Category: Canada

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MONTREAL, Nov. 14, 2024 (GLOBE NEWSWIRE) — Osisko Metals Incorporated (the “Company” or “Osisko
Metals”) (TSX-V:
OM; OTCQX:
OMZNF; FRANKFURT:
0B51) is pleased to announce an updated Mineral Resource Estimate (“MRE”) for the Gaspé Copper Project, located near Murdochville in the Gaspé Peninsula of Quebec.

The updated MRE (Table 1) includes pit-constrained resources comprising 824 million tonnes grading 0.34% CuEq of Indicated category and 670 million tonnes grading 0.38% CuEq of Inferred category. This MRE represents a 53% increase in copper-equivalent metal content over the previously reported Indicated Resource and a 100-fold increase in copper-equivalent metal content in Inferred Resources (see May 6, 2024 news release and entitled “2024 Copper Mountain Mineral Resource Estimate”).

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At 4.91 billion pounds (2.23 million tonnes) of contained copper (Table 1), as well as significant molybdenum (274 million pounds) and silver (46.0 million ounces), the latest Gaspé Copper in-pit Indicated Resource hosts by far the largest undeveloped copper-molybdenum deposit in Eastern North America, exclusive of Inferred resources.

Robert Wares, CEO & Chairman, commented: “We are very proud to announce this updated resource estimate for Gaspé Copper. The overall resource has increased dramatically since last spring’s MRE as a result of new geological modelling and extending the modelled Whittle pit boundaries towards Needle Mountain to the south. A minimum 70,000 metre drill program is now planned for 2025, with the objective of converting the bulk of the current Inferred resource to Indicated category. There is also excellent potential for converting currently categorized in-pit waste rock to mineralized material with this drill program, which would further grow the in-pit resource while reducing the strip ratio. This MRE represents a much larger resource than was estimated previously, presenting the potential for a bulk tonnage mining operation with significantly higher throughput. Given this new resource milestone, management has elected to defer the PEA, originally slated for release in Q1 2025, to a later date until additional new drilling is completed. Ongoing studies will focus on a larger-scale mine plan and relocation of the mill complex away from the current site.”  

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Mr. Wares continued: “We are proud to be leading the Gaspé Copper project, which is shaping up to be a major Canadian copper-molybdenum development project located in one of the world’s safest mining jurisdictions. This important asset has the potential to become a core component of Québec’s critical mineral development strategy that aims to provide essential metals for global decarbonization initiatives.”

Table 1: Mineral Resource Estimate (MRE) Base Case at 0.12% Copper Cut-off

1. The independent qualified persons for the MRE, as defined by National Instrument (“NI”) 43-101 guidelines, is Pierre-Luc Richard, P.Geo., of PLR Resources Inc. with contributions from François Le Moal, P.Eng., of G-Mining for cut-off grade and Pit shell optimization, and Christian Laroche, P.Eng., from Synectic, for metallurgical parameters. The effective date of the MRE is November 4, 2024.
2. These Mineral Resources are not mineral reserves as they have no demonstrated economic viability. No economic evaluation of these Mineral Resources has been produced. The quantity and grade of reported Inferred Resources in this MRE are uncertain in nature and there has been insufficient drilling to define these Inferred Resources as Indicated. However, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated category with additional drilling.
3. The Qualified Persons are not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, financial or other relevant issues that could materially affect the MRE.
4. Calculations used metric units (metres, tonnes). Metal contents in the above table are presented in percent, pounds or tonnes. Metric tonnages and pounds were rounded, and any discrepancies in total amounts are due to rounding errors.
5. CIM definitions and guidelines for Mineral Resource Estimates have been followed. See Cautionary Note below for copper equivalency (CuEq) values.

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This significantly larger resource estimate is the result of:

1. Geological re-interpretation of the mineralized system, whereby most of the mineralized stratigraphic units above the base of the C-Zone skarn, including up-dip extensions toward Needle Mountain, were included in the resource model;
2. Extension of the Whittle pit model to the south towards Needle Mountain, eliminating the possibility of a potential mill complex on the site of the original Gaspé Copper mill. Two other sites for the potential mill are now under consideration, and
3. Lowering of cut-off grade from 0.15% Cu to 0.12% Cu on the basis of potentially larger mine throughput and replacement of SAG mill by HPGR in the grinding circuit.

Potential for resource expansion

Building upon the information released in this updated MRE, a minimum 70,000 metre drill program is planned to commence in May 2025 that will aim to 1) convert Inferred resources to Indicated category by reducing drill spacing to 100 metres or less within the pit volume, 2) better define higher-grade (0.5 to 1.5% % Cu) mineralization within pit boundaries in the B-Zone and C-Zone skarn horizons, 3) extend up-dip, shallower B-Zone and C-Zone skarn mineralization (near Needle Mountain) beyond current pit boundaries and 4) test shallower (above 600 m depth) portions of the high grade (2%-3% Cu) E-Zone skarn for inclusion into the pit volume.

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Implications of larger open pit resource at Gaspé Copper

The current modelled Whittle pit shell extends from the current flooded Copper Mountain pit towards the base of Needle Mountain to the south. Further drilling, geological modelling and pit optimization will be required to refine pit boundaries. The Company will evaluate future pit limits and the possibility of reconfiguring the current layout of the site to minimize disturbance and ensure the protection and safety of the residents of Murdochville and the surrounding environment.

General parameters of the updated Mineral Resource Estimate

This MRE is pit-constrained and includes stockwork mineralization surrounding the past-producing Copper Mountain open pit mine as well as disseminated, stratiform mineralization in both skarn and potassic-altered hornfels (porcellanite) that extends up-dip from Copper Mountain towards Needle Mountain to the south.

The MRE uses, amongst other parameters, a long-term price of US$4.00/lb copper, a lower cut-off of 0.12% Cu for pit shell modelling and a lower cut-off grade of 0.12% copper for base case in-pit resource estimation. The resource was estimated using data from historical drilling completed between the 1950s and 2019 and 42,100 metres of drilling completed by the Company between 2022 and 2024 (see Appendix for detailed parameters).

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Mineral Resource Sensitivity

Table 2 shows the resources reported at various in-pit cut-off grades within a pit shell modelled at a lower cut off of 0.12% Cu; the base case resource cut-off grade reported herein is 0.12% copper and is highlighted in bold text:

Table 2: Mineral Resource Estimates at Variable Cut-Off Grades

_{Same footnotes as Table 1 apply to this table.}

Appendix – parameters and criteria used for the Mineral Resource Estimate (MRE)

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• General Whittle pit parameters used for the Mineral Resource Estimate include:

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• Resources are presented as undiluted and in situ for an open-pit scenario and are considered to have reasonable prospects for economic extraction. The constraining pit shell was developed using overall pit slopes of 48 degrees in bedrock and 20 degrees in overburden. The pit optimization to develop the resource-constraining pit shells was performed using Geovia Whittle 2022 software.
• The MRE wireframe was prepared using Leapfrog Edge v.2024.1.1 and is based on 1946 drill holes and 58,842 samples. The drill hole database includes recent drilling totalling 67,742 metres in 125 drill holes (Xstrata 2011-2012, Glencore Canada 2019 and Osisko Metals 2022-2024) and also incorporates historical drill holes totalling 519,435 metres in 1,863 drill holes (Noranda 1998 and earlier). Drill hole data verification was performed by verifying the coherence of the information but not its correctness; original logs and laboratory certificates were only available for 2011, 2012, 2019, 2022, 2023 and 2024 drill holes. The cut-off date for the drill hole database was November 4, 2024.
• Composites of 5 to 10 metre lengths were created inside the mineralization volumes. A total of 26,499 composites were generated. High-grade capping was done on the composited assay data; composites were capped from 0.80% to 2.40% for Cu, from 0.10 to 0.20% for Mo, and from 3 to 10g/t for Ag in the stockwork zones, at 1.10% for Cu, 0.12% for Mo, and 5g/t for Ag in the Porphyry, and from 1.00% to 6.00% for Cu, from 0.01 to 0.50% for Mo, and from 5 to 20g/t for Ag in the skarn zones. A restricted search capping approach was also applied to the main skarn zone for Molybdenum and Silver.
• Pit-constrained Mineral Resources for the base case are reported at a lower cut-off grade of 0.12 % Cu in sulfide within a conceptual pit shell based on a 0.12% Cu lower cut-off. The cut-off grades will be re-evaluated on an ongoing basis in light of future prevailing market conditions and costs.
• Contained copper in the resource includes sulfide copper only and soluble copper was ignored. It was assumed for this MRE that only the copper contained in sulfides could have economical potential. Therefore, the soluble copper that is present as oxides and carbonates was removed and significant oxidized zones are all located in the south-west portion of the deposit. The proportion of the copper contained as soluble copper relative to sulfides is correlated to the depth of the mineralization. Therefore, depth from the original topographic surface was modeled and used to estimate the percentage of copper that would be contained as soluble copper within the MRE.
• Specific gravity values were estimated using data available in the historical drill holes. Values were interpolated for most of the mineralized solids and a fixed value was used where the scarcity of the data did not allow for interpolation; the average value is 2.77 tonnes/cubic metre. Surrounding barren lithologies were assigned the average specific gravity value from all measured samples.
• The modelled base case pit shell measures 700 X 2,000 metres and reaches a maximum depth of approximately 800 metres.
• Grade model resource estimation was calculated from drill hole data using an ordinary kriging (OK) interpolation method in a sub-blocked model using blocks measuring 10m x 10 m x 10 m in size and sub-blocks down to 1.25 m x 1.25 m x 1.25 m. Blocks were then regularized to 20 m x 20 m x 10 m.
• The Indicated and Inferred Mineral Resource categories are constrained to areas where drill spacing is less than 100 metres and 300 metres, respectively, and show reasonable geological and grade continuity.

