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Elemental Royalties
(TSX:ELE)
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Rating:75Outperform
Price Target:
C$33.00
▲(4.50% Upside)
Action:Upgraded
Date:08/17/26
The score is driven mainly by improving financial performance and an exceptionally low-leverage balance sheet, reinforced by a strongly positive earnings call with upper-end guidance tracking and margin/cost-improvement targets. Offsetting factors include volatile free cash flow (negative in 2025), technically overextended momentum signals (RSI/Stoch), and limited valuation visibility due to the missing P/E plus a low dividend yield.
Positive Factors
Revenue and production growth
Strong revenue and GEO growth reflects increasing production from the royalty portfolio and improved asset contribution. Sustained volume growth can provide a durable foundation for cash generation as newer assets mature.
Negative Factors
Volatile free cash flow
The divergence between operating cash flow and free cash flow indicates that investment spending or timing effects can materially reduce cash available to shareholders. This may constrain internally funded growth and make capital allocation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and production growth
Strong revenue and GEO growth reflects increasing production from the royalty portfolio and improved asset contribution. Sustained volume growth can provide a durable foundation for cash generation as newer assets mature.
Read all positive factors
Elemental Royalties (ELE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.88B
Dividend Yield0.29%
Average Volume (3M)108.82K
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth133.11%
EPS Growth-69.55%
CountryCA
Employees39
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.14
Shares Outstanding64,306,110
10 Day Avg. Volume156,752
30 Day Avg. Volume108,816
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$39.43Price Target Upside24.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.28
Revenue Forecast (FY)C$89.91M
Elemental Royalties Business Overview & Revenue Model
Company Description
Elemental Royalty Corporation primarily focuses on obtaining and developing royalty interests in both precious and base metals. The company also deals with royalties stemming from exploration efforts and works to build a portfolio of assets that g...
How the Company Makes Money
Elemental Royalties makes money primarily by owning royalties and streaming interests over mining assets and collecting payments tied to metal production and/or revenue generated by mines operated by its counterparties. (1) Royalties: Under a roya...
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.
Read all updates
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
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
54
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
Positive
31.58
Price Trends
25.61
Positive
24.64
Positive
25.20
Positive
Market Momentum
1.14
Positive
53.94
Neutral
33.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ELE, the sentiment is Positive. The current price of 31.58 is above the 20-day moving average (MA) of 29.66, above the 50-day MA of 25.61, and above the 200-day MA of 25.20, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 33.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ELE.
Elemental Royalties Peers Comparison
UnderperformOutperform
Sector (61)
TSE:ELE
Elemental Royalties
28.99
6.37
28.17%
TSE:ASE
Asante Gold
0.97
-0.67
-40.85%
Elemental Royalties Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Elemental Royalty Posts Record Quarter and Affirms 2026 Guidance
Positive
Aug 11, 2026
Elemental Royalty reported a strong second quarter, delivering revenue of US$23.8 million, record gold equivalent ounces of 5,248, and record operating cash flow of US$15.5 million. Adjusted EBITDA nearly doubled year-on-year to US$17.4 million, w...
Business Operations and StrategyFinancial Disclosures
FLINT’s Q2 Revenue Surges on Turnarounds and New Contracts
Positive
Jul 29, 2026
FLINT reported a sharp rebound in second-quarter 2026 performance, with revenue climbing to $203.4 million, up 37.1% year-over-year and 67.4% from the first quarter, driven by a busy spring turnaround season and the rollout of newly awarded contra...
Dividends
Methanex Declares Quarterly Dividend of US$0.185 Per Share
Positive
Jul 16, 2026
Methanex, a Vancouver-based global leader in methanol production and supply, operates as a publicly listed chemicals company with shares traded in Canada and the United States under the symbols MX and MEOH. Its scale and dual listings position the...
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.