Elemental Royalties (ELE) AI Stock Analysis

• Market Cap: C$486.67M
• Dividend Yield: N/A
• Average Volume (3M): 41.27K
• Price to Earnings (P/E): 75.0
• Beta (1Y): 0.96
• Revenue Growth: 131.19%
• EPS Growth: N/A
• Country: CA
• Employees: 21
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 0.00
• Shares Outstanding: 24,767,141
• 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$15.83
• Price Target Upside: -19.44% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: C$21.00 ▲(6.87% Upside)

Elemental Royalties' strong earnings call performance and robust liquidity position are the most significant strengths, contributing positively to the overall score. However, the stock's high valuation and bearish technical indicators weigh down the score. The company's ongoing profitability challenges also present risks that need addressing.

Elemental Royalties Business Overview & Revenue Model

Company Description

Elemental Royalties (ELE) is a mining-focused royalty and streaming company based in Canada that specializes in acquiring and managing precious metal royalties. The company operates primarily in the gold and silver sectors, offering investors exposure to metal prices while minimizing operational risks associated with mining. Elemental Royalties provides a unique investment vehicle for those looking to capitalize on the growth potential of mining projects without the direct involvement in mining operations, thus focusing on sustainable and diversified revenue generation through its royalty agreements.

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 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

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	29.98M	16.32M	11.74M	9.64M	6.61M	5.12M
Gross Profit	17.02M	9.11M	4.84M	4.09M	3.73M	3.43M
EBITDA	21.27M	10.26M	7.80M	-8.41M	2.55M	2.93M
Net Income	4.37M	-364.00K	-3.90M	-18.21M	-4.73M	-2.63M
Balance Sheet
Total Assets	206.47M	204.17M	188.92M	185.93M	76.50M	28.04M
Cash, Cash Equivalents and Short-Term Investments	24.45M	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	5.20M	7.78M	33.72M	39.50M	26.02M	1.14M
Stockholders Equity	201.27M	196.38M	155.20M	146.43M	50.47M	26.91M
Cash Flow
Free Cash Flow	16.62M	1.57M	-3.58M	-13.39M	-39.02M	-9.03M
Operating Cash Flow	19.86M	4.82M	1.99M	-723.00K	1.12M	2.09M
Investing Cash Flow	6.01M	4.51M	-5.55M	-3.39M	-40.12M	-11.01M
Financing Cash Flow	-8.04M	-16.11M	-2.63M	15.76M	34.20M	19.03M

Elemental Royalties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 19.65 is below the 20-day moving average (MA) of 22.62, below the 50-day MA of 22.54, and above the 200-day MA of 17.15, indicating a neutral trend. The MACD of -0.76 indicates Positive momentum. The RSI at 33.72 is Neutral, neither overbought nor oversold. The STOCH value of 13.51 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKO	73 Outperform	C$566.33M	17.12	36.44%	―	39.98%	-10.55%
OGN	70 Outperform	C$128.81M	28.11	6.34%	―	22.53%	―
ELE	63 Neutral	C$486.67M	74.97	2.53%	―	131.19%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FISH	60 Neutral	C$210.35M	-220.63	0.25%	2.42%	12.51%	-153.16%
FDR	46 Neutral	C$389.54M	-54.34	-9.95%	―	―	46.54%

Elemental Royalties Corporate Events

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.

Elemental Altus Prepares for Strategic Shareholder Meeting Amid Postal Strike

Elemental Altus Royalties Corp. has announced the distribution of materials for a special shareholder meeting to approve a financing deal with Tether Investments and a name change to Elemental Royalty Corp. This meeting is crucial for the company’s strategic acquisition of EMX Royalty Corporation and involves a significant private placement of shares. The company has taken measures to ensure shareholders can access meeting materials despite a postal strike, highlighting its commitment to stakeholder engagement and operational continuity.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$27.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Announces Share Consolidation to Streamline Structure

Elemental Altus Royalties Corp. has announced the effective date for a share consolidation, approved by the TSX Venture Exchange, where every ten pre-consolidation common shares will be consolidated into one post-consolidation share. The company’s shares will commence trading on a consolidated basis, with no change to the company’s name or trading symbol. This move is aimed at streamlining the company’s share structure, potentially enhancing its market positioning and attractiveness to investors.