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Cautionary Statement Regarding Copper Equivalent Grades

Copper Equivalent grades are expressed for purposes of simplicity and are calculated taking into account: 1) metal grades; 2) estimated long-term prices of metals: US$4.00/lb copper, $20.00/lb molybdenum and US$24/oz silver; 3) estimated recoveries of 92%, 70% and 70% for Cu, Mo and Ag respectively; and 4) net smelter return value of metals as percentage of the price, estimated at 86.5%, 90.7% and 75.0% for Cu, Mo and Ag respectively.

Cautionary Statement Regarding Mineral Resources

The mineral resources disclosed in this news release conform to standards and guidelines in National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and were prepared by independent qualified persons for purposes of NI 43-101. The above-mentioned mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological data is sufficient to imply but not verify geological grade and/or quality of continuity. An Inferred Mineral Resource has a lower level of confidence relative to a Measured or Indicated Mineral Resource and constitutes an insufficient level of confidence to allow conversion to a Mineral Reserve. It is reasonably expected, but not guaranteed, that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resources with additional drilling. The technical report prepared in accordance with NI 43-101, including the mineral resources for the Gaspé Copper Project contained in this news release, will be delivered and filed on SEDAR+ (www.sedarplus.ca) under Osisko Metals’ issuer profile within 45 days of the date of this news release.

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Qualified Persons

The Mineral Resource Estimate and other scientific and technical information in this news release has been prepared and approved by independent qualified persons for purposes of NI 43-101: Pierre-Luc Richard, P.Geo., of PLR Resources Inc. with contributions from François Le Moal, P.Eng., of G-Mining for cut-off grade and Pit Shell optimization and Christian Laroche, P.Eng., from Synectiq, for metallurgical parameters.

About Osisko Metals

Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals sector, with a focus on copper and zinc. The Company is in joint venture with Appian Capital Advisory LLP to advance one of Canada’s largest zinc mining camps, the Pine Point Project, located in the Northwest Territories, for which current mineral resources have been calculated for the 2024 MRE (as defined herein). The project is owned by the joint venture Pine Point Mining Limited. The current mineral resource estimate consists of 49.5 Mt at 5.52% ZnEq of Indicated Mineral Resources and 8.3 Mt at 5.64% ZnEq of Inferred Mineral Resources (in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects; see Osisko Metals’ June 25, 2024, news release entitled “Osisko Metals releases Pine Point mineral resource estimate: 49.5 million tonnes of indicated resources at 5.52% ZnEq”). The Pine Point project is located on the south shore of Great Slave Lake, Northwest Territories, close to infrastructure, with paved road access, an electrical substation and 100 kilometers of viable haul roads.

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In addition, and aside from the Pine Point joint venture, the Company acquired in July 2023, from Glencore Canada Corporation, a 100% interest in the former Gaspé Copper mine, located near Murdochville in Québec’s Gaspé Peninsula. The company is currently focused on resource expansion of the Gaspé Copper system, which includes this updated mineral resource as well as the previously released resource comprising Indicated Mineral Resources of
495 Mt grading 0.37% CuEq and Inferred Mineral Resources of 6.3 Mt grading 0.37% CuEq (in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects); see May 6, 2024 news release entitled “Osisko Metals Announces Updated Mineral Resource Estimate at Mines Gaspé – Indicated Resources of 495 Mt at 0.37% CuEq”). Gaspé Copper hosts the largest undeveloped copper resource in eastern North America, strategically located near existing infrastructure in the mining-friendly province of Quebec.

For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chairman & CEO of Osisko Metals Incorporated
Email: info@osiskometals.com
www.osiskometals.com

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Follow Osisko Metals on Facebook at https://www.facebook.com/osiskometals/,
on LinkedIn at https://www.linkedin.com/company/osiskometals/,
and on X at https://twitter.com/osiskometals.

Cautionary Statement on Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This news release may contain forward-looking information pertaining to the Pine Point and Gaspé Copper Projects, including, among other things, the significance of the results described in this news release (which have not yet been included in a technical report prepared in accordance with NI 43-101); the parameters used in the MRE presented in this news release; the planned drill program; the ability of the Company (if at all) to upgrade the current inferred mineral resources; the potential for bulk tonnage mining operations (if at all); the timing for publishing a PEA; the ability of the Company to realize a larger-scale mine plan and relocate the mill complex; global decarbonization initiatives; the extension of the Whittle pit model; the potential for resource expansion (if at all); the implications of a larger open pit resource; the general parameters of the updated MRE being variables that are subject to a number of assumptions and variables beyond the Company’s control; the ability to identify additional resources and reserves (if any) and exploit such resources and reserves on an economic basis; the expected high quality of the metal concentrates; the potential economic impact of the projects on local communities, including but not limited to the potential generation of tax revenues and contribution of jobs;; Gaspé Copper hosting the largest undeveloped copper resource in Eastern North America and Glencore being a Control Person of the Company.

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Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: the ability of exploration results, including drilling, to accurately predict mineralization; errors in geological modelling; insufficient data; equity and debt capital markets; future spot prices of copper, zinc, lead and molybdenum; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; political and regulatory stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of mining equipment and positive relations with local communities and groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company’s public disclosure record on SEDAR+ (www.sedarplus.ca) under Osisko Metals’ issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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Annual Recurring Revenue (ARR) ⁽¹⁻²⁾ up 25% YoY to $53.5 million 
Total Revenue up 25% YoY to $16.5 million 
Adjusted EBITDA ⁽²⁾ up 33% YoY to $4.6 million

TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) — Vitalhub Corp. (the “Company” or “VitalHub”) (TSX:VHI) (OTCQX:VHIBF) announced today it has filed its Interim Condensed Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and nine months ended September 30, 2024, with the Canadian securities authorities. These documents may be viewed under the Company’s profile at www.sedarplus.com.

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“We are pleased to report strong third quarter 2024 results, continuing our path of driving stable revenue and cash flow growth,” said Dan Matlow, CEO of VitalHub. “Financial highlights include $16.5 million of revenue, 28% adjusted EBITDA ⁽²⁾ margin, and $1.1 million of sequential net new organic ARR ⁽¹⁻²⁾ in the seasonally quieter summer quarter. We are continuing to build on the success of our diversified portfolio, from a product and geographic perspective.”

“Subsequent to the quarter, we closed the acquisitions of MedCurrent and Strata Health, bringing our third quarter 2024 pro forma ARR ⁽¹⁻²⁾ to $68.0 million. Both of these acquisitions expand the functionality of our patient flow platform. The technologies are innovative and will increase our growth potential as healthcare systems increasingly embrace digitization.”

“Inclusive of these transactions, we closed the quarter with a September 30, 2024 pro forma cash balance of over $50 million and no debt. In combination with our stable quarterly cash generation, we are in a strong position to continue on our M&A path. We have record activity in our deal pipeline. We will continue to exercise discipline to transact only on the opportunities that enhance the value of the VitalHub suite for our healthcare partners and our shareholders.”

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VitalHub’s quarterly investor conference call will take place on Thursday, November 14, 2024, at 9:00AM EST.

To register for the call, please visit:

https://us06web.zoom.us/webinar/register/WN_b6XzLByVR0yOqO4IN-9UiQ

Third Quarter 2024 Highlights

• Revenue of $16,509,135 as compared to $13,224,264 in the equivalent prior year period, an increase of $3,284,871 or 25%.
• Gross profit as a percentage of revenue was 81% compared to 82% in the equivalent prior year period.
• ARR ⁽¹⁻²⁾ at September 30, 2024 was $53,452,108 as compared to $51,283,570 at June 30, 2024, an increase of $2,168,538 or 4%.
  • ARR ⁽¹⁻²⁾ growth was due to organic growth of $1,081,181 or 2%, and an increase of $1,087,357 or 2% due to the fluctuations in foreign exchange rates during the quarter.

• Net income before income taxes of $2,360,258 as compared to net income before income taxes of $1,820,543 in the equivalent prior year period, an increase of $539,715 or 30%.
• EBITDA ⁽²⁾ of $3,004,034 compared to $2,928,358 in the equivalent prior year period, an increase of $75,676 or 3%.
• Adjusted EBITDA⁽²⁾ of $4,554,597 or 28% of revenue, compared to $3,411,871 or 26% of revenue in the equivalent prior year period, an increase of $1,142,726 or 33%.
• On October 4, 2024, the Company acquired all of the issued and outstanding shares of MedCurrent Corporation and its subsidiaries (“MedCurrent”). MedCurrent integrates evidence-based guidelines at the point of care, serving over 80 customers in Canada, the UK, the US, and Australia. Total closing consideration for the acquisition was $8.3 million in cash after working capital adjustments.
• On October 29, 2024, the Company acquired all of the issued and outstanding shares of Strata Health Solutions Inc. (“Strata Health”). Strata Health designs, builds, and deploys software that improves access and navigation to care for customers internationally. Total closing consideration for the acquisition was $32.3 million, composed of a cash payment of $18.6 million and the issuance of 1,480,726 common shares of VitalHub.
• With the addition of the ARR⁽¹⁻²⁾ of MedCurrent and Strata Health subsequent to the quarter, the Company’s pro forma ARR ⁽¹⁻²⁾ would be approximately $68.0 million.

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Nine Month 2024 Highlights

• Revenue of $48,003,531 as compared to $38,904,879 in the equivalent prior year period, an increase of $9,098,652 or 23%.
• Gross profit as a percentage of revenue was 81% compared to 81% in the equivalent prior year period.
• ARR ⁽¹⁻²⁾ at September 30, 2024 was $53,452,108 as compared to $42,612,166 at September 30, 2023, an increase of $10,839,942 or 25%.
  • ARR ⁽¹⁻²⁾ growth was primarily due to organic growth of $5,826,248 or 14%, acquisition growth of $3,311,500 or 8%, and a gain of $1,702,194 or 4% due to fluctuations in foreign exchange rates.

