Elemental Royalty reports record Q2 2026 GEOs and operating cash flow

Elemental Royalty Corporation (NASDAQ: ELE) (TSX: ELE) has reported results for the three and six months ended June 30, 2026. For the quarter, Elemental delivered revenue of US$23.8 million, record quarterly GEOs¹ of 5,248, record operating cash flow of US$15.5 million, and adjusted EBITDA¹ of US$17.4 million.

Q2 2026 Financial Highlights

• Quarterly Revenue of US$23.8 million, the Company’s second highest quarterly result, and up 127% over revenue plus attributable share of Caserones in Q2 2025¹;
• Record Gold Equivalent Ounces (“GEOs”) of 5,248 for Q2 2026 (3,184 in Q2 2025), and record 10,231 GEOs for H1 2026 (7,790 in H1 2025);
• Adjusted EBITDA of US$17.4 million, up 99% over adjusted EBITDA¹ in Q2 2025, reflecting increased operating leverage and portfolio performance;
• Record operating cash flow of US$15.5 million, up 8% over adjusted operating cash flow¹ in the comparative period;
• Cash and cash equivalents of US$74.2 million as of June 30, 2026, together with the Company’s undrawn credit facility, provide significant financial flexibility to support continued growth; and
• On track to meet guidance of 17,000 — 21,000 GEOs for 2026, driven by material contributions from Karlawinda, Bonikro, Timok, and Caserones.

David M. Cole, Elemental Chief Executive Officer, commented: “We continue to deliver strong quarterly results, supported by robust metal prices and solid contributions from key producing assets, including Karlawinda, Bonikro, Caserones, Timok, and Leeville. The breadth and quality of our expanded portfolio continue to demonstrate the benefits of the transformational merger with EMX Royalty, providing Elemental with greater scale, diversification, and resilience.

“During the quarter, we continued to return value to shareholders through our quarterly dividend and share repurchases under the normal course issuer bid. We also announced the proposed acquisition of Vizsla Royalties, which represents another material milestone in Elemental’s growth strategy and will further enhance the scale and quality of our portfolio. With a strong balance sheet, growing cash flow and a broad pipeline of development and exploration opportunities, Elemental is well positioned to continue creating long-term value for shareholders.”

Investor Webinar

An investor webinar will be held on Wednesday August 12, 2026, starting at 11am Eastern Time (8am Pacific 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/XLygmwVkbGV

A replay of the event will be available on the Elemental website following the presentation.

Summary of Financial Highlights for the Period Ended June 30, 2026 and 2025:

Outlook

Based on performance during the first half of 2026 and current expectations for the underlying assets, the Company remains on track to achieve its 2026 GEO sales guidance. The Company’s guidance for 2026 assumes a commodity price of US$4,500/oz gold and US$5.50/lb copper. The recent decline in gold prices has been partially offset by the increase in copper prices in 2026, which has positively impacted GEOs for Elemental’s copper royalties, including Caserones and Timok. 

Guidance in 2026 is based on public forecasts, other disclosure by the owners and operators of our assets, historical performance, and management’s understanding of the underlying producing assets.

Key Strategic Developments

Q2 2026 has seen continued performance across Elemental’s portfolio, supported by strong commodity prices and solid contributions from key producing assets. including Karlawinda, Bonikro, Caserones, Timok, and Leeville. The results of the quarter further strengthening the Company’s position as a growing mid-tier royalty and streaming company, with a broad base of cash-flowing assets supporting a resilient and growing revenue profile. Key developments during and subsequent to the quarter included:

