Elemental Royalties (ELE) AI Stock Analysis

• Market Cap: C$348.98M
• Dividend Yield: N/A
• Average Volume (3M): 88.51K
• Price to Earnings (P/E): 58.0
• Beta (1Y): 0.74
• Revenue Growth: 109.11%
• EPS Growth: N/A
• Country: CA
• Employees: 21
• Sector: Real Estate
• Sector Strength: 62
• Industry: Gold
• EPS (TTM): N/A
• Shares Outstanding: 245,762,590
• 10 Day Avg. Volume: 155,847
• 30 Day Avg. Volume: 88,514
• PEG Ratio: 0.85
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -137.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.65
• Price Target Upside: 86.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: C$1.50 ▲(5.63%Upside)

Elemental Royalties' stock score is buoyed by strong earnings call performance and positive corporate events, indicating strategic growth positioning. While technical indicators suggest bullish momentum, the high P/E ratio signals potential overvaluation concerns. Continued revenue growth and financial stability are notable strengths, though profitability challenges remain a key risk factor.

Elemental Royalties Business Overview & Revenue Model

Company Description

Elemental Royalties (ELE) is a company operating in the precious metals sector, focusing on the acquisition of royalties and streams related to gold and other metals. The company strategically partners with mining businesses to secure financial interests in mining projects, thus offering investors exposure to precious metal production without the operational risks associated with mine ownership.

How the Company Makes Money

Elemental Royalties makes money primarily through its portfolio of royalty and streaming agreements. These agreements entitle Elemental to receive a percentage of the revenue or metal production from mining operations in which they hold royalty interests. The company generates revenue by receiving payments based on the production of these mines. Significant partnerships with mining companies enable Elemental to secure these advantageous royalty agreements, providing steady income streams as the mines produce gold and other precious metals. The company's financial success is largely tied to the performance of its partnered mining operations and fluctuations in metal prices.

Elemental Royalties Financial Statement Overview

Summary

Elemental Royalties demonstrates solid revenue growth and operational efficiency, with strong equity and low leverage enhancing financial stability. However, challenges in net profitability and negative free cash flow highlight the need for improved cost management and cash generation to support sustainable growth.

Income Statement

Elemental Royalties has shown notable revenue growth with a 25.70% increase from 2023 to the TTM period. The gross profit margin improved to 54.00%, indicating efficient cost management. However, the net profit margin is relatively low at 11.38%, reflecting challenges in converting revenue growth into net profitability. The positive EBIT and EBITDA margins of 30.65% and 48.16%, respectively, suggest operational efficiency, yet the conversion to net income needs enhancement.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 86.66%, indicating a stable financial structure predominantly funded by equity. The debt-to-equity ratio is 0.13, reflecting low leverage and minimal risk from debt obligations. Return on equity (ROE) stands at 1.08%, indicating limited returns on shareholder investments, which presents a potential area for improvement.

Cash Flow

While operating cash flow surpasses net income, indicating good cash conversion, free cash flow remains negative, which could impact future investments and growth opportunities. The operating cash flow to net income ratio of 1.93 suggests effective cash management, but improving the free cash flow to net income ratio, currently negative, is critical.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
14.76M	11.74M	9.64M	6.61M	5.12M	2.42M
	Gross Profit
7.97M	4.84M	4.09M	3.73M	3.43M	1.71M
	EBIT
4.53M	259.00K	-3.29M	-302.00K	-275.87K	777.25K
	EBITDA
7.11M	7.86M	-8.41M	2.55M	2.93M	1.48M
	Net Income Common Stockholders
1.68M	-3.90M	-18.21M	-4.73M	-2.63M	-81.81K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
206.19K	11.29M	17.48M	6.11M	10.92M	812.57K
	Total Assets
0.00	188.92M	185.93M	76.50M	28.04M	6.67M
	Total Debt
0.00	30.00M	30.04M	24.43M	1.00	0.00
	Net Debt
206.19K	18.71M	12.56M	18.32M	-10.92M	-812.57K
	Total Liabilities
0.00	33.72M	39.50M	26.02M	1.14M	293.42K
	Stockholders Equity
4.09M	155.20M	146.43M	50.47M	26.91M	6.37M
Cash Flow		Free Cash Flow
-1.50M	-3.58M	-13.39M	-39.02M	-9.03M	504.03K
	Operating Cash Flow
3.24M	1.99M	-723.00K	1.12M	2.09M	1.01M
	Investing Cash Flow
6.05M	-5.55M	-3.39M	-40.12M	-11.01M	-503.08K
	Financing Cash Flow
-12.15M	-2.63M	15.76M	34.20M	19.03M	102.23K

Elemental Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELE, the sentiment is Positive. The current price of 1.42 is below the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.40, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 10.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELE.