• Net income before income taxes of $5,722,758 as compared to net income before income taxes of $3,343,487 in the equivalent prior year period, an increase of $2,379,271 or 71%.
• EBITDA ⁽²⁾ of $8,075,502 compared to $6,895,569 in the equivalent prior year period, an increase of $1,179,933 or 17%.
• Adjusted EBITDA ⁽²⁾ of $12,793,514 or 27% of revenue, compared to $9,305,973 or 24% of revenue in the equivalent prior year period, an increase of $3,487,541 or 37%.
• Cash on hand at September 30, 2024 was $81,438,615 compared to $33,480,018 as at December 31, 2023.
  • The increase is primarily due to a bought deal offering of approximately $37 million in net proceeds, plus cash generated from operations.
• Cash from operations before changes in working capital was $8,135,174 as compared to $8,536,603 for the same period last year.

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^{(1) The Company defines annual recurring revenue (“ARR”) as the recurring revenue expected based on yearly subscriptions of the renewable software license fees and maintenance services.
(2) Non-IFRS measure. Disclaimers and reconciliations can be found in SEDAR filings.}

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About VitalHub

Software for Health and Human Services providers designed to simplify the user experience and optimize outcomes.

VitalHub is a leading software company dedicated to empowering Health and Human Services providers. Our clients include hospitals, regional health authorities, mental health and addictions services providers for children and adults, long-term care facilities, home health agencies, correctional services, and community and social services providers. 

VitalHub’s comprehensive suite of SaaS solutions include:

• Electronic Health Record (EHR), Case Management, Care Coordination, and Optimization
• Patient Flow, Operational Visibility, and Patient Journey Optimization
• Workforce Automation

The Company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive M&A plan. Currently VitalHub serves more than 1,000 clients across Canada, USA, UK, Australia, the Middle East, and Europe.

VitalHub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The VitalHub team comprises more than 500 team members globally. The Company is publicly traded on the Toronto Stock Exchange (TSX) under the symbol “VHI” and on the OTC Markets OTCQX Exchange under the symbol “VHIBF”.

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https://www.vitalhub.com/

Contact Information

Christian Sgro, CPA, CA, CFA
Head of IR and M&A Specialist
(416) 277-3776
christian.sgro@vitalhub.com

Dan Matlow
Chief Executive Officer, Director
(416) 727-9061
dan.matlow@vitalhub.com

Cautionary Statement

Certain statements contained in this news release may constitute “forward-looking information” or “financial outlook” within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “is expected”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

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VANCOUVER, British Columbia, Nov. 13, 2024 (GLOBE NEWSWIRE) — B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) (“B2Gold” or the “Company”) is pleased to announce positive exploration drilling results from its 2024 drilling campaign at the Goose Project, part of the Back River Gold District in Nunavut, Canada. All dollar figures are in United States dollars unless otherwise indicated.

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For 2024, B2Gold approved a $28 million exploration budget to complete approximately 25,000 meters (“m”) of drilling on the Back River Gold District, including confirmation drilling at the Umwelt deposit, as well as exploration drilling at several Goose Project regional targets that were developed based on structural modelling and geophysical re-processing.

As of November 7, 2024, B2Gold had completed 25,126 m of drilling over 68 drill holes at the Goose Project, including 14,480 m over 40 drill holes at the Umwelt deposit, 3,899 m over 14 drill holes at the Llama deposit area, 6,610 m over 13 exploration target drill holes, and 137 m over one metallurgical hole at the Goose Main deposit. Significant drill hole locations from 2024 are shown on the map in Figure 1.

Goose Project Drill Results
Highlights

• Exploration drilling intersected high-grade mineralization 1,000 m west and down plunge of the Goose Main deposit at the Goose Project’s Nuvuyak deposit
  • Drill hole 24GSE-683Z1 returned 6.39 grams per tonne (“g/t”) gold over 28.80 m from 982.20 m, including a higher-grade interval of 23.49 g/t gold over 6.45 m and 4.66 g/t gold over 20.94 m from 1,037.16 m, including 8.60 g/t gold over 9.62 m; and
  • This result demonstrates the continuity of high-grade zones within the Nuvuyak deposit by extending high-grade gold mineralization approximately 150 m to the north-northwest.
• Exploration drilling also intersected high-grade mineralization at the Mammoth target 450 m up plunge of the Nuvuyak deposit towards the Goose Main deposit
  • Mammoth drill hole 24GSE-687Z1 returned 17.45 g/t gold over 10.96 m from 837.14 m, including a higher-grade interval of 68.61 g/t gold over 2.51 m;
  • Mammoth drilling tested down plunge of the fold between the Nuvuyak deposit and the Hook target; and
  • This result demonstrates that the Nuvuyak and Mammoth zones have strong potential for future underground mining.
• The Nuvuyak deposit and Mammoth target are not included in the existing Goose Project mine plan; these exploration results demonstrate potential to further increase Mineral Resources and extend the mine life at the Goose Project

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• Drill
  results
  for
  infill
  and
  mine
  development at
  the
  Goose
  Project’s
  Umwelt deposit
  confirm
  the
  continuity
  of
  high-grade gold mineralization,
  with
  several
  drill
  holes
  returning intercepts
  with
  higher
  gold grades
  and
  widths
  than
  predicted
  by
  the existing mineral
  resource
  model
  • Drill hole 24GSE-671 returned 27.28 g/t gold over 11.10 m from 457.80 m;
  • Drill hole 24GSE-675 returned 19.63 g/t gold over 15.95 m from 389.85 m;
  • Drill hole 24GSE-677Z3 returned 9.27 g/t gold over 13.58 m from 664.25 m;
  • Drill hole 24GSE-681 returned 11.18 g/t gold over 15.50 m from 779.45 m;
  • Drill hole 24GSE-684B returned 29.49 g/t gold over 22.79 m from 332.25 m; and
  • Drill hole 24GSE-685 returned 10.51 g/t gold over 21.45 m from 306.00 m.

• Exploration drilling intersected high-grade gold mineralization 530 m down plunge from the estimated open pit boundary at the Goose Project’s Llama deposit
  • Drill hole 24GSE-663 returned 14.34 g/t gold over 27.95 m from 406.05 m, including a higher-grade interval of 54.17 g/t gold over 6.00 m and 205.00 g/t gold over 0.80 m, at a vertical depth of 370 m, which tested an area of limited drilling 530 m down plunge from the Llama open pit; and
  • This result demonstrates the down plunge continuity of gold grades and widths of these mineralized structures, and the Llama deposit remains open at depth.

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Figure
1.
Goose Project Drill Hole Locations.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ed2d9455-caf1-48af-b959-515f573c3805

Goose
Project
Exploration

The Goose Project consists of five known deposits with existing mineral resources, Umwelt, Llama, Goose, Echo and Nuvuyak, which occur along a strike length of eight kilometers (“km”). The Company believes that exploration upside exists on all known deposits that are open at depth, as well as several zones of interest that remain relatively untested within the footprint of the favorable host banded iron formation (“BIF”) stratigraphy. At Goose, the BIF extends over 10 km in a folded package up to 1.5 km wide hosted within a northwesterly to westerly striking, steeply-dipping belt of folded, clastic sediments. Ongoing structural and data review has formed the basis of the 2024 exploration season that has drill tested several zones of interest.

The Umwelt deposit is the single largest deposit at the Goose Project and will be a significant contributor to initial production. At the Umwelt deposit, 2024 drilling finished with 14,480 m completed over 40 drill holes with gold assays received for 34 of the 40 drill holes. Implementation of directional core drilling technology (Devico) has added accuracy and cost efficiency to the program of deep and strategic drilling. Drilling was designed to increase confidence in the geometry and continuity of high-grade mineralization below the planned open pits. Drilling has shown the intersection of steeply dipping brittle-ductile high strain zones and fold-thickened BIF is the primary control on gold mineralization.

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Significant 2024 drill results from the Umwelt deposit at the Goose Project include:

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<sup>Notes:
1. Capped
at
50
g/t
gold
2. Drill
intercepts
are
perpendicular
to
the
zones
so
true
widths
are
very
similar
to
reported
drill
lengths</sup>

At the Llama deposit, which outcrops 1,500 m north of the Umwelt deposit, a total of 1,428 m was drilled over seven drill holes (including three abandoned holes) in areas within the Inferred Mineral Resource boundary below the open pit. Drill hole 24GSE-668B returned 19.65 g/t gold over 8.20 m from 158.75 m, including a higher-grade interval of 37.13 g/t gold over 4.00 m.

In addition, a total of 2,471 m over seven drill holes (with two currently in progress) are testing areas down plunge from the planned Llama open pit. Drill hole 24GSE-663, which tested an area of limited drilling 530 m down plunge from the planned Llama open pit, returned 14.34 g/t gold over 27.95 m from 406.05 m at a vertical depth of 370 m, including higher-grade intervals of 54.17 g/t gold over 6.00 m and 205.00 g/t gold over 0.80 m. The drill result demonstrates the down plunge continuity of gold grades and widths of these mineralized structures, and the Llama deposit continues to remain open at depth. In addition, two drill holes totaling 1,241 m were completed 1,440 m down dip from Llama in the Llama Extension area, with assays pending. One more drill hole will be completed in 2024 at the Llama Extension area.

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Significant 2024 drill results from the Llama deposit at the Goose Project include:

<sup>Notes:
1. Capped
at
50
g/t
gold
2. Drill
intercepts
are
perpendicular
to
the
zones
so
true
widths
are
very
similar
to
reported
drill
lengths</sup>

Goose Project Exploration Drilling

A total of 6,610 m over 13 drill holes have been drilled at Goose Project exploration targets including Nuvuyak, Mammoth, Stovepipe, Muskox, Wing, Boomerang, Goose Neck South, Hook and Slingshot. Drilling is ongoing at the Mammoth and Hook targets. Results have been received for Nuvuyak, Mammoth and Wing, and are pending for the other targets.