• Entering into a definitive arrangement agreement for the acquisition of Vizsla Royalties, which will provide Elemental with a life-of-mine 2.0%–3.5% NSR royalty over the Panuco silver-gold project in Mexico, an advanced development-stage project expected to become a cornerstone asset within the portfolio. The transaction has received shareholder and court approvals while subject to regulatory and other customary closing conditions as at June 30, 2026 and is expected to close during the third quarter of 2026.
• The declaration of the second quarterly dividend of US$0.03 per share as at June 30, 2026, which was paid post quarter end. Eligible registered shareholders were entitled to elect to receive the dividend in kind in the form of Tether Gold XAU₮, an innovative and historic first.
• The initiation of the Normal Course Issuer Bid repurchase program wherein the Company may purchase 3,222,537 common shares, approximately 5% of the issued and outstanding common shares. During the quarter, the Company repurchased and cancelled 128,280 common shares, for a total cost of US$2.0 million. Subsequent to the end of the period, the Company repurchased an additional 17,749 common shares for a total cost of US$0.3 million.
• The acquisition of a 2.5% Net Smelter Return royalty on the Western Queen Gold Project for a total consideration of A$10 million (approximately US$7.25 million) with A$5 million to be paid at closing and A$5 million on satisfaction of certain milestone conditions. This upgrades and replaces an existing gold royalty of A$6-20 per ounce of gold produced.
• Elemental up-listed to the TSX main board, in addition to being added to the S&P/TSX Global Gold Index, and to the Russell 3000 and Russell 2000 Indexes, which have already helped to enhance the Company’s visibility among Canadian and U.S. institutional investors and index-oriented investment funds and bolster trading liquidity.
• Advancement across the portfolio, both at producing and development royalty assets, including cornerstones Timok, Caserones, Karlawinda, and Laverton, as well as updates at Diablillos, Cactus, and Dugbe. Operators continued to progress development, optimization, production, and exploration activities that support near-term cash flow visibility and long-term portfolio optionality.
• Elemental continues to evaluate a pipeline of potential royalty and streaming opportunities across precious and base metals, supported by a strong balance sheet, diversified portfolio, and disciplined capital allocation approach.

Subsequent to quarter-end, Elemental also increased its royalty interest in the Chapi copper mine and completed a strategic investment in Quilla Resources, owner of the Chapi mine. Together, these investments further expand the Company’s copper exposure and add long-term development and exploration optionality to the portfolio.

Asset update

Cornerstone and Key Producing Assets

Caserones – Copper and Molybdenum – Effective 1.304% NSR

• Effective revenue from Caserones of US$6.7 million and US$13.5 million for the three and six months ended June 30, 2026 respectively.
• Copper production for the three and six months ended June 30, 2026 was 33,964 and 72,516 tonnes, respectively.
• Subsequent to quarter end, Caserones operations were suspended for thirteen days following severe winter storms that restricted site access and disrupted power supply. Consequently, Lundin Mining Corporation (TSX: LUN) stated annual copper production was now expected to be in the lower half of its guidance range of 130,000 to 140,000 tonnes.

Karlawinda – Gold – 2% NSR

• Royalty revenue from Karlawinda of US$3.1 million and US$5.9 million for the three and six months ended June 30, 2026 respectively.
• Gold production for the three and six months ended June 30, 2026 was 30,437 ounces and 60,795 ounces, respectively.
• Capricorn Metals Ltd. (ASX: CMM) (“Capricorn”) continues to advance the Karlawinda Expansion Project, which is expected to increase processing capacity to 6.5 million tonnes per annum and annual gold production to approximately 150,000 ounces.
• Subsequent to the end of the period, Capricorn announced a 32% increase in Mineral Reserves at Karlawinda, supporting an approximately 10-year mine life at the expanded processing capacity.

Timok – Copper and Gold – 0.3625% NSR

• Royalty revenue from Timok of US$2.2 million and US$4.5 million for the three and six months ended June 30, 2026 respectively.
• Expansions and optimizations continue at the Upper Zone with ongoing advancement of multi-level mining; Phase 1 of the Lower Zone is progressing with key works including shafts and conveyor declines on track.
• At the Malka Golaja Project, exploration drilling is progressing as planned with preliminary work and infrastructure implementation underway.

Bonikro – Gold – Up to 4.5% NSR, capped at 560,000 ounces

• Royalty revenue from Bonikro of US$5.0 million and US$11.2 million for the three and six months ended June 30, 2026 respectively.
• Gold production for the three and six months ended June 30, 2026 was 29,011 and 60,482 ounces, respectively.
• As at the end of the period, there were 285,732 ounces remaining on the Bonikro capped royalty of 560,000 ounces.

Leeville – Gold – 1.0% GSR

• Royalty revenue from Leeville of US$2.1 million and US$4.2 million for the three and six months ended June 30, 2026 respectively.
• Gold sales for the three and six months ended June 30, 2026 was 47,347 ounces and 89,131 ounces, respectively.

