Vancouver - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ('Elemental' or 'the Company') today announced that it expects an approximate 40% increase in successive quarterly revenue from production at the Karlawinda Gold Mine in Australia ('Karlawinda'), Elemental's flagship royalty asset.
Revenue from Karlawinda, one of six Elemental royalties on producing assets, is estimated at US$1.1 million for the quarter ended December 31, 2021, up approximately 40% from US$0.8 million in the quarter ended September 30, 2021, which was Karlawinda's first quarter of commercial production and sales.
Elemental's anticipated revenue from Karlawinda is based on the recently disclosed December 2021 quarterly report from Capricorn Metals Ltd. ('Capricorn'), owner and operator of the mine. Capricorn announced steady-state operations at Karlawinda after initiating commercial production in the quarter ended September 30, 2021.
Karlawinda's gold production for the quarter ended December 31, 2021 was 30,316 ounces, up approximately 25% from 24,329 ounces in the prior quarter. Gold sales totaled 30,835 ounces, up approximately 40% from 21,964 ounces in the prior quarter. Karlawinda had a further 1,020 ounces of gold on hand at the end of the December 31, 2021 quarter. Elemental has a 2% uncapped net smelter return royalty on Karlawinda's gold sales.
Elemental expects to disclose in February a trading update for the fourth quarter and year ended December 31, 2021. These results will include revenue from its royalty on Karlawinda and on Elemental's other producing royalties.
Other Karlawinda Highlights
Low cash costs1 of US$607 per ounce and all in sustaining costs1 of US$756 per ounce
Ore stocks doubled to 38,000 ounces in the December quarter and mining volumes are expected to increase in the March 2022 quarter with a third mining fleet now onsite
Commissioning of additional two carbon-in-leach ('CIL') tanks completed in December quarter expected to have further positive impact on recoveries, which are already in line with expectations at 91.3%
Contact:
Tel: 1- 888-777-2158
Email: inquiries@morrowsodali.com
About Elemental Royalties
Elemental is a gold-focused royalty company listed on the TSX Venture Exchange (the 'TSX-V') in Canada and provides investors with lower risk precious metals exposure through a portfolio of nine high-quality royalties. This enables investors to benefit from ongoing royalty revenue, future exploration upside and low operating costs. Elemental's experienced team seeks to secure royalties in advanced precious metals projects, run by established operators, from its pipeline of identified opportunities.
Non-IFRS Measures
1 Elemental has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards ('IFRS'). The Company's royalty revenue is converted to an attributable gold equivalent ounce basis by dividing the royalty revenue received in a period by the average gold price for the same respective period. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental and maybe subject to uncertainty. There can be no assurance that such information is complete or accurate. Elemental has used an exchange rate for conversion of Australian dollars (A$) into U.S. dollars of US$1.00 = A$1.38.
Information regarding Karlawinda
This press release includes information relating to Karlawinda. This information was derived from information publicly disclosed by Capricorn, the owner of Karlawinda. The Company has not independently verified, and does not assume any responsibility for, the accuracy or completeness of the information regarding Karlawinda contained in any such documents disclosed by Capricorn.
Cautionary note regarding forward-looking statements
This release contains certain 'forward looking statements' and certain 'forward-looking information' as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as 'may', 'will', 'should', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'continue', 'plans' or similar terminology (including negative and grammatical variations).
Forward-looking statements and information include, but are not limited to, statements with respect to: the increase in successive quarterly revenue from production at the Karlawinda; the timing of the Company's a trading update for the fourth quarter and year ended December 31, 2021; the increase in mining volumes at Karlawinda and the timing of such increase; the impact of the CIL tanks on recoveries at Karlawinda; the Company recommendation to shareholders regarding Gold Royalty's unsolicited, conditional all-share Offer; the availability of new royalty and other opportunities and the timing thereof; the availability of alternative strategic options for the Company and whether such options represent greater value to Elemental's shareholders; whether any takeover or change of control transaction involving the Company will occur and/or be completed and as to the timing thereof. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies, including assumptions regarding the continuation of mining operations at Karlawinda and the results of those operations and as to the mining operations at Karlawinda operating in accordance with disclosed parameters. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental to control or predict, that may cause Elemental's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the requirement for regulatory approvals and third party consents; the impact of general business and economic conditions; the absence of control over the mining operations from which Elemental will receive royalties, including risks related to international operations, government relations and environmental regulation; the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Elemental's expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; potential liability; the impact of competition; the loss of key employees and other related risks and uncertainties. Elemental undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
ELEMENTAL ALTUS ROYALTIES CORP. 