Highlights to date include encouraging results at Nuvuyak and Mammoth. Nuvuyak drill hole 24GSE-683Z1 returned 6.39 g/t gold over 28.80 m from 982.20 m, including a higher-grade interval of 23.49 g/t gold over 6.45 m and 4.66 g/t gold over 20.94 m from 1,037.16 m, including 8.60 g/t gold over 9.62 m. Nuvuyak is located approximately 500 m west and 1,000 m down plunge of the Goose Main deposit and demonstrates the continuity of high-grade zones within the Nuvuyak deposit by extending high-grade gold mineralization approximately 150 m to the north-northwest. The existing Inferred Mineral Resource estimate at Nuvuyak is 2.42 million tonnes grading 7.50 g/t gold for a total of 583,000 ounces of gold.

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Mammoth drill hole 24GSE-687Z1 returned 17.45 g/t gold over 10.96 m from 837.14 m, including a higher-grade interval of 68.61 g/t gold over 2.51 m. This encouraging intercept, located 450 m up plunge of Nuvuyak towards the Goose Main deposit, shows the Nuvuyak and Mammoth zones have strong potential for future underground mining.

Significant 2024 drill results from the Goose Project exploration drilling include:

<sup>Notes:
1. Capped
at 50
g/t
gold</sup>

Back River Gold District 2024 Surface Exploration Program

During 2024, regional target definition was supplemented through an integrated surface exploration program comprising of mapping, prospecting, geophysics and the collection of 1,798 till samples, 35 trenches (216 samples) and 285 rock samples in six properties including Boot, Boulder, Del, BB13, Needle and Beech. See Figure 2 for an overview of the Back River Gold District properties.

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Figure 2. Back River Gold District Properties.

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b05478a1-4c28-4e98-903e-5b71994fc042

Geophysics consisted of ground Induced Polarization (3D-IP) in Boot and Boulder and heli-magnetics in BB13, Needle and Beech as well as re-processing of old geophysical data. In addition, a BHTEM (borehole transient electromagnetics) survey was completed over 3,800 m across five drill holes including three at the Umwelt deposit and one each at Nuvuyak and Mammoth. Results are being processed.

This work has generated new regional and near-mine targets that will be further evaluated and drill tested in 2025.

Quality
Assurance/Quality
Control
on
Sample
Collection
and
Assaying

The primary laboratory utilized for the Back River Gold District drilling program in 2024 is ALS laboratory in North Vancouver, Canada. Core samples are prepared at the ALS preparation facility in Yellowknife with representative pulp samples sent to the ALS North Vancouver laboratory for gold analysis. Gold is analyzed by a fire assay/atomic absorption spectrometry (FA/AAS) finish using a 50 gram subsample of the coin pulp. FAs were finished with AAS, and samples with higher grades that exceeded the maximum detection limit of AAS received a supplemental gravimetric (“GRAV”) finish. All samples over 3,000 parts per billion are analyzed by FA/GRAV using a 50 gram subsample of the coin pulp. Bureau Veritas Minerals (BV) in Vancouver, Canada, is the umpire laboratory.

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Quality assurance and quality control procedures include the systematic insertion of blanks and standards into the core sample strings. The results of the control samples are evaluated on a regular basis with batches re-analyzed and/or resubmitted as needed. All results stated in this announcement have passed B2Gold’s quality assurance and quality control protocols.

About B2Gold

B2Gold is a low-cost international senior gold producer headquartered in Vancouver, Canada. Founded in 2007, today, B2Gold has operating gold mines in Mali, Namibia and the Philippines, the Goose Project under construction in northern Canada and numerous development and exploration projects in various countries including Mali, Colombia and Finland. B2Gold forecasts total consolidated gold production of between 800,000 and 870,000 ounces in 2024.

Qualified Persons

Andrew Brown, P.Geo., Vice President, Exploration, a qualified person under NI 43-101, has approved the scientific and technical information related to exploration and mineral resource matters contained in this news release.

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ON BEHALF OF B2GOLD CORP.

“Clive T. Johnson”
President and Chief Executive Officer

Source: B2Gold Corp.

The Toronto Stock Exchange and NYSE American LLC neither approve nor disapprove the information contained in this news release.

Production results and production guidance presented in this news release reflect total production at the mines B2Gold operates on a 100% project basis. Please see our Annual Information Form dated March 14, 2024 for a discussion of our ownership interest in the mines B2Gold operates.

This news release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation, including: projections; outlook; guidance; forecasts; estimates; and other statements regarding future or estimated financial and operational performance, gold production and sales, revenues and cash flows, and capital costs (sustaining and non-sustaining) and operating costs, including projected cash operating costs and AISC, and budgets on a consolidated and mine by mine basis; future or estimated mine life, metal price assumptions, ore grades or sources, gold recovery rates, stripping ratios, throughput, ore processing; statements regarding anticipated exploration, drilling, development, construction, permitting and other activities or achievements of B2Gold; and including, without limitation: remaining well positioned for continued strong operational and financial performance in 2024; projected gold production, cash operating costs and AISC on a consolidated and mine by mine basis in 2024; total consolidated gold production of between 800,000 and 870,000 ounces (including 20,000 attributable ounces from Calibre) in 2024, with cash operating costs of between $835 and $895 per ounce and AISC of between $1,420 and $1,480 per ounce; B2Gold’s continued prioritization of developing the Goose Project in a manner that recognizes Indigenous input and concerns and brings long-term socio-economic benefits to the area; the Goose Project producing in excess of 310,000 ounces of gold per year from 2026 to 2030; and the potential for first gold production in the second quarter of 2025 from the Goose Project. All statements in this news release that address events or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as “expect”, “plan”, “anticipate”, “project”, “target”, “potential”, “schedule”, “forecast”, “budget”, “estimate”, “intend” or “believe” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made.

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Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond B2Gold’s control, including risks associated with or related to: the volatility of metal prices and B2Gold’s common shares; changes in tax laws; the dangers inherent in exploration, development and mining activities; the uncertainty of reserve and resource estimates; not achieving production, cost or other estimates; actual production, development plans and costs differing materially from the estimates in B2Gold’s feasibility and other studies; the ability to obtain and maintain any necessary permits, consents or authorizations required for mining activities; environmental regulations or hazards and compliance with complex regulations associated with mining activities; climate change and climate change regulations; the ability to replace mineral reserves and identify acquisition opportunities; the unknown liabilities of companies acquired by B2Gold; the ability to successfully integrate new acquisitions; fluctuations in exchange rates; the availability of financing; financing and debt activities, including potential restrictions imposed on B2Gold’s operations as a result thereof and the ability to generate sufficient cash flows; operations in foreign and developing countries and the compliance with foreign laws, including those associated with operations in Mali, Namibia, the Philippines and Colombia and including risks related to changes in foreign laws and changing policies related to mining and local ownership requirements or resource nationalization generally; remote operations and the availability of adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory, political and country risks, including local instability or acts of terrorism and the effects thereof; the reliance upon contractors, third parties and joint venture partners; the lack of sole decision-making authority related to Filminera Resources Corporation, which owns the Masbate Project; challenges to title or surface rights; the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; competition with other mining companies; community support for B2Gold’s operations, including risks related to strikes and the halting of such operations from time to time; conflicts with small scale miners; failures of information systems or information security threats; the ability to maintain adequate internal controls over financial reporting as required by law, including Section 404 of the Sarbanes-Oxley Act; compliance with anti-corruption laws, and sanctions or other similar measures; social media and B2Gold’s reputation; risks affecting Calibre having an impact on the value of the Company’s investment in Calibre, and potential dilution of our equity interest in Calibre; as well as other factors identified and as described in more detail under the heading “Risk Factors” in B2Gold’s most recent Annual Information Form, B2Gold’s current Form 40-F Annual Report and B2Gold’s other filings with Canadian securities regulators and the U.S. Securities and Exchange Commission (the “SEC”), which may be viewed at www.sedar.com and www.sec.gov, respectively (the “Websites”). The list is not exhaustive of the factors that may affect B2Gold’s forward-looking statements.

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B2Gold’s forward-looking statements are based on the applicable assumptions and factors management considers reasonable as of the date hereof, based on the information available to management at such time. These assumptions and factors include, but are not limited to, assumptions and factors related to B2Gold’s ability to carry on current and future operations, including: development and exploration activities; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; B2Gold’s ability to meet or achieve estimates, projections and forecasts; the availability and cost of inputs; the price and market for outputs, including gold; foreign exchange rates; taxation levels; the timely receipt of necessary approvals or permits; the ability to meet current and future obligations; the ability to obtain timely financing on reasonable terms when required; the current and future social, economic and political conditions; and other assumptions and factors generally associated with the mining industry.

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B2Gold’s forward-looking statements are based on the opinions and estimates of management and reflect their current expectations regarding future events and operating performance and speak only as of the date hereof. B2Gold does not assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable law. There can be no assurance that forward-looking statements will prove to be accurate, and actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits or liabilities B2Gold will derive therefrom. For the reasons set forth above, undue reliance should not be placed on forward-looking statements.

Cautionary Statement Regarding Mineral Reserve and Resource Estimates
The disclosure in this news release was prepared in accordance with Canadian National Instrument 43-101, which differs significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and resource and reserve information contained or referenced in this news release may not be comparable to similar information disclosed by public companies subject to the technical disclosure requirements of the SEC. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.

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TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) — “Dundee is pleased to announce a strong and transformative quarter, marked by broad positive performance in our core investment portfolio and key initiatives that further align our capital structure with our long-term growth objectives.” said Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation. “During the quarter, we sold 11 million shares of our position in G Mining Ventures Corp. for proceeds of $95.9 million, which was partially used to redeem both classes of our preferred shares and substantially pay down our outstanding loan balance. The redemption of the preferred shares is a significant milestone, enhancing our financial flexibility and positioning the company for continued, sustainable growth for the long-term. In addition, we backstopped an $8.0 million rights offering for Maritime Resources Corp. to support the company’s strategic plan to substantially derisk the restart of the Hammerdown Mine and, in the process, increased our ownership interest in the company to 43% on an undiluted basis.   Furthermore, we have continued to make progress on divesting our non-core assets with the sale of our flow-through funds. This will further streamline our operations and, importantly, allow us to place even greater focus on executing our core strategy.”

