Elemental Royalty Corporation (TSXV: ELE) (NASDAQ: ELE) has reported results for the year ended December 31, 2025. For the year, Elemental delivered revenue of US$43.6 million, revenue plus attributable share of Caserones1 of US$49.2 million, and adjusted EBITDA1 of US$34.9 million.
2025 Financial Highlights
- Record full year revenue plus attributable share of Caserones1 of US$49.2 million, up 128% over prior year, exceeding 2025 updated guidance of US$42 million;
- Gold Equivalent Ounces (“GEOs”) of 14,285 for 2025 (8,987 in 2024), driven by contributions from Karlawinda, Bonikro, Korali Sud, and Caserones, and the completion of the merger with EMX Royalty Corporation;
- Adjusted EBITDA1 of US$34.9 million, up 131% over prior year, demonstrating strong cash flow conversion;
- Adjusted operating cash flow1 of US$33.9 million, up 288% over prior year; and
- Cash and cash equivalents as of December 31, 2025 of US$53.1 million and a working capital1 of US$80.1 million, demonstrating financial flexibility for growth.
Q4 2025 Financial Highlights
- Record Q4 revenue of US$16.0 million and record revenue plus attributable share of Caserones1 of US$17.2 million, up 153% on Q4 2024
- Q4 attributable GEOs1 of 4,133 ounces (2,551 GEOs in Q4 2024)
- US$52 million acquisition of uncapped 2% GRR on the Laverton Gold Project and an uncapped 2% GRR on Jasper Hills in Western Australia
- Completion of merger with EMX Royalty Corporation
2026 Outlook and Guidance
- Revenue guidance for 2026 US$76.5 to US$94.5 million based on a gold price of US$4,500/oz and a copper price of US$5.50/lb
- GEO guidance for 2026 of 17,000 to 21,000 GEOs
David M. Cole, Elemental Royalty Corporation Chief Executive Officer, commented: “2025 was a landmark year for Elemental, underscored by our merger with EMX Royalty Corporation, which significantly expanded our revenue base and strengthened our platform for long-term growth. The combination creates a more broadly diversified royalty portfolio across commodities, jurisdictions, and development stages, enhancing resilience and scale, with key cash-flowing assets such as Caserones, Timok, Karlawinda, and Leeville. This broader portfolio provides greater optionality through exposure to an expanded pipeline of organic growth opportunities and future project advancements, including the Laverton Gold Project, which we expect to become a cornerstone asset. As we enter 2026, we are well positioned to benefit from the merger’s synergies and deliver continued value creation for shareholders.”
Investor Webinar
An investor webinar will be held on Wednesday March 25, 2026, starting at 11am Eastern Time, to discuss these results, followed by a question-and-answer session.
To register for the investor webcast, please click the link below:
https://app.webinar.net/XxJnNlbkAGY
A replay of the event will be available on the Elemental website following the presentation.
Financial Summary for the Three Months and Year Ended December 31, 2025:
| For the three months ended December 31, | For the year ended December 31, | ||||||||||||
| (In thousands of US dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||
| Statement of Income | |||||||||||||
| Revenue | $ | 16,047 | $ | 5,519 | $ | 43,643 | $ | 16,323 | |||||
| General and administrative expense | $ | 9,842 | $ | 2,149 | $ | 16,467 | $ | 7,396 | |||||
| Royalty generation expense, net | $ | 1,058 | $ | – | $ | 1,058 | $ | – | |||||
| Net income (loss) from continuing operations | $ | (3,209 | ) | $ | 132 | $ | 1,772 | $ | (312 | ) | |||
| Statement of Cash Flows | |||||||||||||
| Cash flows from operating activities | $ | 11,203 | $ | 2,555 | $ | 30,811 | $ | 4,816 | |||||
| Non-IFRS Financial Measures1 | |||||||||||||
| Revenue plus attributable share of Caserones | $ | 17,226 | $ | 6,827 | $ | 49,200 | $ | 21,600 | |||||
| Adjusted cash flows from operating activities | $ | 11,203 | $ | 3,315 | $ | 33,937 | $ | 8,738 | |||||
| Adjusted EBITDA | $ | 8,456 | $ | 4,769 | $ | 34,901 | $ | 15,111 | |||||
| GEOs sold | 4,133 | 2,551 | 14,285 | 8,987 | |||||||||
Key Strategic Developments
2025 was a transformative year for Elemental, defined by strategic initiatives that strengthened the Company’s scale, diversification, and long-term growth profile. Key developments during the year included:
- Completion of the merger with EMX, creating a larger, combined royalty company with a materially expanded revenue base and enhanced capital markets presence.
- Secured a strategic investment from Tether Investments S.A. de C.V (“Tether”), strengthening the share register, enhancing financial flexibility, and supporting the Company’s growth initiatives.