Elemental Royalties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKO	76 Outperform	C$416.62M	11.66	39.70%	―	56.13%	98.44%
ELE	74 Outperform	C$348.98M	57.96	2.36%	―	109.11%	―
OGN	70 Outperform	C$394.49M	101.30	5.89%	―	33.96%	37.86%
Sector *	61 Neutral	$2.83B	10.91	0.42%	8438.90%	5.74%	-20.95%
FISH	56 Neutral	$171.50M	411.86	2.86%	2.75%	56.49%	―
FDR	46 Neutral	C$400.85M	―	-14.97%	―	―	-83.38%

Elemental Royalties Corporate Events

Elemental Altus Expands Australian Royalty Portfolio with Laverton and Hercules Developments

Elemental Altus Royalties Corp. has announced significant developments in its Australian royalty portfolio, notably with the Laverton Project and the Hercules Discovery. The Laverton Project, acquired by Genesis Minerals for A$250 million, offers substantial growth potential with its existing mining leases and exploration opportunities, enhancing Elemental Altus’s portfolio. Meanwhile, the Hercules Discovery, under Northern Star Resources, has delivered a maiden resource estimate of approximately 900,000 ounces of gold, marking a significant milestone for the project. These developments underscore the embedded value in Elemental Altus’s Australian assets and highlight the company’s strategic positioning for future growth.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Royalties Achieves Record Q1 Financial Performance

Elemental Altus Royalties Corp. reported record financial performance for Q1 2025, with significant increases in revenue, EBITDA, and cash flow compared to the previous year. The company’s strong financial position, bolstered by substantial cash reserves and a fully repaid credit facility, positions it well for future growth and acquisitions. The Korali-Sud royalty has emerged as a major revenue contributor, and the company anticipates continued momentum with additional revenue from other projects. The positive outlook includes a projected increase in gold equivalent ounces and revenue, supported by favorable market conditions and strategic expansions.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Royalties to Announce Q1 2025 Results

Elemental Altus Royalties Corp. announced it will release its Q1 2025 financial results on May 20, 2025, before the market opens. The company will host an investor webcast to discuss the results, which could provide insights into its financial health and future growth prospects, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Secures US$9.6M from Ming Stream Claim

Elemental Altus Royalties Corp. has received a significant payment of US$9.6 million from its secured creditor claim against Rambler Metals and Mining Canada Limited, related to its former Ming gold stream. This payment forms a major part of the anticipated US$15 million in portfolio payments for 2025, which are additional to the company’s projected royalty revenue of US$30.1 million to US$34.3 million for the year. The successful acquisition by FireFly Metals Ltd of Rambler Group has enabled Elemental Altus to realize a total of US$12.8 million from the Ming stream, enhancing the company’s financial health and positioning it strongly in the market.

Elemental Altus Royalties Achieves Record Financial Results in 2024

Elemental Altus Royalties Corp. reported record financial results for 2024, with significant increases in revenue, operating cash flow, and EBITDA. The company achieved a 39% increase in annual revenue, reaching $16.3 million, and a 53% rise in adjusted EBITDA to $15.1 million. The company also made $33.5 million in accretive royalty acquisitions and repaid $27 million of debt. Looking ahead to 2025, Elemental Altus expects record gold equivalent ounces and adjusted revenue, driven by new royalties and high gold prices, positioning the company for exceptional growth and long-term value for shareholders.

Elemental Altus Royalties to Announce Q4 2024 Results

Elemental Altus Royalties Corp. announced it will release its Q4 2024 financial results on April 16, 2025, followed by an investor webcast on April 17, 2025. This announcement underscores the company’s ongoing commitment to transparency and investor engagement, potentially impacting its market positioning and stakeholder relations as it continues to expand its global presence in the precious metals royalty sector.