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“Our success in the current quarter underscores the strength of our core strategy, driven by strong investment performance amidst record gold prices and continued progress on cost reduction efforts. We foresee numerous opportunities on the horizon, as the market, in our opinion, continues to undervalue companies engaged in the discovery and development of high-quality precious metals, as well as base metals and strategic resources. We see a compelling value proposition in the disconnect between metals prices and mining stocks. Given the opportunity set we are seeing, while we have more ideas than capital, we remain very focused on our core asset base. We are committed to long-term investments in high-quality projects, acting as advisors and partners to our investee companies to maximize asset value and achieve their full potential.”

Mr. Goodman concluded: “The entire team at Dundee continues to work diligently to implement and execute our strategy across all fronts. I am encouraged by our ability to sustain and grow our momentum in 2024 as we look forward to the opportunities ahead of us. Our team remains committed to growing the core business, and positioning Dundee to deliver long-term, sustainable value for our stakeholders, shareholders and partners. I would like to thank the entire team for their hard work in navigating a time of continued evolution.”

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SOLID THIRD QUARTER AND FIRST NINE MONTHS OF 2024 RESULTS

• In August 2024, the Corporation sold 11,000,000 shares of G Mining Ventures Corp. (“GMIN”) for net proceeds to the Corporation of $95.9 million. The Corporation continues to hold 2,919,921 shares of GMIN.
• Upon the sale of GMIN, the Corporation partially repaid $14.0 million of its outstanding loan with Earlston Investments Corp.

• In September 2024, the Corporation paid an aggregate of $46.7 million to exercise its option to redeem all its outstanding Preference Shares Series 2 and Preference Shares Series 3 at a price of $25.00 per share and pay the final associated dividends, saving the Corporation approximately over $4.0 million per annum in dividend and associated tax payments.
• In September 2024, Dundee backstopped an $8.0 million rights offering for Maritime Resources Corp. (“Maritime”) and made purchases pursuant to private agreements to acquire approximately 253.0 million common shares of the company and increase our undiluted ownership interest to 43%. The Corporation earned 33.2 million compensation warrants for backstopping the rights offering.
• Reported net income from portfolio investments for the third quarter of 2024 of $10.1 million (2023 – loss of $24.7 million). The key drivers of performance during the quarter included a $5.8 million market appreciation in the Corporation’s investment in Ausgold Limited (“Ausgold”), a $4.9 million investment gain in Saturn Metals Limited (“Saturn”) and a $4.6 million investment gain in Greenheart Gold Inc. (“Greenheart”).    For the nine months ended September 30, 2024, the Corporation reported net income from portfolio investments of $68.0 million (2023 – loss of $22.2 million). The top performer of 2024 was the $53.6 million fair value gain in Reunion Gold Corporation.
• On October 7, 2024, the Corporation announced the completion of the sale of 8,000 shares of TauRx to a private investor at a price of US$125.00 per share for proceeds of US$1.0 million (Cdn$1.4 million).
• Reported consolidated general and administrative expenses for the third quarter of $4.3 million (2023 – $4.6 million). Excluding share-based compensation of $0.8 million (2023 – $0.5 million), consolidated general and administrative expenses declined 16% year-over-year. For the nine months ended September 30, 2024, the Corporation reported consolidated general and administrative expenses of $12.5 million (2023 – $13.6 million).
• Reported net earnings attributable to owners of the Corporation for the third quarter of 2024 of $7.3 million (2023 – loss of $26.5 million), or earnings of $0.07 per share (2023 – a loss of $0.31 per share). For the nine months ended September 30, 2024, the Corporation reported net earnings attributable to owners of the Corporation of $67.3 million (2023 – loss of $36.0 million), or earnings of $0.73 per share (2023 – a loss of $0.43 per share).

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SEGMENTED FINANCIAL RESULTS

Mining Investments

In the third quarter of 2024, the Corporation reported net earnings before taxes from the mining investments segment of $10.4 million (2023 – loss of $23.3 million). Performance from the mining portfolio investments generated income of $9.0 million (2023 – loss of $25.6 million), which is included in net earnings or loss from this segment. Notable performers during the quarter include gains of $5.8 million in Ausgold, $4.9 million in Saturn and $4.6 million in Greenheart, respectively, offset by a $9.8 million loss in GMIN. The share of income from equity accounted mining investments during the third quarter of 2024 was $0.7 million (2023 – $3,000).

During the first nine months of 2024, the Corporation reported net earnings before taxes from the mining investments segment of $65.8 million (2023 – loss of $22.4 million). Performance from the mining investments portfolio contributed $65.1 million (2023 – loss of $22.7 million) to net earnings or loss before taxes in this segment. The key driver of performance during this period was a $53.6 million market appreciation in the Corporation’s investment in Reunion Gold Corporation. The share of loss from equity accounting mining investments during the first nine months 2024 was $0.1 million (2023 – $1.9 million).

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Corporate and others

The Corporation reported pre-tax losses from the corporate and others segment, including non-core subsidiaries, of $2.0 million (2023 – $3.5 million) during the three months ended September 30, 2024. During the first nine months of 2024, the corporate and others segment reported pre-tax earnings of $6.0 million (2023 – loss of $11.7 million).

The fair value of non-mining portfolio investments in the corporate and others segment increased by $1.2 million (2023 – $0.9 million) during the third quarter of the current year. The fair value of portfolio investments in this segment increased by $2.8 million (2023 – $0.5 million) during the first nine months of 2024.

In the third quarter, the segment’s non-mining equity accounted investments reported pre-tax earnings of $0.7 million (2023 – loss of $0.6 million). During the same period, the segment’s subsidiaries reported pre-tax losses of $0.4 million (2023 – $1.1 million). During the first nine months of 2024, the segment’s non-mining equity accounted investments and subsidiaries reported pre-tax losses of $0.4 million (2023 – $2.1 million) and $1.2 million (2023 – $3.1 million), respectively.

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Mining Services

During the three months ended September 30, 2024, the mining services segment, comprised of the Corporation’s 78%-owned subsidiary, Dundee Sustainable Technologies Inc. (“Dundee Technologies”), reported a pre-tax loss of $0.8 million (2023 – $0.6 million). During the first nine months of 2024, Dundee Technologies incurred a pre-tax loss of $3.4 million (2023 – $3.1 million).

SHAREHOLDERS’ EQUITY ON A PER SHARE BASIS

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*  Shareholders’ Equity on a per share basis is calculated as total shareholders’ equity per the financial statements, less the carrying amount of Preference shares, series 2 and series 3, and divided by the total number of Class A and Class B shares issued and outstanding.

The Corporation’s unaudited interim consolidated financial statements as at and for three and nine months ended September 30, 2024 and 2023, along with the accompanying management’s discussion and analysis, have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may be viewed by interested parties under the Corporation’s profile at www.sedarplus.ca or the Corporation’s website at www.dundeecorporation.com.

ABOUT DUNDEE CORPORATION:

Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

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FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Dundee Corporation’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee Corporation’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Annual Information Form of Dundee Corporation and subsequent filings made with securities commissions in Canada. Dundee Corporation does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

FOR FURTHER INFORMATION PLEASE CONTACT:

Investor and Media Relations
T: (416) 864-3584
E: ir@dundeecorporation.com

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Baltic Power, Hai Long and Oneida projects continue to make construction progress

TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) — Northland Power Inc. (“Northland” or the “Company”) (TSX: NPI) reported today financial results for the three and nine months ended September 30, 2024. All dollar amounts set out herein are in thousands of Canadian dollars, unless otherwise stated.

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“Northland’s third quarter results were negatively impacted by the Gemini cable outage and lower offshore wind production but on a full year basis Northland continues to remain on track to achieve our full year guidance, given the strong performance in the first half of the year,” said John Brace, Northland’s Interim President and CEO. “We continue to make progress on our three construction projects in Taiwan, Poland and Canada. Following the regrettable safety incident in August, construction of the Hai Long onshore substation is progressing according to its recovery plans. We also have a number of exciting development opportunities in core markets across our development pipeline.”

Third Quarter Highlights

Financial results for the three months ended September 30, 2024 were lower compared to the same quarter of 2023, primarily due to lower production at offshore wind facilities and lower revenue from the Spanish portfolio. This decrease was partially offset by the contribution from the New York onshore wind projects that achieved commercial operations in October 2023 and higher revenue from EBSA due to growth in asset base and rate escalations.

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Financial Results

• Sales decreased to $491 million from $513 million in 2023.
• Gross Profit decreased to $444 million from $458 million in 2023.
• Net
  Loss was $191 million compared to net income of $43 million in 2023.
• Adjusted EBITDA (a non-IFRS measure) decreased to $228 million from $267 million in 2023.
• Adjusted Free Cash Flow per share (a non-IFRS measure) decreased to $0.08 from $0.25 in 2023.
• Free Cash Flow per share (a non-IFRS measure) decreased to $0.00 from $0.14 in 2023.

The following table presents key IFRS and non-IFRS financial measures and operational results. Sales, gross profit, operating income and net income, as reported under IFRS, include consolidated results of entities not wholly owned by Northland, whereas Northland’s non-IFRS financial measures include only Northland’s proportionate ownership interest.

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Third Quarter Results Summary

Offshore wind facilities

Electricity production for the three months ended September 30, 2024 decreased by 10% or 81GWh compared to the same quarter of 2023. This was primarily due to export cable damage at Gemini, and higher unpaid curtailments related to negative prices and grid outages, partially offset by higher wind resource at German offshore wind facilities.

