Elemental Royalties (ELE) AI Stock Analysis

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TSE:ELE Dividends

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Elemental Royalties

(ELE)

70Outperform

Elemental Royalties exhibits strong revenue growth and a stable financial position, bolstered by strategic acquisitions and positive corporate events. However, profitability challenges and valuation concerns due to high P/E ratios remain significant risks. Positive technical indicators and earnings call insights further support a cautiously optimistic outlook.

Elemental Royalties (ELE) vs. S&P 500 (SPY)

Market Cap

C$356.36M

Dividend YieldN/A

Average Volume (3M)69.43K

Price to Earnings (P/E)116.1

Beta (1Y)0.83

Revenue Growth41.27%

EPS Growth91.19%

CountryCA

Employees21

SectorReal Estate

Sector Strength80

IndustryGold

Share Statistics

EPS (TTM)N/A

Shares Outstanding245,762,590

10 Day Avg. Volume52,478

30 Day Avg. Volume69,433

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.71

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit52.22

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$2.33

Price Target Upside66.43% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Elemental Royalties Business Overview & Revenue Model

Company DescriptionElemental 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 MoneyElemental 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

Positive

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

Positive

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

Neutral

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.

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

Elemental Royalties Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.40

Price Trends

50DMA

1.33

Positive

100DMA

1.25

Positive

200DMA

1.19

Positive

Market Momentum

MACD

0.03

Positive

RSI

50.45

Neutral

STOCH

42.86

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELE, the sentiment is Neutral. The current price of 1.4 is below the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.33, and above the 200-day MA of 1.19, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ELE.

Elemental Royalties Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGN	79 Outperform	C$373.05M	124.16	4.61%	―	19.40%	-6.88%
MKO	79 Outperform	C$384.58M	12.67	38.08%	―	41.71%	168.51%
ELE	70 Outperform	C$356.36M	116.10	-0.17%	―	41.27%	91.19%
Sector *	60 Neutral	$2.81B	11.39	0.21%	8508.43%	6.31%	-14.32%
FISH	54 Neutral	$144.68M	198.11	2.91%	3.28%	24.33%	―
FDR	46 Neutral	C$462.16M	―	-14.97%	―	―	-83.38%

* Real Estate Sector Average

Performance Comparison

TSE:ELE

Elemental Royalties

1.40

0.24

20.69%

TSE:FISH

Sailfish Royalty

2.06

0.82

66.67%

TSE:OGN

Orogen Royalties

1.86

0.82

78.85%

TSE:MKO

Mako Mining Corp

4.86

1.16

31.35%

TSE:FDR

Founders Metals

4.46

2.71

154.86%

Elemental Royalties Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q3-2024)

% Change Since: 0.72%|

Next Earnings Date:May 27, 2025

Earnings Call Sentiment Neutral

The earnings call for Q3 2024 presented a strong financial performance with significant revenue and EBITDA growth, a solid financial position, and promising acquisitions. However, there were some challenges with production timing and guidance reductions due to external factors. While the highlights were notable, the lowlights reflected operational delays and adjustments that somewhat balanced the achievements.

Q3-2024 Updates

Positive Updates

Revenue and EBITDA Growth

Q3 2024 revenue up 32% compared to Q3 2023, with adjusted revenue of USD 4.8 million and EBITDA up 70% to USD 3.7 million.

Strong Financial Position

Company achieved a net cash position for the first time in several years, with USD 50 million available between cash and undrawn credit facility.

AlphaStream Acquisition

Acquisition of AlphaStream portfolio adds approximately USD 6 million in revenue for 2025 at no additional cost, contributing to margin growth.

Gold Price Beneficial Impact

Higher gold prices positively impacted revenue from assets like Karlawinda, with plans for a 30% expansion to 150,000 ounces by 2026.

Record Financials

Record adjusted EBITDA of USD 3.7 million, up 72% year-on-year, and adjusted cash flows from operations of USD 2.8 million, up 44%.

Negative Updates

Guidance Reduction

Reduced gold equivalent ounce guidance from 10,000-11,500 to 9,000-9,500 due to delays in production at Korali-Sud (Diba) in Mali.

Caserones Production Timing

Lower production at Caserones due to timing differences, with expectation to catch up in Q4 despite copper prices remaining strong.

Wahgnion Production Challenges

Production at Wahgnion was lower in Q3 due to ownership changes, although exploration and production targets remain in place.

Company Guidance

During the Q3 2024 earnings call for ELE.V, the company provided updated guidance and financial metrics, emphasizing a strong quarter with revenue up by 32% compared to Q3 2023. Adjusted royalty revenue reached USD 3.7 million, with total adjusted revenue at USD 4.8 million. The adjusted EBITDA was reported at USD 3.7 million, reflecting a 70% increase from the previous year, and adjusted cash flows from operations rose by 44% to USD 2.8 million. The company revised its annual revenue guidance to USD 21.6 million to USD 23.1 million and adjusted its gold equivalent ounce guidance to 9,000 to 9,500 ounces due to delays in Mali. Financially, the company achieved a net cash position for the first time in years, supported by a credit facility of USD 50 million, enhancing its capability for future acquisitions. Additionally, the acquisition of AlphaStream has positioned the company for an expected USD 6 million revenue boost in 2025.

Elemental Royalties Corporate Events

Private Placements and FinancingM&A TransactionsFinancial Disclosures

Elemental Altus Secures US$9.6M from Ming Stream Claim

Positive

May 1, 2025

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.

Spark’s Take on TSE:ELE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ELE is a Outperform.

Elemental Royalties demonstrates strong revenue growth and financial stability, bolstered by strategic acquisitions and a strong equity position. However, profitability challenges and high valuation metrics present significant risks. Positive earnings call insights and corporate events support a favorable outlook, yet caution is warranted due to operational delays and valuation concerns.

To see Spark’s full report on TSE:ELE stock, click here.

Business Operations and StrategyFinancial Disclosures

Elemental Altus Royalties Achieves Record Financial Results in 2024

Positive

Apr 16, 2025

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.

Spark’s Take on TSE:ELE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ELE is a Neutral.

Elemental Royalties shows strengths in revenue growth and operational efficiency, supported by a strong equity position and low leverage. However, challenges with net profitability, negative free cash flow, and high valuation metrics limit the attractiveness. The earnings call and recent corporate events provide positive momentum but are balanced by operational delays and valuation concerns.

To see Spark’s full report on TSE:ELE stock, click here.

Financial Disclosures

Elemental Altus Royalties to Announce Q4 2024 Results

Neutral

Apr 14, 2025

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.

Spark’s Take on TSE:ELE Stock

According to Spark, TipRanks’ AI Analyst, TSE:ELE is a Neutral.

To see Spark’s full report on TSE:ELE stock, click here.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures

Elemental Altus Projects Significant Revenue Growth and Strengthens Board

Positive

Mar 3, 2025

Elemental Altus Royalties Corp. has announced a forecasted 50% growth in adjusted revenue for 2025, expecting to reach US$32 million, driven by record Gold Equivalent Ounces and strategic royalty investments. The company also appointed Sandeep Singh as an independent non-executive director, highlighting its commitment to strengthening its board and continuing its trajectory of revenue growth, as evidenced by a 21% increase in 2024 revenue compared to 2023.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.