaced by a single revolving credit facility with no required principal payments. The maturity was extended to July 2030 from August 2028.

Altius transferred C$87 million of outstanding debt to the revised facility and drew an additional C$100 million at the end of July. Following the transactions, the company said it had approximately C$500 million of total liquidity, including cash, C$163 million available under the revolver and a potential C$150 million accordion feature, subject to facility conditions.

The board approved a 10% dividend increase to C$0.11 per share. The dividend is payable Sept. 15 to shareholders of record on Aug. 28.

Great Bay Renewables Stake Increased

On July 30, Altius completed an agreement with Northampton and Apollo that increased its effective interest in Great Bay Renewables, or GBR, to 50% from 29%. Northampton also increased its interest to 50% from 22%.

The transaction involved Northampton acquiring Apollo Funds’ 50% interest in GBR for US$390 million, while Altius acquired Northampton’s minority interest in ARR for US$167 million. Altius funded its purchase with cash on hand and debt.

Hussey said Altius expects to account for its 50% GBR ownership using the equity method rather than proportionately consolidating the joint venture.

Chief Executive Officer Brian Dalton said the electricity royalty portfolio now includes 16 operating projects and 15 projects in various stages of construction. He said the Coles Wind investment and project sanctioning and construction updates are contributing to an expected upward inflection in electricity royalty revenue.

Dalton said demand expectations for new U.S. electricity generation remain broad-based, while GBR continues to identify potential investment opportunities, particularly projects nearing production. In response to a question about data-center-driven demand forecasts, he said Altius expects generation capacity additions to remain insufficient to meet the more aggressive forecasts being cited, although he characterized the broader need for new generation as strong.

Commodity Portfolio Updates

Dalton said the company has raised its revenue estimates for its lithium segment over the next several years after receiving positive signals from operators regarding expansions, restarts and new projects. He said lithium demand growth continued to exceed expectations, driven by grid battery-storage deployment and electric-vehicle sales in certain regions amid oil-price volatility.

Vice President of Corporate Development and Head of Lithium Ernie Ortiz said Lithium-ion batteries remain the dominant battery chemistry despite increasing attention on sodium-ion technology. He cited research indicating global battery shipments of about 3 terawatt-hours this year, compared with approximately 10 gigawatt-hours for sodium-ion batteries.

Ortiz said energy-storage shipments are expected to grow 70% year over year and that lithium inventories are at cyclical lows. While noting lithium pricing remains volatile, he said prices were still nearly four times higher than a year earlier and that the company’s operators were progressing with expansions, new starts and restarts.

In base metals, Dalton cited Vale’s ramp-up progress at Voisey’s Bay, strong production at Chapada and Lundin’s investment to expand copper production through the Saúva discovery. He also pointed to construction progress at Curipamba and positive preliminary economic assessment results for the Gunnison Copper Project. Quarterly average copper and nickel prices each rose about 4% from the first quarter, he said.

Potash demand has remained strong across most regions, according to Dalton, with global consumption forecasts tightening toward the high end of prior ranges and benchmark prices strengthening. In iron ore, he said Altius expects feasibility-study results later this year for the Kami project, while lower production and higher capital investment at IOC continued to affect royalty revenue.

Dalton said Altius remains active in reviewing both renewable-energy and mining royalty opportunities. He said the company evaluates potential lithium investments on a project-specific basis and does not seek to increase commodity exposure solely for its own sake, with project quality, pricing and jurisdiction remaining central considerations.

About Altius Minerals (TSE:ALS)

Altius's strategy is to create per share growth through a diversified portfolio of royalty assets that relate to long life, high margin operations. This strategy further provides shareholders with exposures that are well aligned with global growth trends including increasing electricity-based market share within energy usage, global infrastructure build and refurbishment growth, increased EAF based steelmaking, steadily increasing agricultural fertilizer requirements and the enhanced appetite for financial asset diversification through precious metals ownership.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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