Elemental Royalty Corporation (NASDAQ: ELE) (TSX: ELE) has reported results for the three and nine months ended September 30, 2026. For the quarter, Elemental delivered revenue of US$20.8 million, quarterly GEOs1 of 4,861, and adjusted EBITDA1 of US$16.6 million.
Q3 2026 Financial Highlights
- Quarterly revenue of US$20.8 million, up 203% compared to revenue in Q3 2025;
- Quarterly revenue plus attributable share of Caserones1 of US$20.8 million, up 153% compared to Q3 2025;
- Gold Equivalent Ounces (“GEOs”) of 4,861 for Q3 2026 (2,362 in Q3 2025), and record 15,092 GEOs for Q3 year to date 2026 (10,136 in 2025);
- Adjusted EBITDA1 of US$16.6 million, up 168% compared to adjusted EBITDA in Q3 2025;
- Adjusted operating cash flow1 of US$13.2 million, up 162% compared to the comparative period;
- Cash and cash equivalentsof US$23.0 million as of September 30, 2026; and
- On track to meet updated GEO and revenue guidance of 19,500-22,000 GEOs for 2026, driven by significant contributions from Karlawinda, Bonikro, Timok, and Caserones.
Frederick Bell, Elemental Chief Executive Officer, commented: “Elemental delivered another strong quarter, reflecting the strength of our expanded portfolio, robust commodity prices and solid contributions from our key producing assets. Our performance reflects the increasing quality and maturity of the portfolio, with a growing base of cash-generating assets providing both resilience and a platform for further investment.
The third quarter also marked important milestones in our growth strategy, underpinned by the acquisition of Vizsla Royalties and our recently announced streaming and royalty acquisitions. Together, these transactions further strengthen our portfolio, adding exposure to producing assets and development projects with material growth potential. Importantly, we continue to see substantial embedded growth across the portfolio, supported by expansion projects, exploration success and investment by established operators, providing opportunities to increase future cash flow without additional capital commitments from Elemental.
Our recently announced strategic divestment of the royalty generation business represents the next stage of Elemental’s evolution, creating a simpler, leaner and more focused royalty and streaming company, while retaining exposure to the long-term upside of the generation model. Looking ahead, our focus remains on growing the portfolio through accretive acquisitions while maintaining a lean and efficient corporate structure. Increasing cash flow from our producing assets, together with our enhanced financial flexibility puts us in a strong position to fund future growth, reduce leverage and minimize shareholder dilution. Our priority is to translate this growth into increasing cash flow and value per share, building a larger, higher-quality business and delivering sustainable long-term returns for shareholders.”
Summary of Financial Highlights for the Period Ended September 30, 2026 and 2025:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (In thousands of US dollars, except GEOs) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Statement of Income | ||||||||||||
| Revenue | $ | 20,813 | $ | 6,863 | $ | 68,923 | $ | 27,596 | ||||
| General and administrative expense | $ | 5,965 | $ | 2,782 | $ | 17,154 | $ | 6,625 | ||||
| Royalty generation expense, net | $ | 1,408 | $ | – | $ | 3,925 | $ | – | ||||
| Net income | $ | 3,753 | $ | 1,373 | $ | 8,434 | $ | 4,981 | ||||
| Statement of Cash Flows | ||||||||||||
| Cash flows from operating activities | $ | 13,191 | $ | 4,014 | $ | 43,217 | $ | 19,608 | ||||
| Non-IFRS Financial Measures1 | ||||||||||||
| Revenue plus attributable share of Caserones | $ | 20,813 | $ | 8,216 | $ | 68,923 | $ | 31,974 | ||||
| Adjusted cash flows from operating activities | $ | 13,191 | $ | 5,030 | $ | 43,217 | $ | 22,734 | ||||
| Adjusted EBITDA | $ | 16,617 | $ | 6,190 | $ | 51,795 | $ | 26,445 | ||||
| GEOs sold | 4,861 | 2,362 | 15,092 | 10,136 | ||||||||
Outlook
| 2026 Original Guidance | 2026 Updated Guidance | Q3 YTD 2026 Results | |||||||
| GEO Sales from existing portfolio | 17,000 to 21,000 | 18,000 to 20,500 | 15,092 | ||||||
| Revenue from existing portfolio | $76.5 to $94.5 million | $80.5 to $90.5 million | US$68.9 million |
Elemental has updated its 2026 guidance for its existing portfolio to 18,000 – 20,500 GEOs, compared to guidance of 17,000 – 21,000 GEOs reported in Q2 2026.
