Good morning, ladies and gentlemen, and welcome to the Altius Renewable Royalties Q3 2023 financial results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, November 7th, 2023. I would now like to turn the call over to Flora Wood. Please go ahead. Thank you, Jerry. Good morning, everyone, and welcome to our Q3 call. Our press release and filings were released yesterday after the close and are available on our website. Last week, you also saw the announcement of GBR's new credit facility, so the conference call comes at a good time. This event is being webcast live, and you'll be able to access a replay of the call, along with the presentation slides that have been added to our website, on the homepage and also under Investors. Brian Dalton, CEO of ARR, and Frank Getman, CEO of Great Bay Renewables, are both speakers on the call, and in the Q&A, we'll have Ben Lewis, CFO of ARR, available for questions. The forward-looking statement on slide two applies to everything we say, both in the formal remarks and during the Q&A. With that, I'll turn over to Brian. Thanks, Flora, and thanks, everyone, for joining us today. We're happy to report that our business development progress continues on track, despite the headwinds and significantly constrained capital availability in the overall renewable sector. A tremendous amount of change has occurred since we went public in early 2021. However, I feel that we've been adapting well and finding ways to make the most of the opportunities that have resulted from every new challenge. I also understand that for you, our fellow shareholders, that the downward shift in renewable sector equity valuations has been difficult to experience. For sobering background, the TSX Renewables Index is off by 63% since the time of our IPO. In many ways, what is currently occurring feels a lot like things did in the mining sector, where most of my experience comes from, back in 2015 and early 2016. That was when balance sheets and weak commodities markets led to the near complete exodus of equity and debt capital market participants from that sector. Back then, even the traditionally best and strongest companies were suddenly made very vulnerable. It was a very scary and painful time, to be sure, but in hindsight, also an amazing opportunity. Nowhere was this more true than for the royalty companies, who were able to step into the capital void with royalty-based financing and acquire long-term interest in world-class, long-life, option-value-laden operations. In fact, if you look into the portfolios of most of the established mining royalty companies, you will see that many of their current jewel assets were acquired during that window. I believe that the same type of contrarian opportunity is now presenting for ARR and GBR within the renewable sector, and it is why I'm so impressed and excited about the incredible achievement that Frank and the team completed last week with the signing of new green credit facilities. This leverages the strength of the existing fully equity finance portfolio and provides liquidity to match contrarian conviction. We believe it will accelerate the goal of adding further long-term scale and diversity to your company. With that, I will hand over to Frank to dig in deeper on the past quarter and the opportunity set before us. Over to you, Frank. Thanks, Brian. Good morning. I'm excited to share with you today an update on our continued progress in building Great Bay and its broad, diversified portfolio of renewable royalties. Our royalty portfolio revenue and cash flow profile continue to benefit from the addition of operational stage royalties acquired in late 2022. Revenue for the first three quarters of 2023 was $7.8 million versus $5.6 million in 2022. As we projected last quarter, Q3 revenue of $3.9 million benefited from higher merchant pricing due to warm summer weather and increased power demand in ERCOT. As Brian mentioned, we announced the closing of a $247 million credit facility for Great Bay. The financing includes $123.5 million initial term facility, $100 million delayed draw term facility, and $23 million letter of credit facility. The initial term and delayed draw facility have a five-year term and a 20-year amortization, with a 6.4% interest rate for the first three years and approximately 6.5% interest rate for the last two years, excluding financing closing costs. We hedged 100% of the interest rate risk for the initial five-year term and approximately 50% thereafter to reduce refinancing risk. This financing represents a truly transformational achievement for Great Bay. Up to this point, we had funded all of our investments with equity. This financing allowed us to reload and provides Great Bay with significant liquidity to continue to grow its business at an attractive cost of capital with no dilution to shareholders. It also represents a validation and strong endorsement from two sophisticated global lenders of our business model and the value we have created over the last several years. It also comes at an opportune time, as the current climate in the renewable sector, with industry-wide delays and everything being pushed to the right, higher costs, particularly significantly higher interconnection deposits and costs, higher interest rates and cost of debt, and lower equity prices, creating an environment where there is strong demand for alternative sources of capital, such as Great Bay's royalty financing. I'd note that Great Bay's development partners are not immune from the industry-wide delays facing the renewable sector. It's important to know, however, that while the timing of projects coming online may get pushed to the right, Great Bay's ultimate return on these developer investments is protected, since our capital continues to accrue and results in Great Bay simply receiving more royalties over time to compensate