Sales of $213 million for the three months ended September 30, 2024 decreased 8% or $18 million, compared to the same quarter of 2023, primarily due to the lower production by $26 million, partially offset by a $7 million P&I factor adjustment and various other items.

Adjusted EBITDA of $108 million for the three months ended September 30, 2024 decreased 15% or $19 million compared to the same quarter of 2023, due to the same factors as noted above.

An important indicator for performance of offshore wind facilities is the current and historical average power production of the facility. The following table summarizes actual electricity production and the historical average, high and low, for the quarter of each offshore facility:

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In June 2024, one of Gemini’s export cables was damaged and taken out of service. On September 4, 2024, the cable was successfully repaired and energized, bringing Gemini back to full operations safely and without incident. During the repair, Gemini’s production continued via the second export cable. This was determined to be an isolated event and is expected to have a minimal impact on the Adjusted EBITDA and Adjusted Free Cash Flow for the full year, respectively, net of insurance proceeds, which are anticipated to be received by the end of the year.

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Onshore renewable facilities

Electricity production was 20% or 86GWh higher than the same quarter of 2023, primarily due to the contribution from the New York onshore wind projects that achieved commercial operations in October 2023, and higher wind resource at the Canadian and Spanish onshore renewable facilities, partially offset by lower solar resource at the Spanish onshore renewable facilities.

Sales of $116 million were 1% or $2 million lower than the same quarter of 2023, primarily due to lower revenue from the Spanish facilities and Canadian onshore facilities, partially offset by the contribution from the New York onshore wind projects. Please refer to the MD&A for a further breakdown of Spanish portfolio revenue by component.

Adjusted EBITDA of $82 million was 8% or $7 million lower than the same quarter of 2023, primarily due to operating cost from New York onshore wind projects, in addition to the same factors as above.

Natural gas facilities

Electricity production of 944GWh for the three months ended September 30, 2024 was largely in line with the same quarter of 2023.

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Sales of $74 million for the three months ended September 30, 2024 decreased 8% or $6 million as compared to the same quarter of 2023, primarily due to lower natural gas prices resulting in lower energy rates.

Adjusted EBITDA of $40 million for the three months ended September 30, 2024 was largely in line with the same quarter of 2023.

Utility

Sales of $85 million for the three months ended September 30, 2024 increased 9% or $7 million compared to the same quarter of 2023, primarily due to the growth in asset base and rate escalations.

Adjusted EBITDA of $35 million for the three months ended September 30, 2024 increased 18% or $5 million compared to the same quarter of 2023, primarily due to the same factors as above.

Consolidated statement of income (loss)

General and administrative (“G&A”) costs of $30 million in the third quarter increased $8 million compared to the same quarter of 2023, primarily due to increased personnel costs relating to one-time management changes and restructuring of operating and corporate functions.

Development costs of $18 million decreased $16 million compared to the same quarter of 2023, primarily due to focused spending on development activities and timing of the expenditures.

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Finance costs of $108 million increased 22% or $20 million compared to the same quarter of 2023, primarily due to the contribution from New York onshore wind projects, partially offset by scheduled repayments on facility-level loans.

Fair value loss on financial instruments was $100 million, primarily due to net movement in the fair value of derivatives related to interest rate and foreign exchange contracts.

Foreign exchange gain of $9 million in the third quarter was primarily due to unrealized gain from fluctuations in the closing foreign exchange rates.

Other income was $19 million lower than the same quarter of 2023, primarily due to gains associated with the partial sell-down of development assets in 2023.

Net loss of $191 million in the third quarter of 2024 compared to net income of $43 million in the same quarter of 2023, was primarily as a result of the factors described above.

Adjusted EBITDA

The following table reconciles net income (loss) to Adjusted EBITDA:

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Adjusted EBITDA of $228 million for the three months ended September 30, 2024 decreased 15% or $40 million compared to the same quarter of 2023. The significant factors decreasing Adjusted EBITDA include:

• $19 million in gains from partial sell-down of development assets in 2023;
• $19 million decrease in operating results at the offshore wind facilities, primarily due to export cable damage at Gemini, and higher unpaid curtailments related to negative prices and grid outages at German offshore wind facilities, as described above; and
• $9 million decrease in the contribution from the Spanish renewables portfolio, as described above.

The factor partially offsetting the decrease in the Adjusted EBITDA was:

• $8 million increase due to contribution of New York Wind onshore facilities and higher operating results at EBSA, as described above.

Adjusted Free Cash Flow and Free Cash Flow

The following table reconciles cash flow from operations to Adjusted Free Cash Flow and Free Cash Flow:

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Adjusted Free Cash Flow of $19 million for the three months ended September 30, 2024 was 70% or $44 million lower than the same quarter of 2023.

The significant factors decreasing Adjusted Free Cash Flow were:

• $49 million decrease in Adjusted EBITDA (gross of growth expenditures) primarily due to the factors described above; and
• $7 million decrease from foreign exchange and interest rate hedges, and other settlements.

The factor partially offsetting the decrease in Adjusted Free Cash Flow was:

• $12 million decrease in scheduled debt repayments on facility-level loans, mainly at the Spanish portfolio.

Free Cash Flow, which is reduced by growth expenditures, totaled $1 million for the three months ended September 30, 2024, and was $35 million lower than the same quarter of 2023, due to the same factors as Adjusted Free Cash Flow.

The following table reconciles Adjusted EBITDA to Adjusted Free Cash Flow:

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Significant Events and Updates

Renewables Growth:

• Construction Update on Hai Long, Baltic Power and Oneida – The Hai Long project continued to make progress. Offshore construction at the project is advancing, with the completion of installation of both offshore substation foundation jackets, the first offshore substation topside, and two of three export cables. As planned, the project completed the installation of pin piles and turbine jacket foundations at approximately half of the turbine locations, which are ready for turbine installation in 2025, further de-risking the project. The fabrication of turbine components continues, including completion of the first sets of towers, generators and nacelles. On August 20, 2024, an incident occurred at the onshore substation due to a leak of carbon dioxide from the fire suppression system, which resulted in three fatalities. The project team is cooperating with local authorities to investigate the incident and ensure the safety of personnel and the surrounding community. The onshore substation construction work was initially suspended but is now progressing according to its recovery plans. First power is expected in the second half of 2025 with full commercial operations expected to commence in 2026/2027, according to schedule. Overall project cost is aligned with original expectations.

  The Baltic Power project continues to make progress on fabrication of onshore and offshore substations, foundations, export cables, multiple turbine components and inter-array cables. This quarter marked the fabrication completion of the first sets of monopile foundations and transition pieces, which are ready to be delivered to the project. Construction of the onshore substation and the operations and management building are progressing. Major in-water construction activity is expected to start in early 2025. Full commercial operations are expected to commence in the latter half of 2026, according to schedule. Overall project cost is aligned with original expectations.

  The Oneida project continues to make progress with its construction activities. The high-voltage transformers have arrived at site, and all cabling and grid interconnection works are being finalized. Commissioning activities have commenced. Full commercial operations are expected to commence in 2025, according to schedule. Overall project cost is aligned with original expectations.

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• Other Growth Activity – Northland continues to make progress on its development activities in its core markets. For example, Northland signed a 15-year bilateral offtake agreement for 100% of the battery energy storage capacity from the Jurassic BESS project in Alberta with members of the Alberta Schools Commodities Purchasing Consortium. This is the first offtake agreement of its kind in Canada for a battery storage project and is a key milestone in the advancement of Northland’s Alberta portfolio.
• Increase in Corporate Credit Facility – During the quarter, Northland increased the size of its corporate revolving credit facility from $1.0 billion to $1.25 billion to continue to enhance available liquidity and support future growth opportunities in its core markets. Northland currently has available liquidity of $1.1 billion.
• Corporate credit rating re-affirmed – Credit rating agencies Standard & Poor and Fitch Ratings re-affirmed Northland’s corporate credit rating in 2024 at BBB (Stable).

2024 Financial Outlook

Northland’s outlook is underpinned by its commitment to operational excellence, prudent growth in key global markets and focus on the Company’s three major renewable construction programs, ensuring their successful execution.

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To prepare for further growth, the Company also continues to be active in pursuing various development opportunities in its core markets.

As of November 13, 2024, management’s 2024 financial outlook remains within the guidance range. This outlook reflects Northland’s commitment to strong operational performance, with key financial projections for 2024 including expected Adjusted EBITDA in the range of $1.2 billion to $1.3 billion and Adjusted Free Cash Flow per share to be in the range of $1.30 to $1.50. Furthermore, projected Free Cash Flow per share for 2024 is expected to be in the range of $1.10 to $1.30, reflecting the Company’s commitment to prudent financial management.

It is important to note that while Northland is confident in its outlook, it remains subject to the Forward-Looking Statements set forth herein as well as the Risk Factors outlined in Northland’s most recent Annual Information Form dated February 21, 2024 (“2023 AIF”).

Third-Quarter Earnings Conference Call

Northland will hold an earnings conference call on November 14, 2024, to discuss its third quarter 2024 results. The call will be hosted by Northland’s Senior Management, who will discuss the Company’s financial results and developments as well as answering questions from analysts.

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Conference call details are as follows:

Thursday, November 14, 2024, 10:00 a.m. ET

Participants wishing to join the call and ask questions must register using the following URL below:

https://register.vevent.com/register/BI0cb4142cbd444fed88c4f0efe921cb3d

For all other attendees, the call will be broadcast live on the internet, in listen-only mode and can be accessed using the following link:

Webcast URL: https://edge.media-server.com/mmc/p/p7kuvn2d

For those unable to attend the live call, an audio recording will be available on northlandpower.com on Friday, November 15, 2024.

Northland’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024, and related Management’s Discussion and Analysis can be found on SEDAR+ at www.sedarplus.ca under Northland’s profile and on northlandpower.com.

