Elemental Royalties (ELE) AI Stock Analysis

• Market Cap: C$1.56B
• Dividend Yield: N/A
• Average Volume (3M): 41.27K
• Price to Earnings (P/E): 83.9
• Beta (1Y): 1.37
• Revenue Growth: 131.18%
• EPS Growth: 150.47%
• Country: CA
• Employees: 21
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.08
• Shares Outstanding: 63,770,092
• 10 Day Avg. Volume: 35,431
• 30 Day Avg. Volume: 41,275
• PEG Ratio: 5.09
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 9.56
• P/FCF Ratio: 99.05
• 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$33.00
• Price Target Upside: 33.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$23.50 ▼(-4.94% Downside)

The score is supported by strong financial strength (notably zero debt) and improved TTM profitability, partially offset by thin/volatile free cash flow and a demanding valuation (high P/E with no dividend yield provided). Technicals are moderately positive but not strongly trending.

Positive Factors

Revenue Growth

Elemental Royalties' strong revenue growth indicates successful expansion and increased market presence, enhancing long-term business prospects.

Balance Sheet Stability

A strong balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and risk management.

Cash Flow Improvement

Improved cash flow management enhances financial health, enabling reinvestment in growth opportunities and supporting long-term operational stability.

Negative Factors

Profitability Challenges

Ongoing profitability issues may limit reinvestment capabilities and affect long-term financial performance, requiring strategic adjustments.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating returns on shareholder investments, potentially impacting investor confidence and capital raising.

Fluctuating Free Cash Flow

Inconsistent free cash flow growth could hinder the company's ability to fund operations and investments, affecting long-term financial planning.

Elemental Royalties Business Overview & Revenue Model

Company Description

Elemental Royalties Corp., a gold-focused royalty company, engages in the evaluation and acquisition of royalties. It has a portfolio of nine royalties in Chile, Western Australia, Kenya, Canada, Mexico, and Burkina Faso. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

Elemental Royalties generates revenue primarily through its portfolio of royalty agreements, which are financial arrangements where the company receives a percentage of the revenue or production from mines operated by other companies. These royalties are typically tied to gold and silver production, allowing Elemental to benefit from increases in metal prices without incurring the costs and risks associated with mining operations. The company may also receive upfront payments or milestone payments as part of these agreements. Key revenue streams include the cash flow from existing royalties, potential new royalties from acquisitions, and strategic partnerships with mining companies that enhance their portfolio. The company's growth strategy often involves identifying and securing royalties on high-quality mining assets, leveraging its industry relationships to expand its income-generating opportunities.

Elemental Royalties Financial Statement Overview

Summary

Elemental Royalties shows strong revenue growth and balance sheet stability with low leverage. However, profitability challenges persist with negative net income margins and low return on equity. Cash flow management has improved, but further enhancements are needed for sustainable profitability.

Income Statement

Elemental Royalties has shown a strong revenue growth trajectory, with total revenue increasing from $6,611,000 in 2021 to $16,323,000 in 2024. The company improved its gross profit margin significantly, reaching 55.8% in 2024. However, the net profit margin remained negative at -2.23%, indicating ongoing profitability challenges. The EBIT and EBITDA margins have improved, but the company still faces net losses.

Balance Sheet

The company's balance sheet demonstrates stability with a strong equity base. The debt-to-equity ratio is low at 0.01, and the equity ratio is high at 96.19% for 2024. These metrics suggest financial stability and low leverage risk. However, the company has faced challenges in retaining net income, as reflected in a negative ROE of -0.19%.

Cash Flow

Elemental Royalties has shown improvement in operating cash flow, which reached $4,816,000 in 2024, and positive free cash flow of $1,575,000. The company also improved its free cash flow to net income ratio, indicating better cash management. Despite improvements, the company needs to address the fluctuations in free cash flow growth, which remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.12M	16.32M	11.74M	9.64M	6.61M	5.12M
Gross Profit	19.27M	9.11M	4.84M	4.09M	3.73M	3.43M
EBITDA	22.65M	10.26M	7.80M	-8.41M	2.55M	2.93M
Net Income	5.12M	-364.00K	-3.90M	-18.21M	-4.73M	-2.63M
Balance Sheet
Total Assets	209.57M	204.17M	188.92M	185.93M	76.50M	28.04M
Cash, Cash Equivalents and Short-Term Investments	14.54M	4.45M	11.29M	17.48M	6.11M	10.92M
Total Debt	0.00	2.69M	30.00M	30.04M	24.43M	0.00
Total Liabilities	4.04M	7.78M	33.72M	39.50M	26.02M	1.14M
Stockholders Equity	205.53M	196.38M	155.20M	146.43M	50.47M	26.91M
Cash Flow
Free Cash Flow	2.76M	1.57M	-3.58M	-13.39M	-39.02M	-9.03M
Operating Cash Flow	22.16M	4.82M	1.99M	-723.00K	1.12M	2.09M
Investing Cash Flow	-8.38M	4.51M	-5.55M	-3.39M	-40.12M	-11.01M
Financing Cash Flow	-5.31M	-16.11M	-2.63M	15.76M	34.20M	19.03M

