Altius Renewable Royalties Reports Fourth Quarter and 2021 Financial Results(1,2)

ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius Renewable Royalties Corp. (TSX: ARR) (OTCQX: ATRWF) (“ARR” or the “Company”), will file on SEDAR the financial results for the quarter and year ended December 31, 2021 today after market close with a conference call to follow on March 4, 2022 at 9:00 a.m. ET.

Brian Dalton, CEO of ARR, acknowledged, “The past year has been a truly transformative year for ARR and its 50%-owned joint venture GBR. In 2021, GBR invested over US$123 million in high-quality renewable energy projects and today owns or has royalty rights to 16 US-based hydro, wind and solar projects representing approximately 3 510MW. Mr. Dalton went on to comment, “Looking ahead to 2022, ARR is encouraged by the current growth in its pipeline of investment opportunities and its growing sense of acceptance of the benefits of its non-dilutive, partner-like funding structures. within the full spectrum of the renewable energy sector.

2021 Highlights

  • Following a successful initial public offering of 9,100,000 shares at C$11.00 per share and the subsequent exercise of an underwriters’ over-allotment option of 694,000 shares, ARR completed 2021 with 26,513,889 shares issued and outstanding of which Altius Minerals Corporation owns approximately 59%.

  • During the year, development partner Tri-Global Energy (“TGE”) sold five projects which provide gross revenue royalties in favor of Great Bay Renewables (“GBR”) bringing the total of royalties up to eight. now under the TGE agreement. Royalties created during the year include the 400 MW Honey Creek Solar Project, the 175 MW Appaloosa Wind Project, the 180 MW Hoosier Line Wind Project, the 200 MW Blackford Wind Project and the 150 MW Blackford Solar Project. MW. The acquirers of the project are NextEra Energy and Leeward Renewable Energy.

  • In August, GBR completed a US$35.0 million royalty investment with Longroad Energy (“Longroad”) related to Longroad’s 331 MWdp (250 MWac) Prospero 2 solar project located in Andrews County, Utah. Texas. Over two-thirds of Prospero 2’s planned power generation is contracted to Davita and Zimmer Biomet under fifteen-year contingent power purchase agreements, with the remainder of project energy to be sold in the ERCOT spot market. The project was placed in commercial service on August 2, 2021 and is operated by Longroad. The first royalty cash flow from this agreement began in January 2022.

  • In September, GBR completed a US$52.5 million royalty investment with Northleaf Capital Partners (“Northleaf”) related to three operations-stage renewable wind and solar energy projects located in Texas. Royalties acquired included the 150 MW Old Settler Wind Project, the 50 MW Cotton Plains Wind Project and the 15 MW Phantom Solar Project. Production from Cotton Plains and Phantom Solar is sold at a fixed price under long-term contracts with the US Department of Defense until January 2045, while production from Old Settler will be sold on the ERCOT market. . Royalty revenue from this acquisition began in the fourth quarter of 2021.

  • On December 31, 2021, development partner Apex Clean Energy (“Apex”) exercised a change-of-control option to repurchase the remaining residual royalty funding provided by GBR following its sale of a majority stake to Ares Capital . GBR retains three royalties collected under the Apex investment agreement; the 195 MW Jayhawk wind project, the 300 MW El Sauz wind project and an additional 500 MW wind project. The provisional redemption consideration, including a redemption premium, was approximately US$70 million, of which US$41.7 million was a cash payment, with the remainder representing an estimated value assigned to retained royalties pursuant to the ‘OK. Investments in Apex prior to the takeover consisted of US$35 million in March 2020 and an additional US$20 million in July 2021.

  • ARR, through its joint venture GBR, currently owns or has royalty rights to 16 renewable energy projects representing approximately 3,510 MW of U.S.-based hydro, wind and solar power generation projects, including including six operating-phase royalties totaling 665 MW of nameplate generation capacity. All royalties are well diversified by counterparty, contractual and market-based sales strategies and regional power pools.

Additional information on the Renewable Royalty portfolio, financial performance and operational highlights are further described in the Company’s public filings, including the MD&A and Financial Results Analysis.

Fourth quarter 2021 financial results

As of December 31, 2021, the Company held cash of US$49.3 million and a further US$42.7 million was held by the 50% owned joint venture GBR following the acquisition of Apex mentioned above. During the fourth quarter, the Company funded an additional US$5.2 million into GBR to primarily fund its share of TGE milestone payments and overhead.

For the quarter ended December 31, 2021, ARR reported revenue attributable(1)(2) of US$264,000 and a net loss of US$1.2 million. This compares to a net loss of US$1.4 million in the third quarter of 2021 and a net profit of US$904,100 in the fourth quarter of 2020, which included one-time gains associated with the Apollo transaction. In 2022, revenue of US$4.5-5.5 million for GBR is expected from six project royalties, while several more are expected to progress to operations and generate additional revenue in future periods.

Non-GAAP Financial Measures

  1. Management uses the following non-GAAP financial measures: attributable revenue, attributable royalty revenue and adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA).

  2. Management uses these measures to monitor the financial performance of the Company and its operating segments and believes that these measures enable investors and analysts to compare the financial performance of the Company with its competitors and/or to evaluate the results of its underlying activities. These measures are intended to provide supplemental information, not to replace measures in International Financial Reporting Standards (IFRS), and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute. performance measures prepared in accordance with IFRS. . Because these measures do not have any standardized meaning, they may not be comparable to similar measures provided by other companies. Further information about the composition and usefulness of each non-GAAP financial measure, including the reconciliation to their most directly comparable IFRS measures, is included in the Non-GAAP financial measures section of our report. management.

Conference call details

A conference call and webcast will be held on March 4, 2022 at 9:00 a.m. ET to provide an update and offer an open question and answer session for analysts and investors. The access details are as follows:


March 4, 2022


ARR Q4 2021 Financial Results Conference Call and Webcast, ID 9599187


1-866-521-4909 OR 1-647-427-2311


ARR Q4 2021 results

About ARR

ARR is a newly formed renewable energy company in the business of providing long-term, royalty-level investment capital to renewable energy developers, operators and originators. The company combines industry expertise with innovative, partner-focused solutions to drive the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

Forward-looking information

This press release contains forward-looking information. Statements are based on management’s reasonable assumptions and expectations and ARR makes no representation that actual events will meet management’s expectations. In some instances, forward-looking information may be identified by terms such as “plans”, “believes”, “could”, “estimates”, “expects”, “may”, “should”, “will” or “would do”. “. Although ARR believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Readers should not placing undue reliance on forward-looking information ARR does not undertake to update any forward-looking information contained herein, except in accordance with securities regulations.

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