Elemental Royalties (TSE:ELE)
TSX:ELE
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Elemental Royalties
(TSX:ELE)
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Rating:60Neutral
Price Target:
C$27.00
▼(-4.36% Downside)
Action:Reiterated
Date:03/26/26
The score is primarily supported by improving fundamentals and a very conservative balance sheet, indicating strong financial flexibility. This is tempered by weak technical momentum and a very high P/E valuation, plus free-cash-flow volatility in 2025.
Positive Factors
Asset-light royalty business model
Elemental’s asset-light royalty model earns contractual payments without bearing mine operating or sustaining capex. This structurally lowers capital intensity and operating risk, providing durable, cashflow-linked exposure to commodity production while preserving capital to acquire additional royalties.
Negative Factors
Free cash flow volatility
Free cash flow swung sharply negative (~-35.3M in 2025) despite healthy operating inflows, implying heavy investment, acquisition funding, or working-capital timing effects. For a royalty acquirer, inconsistent FCF limits predictable funding for growth or returns and raises structural liquidity and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-light royalty business model
Elemental’s asset-light royalty model earns contractual payments without bearing mine operating or sustaining capex. This structurally lowers capital intensity and operating risk, providing durable, cashflow-linked exposure to commodity production while preserving capital to acquire additional royalties.
Read all positive factors
Elemental Royalties (ELE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.48B
Dividend YieldN/A
Average Volume (3M)41.27K
Price to Earnings (P/E)281.2
Beta (1Y)1.77
Revenue Growth124.60%
EPS Growth-95.35%
CountryCA
Employees39
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.14
Shares Outstanding64,255,370
10 Day Avg. Volume35,431
30 Day Avg. Volume41,275
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.65
Price to Sales (P/S)11.42
P/FCF Ratio-14.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$41.33Price Target Upside46.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.38
Revenue Forecast (FY)C$85.76M
Elemental Royalties Business Overview & Revenue Model
Company Description
Elemental Royalty Corporation engages in the acquisition and generation of precious and base metal royalties. It is also involved in exploration royalties and royalty generation assets. The company holds royalties in gold, silver, copper, and prec...
How the Company Makes Money
Elemental Royalties makes money by owning royalty and royalty-like interests over third-party mineral assets. Its primary revenue model is to receive contractually defined payments that are typically calculated as (a) a percentage of revenue from ...
Elemental Royalties Earnings Call Summary
Earnings Call Date:Aug 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
Elemental Altus reported strong financial results with record revenue, significant growth in EBITDA and cash flow, driven by key assets like Korali-Sud and Karlawinda. The company is in a strong financial position with substantial liquidity and new investor support from Tether Investments. However, there are challenges, including paused revenue from Wahgnion and higher tax costs. Overall, the positive aspects significantly outweigh the challenges.Positive Updates
Record Revenue and Strong Financial Position
Elemental Altus achieved record revenue for Q1 and Q2 of fiscal year 2025, with adjusted revenue doubling year-on-year to $10.5 million. The company has a strong financial position with $30 million in the bank and an undrawn $50 million credit facility.
Negative Updates
Paused Revenue at Wahgnion
Revenue accrual at Wahgnion is paused while the government conducts an external audit. Payment is expected in 2025, but the delay affects current cash flow.
Read all updates
Q2-2025 Updates
Positive
Negative
Record Revenue and Strong Financial Position
Elemental Altus achieved record revenue for Q1 and Q2 of fiscal year 2025, with adjusted revenue doubling year-on-year to $10.5 million. The company has a strong financial position with $30 million in the bank and an undrawn $50 million credit facility.
