First Carbon Credits Received from Stream and Royalty Portfolio
Company Publishes 2022 Sustainability Report updated for the Six Months Ended December 31, 2022
TORONTO — Carbon Streaming Corporation (NEO: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) today reported its financial results for the three month period ended March 31, 2023. All figures are expressed in United States dollars, unless otherwise indicated. The Company will host a live audio call at 11:00 a.m. ET on Tuesday, May 16, 2023.
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Carbon Streaming Founder and CEO Justin Cochrane stated: “We had a solid start to 2023, receiving first carbon credits from our portfolio of streams and royalties. To date, five of the projects in our portfolio have had credits issued and we remain on track to receive carbon credits or royalties from 10 or more projects this year. Sales of thse credits have commenced and are anticipated to continue over the next approximately 12 months, with cash flow expected to follow.”
Mr. Cochrane added: “In 2022, we transformed our portfolio by adding carbon credit streams and royalties covering 18 additional projects while investing in internal systems and capabilities. Building this foundation positions us today as a differentiated partner of choice for project developers, and corporate buyers and end-users of carbon credits. We remain conscientious about protecting our robust, debt-free balance sheet, while selectively continuing to grow and diversify our portfolio.”
Company Highlights
Three months ended March 31, 2023
Ended the quarter with $65.8 million in cash and no corporate debt.
Received first delivery of carbon credits from three projects from two of the Company’s carbon credit streaming agreements. Additionally, a second project for which the Company holds a carbon credit royalty agreement was issued carbon credits
Revenue from sale of purchased carbon credits of $21.2 thousand for the three months ended March 31, 2023 (three months ended March 31, 2022 – revenue of $nil).
Sold a total of 8,696 carbon credits, including 2,496 purchased carbon credits and 6,200 carbon credits that were delivered under the Company’s carbon credit streaming agreements.
Recognized net loss of $1.0 million for the three months ended March 31, 2023 (three months ended March 31, 2022 – net income of $49.1 million). After adjusting for the revaluation of warrant liabilities and the revaluation of carbon credit streaming and royalty agreements, adjusted net loss was $2.9 million for the three months ended March 31, 2023 (three months ended March 31, 2022 – adjusted net loss of $4.4 million). Please see the “Non-IFRS Measures and Performance Measures” section of this news release and associated MD&A for further information.
Paid $1.5 million in upfront deposits and milestone payments for carbon credit streaming an royalty agreements during the quarter.
The Company received International Carbon Reduction & Offset Alliance (“ICROA”) accreditation. The ICROA Accreditation Programme defines and promotes best practice in the financing of high-quality emission reductions and use of carbon credits as an effective carbon management tool.
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Subsequent to March 31, 2023
Announced a pipeline streaming agreement with Mast Reforestation SPV I, LLC (“Mast”) to develop a pipeline of post-wildfire reforestation carbon removal projects in the Western USA, which are expected to generate approximately 1 million carbon removal credits.
The first project to be funded under the pipeline streaming agreement with Mast is the Sheep Creek Ranch project (the “Sheep Creek Reforestation Project”), which is expected to generate approximately 225,000 carbon removal credits.
The Company invesed $2.0 million into the parent company of Mast through a convertible note.
Published the Company’s 2022 Sustainability Report updated for the six months ended December 31, 2022, which describes Carbon Streaming’s business model, approach to climate action and impact investing, due diligence and governance practices, guiding principles as well as the Company’s environmental and social impacts.
Offset five times the Company’s calendar year 2022 emissions through the retirement of 245 carbon credits from the Company’s portfolio.
Highlights Summary
Three
months
ended
Three
months
ended
(in thousands of United States dollars)
March 31, 2023
March 31, 2022
Revenue from sale of purchased carbon credits
$
21
$
–
Gross profit
9
–
Average realized price per carbon credit sold ($/carbon credit)
8.46
–
Cash cost per carbon credit sold ($/carbon credit)
5.00
–
Number of purchased carbon credits sold (carboncredits)
2,496
–
Number of carbon credits sold under carbon credit streaming agreements (carbon credits)
6,200
–
Other operating expenses
$
3,526
$
4,429
Net (loss) income
(972
)
49,070
(Loss) earnings per share (Basic) ($/share)
(0.02
)
1.05
(Loss) earnings per share (Diluted) ($/share)
(0.02
)
0.87
Adjusted net loss1
(2,864
)
(4,429
)
Adjusted net loss per share (Basic and Diluted) ($/share) 1
(0.06
)
(0.09
)
Cash2
65,756
102,525
1.
“Adjusted net loss”, including per share amounts, is a non-IFRS financial performance measure that is used in this news release and associated MD&A. This measure does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. For more information about this measure, why it is used by the Company, and a reconciliation to te most directly comparable measure under IFRS, see the “Non-IFRS Measures and Performance Measures” section of this news release and associated MD&A.
2.
Cash is presented as at the relevant tabular reporting date.