for any delays. On the origination and new business front, we have an incredibly strong and growing origination pipeline, and now we have the capital between the initial term proceeds and the delayed draw to aggressively pursue these opportunities. I'd note that the delayed draw facility can only be used on cash flowing royalties, so I'd expect we prioritize operating royalties over developer deals in the near term. I also want to make a few comments about the $23 million letter of credit facility. It's obviously a relatively small part of the overall facility, but it was important for us to negotiate to include even a small LC facility to start, as the problem, the ever-growing need by developers for interconnection deposits, even fully refundable deposits, is perhaps the single largest issue facing the industry right now. We're hoping to be able to deploy this LC facility to assist developers, potentially both developers in the Great Bay Royalty program and third-party developers, with posting fully refundable interconnection deposits, allowing Great Bay to earn an attractive, essentially risk-free rate of return, while gaining an option to acquire royalties on projects once they become operational on attractive terms. It's early days in figuring out the details of how we might structure an interconnection deposit product, but we're working hard to figure it out. To sum up, Great Bay is incredibly well-positioned, with almost 2.5 GW of operating royalties, over 15 GW of wind, solar, and storage development projects in our developer portfolio, attractive market conditions for deployment, and now a bit of a war chest to seize this significant opportunity. In short, I've never felt better about Great Bay's future. That's it for my update. I'll turn it back to you, Brian. And I think that that concludes the prepared remarks portion. So operator, maybe you can turn us over to questions. Thank you. Ladies and gentlemen, we will begin the question and answer session. Should you have a question, please press the star followed by the one on your touchtone phones. You will hear a three-tone prompt acknowledging your request, and your questions will be polled in the order that they're received. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Nick Boychuk of Cormark. Please go ahead. Thanks. Good morning, guys. Frank, you kind of mentioned the deployment phase of the new capital. It's going to be focused on the operating side of the royalties. Can you kind of walk through what the pace of the, both the initial term and the drawdown facility is going to look like? Sure. Well, just the logistics of how the delayed draw works. We have three years to, you know, to deploy that $100 million. And it's a portion of any investment we make, and there's a formula in the documents about how much we can leverage we can put on any particular project, and it's tied to the cash flows of that project, similar to how they sized the original debt. So that's the timing for our ability to use the delayed draw facility. As far as, you know, the pace of deployment, you know, we have. It's not an overstatement to say that the companies, even companies that may have not even given us the time of day a couple of years ago, everyone's clamoring for capital right now. So we're trying to find the highest and best opportunities where we can earn the best return and, you know, the best risk-adjusted return, and we're moving as quickly as we can. So, you know, I would. I think, you know, things should hopefully continue to progress and be able to deploy that in hopefully short order. Okay, thanks. And then just talking about also some of the projects that were moved a little bit to the right, can you speak at all to the sense of commitment that you have from Enbridge right now to continue to push forward on the TGE deals that they're responsible for? Yeah, sure. I mean, we're seeing... We still have our quarterly updates with TGE, you know, now Enbridge, and they are pushing aggressively forward. I mean, they are one of the-- If you look at these issues with capital in the industry, they're one party that's actually, I think, seeing it as an opportunity because they seem to be accelerating their pace of deployment in the renewable sector. It's really, it's great to see that this wasn't a token investment by an oil company to say, "Oh, you know, now we're in renewables, too." They are-- They're deploying, you know, $hundreds of millions into Tri Global and, you know, acquiring panels, posting these deposits I'm talking about. They are aggressively moving forward their whole pipeline. So, you know, while there may be some delays with approvals and things from interconnections, I see nothing but strong commitment from Enbridge, you know, to support Tri Global. Okay. Appreciate the color and the time. Thanks, guys. Thank you, Nick. Thank you. Our next question comes from the line of David Quezada of Raymond James. Please go ahead. Hi. Thanks. Morning, everyone. Morning, David. Maybe just a quick question on just in terms of your, like, strategy going forward. Now, it feels like there's been, you know, kind of a few moving parts. Obviously, the big influx of capital with the credit facility is great to see, plus, you know, a move lower in valuations across the sector. Just wondering if maybe, Frank, if you could speak high level about, you know, if you've made any tweaks to your process. Have you, you know, like, started looking at your target returns? Just any change with this kind of dynamic environment that seems to really favor you. Sure. Happy to, David. I guess there's two things that come to mind. Our one, that the calls are definitely coming inbound. We are, you know, literally flooded with opportunities and people reaching out to us and saying, "Let us learn more." So I think that we're now having to prioritize and, you