In addition, the Company expects an economic contribution equivalent to approximately 1,500 GEOs from the Orion portfolio for the period August 1 to December 31, 2026, bringing total expected contributions to 19,500 – 22,000 GEOs on an economic basis. Under the terms of the Orion acquisition, Elemental is entitled to all royalty and stream economics from August 1, 2026. However, for financial reporting purposes, the Company will only recognize revenue and GEOs generated subsequent to the closing date of the acquisition on October 26, 2026.
Based on performance during the first three quarters of 2026 and current expectations for the underlying assets, the Company remains on track to achieve its updated 2026 GEO sales guidance. The Company’s updated guidance assumes a commodity price of $4,000/oz gold and $6.00/lb copper for the remaining three months of 2026.
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
During the third quarter and subsequent to quarter-end, Elemental continued to execute its growth strategy through significant royalty and streaming acquisitions, portfolio optimization and initiatives to strengthen its financial flexibility. Key developments included:
- Acquisition of Vizsla Royalties: Completed the acquisition of Vizsla Royalties in September 2026, adding a life-of-mine 2.0%-3.5% net smelter return (“NSR”) royalty over the Panuco silver-gold project in Mexico, which is expected to become a cornerstone asset within Elemental’s portfolio.
- Orion Portfolio Acquisition: Announced the acquisition of a portfolio of five precious metals streams and royalties from funds managed by Orion Mine Finance for total consideration of US$290 million. Subsequent to quarter-end, the Company completed the acquisition of four of the five assets, significantly increasing its exposure to producing and development-stage assets with substantial growth potential. The remaining asset is expected to close in the first quarter of 2027.
- Strategic Divestment of Royalty Generation Business: Announced a proposed divestment of the Company’s royalty generation business to Carlin East, representing an important step toward a more streamlined, cash-flow-focused royalty and streaming business, with an anticipated reduction in corporate general and administrative expenses of more than 25%.
- Expanded Credit Facility: Subsequent to quarter-end, increased the Company’s revolving credit facility from US$150 million to US$250 million, with an additional US$50 million accordion feature, providing greater financial flexibility to support acquisitions and future growth.
- Chapi Royalty Expansion and Quilla Investment: Completed a US$25 million strategic investment package comprising an additional 1.0% NSR royalty on the Chapi copper project in Peru and an equity investment in Quilla Resources, increasing Elemental’s royalty exposure to the project and supporting its future expansion.
- Shareholder Returns: Continued returning capital to shareholders through the quarterly dividend of US$0.03 per share and share repurchases under the Company’s normal course issuer bid (“NCIB”), reinforcing its commitment to shareholder returns alongside portfolio growth.
Asset update
Cornerstone and Key Producing Assets
Caserones – Copper and Molybdenum – Effective 1.304% NSR
- Effective revenue from Caserones of US$3.1 million and US$16.6 million for the three and nine months ended September 30, 2026 respectively.
- Copper production for the three and nine months ended September 30, 2026 was 15,015 and 87,531 tonnes, respectively.
- During the third quarter of 2026, production was significantly impacted by severe winter storms, resulting in prolonged power outages and approximately 30 days of operational suspensions. The impacts continued into the fourth quarter, with snowmelt affecting haulage rates and ore deliveries to the mill. As a result, Lundin Mining reduced its 2026 copper production guidance to 105,000-115,000 tonnes, noting that the production shortfall is expected to be recovered during 2027.
Karlawinda – Gold – 2% NSR
- Royalty revenue from Karlawinda of US$2.9 million and US$8.8 million for the three and nine months ended September 30, 2026 respectively.
- Gold production for the three and nine months ended September 30, 2026 was 31,218 ounces and 90,013 ounces, respectively.
- Capricorn completed construction and commissioning of the expanded processing plant, which commenced continuous operations in September 2026, increasing capacity to approximately 6.5 Mtpa and targeting annual gold production of 150,000 ounces.
- Capricorn announced an increase in Mineral Reserves at Karlawinda, supporting an approximately 10-year mine life at the expanded processing capacity.