- Acquired the uncapped 2% GRR royalty over the Laverton Gold Project in Western Australia for US$52 million, which is expected to become a cornerstone asset within the portfolio given its scale, development trajectory, and long-term upside.
- Benefited from continued advancement and optimization across producing assets within the portfolio, supporting stable cash flow generation and near-term growth visibility.
- Announced after year end, the Company advanced its capital allocation framework and financial capacity through the introduction of an inaugural annual dividend of US$0.12 per share (paid quarterly) and the establishment of a US$150 million revolving credit facility and US$50 million accordion feature, enhancing balance sheet flexibility to support future growth initiatives while delivering sustainable returns to shareholders.
2025 Performance to Guidance:
Please see our MD&A for the year ended December 31, 2025 for more details on our guidance and see “Forward-Looking Statements” and “Future-Oriented Financial Information” below.
The following is an evaluation of the Company’s performance compared to our 2025 Guidance:
| 2025 GuidanceA | 2025 Updated GuidanceB | 2025 Results | |
| GEO Sales | 11,600 to 13,200 | 11,600 to 13,200 | 14,285 |
| Revenue plus attributable share of Caserones1 | US$31.1 to US$34.3 million | US$42.0 million | US$49.2 million |
| A Assumed commodity prices of US$2,600/oz gold and US$4.00/lb copper. | |||
| B Assumed commodity price of US$4,000/oz gold and US$4.00/lb copper. | |||
Excluding revenue attributable to assets acquired through the merger with EMX, Elemental’s assets recognized 12,459 GEO Sales1, placing results in the top half of the updated guidance range. Assets acquired through the EMX merger contributed an additional 1,826 GEOs following the date of the closing of the transaction, November 13, 2025. Had the merger taken place on January 1, 2025, the Company would have generated US$72.2 million in revenue and US$87.5 million in revenue plus attributable share of Caserones1, aligning with consensus combined revenue guidance of US$85 million.
2026 Guidance
In 2026, we expect royalty revenue of 17,000 to 21,000 GEOs. 2026 guidance is based on public forecasts and disclosures by the owners and operators of our assets, historical performance, and management’s understanding of the underlying producing assets.
| 2026 GuidanceA | |||
| GEO Sales1 | 17,000 to 21,000 | ||
| Revenue | US$76.5 to US$94.5 million | ||
| A Assumed commodity price of US$4,500/oz gold and US$5.50/lb copper. | |||
The noted increase in expected GEOs compared to 2025 is mainly due to the contribution of assets acquired through the merger with EMX in Q4 2025, offset by a decrease in production at Korali Sud.
The Company has assumed a commodity price of US$4,500/oz gold and US$5.50/lb copper. The increase in gold prices has outpaced the rise in copper prices, resulting in a negative impact on GEOs due to Elemental’s exposure to copper-linked assets, specifically Caserones and Timok.
Following an amendment to the SLM California shareholder agreement effective November 13, 2025, the Company reassessed its interest in SLM California, which holds the Caserones royalty. The revised arrangement was determined to constitute a joint operation under IFRS 11, resulting in the discontinuation of equity accounting under IAS 28 and the recognition of the Company’s proportionate share of assets, liabilities, revenues, and expenses. As a result, the contribution from Caserones in 2026 will be fully categorized as revenue and will no longer require an adjustment to revenue in future periods.
Portfolio Growth
Elemental continues to advance a disciplined growth strategy focused on building a globally diversified portfolio of high-quality royalty and streaming interests, with a core emphasis on gold and precious metals. The Company’s portfolio provides exposure to a range of assets throughout the development and production pipeline, including cornerstone interests such as Karlawinda, Laverton, and Leeville. This gold-focussed approach is complemented with selective exposure to large-scale base metals assets such as Caserones and Timok, with diversification across commodities, jurisdictions, and operators supporting stable cash flow generation, while preserving meaningful upside to exploration success and mine life extensions.
Near to medium-term portfolio growth is expected to be supported by continued development, optimization, and exploration activities at several key assets. At Timok, ongoing advancement of both the Upper and Lower Zone projects provides exposure to a world-class copper-gold system with significant scale potential. In addition, recent exploration success in the broader Timok district, including the Malka Golaja discovery, highlights the prospectivity of the regional land package and reinforces the long-term optionality of Elemental’s royalty interest. While the ultimate impact of such discoveries remains subject to further delineation and development by the operator, management views these results as encouraging indicators of the district’s geological potential.
Elemental’s exposure to precious metals growth is anchored by assets such as Karlawinda, a long-life gold operation in Western Australia. Ongoing mining activities and regional exploration at Karlawinda offer the potential to support stable production and incremental upside over time. The recently acquired Laverton royalty further enhances the Company’s exposure to a highly prospective gold district in Western Australia, in addition to the acquisition of the Dugbe royalty in Liberia, both of which support the near to medium-term pipeline of exploration-driven optionality and reinforce Elemental’s strategy of acquiring royalties over large land packages in established mining camps with Tier-one operators.
In addition to its core precious metals weighting, Elemental benefits from exposure to established and operating base metal assets such as Caserones, a large-scale copper mine where continued operational optimization and exploration efforts may contribute to sustained production and potential mine life extension. These base metal assets complement the gold-focussed portfolio, providing diversification and leverage to copper demand, which is increasingly supported by structural trends related to electrification, infrastructure investment, and the global energy transition.
Elemental remains well positioned to pursue additional accretive royalty and streaming opportunities across its targeted commodities. Management continues to evaluate a robust pipeline of potential transactions, reflecting sustained interest from mining companies seeking non-dilutive sources of capital. The Company’s strong balance sheet, recently amended US$150 million revolving credit facility, with a US$50 million accordion, and scalable business model provide enhanced financial flexibility to support disciplined capital deployment. The Company also benefits from supportive long-term shareholders, including Tether, whose investment reflects confidence in Elemental’s strategy and growth outlook.
Management believes Elemental’s gold-focussed, diversified asset base, strengthened liquidity position, and aligned shareholder support provide a solid foundation for long-term value creation.
Fourth Quarter and Full Year 2025 Performance by Asset
The following table is a summary of GEOs1 sold and revenue plus attributable share of Caserones1 for the fourth quarter of 2025 and 2024:
| GEOs Sold | Revenue (in thousands of US dollars) | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Ballarat | 179 | 151 | $ | 745 | $ | 403 | |||||||
| Bonikro | 692 | 900 | 2,886 | 2,407 | |||||||||
| Caserones2 | 879 | – | 3,665 | – | |||||||||
| Gediktepe | 387 | – | 1,613 | – | |||||||||
| Karlawinda | 648 | 556 | 2,699 | 1,490 | |||||||||
| Korali-Sud | 74 | – | 307 | – | |||||||||
| Leeville | 286 | – | 1,192 | – | |||||||||
| Timok | 261 | – | 1,086 | – | |||||||||
| Wahgnion | – | 284 | – | 764 | |||||||||
| Other producing royalties | 337 | 172 | 1,403 | 455 | |||||||||
| Advanced royalty payments | 40 | – | 167 | – | |||||||||
| Total royalty revenue | 3,782 | 2,063 | $ | 15,763 | $ | 5,519 | |||||||
| Option, property and other revenue | 68 | – | 284 | – | |||||||||
| Caserones (before reclassification)2 | 283 | 488 | 1,179 | 1,308 | |||||||||
| Revenue plus attributable share of Caserones1 | 4,133 | 2,551 | $ | 17,226 | $ | 6,827 | |||||||
The following table is a summary of GEOs1 sold and revenue plus attributable share of Caserones1 for the year ended December 31, 2025 and 2024:
| GEOs Sold | Revenue (in thousands of US dollars) | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||
| Ballarat | 709 | 323 | $ | 2,454 | $ | 807 | |||||||
| Bonikro | 3,174 | 2,208 | 10,886 | 5,430 | |||||||||
| Caserones2 | 387 | – | 3,665 | – | |||||||||
| Gediktepe | 387 | – | 1,613 | – | |||||||||
| Karlawinda | 2,563 | 2,171 | 8,857 | 5,199 | |||||||||
| Korali-Sud | 3,446 | – | 10,515 | – | |||||||||
| Leeville | 286 | – | 1,192 | – | |||||||||
| Timok | 261 | – | 1,086 | – | |||||||||
| Wahgnion | – | 1,126 | – | 2,692 | |||||||||
| Other producing royalties | 812 | 789 | 2,924 | 1,865 | |||||||||
| Advanced royalty payments | 40 | – | 167 | – | |||||||||
| Total royalty revenue | 12,556 | 6,617 | $ | 43,359 | $ | 15,993 | |||||||
| Option, property and other income | 68 | 140 | 284 | 330 | |||||||||
| Caserones (before reclassification)2 | 1,661 | 2,230 | 5,557 | 5,277 | |||||||||
| Revenue plus attributable share of Caserones | 14,285 | 8,987 | $ | 49,200 | $ | 21,600 | |||||||
Notes
Royalty revenue received carries no direct cash cost of sales: distributions from associates related to Elemental Royalty Corporation’s effective royalty on Caserones were received net of Chilean taxes and have no other costs.
- Refer to the “Non-IFRS financial measures” section below or on page 29 of the Q4 2025 MD&A for more information on each non-IFRS financial measure. These non-IFRS measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements to which the measures relates and might not be comparable to similar financial measures disclosed by other issuers.
- Effective November 13, 2025, the Company discontinued accounting for SLM California as an investment in associate and began recognizing its share of revenue from the Caserones royalty directly, rather than as a share of profit from associate.
