Altius Renewable Royalties Reports Strong Q3 Business Development Milestones

Rhea-AI Summary

Altius Renewable Royalties Corp. (OTCQX: ATRWF) is expected to file its financial results for Q3 2021 after market close on November 9, 2021. CEO Brian Dalton highlighted the quarter as significant due to the expansion of royalty financing in the U.S. renewable energy sector. The company deployed US$87.5 million in royalty financing during the quarter, marking its first two investments in operational projects. ARR's cash position as of September 30, 2021, stood at US$54.9 million, amidst a net loss of US$1.41 million.

Positive

• US$87.5 million in royalty financing deployed during Q3 2021.
• First revenue expected from Northleaf and Longroad transactions in Q4 2021 and Q1 2022.
• Acceleration of positive cash flow milestone to 2022.

Negative

• Net loss of US$1.41 million for Q3 2021, up from US$682,500 in Q2 2021.
• Royalty revenue not yet realized from most projects, impacting short-term financial metrics.

ST. JOHN’S, Newfoundland and Labrador--(BUSINESS WIRE)-- Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR” or the “Company”), will file on SEDAR financial results for the quarter ended September 30, 2021 today after the close of trading with a conference call to follow November 9, 2021 at 9 am ET.

Brian Dalton, CEO of ARR, commented as follows: “This was a very notable quarter in the business development history of ARR as adoption of our innovative royalty financing structures within the US renewable energy sector continued to expand. By closing our first two investments in operating stage assets, the potential addressable market for our royalty funding has widened dramatically, while demand for projects stemming from our developer funding initiatives also continued to be strong. As a result, the expected timeline to achieve the milestone of positive cash flow has been accelerated to 2022 - and increased our belief in the positive role we can play in supporting the clean energy transition.”

Q3 2021 Business Highlights

• A total of US$87.5 million in royalty-based financing was deployed during the quarter on operating stage projects by Great Bay Renewables (“GBR”), a joint venture company of ARR and funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) (“Apollo Funds”). As a result of these investments Apollo Funds completed its funding obligations to earn a 50% interest in the GBR joint venture and the partners have therefore begun to fund opportunities on an equal basis.
  • On August 3, 2021 ARR announced the closing of a US$35 million royalty investment with Longroad Energy (“Longroad”) relating to its 250 MW Prospero 2 solar project in Texas. This represented the first operating royalty investment made by GBR, with annual revenue contributions expected to commence in January 2022 using royalty rates that vary over time. 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.
  • On September 30, 2021 ARR announced the closing of a US$52.5 million royalty investment with Northleaf Capital Partners (“Northleaf”) related to the 150 MW Old Settler wind project, the 50 MW Cotton Plains wind project and the 15 MW Phantom Solar project. These three Texas based projects are all currently operational and began generating royalty revenue upon closing of the transaction. The royalty investment has been structured using royalty rates that vary over time and provide GBR with US$4-7 million per year over the first 10 years of the investment. Northleaf is a global private markets investment firm with US$17 billion in private equity, private credit, and infrastructure commitments under management.
• Construction activities continued to progress at the 195 MW Jayhawk wind project in Kansas with completion anticipated late in Q4 2021. A 2.5% royalty relating to this project was created and assigned to GBR upon its sale to WEC Energy and Invenergy earlier this year.
• During the quarter, a new developer financing-based royalty (2.5% of gross revenue) in favour of GBR was created on a 500 MW renewable energy project in Texas that is currently expected to issue notice-to-proceed in early 2022.
• Subsequent to quarter end, a new developer financing-based royalty (2.5% of gross revenue) in favour of GBR was created on a 300 MW renewable energy project in Texas.
• ARR, through its GBR joint venture, is now entitled to royalties on 16 renewable energy projects representing approximately 3,510 MW of US based wind and solar power generation projects that are well diversified by counterparty, contracted and market based sales strategies and regional power pools. Please refer to the Management’s Discussion and Analysis (“MD&A”) for additional royalty and project details.

Q3 2021 Financial Results

The cash position of ARR at September 30, 2021 was US$54.9 million, after pro-rata funding approximately US$22.7 million of new GBR investments during the quarter. 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 September 30, 2021, ARR reported a net loss of US$1,410,500 and a net loss per share of US$0.05. This compares to a net loss of US$682,500 in Q2 2021, and a net loss of US$349,700 in Q3 2020, when the Company was wholly owned by Altius Minerals Corporation. The majority of royalties created to date are on projects that are at various stages of development and are therefore not currently providing royalty revenue. However, the Northleaf and Longroad transactions (referenced above) are on operating assets with first revenue expected to be recorded in Q4 this year and Q1 next year, respectively. First revenue from a project royalty created through developer financing structures is also expected in 2022 upon commissioning of the Jayhawk wind project.

Conference Call Details

A conference call and webcast will be held November 9, 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			Nov 9, 2021
EVENT			ARR Q3 2021 Financial Results Conference call and webcast, ID 9493986
DIAL IN			1-866-521-4909 OR 1-647-427-2311
WEBCAST			ARR Q3 2021 Results

About ARR

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211108006125/en/

Flora Wood

Email: Flora@arr.energy

Tel: 1.877.576.2209

Direct: 1.416.346.9020

Ben Lewis

Email: Ben@arr.energy

Tel: 1.877.576.2209

Source: Altius Renewable Royalties Corp.

FAQ

What were Altius Renewable Royalties Corp’s financial results for Q3 2021?

Altius Renewable Royalties Corp. reported a net loss of US$1.41 million for Q3 2021.

When will Altius Renewable Royalties Corp. announce its Q3 2021 financial results?

Altius Renewable Royalties Corp. will announce its Q3 2021 financial results after the market closes on November 9, 2021.

What is Altius Renewable Royalties Corp's expected revenue timeline for Q4 2021?

The company expects to start generating revenue from Northleaf and Longroad transactions in Q4 2021.

What amount in royalty financing did Altius Renewable Royalties Corp. deploy in Q3 2021?

Altius Renewable Royalties Corp. deployed US$87.5 million in royalty financing during Q3 2021.

What is the cash position of Altius Renewable Royalties Corp. as of September 30, 2021?

Altius Renewable Royalties Corp. had a cash position of US$54.9 million as of September 30, 2021.