- Together with ongoing mining activities and regional exploration, these developments support stable production and incremental upside over time, and increased royalty revenue for Elemental.
Timok – Copper and Gold – 0.3625% NSR
- Royalty revenue from Timok of US$2.6 million and US$7.0 million for the three and nine months ended September 30, 2026 respectively.
- Expansion and optimization activities continue at the Upper Zone, including advancement of multi-level mining, while Phase 1 of the Lower Zone remains on track, including shaft and conveyor decline development.
- Exploration drilling at the Malka Golaja Project is progressing as planned, with preliminary works and infrastructure development underway.
Bonikro – Gold – Up to 4.5% NSR, capped at 560,000 ounces
- Royalty revenue from Bonikro of US$5.3 million and US$16.4 million for the three and nine months ended September 30, 2026 respectively.
- Gold production for the three and nine months ended September 30, 2026 was 28,643 and 89,598 ounces, respectively.
- As at the end of the period, there were approximately 256,000 ounces remaining on the Bonikro capped royalty of 560,000 ounces.
Leeville – Gold – 1.0% GSR
- Royalty revenue from Leeville of US$1.6 million and US$5.8 million for the three and nine months ended September 30, 2026 respectively.
- Gold sales for the three and nine months ended September 30, 2026 were 37,259 ounces and 126,390 ounces, respectively.
Development Assets
Panuco – Silver – 2.0% – 3.5% NSR – Feasibility Study
- Elemental’s acquisition of Vizsla Royalties, and the underlying royalty on the Panuco Silver Project closed during the quarter.
- Recent progress has centered on engineering, procurement and strengthening the development team, including the August appointment of Luis Lázaro as President, Mexico, to oversee permitting, construction and operations. EPCM and mine design contracts have been awarded, while key permit applications remain under review.
- Vizsla Silver is targeting first silver production in H2 2028, subject to outstanding permitting and environmental approvals.
Laverton – Gold – 2.0% – 4.0% GRR – Resource Development
- Genesis continued to advance exploration and development activities across the Laverton district, targeting increased future production and optimization of processing capacity.
- Genesis announced a proposed merger with Vault Minerals, expected to close in November 2026, subject to approvals. The combined portfolio will undergo a strategic review focused on operational synergies, accelerated development and expanded exploration, with an updated strategic plan targeted for Q2 2027.
Diablillos – Silver and Gold – 1.0% NSR – Feasibility Study
- AbraSilver continued advancing the Diablillos silver-gold project toward construction, completing a C$50.0 million financing and awarding an engineering contract to Worley, supporting a final investment decision targeted for Q2 2027.
- Exploration drilling continued across Diablillos, with positive results from the Oculto deposit highlighting opportunities for future resource expansion.
Cactus & Parks/Salyer – Copper – 0.50% – 0.54% NSR – Pre-Feasibility Study
- Hudbay continued advancing the Cactus copper project following its June 2026 acquisition of Arizona Sonoran, integrating the project into its broader Arizona development strategy alongside Copper World.
- Hudbay plans to spend approximately $30 million at Cactus in the second half of 2026 on engineering, exploration and site de-risking activities, with an updated Pre-Feasibility Study targeted for the second half of 2027.
Viscaria – Copper – 0.5% – 1.0% NSR – Mine Development
- Viscaria continued advancing construction and development of the Viscaria copper project, securing agreements with Sandvik and Metso for key mining services and processing equipment.
- Subsequent to the quarter, the Viscaria project was granted strategic status by the European Union, recognizing its importance to Europe’s critical raw materials supply chain, as development progresses toward copper production.
Western Queen – Gold – 2.5% NSR; 2.0% GSR on other metals – Scoping Study
- Rumble continued advancing the Western Queen gold project, including mine planning, permitting and preparations for pit dewatering and underground development, with a Feasibility Study and potential decision to mine targeted for Q4 2026.
- Subsequent to the quarter, Rumble released an updated Mineral Resource Estimate and Scoping Study, outlining production of 115,000 ounces over approximately four years, more than double the previous study, with underground mining expected to commence in December 2027.
- The updated mine plan incorporates only 30% of total resources, with ongoing infill drilling and exploration offering opportunities to expand resources and extend the mine life.