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.

Elemental Altus Announces Share Consolidation Approval

Elemental Altus Royalties Corp. has announced the approval of a share consolidation by the TSX Venture Exchange, effective September 16, 2025, where one post-consolidation share will replace ten pre-consolidation shares. This move is expected to streamline the company’s share structure, potentially enhancing its market positioning and shareholder value.

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.

Elemental Altus Announces Share Consolidation for US Listing

Elemental Altus Royalties Corp. announced a share consolidation to align its share price with the minimum requirements for a US listing, ahead of its planned merger with EMX Royalty Corporation. The consolidation, approved by 99.48% of shareholders, is expected to be effective around September 16, 2025, pending final approval from the TSX Venture Exchange. This move is part of the company’s strategy to enhance its market positioning and facilitate its US listing, potentially impacting its operations and stakeholders positively by broadening its investor base.

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.

Elemental Altus and EMX Merge to Form Mid-Tier Gold Royalty Company

Elemental Altus Royalties Corp. and EMX Royalty Corporation have announced a merger to form Elemental Royalty Corp., a new mid-tier gold-focused royalty company. The merger is expected to enhance the company’s market position with a projected revenue of approximately US$80 million in 2026, supported by a diversified portfolio of 16 producing royalties. The merger aims to capitalize on recent industry consolidation, improve trading liquidity, and leverage complementary management expertise for future growth.

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.

Elemental Altus Expands Gold Royalty Portfolio with Strategic Acquisitions

Elemental Altus Royalties Corp. has expanded its royalty portfolio by acquiring a 2% Gross Revenue Royalty over Genesis Minerals’ Focus Laverton Project and a 2% Net Smelter Return Royalty on Pasofino Gold’s Dugbe Project. These acquisitions are expected to enhance the company’s near-term cash flow and reinforce its long-term growth strategy, positioning it as a significant player in the gold royalty sector.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Corp. Reports Record Revenue and Growth

Elemental Altus Corp. recently held its earnings call, revealing a strong financial performance with record revenue and significant growth in EBITDA and cash flow. The company’s robust financial position is bolstered by substantial liquidity and new investor support from Tether Investments. Despite some challenges such as paused revenue from Wahgnion and increased tax costs, the overall sentiment was positive, with the benefits far outweighing the drawbacks.

Elemental Altus Expands Treasury Strategy with Tether Gold Investment

Elemental Altus Royalties Corp. has opened an institutional account to access Tether Gold (XAUt), a regulated, gold-backed digital asset, as part of its strategy to diversify its treasury and increase exposure to gold prices. This move aligns with the company’s approach to capital preservation and liquidity, offering a low-risk, inflation-hedging option for surplus capital, and enhances its positioning in the digital gold market.

The most recent analyst rating on (TSE:ELE) stock is a Buy with a C$2.50 price target. To see the full list of analyst forecasts on Elemental Royalties stock, see the TSE:ELE Stock Forecast page.

Elemental Altus Reports Record Cash Flow and Boosts Revenue Guidance

Elemental Altus Royalties Corp. reported record operating cash flow and increased revenue guidance for Q2 2025, driven by a 102% increase in royalty revenue and a 900% rise in operating cash flow compared to Q2 2024. The company’s financial position is robust, with significant cash reserves and an undrawn credit facility, positioning it well for future growth. The Karlawinda Expansion Project’s regulatory approval is expected to enhance long-term revenue through its 2% NSR royalty, and the company anticipates a strong year with increased gold production and revenue.

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.

Elemental Altus Royalties to Announce Q2 2025 Financial Results

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.