Elemental Royalty has agreed to acquire five precious metals royalties and streams for US$290m, a deal expected to add US$15m to US$20m in annual revenue and expand its producing portfolio as the company moves towards a pure-play royalty model.
The portfolio includes three producing assets, a fourth expected to enter production in December 2026, and a silver stream on Ruby Hill, which is expected to become a significant contributor as development progresses.
Chief executive Fred Bell said the acquisition would increase revenue immediately, with further growth expected as Ruby Hill advances. The company will receive a 50% stream on the first 1.3 million ounces of silver produced at Ruby Hill, followed by a 10% life-of-mine stream on all silver production.
The transaction is being funded through approximately US$200m in cash, US$90m in equity issued to Orion and an expanded credit facility. Orion is expected to hold around 5.6% to 6% of the enlarged company following the deal. Elemental expects to retain approximately US$25m in cash and US$35m in equity and other investments, with management anticipating that cash flow will support debt reduction.
The acquisition coincides with plans to separate Elemental’s generation business into a standalone company in which Elemental will remain the largest shareholder. Management said the business accounts for a small proportion of net asset value but a larger share of general and administrative costs and employees. The separation is intended to reduce costs and focus Elemental on royalty and streaming assets.
Elemental expects its portfolio to grow organically from approximately 20,000 gold equivalent ounces in 2026 to around 50,000 by 2030 or 2031, according to management. Bell also indicated that further acquisitions remain likely as mining companies sell non-core royalties and seek funding for development projects.
Elemental Royalty Corporation (NASDAQ:ELE, TSX:ELE) is a globally diverse, gold-focused portfolio featuring world-class royalties contributing to peer-leading revenue and strong growth.