know, as I said, kind of high-grade those opportunities and figure out which - what's the right opportunities for us in the near term. I wouldn't expect us to do another developer deal, as I mentioned in my remarks, right, immediately. I think that the highest and best opportunity for us right now is probably into operating projects. That being said, if it's a perfect project with a 20-year PPA and it nine... It's been levered 90%, that's probably not a great opportunity for us. You know, that's really not what we're talking about. We're looking for opportunities where, you know, we think we can earn an outsized return for the risk that we're taking. And, so I would say, yes, we are. You know, there's not a posted price for royalty financing, what's the clearing price on Bloomberg? So we're trying to, you know, test the market a bit and push our returns, which I think is appropriate given the conditions that we face. So, yes, we're looking to, you know, try to achieve the best risk-adjusted return we can for our shareholders, while still able to deploy capital into high-quality deals. And that's another thing too, we can look at the quality of the counterparties. There's, you know, a couple of different ways that you can look at risk-adjusted returns. One is the quality of the projects, quality of the team, quality of the counterparties, and then obviously, just the returns from the expected cash flows from the project. We're trying to look at all those factors as we move forward. That's great color. Thanks, Frank. Appreciate it. And then maybe one more for me. Just on Nova, it sounds like the development pipeline is advancing well there. Just wondering if there's any color you can provide on how those individual projects are advancing, and just how you see that developing going forward here. Yeah, you know, we have, you know, I sit on the board of Blue Star, and to see what they've been able to achieve in what, a year and a half, and to build out a, you know, 2-2.5 GW pipeline. And that's with projects that they have site control. I mean, they have even a broader pipeline of where they haven't, you know, secured site control for all their projects. It's really, you know, it's been amazing to watch and see, and I feel very positive about their progress. I don't. It's not appropriate for me to get into specific projects or areas, as I think, you know, they're a private company, they view that as, you know, commercially sensitive information. But I can just share with you that, these guys are pros, and they're, you know, hitting on all cylinders right now. That's great to hear. Thanks for that, Frank. I'll turn it over. Our next question comes from the line of Jonathan Lamers of Laurentian Bank Securities. Please go ahead. Yeah, good morning, Frank. Hi. Just on your comments on the letter of credit facility, I thought those were interesting. Can you expand on why the opportunity you see on the interconnection deposits is essentially risk-free for GBR and ARR? Sure. Because it, it's the way, you know, the way it works is when you put a deposit to secure your place in line, it's, it's fully refundable until such point as they start doing work and, and, you know, they start deploying the capital and start building out the infrastructure. At that point, it becomes either in part or fully non-refundable. There's usually a 9-12-month period where these deposits are being held to secure your place in line, and it's fully refundable, so that's why I use the word risk-free. And but the mechanism of how that works, everyone, you know, MISO just came out with new rules. PJM has adjusted its, its, you know, its model and its interconnection process. And the numbers, the sheer dollar amount that's being required has gotten so large that, a number of developers simply just don't have the capital, and they're faced with having to use equity capital to fund, you know, fully refundable deposits, which isn't a great use of capital. It ties up capital. So the opportunity for us is we negotiated with the banks to have this LC facility, and it's. I'd note that it's at a cost of capital to us that is well below the 6.5 on the debt, because we can only use it on fully refundable deposits, so it is secure to the bank as well. But that because the process is complicated, there's not enough capital in the market, I think we can earn a nice, you know, spread on that capital. And then ultimately, right, we're a royalty company, so ultimately our objective is to get options on these projects, you know, as they move forward. That if they go forward, we'd have an option to acquire a royalty, you know, at an attractive price. You know, in some ways, we borrowed the concept that emerged from the Enbridge acquisition, where we have that option to be able to acquire royalties that aren't needed to hit our return. All the extra in the pool, we have an option to acquire those at an attractive discount rate. You know, we borrowed that concept, but I love that concept, so we borrowed it and trying to apply it into the interconnection world. And I think, you know, we haven't-... We haven't done one yet, but we frankly didn't have the capital to do one yet. So, Zach is working hard on it. You know, he's been out to MISO, he's been out, sat in their offices, and, and the devil truly is in the details in this interconnection world. And I think, you know, we understand it as well as anybody right now, and we're trying to, you know, leverage that knowledge and the- and now the capital, to be able to support these developers in posting these deposits. Okay, that's great commentary. Just if I can follow up on the 2023 guide, you know, that was reiterated in the royalty press release. Merchant power prices appear to have been pretty favorable in the last few weeks versus prior year. How are you feeling about merchant power prices and