August 4, 2021
Altius Renewable Royalties Corp. (TSX: ARR) (“ARR” or the “Company”), will file on SEDAR financial results for the quarter ended June 30, 2021 today after the close of trading with a conference call to follow August 5, 2021 at 9 am ET.
Q2 2021 Financial Results
The cash position of ARR at June 30, 2021 was US$78.0 million, after partial exercise of the underwriter overallotment in April 2021 for proceeds of US$6.1 million. The cash on hand is available to fund ongoing operations and deployment into renewable royalty opportunities with existing and new partners.
For the quarter ended June 30, 2021, ARR reported a net loss of US$682,500 and a net loss per share of US$0.03. This compares to a net loss of US$130,900 in Q1 2021, and a net loss of US$2.1 million in Q2 2020, when the Company was wholly owned by Altius Minerals Corporation. Most of the net loss in Q2 2020 was attributable to non-cash share-based compensation expenses of US$2.3 million. The majority of royalties created to date are on projects that remain at various stages of development and are therefore not yet providing royalty revenue.
Q2 2021 Business Highlights
• During the quarter, Tri Global Energy LLC (“TGE”) announced the sales of five renewable energy projects, which are:
o 180 MW Hoosier Line wind project (3% royalty)
o 400 MW Honey Creek solar project (1.5% royalty)
o 175 MW Appaloosa Run wind project (1.5% royalty)
o 200 MW Blackford Wind (3% royalty)
o 150 MW Blackford Solar (1.5% royalty)
• ARR, through its Great Bay Renewables joint venture, is now entitled to royalties on ten renewable energy projects representing approximately 2,245MW of solar and wind power in diverse geographies and with leading counterparties including Leeward Renewable Energy, Silverpeak, CIP, WEC Energy Group, and others. Please refer to the Management’s Discussion and Analysis (“MD&A”) for more detail.
• Subsequent to quarter end, on July 21, 2021, ARR announced the closing of a follow-on royalty investment of US$20 million with Apex, after initially providing US$35 million in March 2020. The investment was based on strong ongoing portfolio growth within Apex as well as increasing demand for the projects it is advancing towards sale status.
• On August 2, 2021 ARR announced the closing of a US$35 million royalty investment with Longroad Energy (“Longroad”) on its 331 MWdc (250MW AC) Prospero 2 solar project in Texas. This represents the first operating royalty investment that ARR has made, with annual revenue expected to commence in January 2022. Longroad is a top-tier developer, owner and operator of renewable energy projects, having developed over 60 renewable energy projects totaling over 6 GWs across North America.
“This past quarter was an excellent one in terms of execution against the key objectives we set out at the time our IPO earlier this year. At that time we flagged continued strong progress from our developer investee companies in selling projects on to final project sponsors with our royalties included as well asgrowth in the deployment of capital into new royalty finance structures at attractive returns. On both fronts we feel we are currently ahead of pace. Six new projects have been sold by Apex and TGE for a total of 1300 MW in the current year and a total of US$55 million has been deployed through Apex and Longroad with the latter representing our first investment into the capital structure of an operating stage project.”
Conference Call Details
A conference call and webcast will be held August 5, 2021 at 9:00 am ET to provide an update and to offer an open Q&A session for analysts and investors. Access details are as follows:
DATE August 5, 2021
EVENT ARR Q2 2021 Financial Results Conference call and webcast, ID 2874516
DIAL IN 1-866-521-4909 OR 1-647-427-2311
WEBCAST Q2 Financial Results
ARR is a recently formed renewable energy company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators, and originators. The Company combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.
For further information, please contact: