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Elemental Royalties (TSE:ELE)
:ELE
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Elemental Royalties (ELE) AI Stock Analysis

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TSE:ELE

Elemental Royalties

(ELE)

Rating:72Outperform
Price Target:
C$2.00
▼(-1.48% Downside)
Elemental Royalties' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators support a positive outlook, though valuation concerns due to a high P/E ratio and lack of dividend yield temper the overall score.

Elemental Royalties (ELE) vs. iShares MSCI Canada ETF (EWC)

Elemental Royalties Business Overview & Revenue Model

Company DescriptionElemental Royalties Corp. is a company focused on acquiring and managing royalty interests in the natural resources sector, particularly within the mining industry. The company aims to provide investors with exposure to precious metals such as gold through a portfolio of royalties that generate revenue from the production of these resources without the direct risks associated with mining operations.
How the Company Makes MoneyElemental Royalties makes money by acquiring royalties, which are financial interests in the production of mineral resources from mining projects. These royalties entitle the company to receive a percentage of revenue or production from the mines in which it holds an interest. The company's revenue model is primarily dependent on the performance and production levels of the underlying mining assets. Key revenue streams include royalty payments from operating mines, which are influenced by commodity prices, production volumes, and the operational efficiency of the mining operators. Elemental Royalties also benefits from strategic partnerships with mining companies and invests in high-quality, low-cost operations to ensure a stable and growing cash flow.

Elemental Royalties Earnings Call Summary

Earnings Call Date:Aug 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 19, 2025
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.
Q2-2025 Updates
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.
Significant EBITDA and Cash Flow Growth
Adjusted EBITDA increased by 150% year-on-year to $8.8 million, and operating cash flows rose to $14.4 million, up from $1.5 million the previous year. Free cash flow reached $9.7 million.
Growth Driven by Key Assets
Korali-Sud generated $9.1 million year-to-date in royalty revenue, driving much of the growth. Karlawinda and Caserones also performed well, with Karlawinda achieving 117,000 ounces and expansion plans approved for further growth.
Increased Revenue and GEO Guidance
Revenue guidance increased to USD 35 million to USD 40 million for 2025, with GEO guidance of 11,600 to 13,200, up nearly 40% year-on-year at the midpoint.
New Investor Support
Tether Investments joined as a new investor, supporting Elemental Altus's future growth plans and providing strong backing for capital deployment.
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.
Higher Tax and Depletion Costs
Higher tax accruals and depletion costs were booked in Q2, which impacted profitability despite the overall strong financial performance.
Noncash Impairment on Investment
A noncash impairment of $1.46 million was recorded due to reclassification of the investment in Aterian plc, affecting financial reporting.
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
Elemental Royalties exhibits solid revenue growth and strong balance sheet stability with low leverage. However, profitability challenges persist, as indicated by negative net income margins and low return on equity. Improvements in cash flow management are evident, yet further enhancements are needed to ensure sustainable profitability and cash generation.
Income Statement
68
Positive
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
72
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue29.98M16.32M11.74M9.64M6.61M5.12M
Gross Profit17.02M9.11M4.84M4.09M3.73M3.43M
EBITDA21.27M10.26M7.80M-8.41M2.55M2.93M
Net Income4.37M-364.00K-3.90M-18.21M-4.73M-2.63M
Balance Sheet
Total Assets206.47M204.17M188.92M185.93M76.50M28.04M
Cash, Cash Equivalents and Short-Term Investments24.45M4.45M11.29M17.48M6.11M10.92M
Total Debt0.002.69M30.00M30.04M24.43M0.00
Total Liabilities5.20M7.78M33.72M39.50M26.02M1.14M
Stockholders Equity201.27M196.38M155.20M146.43M50.47M26.91M
Cash Flow
Free Cash Flow16.62M1.57M-3.58M-13.39M-39.02M-9.03M
Operating Cash Flow19.86M4.82M1.99M-723.00K1.12M2.09M
Investing Cash Flow6.01M4.51M-5.55M-3.39M-40.12M-11.01M
Financing Cash Flow-8.04M-16.11M-2.63M15.76M34.20M19.03M

