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Elemental Royalties
(NASDAQ:ELE)
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Rating:71Outperform
Price Target:
$22.50
â–²(9.49% Upside)
Action:N/A
Date:09/24/26
Overall score is driven primarily by strong financial fundamentals (low leverage, improved profitability, strong operating cash flow) and a positive earnings call with upward-tracking guidance and growth visibility. Offsetting factors are volatile free cash flow, only neutral-to-mixed technical signals near-term, and limited valuation support due to missing P/E and a low dividend yield.
Positive Factors
Asset-light royalty model
The royalty and streaming model provides exposure to mine production and commodity sales without direct operating responsibility or mining costs. This asset-light structure can support durable margins, reduce operational burden, and allow portfolio growth through additional acquisitions.
Negative Factors
Revenue concentration
Reliance on five assets makes consolidated revenue and cash generation sensitive to the performance of a relatively small group of underlying mines. Operator underperformance, production interruptions, or asset-specific issues could therefore have an outsized effect on results.
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Positive Factors
Negative Factors
Asset-light royalty model
The royalty and streaming model provides exposure to mine production and commodity sales without direct operating responsibility or mining costs. This asset-light structure can support durable margins, reduce operational burden, and allow portfolio growth through additional acquisitions.
Read all positive factors
Elemental Royalties (ELE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.55B
Dividend Yield0.29%
Average Volume (3M)379.63K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth136.91%
EPS Growth-68.26%
CountryUS
Employees39
SectorBasic Materials
Sector Strength58
IndustryGold
Share Statistics
EPS (TTM)0.14
Shares Outstanding72,413,590
10 Day Avg. Volume597,805
30 Day Avg. Volume379,635
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)0.65
Price to Sales (P/S)11.42
P/FCF Ratio-14.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$26.33Price Target Upside28.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.23
Revenue Forecast (FY)$87.64M
Elemental Royalties Business Overview & Revenue Model
Company Description
Elemental Royalty Corporation engages in the acquisition and generation of precious and base metal royalties. It is also involved in exploration royalties and royalty generation assets. The company holds royalties in gold, silver, copper, and prec...
How the Company Makes Money
Elemental Royalties makes money by owning contractual interests in mineral projects that entitle it to receive payments or metal deliveries linked to mine production and/or mineral sales, without bearing the day-to-day operating costs of mining. K...
Elemental Royalties Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial picture with substantial year-over-year growth in revenue, GEOs sold, EBITDA and cash generation, meaningful portfolio upgrades and corporate milestones (listings, index inclusions, dividend, NCIB, larger cornerstone assets). Near-term execution risks include pending regulatory approval for the Vizsla transaction, planned cash outlays (~$60M Vizsla + ~$25M Chapi) that will reduce the current cash balance, elevated near-term G&A from integration activities, and concentration of revenue among top assets. Management provided clear plans to reduce costs and maintain flexibility, and described a strong balance sheet and credit facility to support further growth.Positive Updates
Strong Q2 Revenue Growth
Q2 revenue of approximately $24.0M, a 127% increase year-over-year; H1 revenue of ~$48M, putting the company on track to meet or exceed 2026 guidance (previous guidance cited up to ~$85M for the year).
Negative Updates
Elevated Near-Term G&A and Integration Costs
First-half G&A averaged ~$5.6M per quarter due to heavy integration and corporate activity; management expects Q3–Q4 run rate to fall to the low $4M per quarter range (annualized ~$16M–$18M), but near-term costs remain elevated.
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Q2-2026 Updates
Positive
Negative
Strong Q2 Revenue Growth
Q2 revenue of approximately $24.0M, a 127% increase year-over-year; H1 revenue of ~$48M, putting the company on track to meet or exceed 2026 guidance (previous guidance cited up to ~$85M for the year).
Read all positive updates
Company Guidance
Management guided 2026 GEOs at 17,000–21,000 and said the company is tracking to the upper end (21,000) after selling 5,250 GEOs in Q2 and ~10,000 GEOs in H1; H1 revenue was ~$48M (Q2 ≈$24M), adjusted EBITDA was $17.4M (~74% of revenue) and operating cash flow $15.5M, with $74M cash and $96M working capital at quarter‑end; they expect G&A to fall to a low ~$4M/quarter (annualized ~$16–18M), target adjusted EBITDA margin >80% in 2027, and see GEO growth to ~25,000 in 2028 and ~30–35,000 by 2029–2030; corporate guidance includes closing the Vizsla (Panuco) deal in Q3 (≈$60M cash on close), a $150M credit facility (+$50M accordion), continued dividends (option to take in Tether Gold) and an NCIB up to 5%, while funding accretive M&A from cash/credit and occasional equity as needed.Elemental Royalties Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
88
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.41M | 16.32M | 11.74M | 9.64M | 6.61M |
| Gross Profit | 27.76M | 9.11M | 4.84M | 4.09M | 3.73M |
| EBITDA | 24.12M | 10.26M | 7.80M | -8.41M | 2.55M |
| Net Income | 1.80M | -364.00K | -3.90M | -18.21M | -4.73M |
Balance Sheet | |||||
| Total Assets | 905.66M | 204.17M | 188.92M | 185.93M | 76.50M |
| Cash, Cash Equivalents and Short-Term Investments | 69.13M | 4.45M | 11.29M | 17.48M | 6.11M |
| Total Debt | 488.11K | 2.69M | 30.00M | 30.04M | 24.43M |
| Total Liabilities | 126.67M | 7.78M | 33.72M | 39.50M | 26.02M |
| Stockholders Equity | 778.99M | 196.38M | 155.20M | 146.43M | 50.47M |
Cash Flow | |||||
| Free Cash Flow | -35.27M | 1.57M | -3.58M | -13.39M | -39.02M |
| Operating Cash Flow | 34.63M | 4.82M | 1.99M | -723.00K | 1.12M |
| Investing Cash Flow | -60.49M | 4.51M | -5.55M | -3.39M | -40.12M |
| Financing Cash Flow | 75.76M | -16.11M | -2.63M | 15.76M | 34.20M |
Elemental Royalties Technical Analysis
Neutral
20.55
Price Trends
19.34
Positive
18.05
Positive
18.62
Positive
Market Momentum
0.32
Positive
47.62
Neutral
63.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELE, the sentiment is Neutral. The current price of 20.55 is below the 20-day moving average (MA) of 21.25, above the 50-day MA of 19.34, and above the 200-day MA of 18.62, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 63.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELE.
Elemental Royalties Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
Performance Comparison
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.