ABOUT NORTHLAND POWER

Northland Power is a global power producer dedicated to helping the clean energy transition by producing electricity from clean renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets and is a global leader in offshore wind. In addition, Northland owns and manages a diversified generation mix including onshore renewables, natural gas energy, as well as supplying energy through a regulated utility.

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Headquartered in Toronto, Canada, with global offices in eight countries, Northland owns or has an economic interest in approximately 3.2GW (net 2.8GW) of operating capacity. The Company also has a significant inventory of projects in construction and in various stages of development encompassing approximately 12GW of potential capacity.

Publicly traded since 1997, Northland’s common shares, Series 1 and Series 2 preferred shares trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A and NPI.PR.B, respectively.

NON-IFRS FINANCIAL MEASURES

This press release includes references to the Company’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”), Adjusted Free Cash Flow, Free Cash Flow and applicable payout ratios and per share amounts, which are measures not prescribed by International Financial Reporting Standards (“IFRS”), and therefore do not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS financial measures are presented at Northland’s share of underlying operations. These measures should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Rather, these measures are provided to complement IFRS measures in the analysis of Northland’s results of operations from management’s perspective. Management believes that Northland’s non-IFRS financial measures and applicable payout ratio and per share amounts are widely accepted and understood financial indicators used by investors and securities analysts to assess the performance of a company, including its ability to generate cash through operations.

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FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that are provided for the purpose of presenting information about management’s current expectations and plans. Readers are cautioned that such statements may not be appropriate for other purposes. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, the events anticipated by the forward-looking statements may or may not transpire or occur. Forward-looking statements include statements that are not historical facts and are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “predicts,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding future Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, including respective per share amounts, dividend payments and dividend payout ratios, the timing for and attainment of the Hai Long and Baltic Power offshore wind and Oneida energy storage projects and other renewables growth activity, and the anticipated contributions therefrom to Adjusted EBITDA, Adjusted Free Cash Flow and Free Cash Flow, the anticipated timing and attainment of insurance proceeds relating to the damage of one of Gemini’s export cables, the expected generating capacity of certain projects, guidance, anticipated dates of full commercial operations, forecasts as to overall project costs, the completion of construction, acquisitions, dispositions, whether partial or full, investments or financings and the timing thereof, the timing for and attainment of financial close and commercial operations for each project, the potential for future production from project pipelines, cost and output of development projects, the all-in interest cost for debt financing, the impact of currency and interest rate hedges, litigation claims, anticipated results from the optimization of the Thorold Co-Generation facility and the timing related thereto, future funding requirements, and the future operations, business, financial condition, financial results, priorities, ongoing objectives, strategies and the outlook of
Northland, its subsidiaries and joint ventures.
These statements are based upon certain material factors or assumptions that were applied in developing the forward-looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management’s current plans and its perception of historical trends, current conditions and expected future developments, the ability to obtain necessary approvals, satisfy any closing conditions, satisfy any project finance lender conditions to closing sell-downs or obtain adequate financing regarding contemplated construction, acquisitions, dispositions, investments or financings, as well as other factors, estimates and assumptions that are believed to be appropriate in the circumstances. Although these forward-looking statements are based upon management’s current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties.
Some of the factors that could cause results or events to differ from current expectations
include, but are not limited to, risks associated with further regulatory and policy changes in Spain which could impair current guidance and expected returns, risks associated with merchant pool pricing and revenues, risks associated with sales contracts, the emergence of widespread health emergencies or pandemics, Northland’s reliance on the performance of its offshore wind facilities at Gemini, Nordsee One and Deutsche Bucht for over 50% of its Adjusted EBITDA, counterparty and joint venture risks, contractual operating performance, variability of sales from generating facilities powered by intermittent renewable resources, wind and solar resource risk, unplanned maintenance risk, offshore wind concentration, natural gas and power market risks, commodity price risks, operational risks, recovery of utility operating costs, Northland’s ability to resolve issues/delays with the relevant regulatory and/or government authorities, permitting, construction risks, project development risks, integration and acquisition risks, procurement and supply chain risks, financing risks, disposition and joint-venture risks, competition risks, interest rate and refinancing risks, liquidity risk, inflation risks, commodity availability and cost risk, construction material cost risks, impacts of regional or global conflicts, credit rating risk, currency fluctuation risk, variability of cash flow and potential impact on dividends, taxation, natural events, environmental risks, climate change, health and worker safety risks, market compliance risk, government regulations and policy risks, utility rate regulation risks, international activities, cybersecurity, data protection and reliance on information technology, labour relations, labour shortage risk, management transition risk, geopolitical risk in and around the regions Northland operates in, large project risk, reputational risk, insurance risk, risks relating to co-ownership, bribery and corruption risk, terrorism and security, litigation risk and legal contingencies, and the other factors described in the “Risks Factors” section of Northland’s Management’s Discussion and Analysis and Annual Information Form for the year ended December 31, 2023, which can be found at
www.sedarplus.ca under Northland’s profile and on Northland’s website at northlandpower.com. Northland has attempted to identify important factors that could cause actual results to materially differ from current expectations; however, there may be other factors that cause actual results to differ materially from such expectations. Northland’s actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, and Northland cautions you not to place undue reliance upon any such forward-looking statements.

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The forward-looking statements contained in this release are, unless otherwise indicated, stated as of the date hereof and are based on assumptions that were considered reasonable as of the date hereof. Other than as specifically required by law, Northland undertakes no obligation to update any forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Certain forward-looking information in this release and the MD&A may also constitute a “financial outlook” within the meaning of applicable securities laws. Financial outlook involves statements about Northland’s prospective financial performance, financial position or cash flows and is based on and subject to the assumptions about future economic conditions and courses of action and the risk factors described above in respect of forward-looking information generally, as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this release and the MD&A. Such assumptions are based on management’s assessment of the relevant information currently available and any financial outlook included in this release and the MD&A is provided for the purpose of helping readers understand Northland’s current expectations and plans for the future. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above or other factors may cause actual results to differ materially from any financial outlook. The actual results of Northland’s operations will likely vary from the amounts set forth in any financial outlook and such variances may be material.

For further information, please contact:

Dario Neimarlija, Vice President, FP&A and Investor Relations
647-288-1019
investorrelations@northlandpower.com
northlandpower.com

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Amounts in US$ unless otherwise noted

• Generates record quarterly net revenue of $280 million; an increase of 12% year-over-year led by double-digit growth across all revenues categories
• Delivers adjusted EPS of $0.29 and adjusted free cash flow per share of $0.36
• Raises common dividend by 8% from CAD$0.48 to CAD$0.52 per share annually and announces intention to renew Normal Course issuer Bid (“NCIB”)
• Completes acquisition of Autofleet, accelerating digital strategy
• Guides to net revenue growth of 6.5 to 8.5%, positive operating leverage, and high single- to low double-digit growth in each of adjusted operating income, adjusted EPS, and adjusted free cash flow per share in 2025

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TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) — Element Fleet Management Corp. (TSX:EFN) (“Element” or the “Company”), the largest publicly traded, pure-play automotive fleet manager in the world, today announced strong financial and operating results for the three months ended September 30, 2024.

The following table presents Element’s selected financial results.

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1. Q3 2023, Q2 2024, and Q3 2024 included $3 million, $2 million and $2 million, respectively, in strategic project costs. Q3 2024 included $7 million in acquisition-related costs, including severance,  in connection with the completion of the Autofleet transaction.
2. Adjusted results are non-GAAP or supplemental financial measures, which do not have any standard meaning prescribed by GAAP  under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. For further information, please see the “IFRS to Non-GAAP Reconciliations” section in this earnings release. The Company uses “Adjusted Results” because it believes that they provide useful information to investors regarding its performance and results of operations.

“We produced robust revenue growth alongside strong operational performance this quarter. As a result of our sustained commercial momentum and recurring revenue model, we delivered double-digit top-line growth year-over-year while expanding our operating margins,” said Laura Dottori-Attanasio, Chief Executive Officer of Element. “In light of our strong performance and positive outlook, we are raising our dividend to CAD$0.52 per share and renewing our NCIB program, aligning growth opportunities with our commitment to returning capital to shareholders.”

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Dottori-Attanasio continued, “Looking ahead to 2025, we anticipate continued revenue and earnings growth driven by organic growth opportunities across all of our geographies. We plan to  scale our business more quickly through digitization and automation, while also expanding beyond our core offerings. The addition of Autofleet will enhance our position in the evolving mobility and vehicle connectivity landscape.”

Net revenue growth

Element grew Q3 2024 net revenue 12% over Q3 2023 on a year-over-year basis to $280 million due to robust growth across all revenue categories. Net revenue increased $5 million or 2% from Q2 2024 on a quarter-over-quarter basis led largely by higher services and syndication revenue. 

Service revenue

Element’s largely unlevered services revenue is the key pillar of its capital-light business model, which also improves the Company’s return on equity profile.

Q3 2024 services revenue grew 12% year-over-year to $147 million driven primarily by higher origination volumes, and higher penetration and utilization rates of our service offerings from new and existing clients. Higher growth in Mexico also contributed to the year-over-year increase.

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Q3 2024 services revenue grew 5% quarter-over-quarter driven primarily by higher penetration and utilization rates of our service offerings from new and existing clients, mainly maintenance and accident services. Partly offsetting this increase was moderately lower services revenue in both Mexico and ANZ and adverse foreign exchange impacts.

Net financing revenue

Q3 2024 net financing revenue grew $11 million or 11% from Q3 2023 largely due to higher net earning assets associated with higher originations in the U.S and Canada. Higher year-over-year gains on sale (“GOS”), largely in ANZ, also contributed to the increase.  These increases were partly offset by higher interest expense associated with the redemption of our preferred shares.