Elemental Royalties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 24.72 is above the 20-day moving average (MA) of 22.12, above the 50-day MA of 21.02, and above the 200-day MA of 19.14, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 66.48 is Neutral, neither overbought nor oversold. The STOCH value of 92.62 is Negative, 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
ELE	68 Neutral	C$1.56B	83.85	2.92%	―	131.18%	150.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RUP	60 Neutral	C$1.59B	―	―	―	―	―
GTWO	56 Neutral	C$1.72B	-138.61	-11.22%	―	23.81%	-139.39%
NFG	56 Neutral	C$1.44B	-19.24	-50.06%	―	―	28.06%
ODV	49 Neutral	C$1.25B	-3.17	-46.07%	―	-1.73%	37.26%
ASE	43 Neutral	C$1.31B	-2.61	-1186.80%	―	8.01%	-816.99%

Elemental Royalties Corporate Events

Elemental Royalty Enters Agreement with First Quantum for Hachita Project Exploration

Elemental Royalty Corporation has entered into an option agreement with First Quantum Minerals Limited to explore the Hachita porphyry copper-gold project in New Mexico. This agreement allows Elemental to receive execution and staged option payments, along with a net smelter return royalty and milestone payments upon project advancement, reinforcing its strategy of expanding its royalty portfolio through strategic partnerships and exploration expertise.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$23.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Royalty Expands Portfolio with Laverton Acquisition

Elemental Royalty Corporation has completed the acquisition of a 2% Gross Revenue Royalty over Genesis Minerals’ Focus Laverton Project and Brightstar Resources’ Jasper Hills Project, solidifying its position in the Laverton district, a top-tier gold region in Western Australia. This acquisition enhances Elemental’s portfolio by adding a cornerstone royalty in a proven jurisdiction, expected to contribute significantly to the company’s revenue and strengthen its market position with a world-class operator.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Royalty to Begin Trading on Nasdaq, Enhancing Market Presence

Elemental Royalty Corporation announced that its common shares will begin trading on the Nasdaq Capital Market under the ticker symbol ‘ELE’, marking a significant milestone for the recently merged company. This move is expected to enhance trading liquidity, broaden exposure to institutional and retail investors, and increase coverage from U.S. investment banks, potentially benefiting shareholders and positioning the company more prominently in the market.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Royalty Enters Strategic Agreements with Ivanhoe Electric for Arizona Projects

Elemental Royalty Corporation has entered into four option agreements with Ivanhoe Electric for projects in Arizona’s Laramide porphyry copper belt. These agreements allow Ivanhoe Electric to explore and potentially earn a 100% interest in the projects over eight years, while Elemental retains a 2.5% net smelter return royalty and receives various payments. This strategic move reinforces Elemental’s royalty generation model and provides potential near-term cash flow and long-term benefits, enhancing its position in the mining industry.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$38.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus and EMX Complete Merger, Forming Elemental Royalty Corporation

Elemental Altus Royalties Corp. and EMX Royalty Corporation have completed their merger, forming Elemental Royalty Corporation. This merger enhances the company’s scale and diversification, positioning it as a leading royalty company with a strong growth profile. The merger also included a significant private placement financing with Tether Investments, raising approximately US$100 million. The leadership team has been restructured, with David Cole as CEO and Frederick Bell as President and COO. The merger is expected to provide shareholders with access to a robust portfolio of revenue-generating assets, while EMX shares will be delisted from exchanges.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$21.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Shareholders Approve Key Resolutions Amid Strategic Merger with EMX

Elemental Altus Royalties Corp. announced that its shareholders have overwhelmingly approved key resolutions at a special meeting, including the approval of Tether Investments as a control person, a significant private placement financing, and a company name change to Elemental Royalty Corp. These resolutions are part of a strategic merger with EMX Royalty Corporation, which aims to create a mid-tier gold-focused streaming and royalty company. The merger will result in a diversified portfolio of 16 producing assets and over 200 royalties globally, combining Elemental Altus’s focus on royalty acquisition with EMX’s strengths in royalty generation, providing immediate cash flow and long-term value creation.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$23.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.