your ability to deliver on the revenue guide for 2023? Well, you know, we still think that range, we're comfortable with that range. We had a great summer. Actually, into early fall was really strong as well. We're seeing, you know, pockets. You don't need a whole lot of megawatt hours if you're talking $1,000 a megawatt hour or whatever it might be, to make up the revenue in a hurry. You know, going forward, you know, your guess is as good as mine as to exactly where merchant prices are gonna be, but I will tell you that they're, you know, they're gonna be tied, at least for the foreseeable future, to natural gas prices. And, you know, we're seeing natural gas prices appear to have bottomed. They moved back up over $3 now. So, you know, there's an interesting dynamic in the natural gas market where natural gas companies are trying to price LNG off of where the gas is going and not the Henry Hub price of where it's being generated and supplied. And they're having some success, which I think over time will create upward pressure on natural gas prices, which would be great for merchant power prices as well. Okay, thanks. There was a note also that, you know, achieving the guide depends partly on a local transmission upgrade at Titan Solar- Mm-hmm. and the release of an escrow Yes -grow in Q4. Do you have any visibility as to whether that will be completed, or is it something you'll just kind of find out- So- Once it happens? Yeah, no, we're confident it should happen. We should get that. That should be released because the work, to our understanding, has been completed, and it's really a question of demobilizing and energizing the line and get it going. It looks like all the work has been done. You know, we actually expected it to have been done by now, and I think so did Longroad. And I think that, you know, we have every reason to think it's gonna get done and released by the end of the year. But, you know, that is, it's about $1 million, so it would be... You know, if we didn't have that, then it would, we would fall short. But, I think we have every reason to expect that it will be released. Okay. I'll pass the line. Thanks for the comments. Yeah. Our next question comes from the line of John Mould of TD Securities. Please go ahead. Thanks, good morning. Maybe just, you know, on your pipeline and focus on, you know, royalty, royalties in the operating side. You're clearly confident, you know, on what that pipeline looks like, given that you moved ahead with the secured facility. What catalyst are you seeing right now for operators to want royalty financing? Is it still carving out more merchant exposure? Is it funding for repowering? Is it, you know, bespoke reasons in every case? What dynamics are you seeing right now driving deal flow for operating royalties? Yeah, no, it's kind of all the above, and it's in every case something bespoke to that project usually, and or the operator, where the operator maybe has, you know, upgrades or things it wants to do that it can't fund because it really can't access the debt or equity markets right now, so it's looking for new sources of capital. It could be someone who has a hole in their capital budget next year because the current market conditions have changed, yet they want to continue to progress, so we'd be able to provide them capital in exchange for a royalty on an operating project. I mean, like, it may not be. It doesn't necessarily... Well, it could be, but it doesn't necessarily have to be that our dollars are tied to that project, so long as we get a royalty on an operating project, if you follow what I'm saying. So that, that's a, something, you know, a more corporate level of financing that, but then in exchange, we get operating royalties, is something that the current debt and equity markets have kind of created an opportunity for that, which I would say that opportunity really wasn't there 12 months ago. And then on the merchant side, you know, people saw what happened this summer. I think there is a desire for some exposure to merchant pricing, to market prices. I also think there's still some Storm Uri projects that haven't really fully settled up and recognized the, you know, the extent of the losses and how they might restructure and move forward. That, you know, was a great opportunity for us with Northleaf. There's still a few projects that haven't, you know, figured that out yet. So it's kind of all of the above, and, you know, so, but it won't, it... You know, I think, like I did mention, that we've looked at several now where there was like, you know, a perfect project, that had a long-term, 20- or 30-year PPA, busbar PPA. Those, they're gonna still be able to access the debt markets, so I don't think, you know... Those aren't great opportunities for us, and I actually frankly don't want to sit behind a bunch of debt, you know, as a royalty holder, even on an operating project. Okay. Thanks for that context. And then, you know, just in terms of scale and, you know, when you think a little bit about how much capital you're willing to, you know, put into one investment, you know, what's the range of checks you're hoping to be able to write, you know, with this financing secured for operating investments, just in terms of size? ... Yeah. Well, you know, I think, we, we'd like to be able to deploy all of it, right? Because it's, into operating or, or a healthy portion of it into operating projects. You know, particularly if there, if there has been any kind of delay in our developer deals, which there has been, in those coming online, you know, near-term cash flow that bridges to those projects coming online makes a lot of sense. So that's something that we're looking at. And, you know, as far as the check size, it's very deal-specific, you know. So it's really hard to say in, in any single one. We are also looking at other ways