Elemental Royalties (ELE) AI Stock Analysis

• Market Cap: C$1.94B
• Dividend Yield: N/A
• Average Volume (3M): 41.27K
• Price to Earnings (P/E): 103.3
• Beta (1Y): 1.33
• 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$34.50
• Price Target Upside: 13.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: C$35.00 ▲(14.98% Upside)

The score is driven primarily by solid financial strength (debt-free balance sheet and improving profitability) and a strong upward technical trend. These positives are meaningfully offset by a very high P/E valuation and some near-term overbought momentum signals.

Positive Factors

Debt-free balance sheet

Zero reported debt provides durable financial flexibility, lowering default risk and allowing capital deployment into new royalty acquisitions or buffering commodity cycles. This capital structure supports long-term strategic optionality without interest burden.

Royalty business model

A royalty model delivers recurring, asset-backed cash flows while operators fund mine capex and operations. This asset-light approach sustainably limits operating costs and scales via portfolio additions, preserving margin structure over the medium term.

Operating cash generation exceeds net income

Robust operating cash relative to reported earnings indicates high earnings quality and real cash conversion. This supports reinvestment in new royalties and reduces reliance on external financing, strengthening long-term cash-based resilience.

Negative Factors

Thin and declining free cash flow

Persistently thin and falling free cash flow constrains the firm's ability to fund acquisitions, return capital, or absorb operational shocks without raising equity. Over months this limits strategic optionality and can pressure liquidity planning.

Uneven earnings history

Volatile past profitability and recent losses indicate earnings sensitivity to portfolio timing and commodity cycles. This uneven track record complicates forecasting and weakens the predictability of royalty cash flows for capital allocation decisions.

Exposure to commodity and operator risk

Royalty receipts depend directly on commodity prices and third-party mine performance; operator disruptions or prolonged price weakness can materially reduce cash flow. This structural dependence raises revenue volatility and counterparty operational risk.

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

Strong balance sheet is the standout (zero debt and substantial equity cushion). Profitability has improved with TTM revenue up ~10% and a shift to positive net income, but the earnings record is still uneven (losses as recently as 2024). Operating cash flow is strong and exceeds net income, though free cash flow is thin and down sharply versus the prior period.

Income Statement

Profitability and growth have improved meaningfully. Revenue in TTM (Trailing-Twelve-Months) is up about 10% with strong gross profitability, and the company has moved from losses in prior years to positive net income in TTM. The main offset is a still-uneven earnings track record (losses as recently as 2024 and sizable losses in 2022–2023), which suggests results can be volatile.

Balance Sheet

Balance sheet strength is a key positive: total debt is zero in TTM (Trailing-Twelve-Months) and was already very low in 2024, leaving the company lightly levered versus assets and equity. Equity is substantial relative to total assets, providing a solid cushion. The trade-off is that returns on equity are modest in TTM and were negative in the recent past, indicating the capital base has not consistently translated into strong bottom-line returns.

Cash Flow

Operating cash generation is strong in TTM (Trailing-Twelve-Months) and comfortably exceeds net income, which supports earnings quality. However, free cash flow is thin relative to operating cash flow and declined sharply versus the prior period, indicating higher reinvestment or working-capital demands and reducing near-term financial flexibility compared with the operating cash profile.

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: 30.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 30.44 is above the 20-day moving average (MA) of 27.17, above the 50-day MA of 23.34, and above the 200-day MA of 20.33, indicating a bullish trend. The MACD of 1.84 indicates Negative momentum. The RSI at 67.18 is Neutral, neither overbought nor oversold. The STOCH value of 57.47 is Neutral, 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$1.94B	103.26	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$1.56B	―	―	―	―	―
NFG	56 Neutral	C$1.26B	-17.17	-50.06%	―	―	28.06%
GTWO	54 Neutral	C$1.71B	-132.93	-11.22%	―	23.81%	-139.39%
ODV	49 Neutral	C$1.17B	-2.96	-46.07%	―	-1.73%	37.26%
ASE	43 Neutral	C$1.47B	-2.81	-1186.80%	―	8.01%	-816.99%

Elemental Royalties Corporate Events

Elemental Royalty to Showcase Growth Strategy in Virtual Non-Deal Roadshow

Elemental Royalty Corporation will participate in Renmark Financial Communications’ live Virtual Non-Deal Roadshow Series on January 26, 2026, where CEO David M. Cole and President & COO Frederick Bell will present the company’s latest investor materials and host a live Q&A session. The event, aimed at engaging current and prospective investors as well as other stakeholders, underscores Elemental’s efforts to increase market visibility and communicate its growth strategy following its merger-driven expansion into a larger, diversified gold-focused royalty and streaming platform, with a replay to be made available on the company’s investor website.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$30.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Royalty Grants BHP Option on Serbian Copper-Gold Exploration Licenses, Retains Royalties

Elemental Royalty Corporation has signed a definitive option and earn-in agreement granting a BHP subsidiary the right to acquire its Serbian unit, Magma Resources, which holds three exploration-stage licenses in the Bor Mining District. Under the deal, BHP can earn a 100% interest in the projects through staged cash payments and US$5 million in exploration spending over five years, while Elemental retains a 2% net smelter return royalty on each project, with limited buyback rights for BHP and ongoing advance royalty payments until commercial production. The licenses, including the Lenovac North and South projects that extend the trend hosting Zijin’s Čukaru Peki and Malka Golaja copper-gold deposits, expand Elemental’s royalty exposure over more than 150 square kilometres in one of Europe’s most prolific copper districts. By pairing its land position with BHP’s deep exploration capabilities, Elemental aims to unlock additional copper-gold discoveries at depth, reinforcing its strategic presence in the region and potentially enhancing long-term cash flow for shareholders through future royalty income.

The most recent analyst rating on (TSE:ELE) stock is a Hold with a C$30.00 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Royalty Grants Equity Awards to Align Management and Board with Growth Strategy

Elemental Royalty Corporation has granted a package of security-based compensation under its equity incentive plan, issuing 663,339 stock options, 155,133 restricted share units and 14,919 cash-settled deferred share units to officers, directors, employees and consultants. The options are exercisable at C$23.48 for seven years with a one-year vesting period, the RSUs vest in three equal annual tranches over three years, and the DSUs will be redeemable when independent directors leave the board, moves that further align management and board incentives with shareholders as the company pursues growth in its gold-focused royalty and streaming portfolio.

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.

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.