NAV Growth, Scale Benefits, and PNAV

Dave Cole, CEO of Elemental Royalty Corporation (TSXV: ELE) (Nasdaq: ELE) joins us to review their record full-year 2025 financial metrics, and to look ahead to 2026 guidance.  2026 will be the first full year of results from the pro-forma combination of Elemental Altus Royalties with EMX Royalty Corporation last year, to form an emerging intermediate royalty company.  We discuss a number of key royalty partner project updates, details of the new dividend policy, and the ability of the company to grow both organically and externally with 4 different business transaction approaches. 

2025 Financial Highlights

• Record full year revenue plus attributable share of Caserones of US$49.2 million, up 128% over prior year, exceeding 2025 updated guidance of US$42 million;
• Gold Equivalent Ounces (“GEOs”) of 14,285 for 2025 (compared to 8,987 in 2024), driven by contributions from Karlawinda, Bonikro, Korali Sud, and Caserones, and the completion of the merger with EMX Royalty Corporation;
• Adjusted EBITDA of US$34.9 million, up 131% over prior year, demonstrating strong cash flow conversion;
• Adjusted operating cash flow of US$33.9 million, up 288% over prior year;
• Cash and cash equivalents, as of December 31, 2025, of US$53.1 million and a working capital of US$80.1 million, demonstrating financial flexibility for growth.

Next, we go on a global tour of their royalty portfolio of 18 producing royalties, 29 advanced development assets, and ~200 total mineral royalties globally; diversified across multiple jurisdictions and across precious metals, critical minerals, and battery metals

Dave touched upon their key cornerstone producing royalty partner projects like: Leeville, Timok, Caserones, and Karlawinda, as well as a number of other solid producing royalties on Gediktepe, Balya, their suite of West African royalties (Korali-Sud, Wahgnion, and Bonikro), and the announcement by Quilla Resources on March 2nd of the successful production of first copper cathode from the Chapi Copper Project in southern Peru. 

Dave also flagged a few key large development projects with compelling royalty upside, as those projects move further down the pipeline towards future production, like Diablillos in Argentina, Viscaria in Sweden, Cactus in Arizona, and Laverton in Australia.

In addition to growing royalties year over year, there are also a number of one-off incoming payments on pre-production royalties, that are still generating revenues via lease-option payments, stage-gate payments to advance properties, advanced minimum royalty payments; that come in by way of cash and/or shares in partner companies.

We also discuss the new dividend optionality of being paid in either cash or Tether Gold tokens, (which are backed by physical gold); and the corresponding value of having Tether Investments S.A. de C.V as their key stakeholder.   Dave believes their Company is on the cutting edge of marrying the value of hard assets anchored in commodities and royalty instruments, with the interest from investors in the utility of digital assets.

Dave points to 4 different approaches to continue to grow future value in Elemental Royalty Corp.  Beyond the organic development growth still on tap within their portfolio of royalties, there is the future upside of their continued royalty generation strategy, the potential for larger future royalty acquisitions and/or royalty financings to create new royalties, and they are always reviewing the potential for accretive M&A opportunities.  The company has plenty of firepower to pursue accretive transactions; with near ~$200Million in combined cash and working capital plus a revolving credit facility, with an accordion feature.

If you have any follow up questions for Dave or the team ate Elemental Royalty Corp, then please email them to us at Fleck@kereport.com or Shad@kereport.com.

• In full disclosure, Shad is a shareholder of Elemental Royalty Corp at the time of this recording, and may choose to buy or sell shares at any time.

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