that we can, you know, structure the deals to, protect ourselves. You know, maybe, maybe we front-end load cash flow. There's different things we're looking at that we might consider, you know, for a specific project or if it had merchant exposure and things like that. So it's all kind of, you know, very deal-by-deal, specific. Okay. Great. Thank you. I'll... Those are my questions. I'll leave it there. Our next question comes from the line of Eli Rodney of National Bank. Please go ahead. Morning, everyone. Just filling in for Rupert here. You mentioned a big backlog of investment opportunities. Any market look good in particular as far as ISOs and anything getting close to the strike zone outside of the U.S.? I think it's across the board as far as the different, you know, the all regions are very, very active, so it's, I'd say we're seeing activity across the across the U.S. As far as outside the U.S., I think we've had some conversations with some projects in Canada, so I think that's probably would, you know, would be the the most near-term thing that we think about as far as projects outside the U.S. We do have exposure through our equity ownership in Blue Star. I know that they've Blue Star has done one deal in Australia, and that they've set up a team there, so we have exposure to the Australian market through our equity investment in Blue Star, not directly as a royalty holder, but that's something that, you know, frankly, Declan and I discussed, that, you know, at some point in the appropriate time, it might make sense for, you know, Great Bay to look to providing royalty capital directly to, you know, one of their projects, if it was something that made sense for both parties. Right. Okay. And then on TGE, you mentioned that they're one of the few that continues to press forward, viewing the sort of tight financing environment as an opportunity. But you also mentioned that operating assets are the main focus right now. So in your view, how much more investment could you see in the TGE pipeline? And what would the timing of that look like? Yeah, this is an important point for folks to recognize, is that we have no further funding obligations to TGE. The hundreds of millions of dollars that Enbridge is spending on their portfolio to advance their entire portfolio, we're benefiting from that, but we have no further funding obligation. So we won't be putting any more money into Tri Global, yet we're going to get the benefit of them advancing their pipeline. And the first projects that come out, we will be credited towards our return threshold, and once that return threshold is hit, then we will have an option to acquire, you know. And it's roughly a 6 GW portfolio that we have royalties on. So right now, we're projecting about half of it will be needed for hitting our return, but the other half is future deployment into cash flowing deals, where we wouldn't have to exercise that option until COD, until they're operational. And we're using you know, the same return. We're using the discount rate in valuing those and what we're going to pay. We're using the same return threshold that we have for our underlying deal, which was used at the development stage. So it's an attractive discount rate. And so you know, that we think that that's a you know, fantastic opportunity, and it would be... Look, it would be perfect. If we haven't utilized the delayed draw by then, that would be a perfect, you know, situation to use the delayed draw, would be to use that capital to, you know, acquire those projects. Although, probably that won't happen within the timeframe, the three-year timeframe. That's perfect. So I guess to summarize, taking a bit of a wait-and-see approach after the gigawatts that come on to meet your targeted return based on invested capital to date. Yeah, it's a—we have an option. It's not an obligation to acquire those projects, so we'll look at it at the time. If, you know, interest rates have gone to 15% and the price, you know, our option price isn't attractive, then we wouldn't exercise it. But if they are where they are today or lower, then they would be very much attractive, and we would likely exercise that option. Great. That's all for me. I'll jump back in the queue. Ladies and gentlemen, as a reminder, should you have a question, please press the star followed by the one. Our next question comes from the line of Devin Schilling of PI Financial. Please go ahead. Hi, guys. Good morning. Most of my questions have been answered here, but maybe just on your current GNA, are you guys happy with current staffing levels, or do you think you may need to add some bodies here, I guess, to meet your capital deployment targets over the next couple of years? Yeah, we're looking at to bring a controller-type person in to handle some of the back office and accounting functions. We get support today from ARR, and that would continue, but even on our side, there's a fair amount of work that needs to be done before we deliver the financials up to ARR. And I think a lot of that falls on Ray right now, and that's not the highest and best use of his talent, so we're trying to backfill there and get a controller in here. And then we're also think a, you know, investment analyst or someone could help, you know, support the deal flow, a more junior associate would make sense as well, but that, you know, that's largely it. Okay. Yeah, no, that's helpful. Thank you so much. There are no further questions at this time, so I'll hand the call back to Flora Wood. Please go ahead. Thank you, Jerry, and thank you to everybody for those questions. They were excellent questions. Thank you all for listening in, and we'll look forward to speaking with you again at year-end. Thank you. Ladies and gentlemen, this concludes your conference call for today. 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