Q3 2024 net financing revenue decreased $6 million or 5% from a record Q2 2024 largely due to lower average net earning assets and higher interest expense associated with the redemption of the preferred shares on June 30, 2024. Partly offsetting this decrease was higher GOS quarter-over-quarter, as higher GOS in ANZ outpaced the lower GOS in Mexico. The higher volume of vehicles for sale in ANZ more than offset a decrease in used vehicle pricing.

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Syndication volume

The Company syndicated a record $1 billion of assets in Q3 2024 – $246 million or 32% more volume than Q3 last year associated with higher originations and the Company’s ongoing focus on its capital lighter model driving higher volumes again this quarter.

Q3 2024 syndication volumes increased 5% from a strong Q2 2024. A higher yield quarter-over-quarter largely reflects the Company’s syndication mix and a more attractive interest rate environment. Overall, client demand remains robust.

Q3 2024 syndication revenue grew $4 million or 29% year-over-year and $5 million or 38% quarter-over-quarter largely due to record volumes this quarter. 

Adjusted operating income and adjusted operating margins

AOI was $161 million this quarter, an increase of $21 million or 15% year-over-year — resulting in adjusted EPS of $0.29 in Q3 2024, which is a 3 cent increase year-over-year. Q3 2024 adjusted operating margin was 57.7%, representing margin expansion of 120 basis points year-over-year. This expansion is driven by positive operating leverage (i.e. net revenue growth outpacing growth in adjusted operating expenses) of 3%. Adjusted operating margin expanded 200 basis points quarter-over-quarter.

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Originations

Element originated $1.7 billion of assets in Q3 2024 (excluding Armada), which is a $159 million or 10% increase year-over-year and a $260 million or 13% decrease quarter-over-quarter largely as a result of seasonal factors. Q3 has historically lower volumes as a result of OEM plant retooling for next model year changeover in the U.S. and Canada occurring this quarter.

The table below sets out the geographic distribution of originations (excluding Armada) for the three-month periods indicated.

Adjusted free cash flow per share and returns to shareholders

On an adjusted basis, Element generated $0.36 of adjusted free cash flow (“FCF”) per share in Q3 2024 – 4 cents more year-over-year driven by growth in net revenues and higher originations, while investing approximately $18 million in total capital investments this quarter.

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On November 13, 2024, the Board of Directors (the “Board”) authorized and declared a quarterly cash dividend of CAD$0.13 per common share of Element for the fourth quarter of 2024, representing an 8% increase to its common dividend (from CAD$0.48 to CAD$0.52 per share annually). The dividend will be payable on January 15, 2025 to shareholders of record as at the close of business on December 31, 2024. The Company’s common dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada). This increase underscores the confidence that the Board has in the sustainability of Element’s cash flow generation, financial resilience, and favourable outlook.

Element’s common dividend represents approximately 27% of the Company’s last twelve months’ (at September 30, 2024) FCF per share, within the Company’s 25% to 35% target payout range. Element expects its common dividend to continue to grow annually, consistent with FCF per share growth.

Element returned $36 million and $112 million of cash to common shareholders through dividends and buybacks of common shares in Q3 2024 and the first nine months of 2024, respectively.

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In furtherance of the Company’s return of capital plan, Element intends to renew its normal course issuer bid (the “2024 NCIB”) for its common shares. If accepted by the TSX, the Company would be permitted under the 2024 NCIB to purchase for cancellation, through the facilities of the TSX or such other permitted means, up to 10% of the public float (calculated in accordance with TSX rules) of Element’s issued and outstanding common shares during the 12 months following such TSX acceptance at prevailing market prices (or as otherwise permitted). The actual number of the Company’s common shares, if any, that may be purchased under the 2024 NCIB, and the timing of any such purchases, will be determined by the Company, subject to applicable terms and limitations of the 2024 NCIB (including any automatic share purchase plan adopted in connection therewith).

Under the terms of the Company’s current normal course issuer bid (the “2023 NCIB”), Element has approval from the TSX to purchase up to 38,852,159 common shares during the period from November 15, 2023, to November 14, 2024. There cannot be any assurance as to how many common shares, if any, will ultimately be purchased pursuant to either the 2023 NCIB or the 2024 NCIB.  If the 2024 NCIB renewal is accepted by the TSX, any subsequent renewals of the 2024 NCIB will be at the Company’s discretion and subject to further TSX approval..

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During the first nine months of 2024, the Company purchased 455,300 common shares for cancellation pursuant to the 2023 NCIB, for an aggregate amount of approximately $7 million at a volume weighted average price of CAD$21.95 per Common Share.

Element applies trade date accounting in determining the date on which the share repurchase is reflected in the consolidated financial statements. Trade date accounting is the date on which the Company commits itself to purchase the shares.

Strategic initiatives update

As previously disclosed, the Company is optimizing its business by centralizing accountability for its U.S. and Canadian leasing operations and establishing a strategic sourcing presence in Asia. The Company continues to expect these initiatives to generate between $30 – $45 million of run-rate net revenue, and between $22 – $37 million of run-rate adjusted operating income (“AOI”), by full-year 2028.

Both initiatives are fully operational. The expected payback period from the Company’s investments remains unchanged at less than 2.5 years. 

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Completion of Autofleet Acquisition

On October 1, 2024, the Company completed the previously announced acquisition of Autofleet, Solutions Ltd. (“Autofleet”), an innovator in fleet and mobility solutions,  for a purchase price of $110 million plus standard working capital adjustments. Autofleet has a robust and highly scalable fleet optimization technology platform alongside optimized mobility solutions tailored for the fleet industry.

This transaction marks an important milestone for our clients and our business, unlocking new growth and value creation potential. By accelerating digitization and automation initiatives, the Company aims to deliver innovative and efficient fleet and mobility solutions tailored to its clients’ needs. The addition of Autofleet will enhance the Company’s position in the evolving mobility and vehicle connectivity landscape.

As a wholly owned subsidiary of the Company, Autofleet’s financial results will be consolidated with those of Element beginning in the fourth quarter of 2024.  In connection with this acquisition, Element issued 1.3 million common shares from Treasury, which represented 25% of the total consideration paid. This acquisition does not affect the Company’s previously issued full-year 2024 guidance. Q3 2024 included $7 million in acquisition-related costs in connection with the completion of this transaction.

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Guidance

Full-year 2024 Guidance

Element continues to expect to deliver full-year 2024 results near or at the high end of its previously provided guidance ranges on most metrics, with the exception of originations. The following table highlights our revised full-year 2024 guidance compared to full-year 2023 results.

Certain implied year-over-year growth amounts shown in this table may not calculate exactly due to rounding.

Full-year 2025 Initial Guidance

The Company expects to see continued growth in its client base, driven by the ongoing transition to self-managed fleets and robust demand for its services and solutions. This positive momentum underpins its target of achieving net revenue growth between 6.5% and 8.5% for the full year 2025, alongside high single-digit to low double-digit increases in each of adjusted operating income, adjusted EPS, and adjusted free cash flow per share. Element is committed to generating positive operating leverage in managing the business, which will underpin further operating margin expansion.

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The Company’s initial guidance for 2025 incorporates the effects of several anticipated revenue headwinds, including the depreciation of the Mexican Peso, higher interest expenses due to increased local Peso funding in 2025, and financing the redemption of the preferred shares. In addition, the scheduled reduction in bonus depreciation is likely to impact syndication yields. The Company also anticipates that its 2025 effective tax rate will average between 24.5% to 26.5%.

Element’s full-year 2024 and 2025 guidance exclude strategic projects and acquisition-related costs and also prior to any material changes in foreign exchange. We intend to provide specific target ranges for our 2025 guidance alongside the release of our full-year 2024 financial results in February 2025.

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Capital structure

Redemption of all outstanding 5.903% Cumulative 5-Year Rate Reset Preferred Shares Series E

On September 30, 2024 (the “Share Redemption Date”), the Company redeemed all of its 5,321,900 issued and outstanding 5.903% Cumulative 5-Year Rate Reset Preferred Shares Series E (the “Series E Shares”) at a price of CAD$25.00 per Series E Share for an aggregate amount of approximately $95 million, together with all accrued and unpaid dividends up to but excluding the Share Redemption Date, less any tax required to be deducted and withheld by the Company.

As of September 30, 2024, the Series E Shares were delisted from and no longer trade on the Toronto Stock Exchange (“TSX”).

Following the redemption of its Series E preferred shares, the Company no longer has any preferred shares outstanding. When combined with the redemption of its convertible debentures on June 26, 2024, these strategic moves significantly simplify the Company’s capital structure.

As at September 30, 2024, total Common Shares issued and outstanding were 403.6 million.

Conference call and webcast

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A conference call to discuss these results will be held on Thursday, November 14, 2024 at 8:00 a.m. Eastern Time.

The conference call and webcast can be accessed as follows:

A taped recording of the conference call may be accessed through December 14, 2024 by dialing 1-855-669-9658 (Canada Toll Free), 1-877-344-7529 (U.S. Toll Free) or 1-412-317-0088 (International Toll) and entering the access code 8023973.

IFRS to Non-GAAP Reconciliations, Non-GAAP Measures and Supplemental Information

The Company’s audited consolidated financial statements have been prepared in accordance with IFRS as issued by the IASB and the accounting policies we adopted in accordance with IFRS. These audited consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary to present fairly our financial position as at September 30, 2024 and September 30, 2023, the results of operations, comprehensive income and cash flows for the three-month periods-ended September 30, 2024 and September 30, 2023.

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Non-GAAP and IFRS key annualized operating ratios and per share information of the operations of the Company:

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Management also uses a variety of both IFRS and non-GAAP and Supplemental Measures, and non-GAAP ratios to monitor and assess their operating performance. The Company uses these non-GAAP and Supplemental Financial Measures because they believe that they may provide useful information to investors regarding their performance and results of operations.

The following table provides a reconciliation of certain IFRS to non-GAAP measures related to the operations of the Company and other supplemental information.

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