Gediktepe – Gold and Polymetallic – 2.25% NSR

• Royalty revenue from Gediktepe of US$0.6 million and US$1.7 million for the three and six months ended June 30, 2026 respectively.
• Gold production for the six months ended June 30, 2026 was 18,487 gold equivalent ounces from the Gediktepe oxide operation, exceeding its full-year oxide production target of 17,500 gold equivalent ounces; no further oxide production is expected this year.
• ACG Metals Corporation (LSE: ACG) reiterated its 2026 consolidated production guidance of 20,000 to 22,000 tonnes of copper equivalent. Construction of the Gediktepe Sulphide Expansion Project continued on schedule and within budget, with first copper and zinc concentrate production expected in August 2026.

Key Development Assets

Laverton – Gold – 2.0% – 4.0% GRR – Resource Development

• Genesis Minerals Limited (ASX: GMD) (“Genesis”) continued to advance exploration activity across the Laverton district, including evaluation of Beasley Creek as a potential future source of base load feed for the Laverton mill.
• Subsequent to the period, Genesis entered into a binding agreement to merge with Vault Minerals Limited, the owner of the Mount Monger operation. The transaction is expected to increase operational flexibility and create opportunities to optimize ore sources and processing capacity across the combined portfolio, including assets over which the Company holds royalties.

Diablillos – Silver and Gold – 1.0% NSR – Feasibility Study

• AbraSilver Resources Corp. (TSX: ABRA) (“AbraSilver”) reported an updated Mineral Resource Estimate for the Diablillos silver-gold project and completed a Definitive Feasibility Study outlining a 9,000-tonne-per-day operation with a 25-year mine life, an after-tax NPV of C$4.2 billion and an internal rate of return of approximately 42%.
• Final provincial environmental approval was received, completing the principal environmental permitting required to advance the project toward construction.
• Post period-end, AbraSilver announced a C$45.0 million bought-deal public offering, with the net proceeds intended to fund early works, procurement of long-lead equipment and other development activities at Diablillos.

Dugbe – Gold – 2.0% – 2.5% NSR – Feasibility Study

• Major shareholder, Mansa Resources Limited (“Mansa”) completed its acquisition of operator Pasofino Gold Limited (TSXV: VEIN) (“Pasofino”), resulting in Pasofino becoming an indirect wholly owned subsidiary of Mansa. Mansa now controls the Dugbe Gold Project in Liberia, providing consolidated ownership and funding support for the continued advancement of the project.
• A Feasibility Study for the Dugbe Project is expected in Q3 2026.

Cactus & Parks/Salyer – Copper – 0.50% – 0.54% NSR – Pre-Feasibility Study

• On June 24, 2026, Hudbay Minerals Inc. (NYSE: HBM) (“Hudbay”) completed the acquisition of Arizona Sonoran Copper Company Inc. (“Arizona Sonoran”), resulting in Arizona Sonoran becoming a wholly owned subsidiary of Hudbay. The acquisition adds the Cactus project, including Parks/Salyer, to Hudbay’s existing Arizona portfolio and is expected to create opportunities for regional operating and infrastructure synergies with the Copper World project.
• Hudbay expects to spend approximately US$30 million at Cactus in the second half of 2026 to advance an updated PFS, perform site de-risking activities, conduct exploration activities and for other ongoing site costs. The updated Cactus PFS is expected to be completed in the second half of 2027.

Mactung – Tungsten – 4.0% NSR – Resource Development

• Fireweed Metals (TSXV: FWZ) (“Fireweed”) commenced its 2026 field program, including up to 2,000 meters of drilling at Mactung to support resource conversion, geotechnical studies and continued project development.
• A Feasibility Study is underway and is expected to be completed in the first quarter of 2027.
• During the quarter, Fireweed also completed a C$61.5 million private placement to fund exploration and development activities across its northern Canadian project portfolio, including Mactung.

Second Quarter 2026 Performance by Asset

The following table is a summary of GEOs¹ sold and revenue plus attributable share of Caserones¹ for the second quarter of 2026 and 2025:

Year to Date 2026 Performance by Asset

The following table is a summary of GEOs¹ sold and revenue plus attributable share of Caserones¹ for the first six months of 2026 and 2025: