Elemental Royalty expands mining portfolio with US$290m acquisition

Elemental Royalty Corporation

Elemental Royalty is expanding its mining royalty portfolio through a US$290 million acquisition from Orion Mine Finance.

The deal adds five royalty and streaming interests covering gold and silver assets in the US, Guinea, Mexico and New Zealand. Three of the assets are already producing, giving Elemental additional revenue, while two provide longer-term growth potential.

The portfolio includes a 50% silver stream at Ruby Hill in Nevada, a 5% gold stream at Kouroussa in Guinea and a 2.5% gross revenue royalty at La Negra in Mexico. It also includes a 1% gold stream at Snowy River in New Zealand and a 1% net smelter royalty covering the Homestake District in South Dakota.

Elemental is paying US$200 million in cash and US$90 million in shares for the portfolio. The share issue represents around 5.6% of the company’s outstanding shares.

The acquisition is expected to add more than 5,000 gold equivalent ounces a year initially, with further growth expected as development projects progress.

Elemental is also simplifying its business by selling its Generation Business. The business has helped build more than 100 early-stage royalties, but management said it had become less efficient as the company grew.

The change is expected to reduce costs and allow Elemental to focus on its core royalty and streaming operations.

The enlarged portfolio is expected to increase Elemental’s exposure to precious metals and North America. The company now has around 260 royalties, with 21 producing assets.

Elemental has increased its 2026 guidance to between 19,500 and 22,000 gold equivalent ounces. Revenue is expected to be between US$89.8 million and US$101.1 million based on its current commodity price assumptions.

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. 

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