Read all positive updates
Company Guidance
During the Q2 2025 call for Elemental Altus, CEO Fred Bell and CFO David Baker highlighted several key financial metrics showcasing the company's robust performance. Adjusted revenue reached $10.5 million, doubling year-on-year, while adjusted EBITDA surged by 150% to $8.8 million. Operating cash flows also increased to $14.4 million, reflecting a solid production base with nearly 3,200 GEOs in Q2, a 44% increase, and a record 7,800 GEOs for H1. The company's financial strength is further demonstrated by $30 million in cash and an undrawn $50 million credit facility, providing $80 million of liquidity. Revenue guidance was upgraded to $35-40 million for 2025, supported by strong performances from key assets like Korali-Sud, which generated $9.1 million in royalty revenue year-to-date. Additionally, new investor Tether Investments provides strong backing, enabling Elemental Altus to capitalize on acquisition opportunities and enhance its portfolio.Elemental Royalties Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
54
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.41M | 16.32M | 11.74M | 9.64M | 6.61M |
| Gross Profit | 27.76M | 9.11M | 4.84M | 4.09M | 3.73M |
| EBITDA | 24.12M | 10.26M | 7.80M | -8.41M | 2.55M |
| Net Income | 1.80M | -364.00K | -3.90M | -18.21M | -4.73M |
Balance Sheet | |||||
| Total Assets | 905.66M | 204.17M | 188.92M | 185.93M | 76.50M |
| Cash, Cash Equivalents and Short-Term Investments | 69.13M | 4.45M | 11.29M | 17.48M | 6.11M |
| Total Debt | 488.11K | 2.69M | 30.00M | 30.04M | 24.43M |
| Total Liabilities | 126.67M | 7.78M | 33.72M | 39.50M | 26.02M |
| Stockholders Equity | 778.99M | 196.38M | 155.20M | 146.43M | 50.47M |
Cash Flow | |||||
| Free Cash Flow | -35.27M | 1.57M | -3.58M | -13.39M | -39.02M |
| Operating Cash Flow | 34.63M | 4.82M | 1.99M | -723.00K | 1.12M |
| Investing Cash Flow | -60.49M | 4.51M | -5.55M | -3.39M | -40.12M |
| Financing Cash Flow | 75.76M | -16.11M | -2.63M | 15.76M | 34.20M |
Elemental Royalties Technical Analysis
Negative
28.23
Price Trends
26.15
Negative
26.85
Negative
24.14
Negative
Market Momentum
-0.49
Positive
37.69
Neutral
19.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELE, the sentiment is Negative. The current price of 28.23 is above the 20-day moving average (MA) of 24.48, above the 50-day MA of 26.15, and above the 200-day MA of 24.14, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ELE.
Elemental Royalties Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | C$2.41B | -152.36 | -3.39% | ― | ― | ― | |
60 Neutral | C$1.48B | 281.23 | 0.50% | ― | 124.60% | -95.35% | |
54 Neutral | C$2.84B | -445.85 | -7.29% | ― | 112.44% | 1.33% | |
50 Neutral | C$1.29B | 5.34 | -10.60% | ― | 1249.52% | 40.47% | |
49 Neutral | C$963.14M | -8.05 | -22.69% | ― | ― | -1.42% | |
42 Neutral | C$965.41M | -24.55 | -1283.12% | ― | ― | ― |
* Basic Materials Sector Average
TSE:ELE
Elemental Royalties
21.73
7.96
57.75%
TSE:ASE
Asante Gold
1.02
-0.16
-13.56%
TSE:RUP
Rupert Resources
9.90
4.88
97.21%
TSE:GTWO
G2 Goldfields Inc
10.05
6.83
212.11%
TSE:ODV
Osisko Development
3.87
1.26
48.28%
TSE:NFG
New Found Gold
2.64
0.91
52.60%
Elemental Royalties Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Elemental Royalty to Graduate to TSX, Aiming to Elevate Profile in Gold Royalty Market
Positive
Apr 2, 2026
Elemental Royalty Corporation, a mid-tier, gold-focused streaming and royalty company formed from the merger of Elemental Altus and EMX, manages 18 producing assets and over 200 royalties in a globally diversified portfolio. Its business model ble...
Business Operations and StrategyDividends
Elemental Royalty Launches Maiden Dividend and Offers Payout in Tether Gold Tokens
Positive
Mar 21, 2026
Elemental Royalty has declared its first-ever quarterly dividend of US$0.03 per common share, with an indicated total of US$0.12 per share for fiscal 2026, to be paid to shareholders of record on March 31 and distributed around April 15 as an elig...
Business Operations and StrategyFinancial Disclosures
Elemental Royalty sets March dates for Q4 and full-year 2025 results and investor webinar
Neutral
Mar 19, 2026
Elemental Royalty Corporation will release its fourth-quarter and full-year 2025 financial results after the market close on March 24, 2026, and will host an investor webinar the following day to discuss the figures. The scheduled results and webc...
Business Operations and Strategy
Elemental Royalty Set to Receive First Chapi Copper Royalties After Production Restart
Positive
Mar 3, 2026
Elemental Royalty Corporation, a mid-tier precious metals streaming and royalty company with a diversified global portfolio, holds a 2% net smelter return royalty over the Chapi Copper Project in southern Peru. The company’s model leverages ...
Business Operations and StrategyPrivate Placements and Financing
Elemental Royalty Upsizes Credit Facility to Boost Deal-Making Capacity
Positive
Mar 2, 2026
Elemental Royalty Corporation has amended and significantly upsized its revolving credit facility to US$150 million, adding a US$50 million accordion feature that could bring total capacity to US$200 million, with National Bank of Canada, CIBC and...
Business Operations and StrategyM&A Transactions
Elemental Royalty Sells Nordic Operations to Goldsky While Retaining Regional Royalties
Positive
Feb 19, 2026
Elemental Royalty Corporation has completed the sale of its Nordic operational platform, including regional infrastructure, exploration equipment, and employees, to long-standing partner Goldsky Resources, while retaining all its mineral propertie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.