Elemental Royalties Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.03
Price Trends
50DMA
2.01
Positive
100DMA
1.73
Positive
200DMA
1.46
Positive
Market Momentum
MACD
0.01
Positive
RSI
50.06
Neutral
STOCH
40.35
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 2.03 is below the 20-day moving average (MA) of 2.04, above the 50-day MA of 2.01, and above the 200-day MA of 1.46, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.35 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
C$102.10M22.285.89%33.96%38.35%
78
Outperform
C$498.24M15.0636.44%39.98%-10.55%
72
Outperform
C$498.90M77.482.53%131.19%
61
Neutral
$10.26B6.130.71%2.87%3.45%-36.02%
$137.11M370.650.25%2.81%
46
Neutral
C$418.09M-9.95%46.54%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ELE
Elemental Royalties
2.03
1.01
99.02%
TSE:OGN
Orogen Royalties
1.72
0.77
81.05%
TSE:MKO
Mako Mining Corp
6.22
3.26
110.14%
SROYF
Sailfish Royalty
1.79
0.93
108.14%
TSE:FDR
Founders Metals
4.10
1.55
60.78%

Elemental Royalties Corporate Events

Financial Disclosures
Elemental Altus Royalties to Announce Q2 2025 Financial Results
Neutral
Aug 14, 2025

Elemental Altus Royalties Corp. announced that it will release its Q2 2025 financial results on August 18, 2025, followed by an investor webcast on August 19, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress, potentially impacting its market positioning and investor confidence.

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.

Executive/Board ChangesShareholder Meetings
Elemental Altus Royalties Corp. Announces Successful AGM Results and Director Incentives
Positive
Jul 31, 2025

Elemental Altus Royalties Corp. announced the results of its Annual General and Special Meeting, where all proposed resolutions were approved, including the election of directors and the appointment of auditors. The company also granted restricted share units and stock options to directors, which are subject to regulatory approval, reflecting its commitment to aligning management incentives with shareholder interests.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.65 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Elemental Altus Sees Growth with Karlawinda Expansion Approval
Positive
Jul 29, 2025

Elemental Altus Royalties Corp. has announced that Capricorn Metals Limited has received regulatory approval for the expansion of the Karlawinda Project in Western Australia, which is expected to increase annual gold production by 25% to 150,000 ounces. This expansion, set to be completed in 2026, will enhance Elemental Altus’s cornerstone Karlawinda royalty without any cost to the company, positioning it favorably in the industry and benefiting stakeholders with increased production and value.

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.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Elemental Altus Announces Board Changes Following Tether Investment
Positive
Jun 17, 2025

Elemental Altus Royalties Corp. has announced significant changes to its board following a major investment by Tether Investments, which now holds a 37.8% stake and has the option to increase this to 51.8%. This strategic move is part of Tether’s broader strategy to increase exposure to gold, leveraging synergies between real and digital assets. The new appointments to the board, including Executive Chairman Juan Sartori, are expected to drive the company’s next phase of growth, building on a solid financial foundation laid by the outgoing directors.

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.

Private Placements and FinancingBusiness Operations and Strategy
Elemental Altus Welcomes Tether Investments as Major Shareholder
Positive
Jun 12, 2025

Elemental Altus Royalties Corp. has announced Tether Investments as its new cornerstone shareholder after Tether acquired a significant stake from La Mancha Investments. This acquisition positions Tether as a major shareholder, holding approximately 33.7% of Elemental Altus’s common shares, with the potential to increase its stake to 47.7% through an option agreement with AlphaStream Limited. The move is seen as a strategic alignment for both companies, with Tether’s investment reflecting its commitment to real-world assets that offer stability and long-term value, while Elemental Altus benefits from Tether’s support in its growth phase, enhancing its position in the gold royalty sector.

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.

Business Operations and Strategy
Elemental Altus Expands Australian Royalty Portfolio with Laverton and Hercules Developments
Positive
May 28, 2025

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.

Business Operations and StrategyFinancial Disclosures
Elemental Altus Royalties Achieves Record Q1 Financial Performance
Positive
May 20, 2025

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.

Financial Disclosures
Elemental Altus Royalties to Announce Q1 2025 Results
Neutral
May 16, 2025

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.

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.Date of analysis: Aug 19, 2025