Elemental Royalty (NASDAQ:ELE) executives used the company’s earnings call to frame 2025 as a “record year” while also outlining how the recently completed merger with EMX assets and the company’s Nasdaq listing are changing the scale, liquidity, and financial profile of the business. Management repeatedly emphasized the royalty model’s “optionality,” pointing to a portfolio that spans producing royalties, development-stage catalysts, and a large long-dated pipeline.
Merger integration and portfolio overview
CEO David Cole opened the call by highlighting the combination of Elemental, Altus Strategies, and EMX Royalty assets, calling the cultural and financial outcomes of the merger positive. Cole said the company’s income remains gold-focused, with “approximately 60% or more” of current income coming from gold, which he said can support the company’s eligibility for index inclusion.
Among operating assets, management pointed to:
- Leeville in Nevada as performing “very nicely.”
- Caserones in South America as one of the company’s largest cash-flowing operations, with Lundin Mining as operator and a significant drilling program underway.
- Timok as a key net asset value contributor, with Zijin advancing multiple deposits.
- Karlawinda in Western Australia as seeing enhancing production, with longer-term expectations tied to Laverton district feed into royalty ground.
Financial results and balance sheet highlights
CFO Stefan Wenger said Elemental posted record results, noting that the EMX contribution reflected only roughly 45 days in the reporting period. Wenger reported 2025 adjusted revenue of $49.2 million, and said a pro forma combination as if the merger had closed on Jan. 1 would have produced $87.2 million in adjusted revenue. He reported 14,285 GEOs for the year, up from “just about 9,000” GEOs in the prior year, again noting limited EMX contribution.
Wenger reported adjusted EBITDA of $35 million and operating cash flow of $34 million. He also highlighted year-end liquidity of $53.1 million in cash and $80 million in working capital. Subsequent to year-end, the company upsized its credit facility to CAD 150 million with National Bank, CIBC, and Scotiabank.
On cost structure, Wenger said 2025 G&A was $16.5 million for the full year, including $9.8 million in the fourth quarter, which he attributed to a “tremendously busy year” of M&A and corporate activity. Looking ahead, he guided to a “slightly lower” G&A run-rate on a full-year basis for the combined company, in the range of $15 million to $17 million.
He also addressed royalty generation expense, noting $1 million recorded in Q4 and guiding to $5 million to $6 million of net expense on the income statement for the royalty generation business over a full year.
Dividend launch and XAUT token option
Management announced the company’s first dividend, which Wenger described as an “inaugural” payout. The dividend is set at $0.12 per share annually, or $0.03 per share quarterly. Wenger said the company’s goal is to maintain the dividend and that the balance sheet and expected cash flow provide an opportunity to potentially increase it year-over-year.
The company also introduced an option for shareholders to receive the dividend in Tether XAUT tokens. Cole described Tether as the largest stablecoin company and said Elemental is the first company to offer a dividend payable in XAUT, which he said is tied to physical metal stored in Swiss vaults and “fully convertible to physical metal on demand.”
Wenger later clarified that, for now, the XAUT dividend election is limited to registered holders on Computershare and institutional investors, and requires an Ethereum-based digital wallet. The record date cited on the call was March 31. Management said it is working through regulatory and operational details and hopes to expand availability in future periods.
Accounting change for Caserones and 2026 outlook items
Wenger said the company will change the way it accounts for Caserones. Historically, Elemental had treated Caserones as an equity investment, requiring an adjustment to present “our share” of revenue. After the merger, Elemental now owns 67% of a subsidiary holding the royalty (SLM California) and, following an amendment with other shareholders, can account for Caserones as a joint operation instead of an equity investment. Wenger said that going forward Caserones will be treated like the company’s other royalties, appearing on the top line and as an asset on the books.
During Q&A, Wenger provided initial guidance on tax and non-cash costs for the combined company. He said he expects an effective tax rate of about 20% in 2026, with cash taxes “probably lower,” while the company works to streamline a complex entity structure. On depreciation, depletion, and amortization, Wenger said purchase price accounting steps up the assets and he expects DD&A rates around $1,500 per ounce or “slightly higher,” with updated guidance planned after Q1.
Growth pipeline to 2030 and key asset updates
President Frederick Bell said the company presented a growth outlook to 2030 for the first time, describing consistent year-over-year growth historically and projecting roughly 25% GEO growth by 2028 and about 50% growth by 2030 from organic assets already in the portfolio. Bell attributed expected growth to a mix of producing and development-stage assets, including Timok Lower Zone development, expected increasing feed from Laverton royalty ground, and the Karlawinda expansion expected to commission in Q3.
Bell highlighted the company’s acquisition of a 2%-4% royalty on Genesis Minerals’ Focus Laverton grant, adjacent to the existing Laverton operation. He also detailed the Dugbe royalty acquisition, saying the company paid $16.5 million up front for a 2%-2.5% royalty over a large area. Bell said the operator’s majority shareholder has announced plans to consolidate ownership to 100% and has publicly stated an updated feasibility study is expected later this year, tied to financing and construction decisions. Bell said the royalty could become a meaningful contributor and stated the company believes it could generate “comfortably in excess of $10 million a year” in royalty revenue going forward based on the mine plan under development.
On producing assets, Bell said Caserones delivered its best quarter of production since Lundin took over (Q4), with a 1.3% royalty co-owned alongside Franco-Nevada and Royal Gold, and he described a 40,000-meter drill program this year. For Karlawinda, Bell said an expansion expected to commission in Q3 should drive about a 50% increase in throughput and roughly a 30% increase in GEOs attributable to Elemental.
Bell also cited Bonikro (a 4.5% NSR) as a material contributor over the last 15 months, noting the announcement that Zijin is acquiring Allied Gold. He described continued exploration and development progress at Timok, including increased Upper Zone production rates and ongoing Lower Zone development, as well as a new discovery in the MG Zone 7 km from the main deposit. For Laverton, he reiterated a 1% royalty co-owned with Royal Gold and said the mine shows consistent increases in revenue contribution and “decades of mine life” at current production rates, without additional exploration success.
Finally, Bell said the development pipeline includes four feasibility studies expected in 2026 and one in 2027, and referenced a series of corporate developments among counterparties, including acquisitions involving Allied Gold, PasoFino Gold, and Arizona Sonoran (Cactus project).
Management also reiterated the role of the royalty generation business, with Cole calling it a key early driver of portfolio growth. He said the company continues to structure generation deals with work commitments, stage payments, and a royalty, often including an uncapped, unbuyable component “dominantly 2% or more.”
The company said it is planning an investor day in spring 2026 to help shareholders better understand the combined asset base.
About Elemental Royalty (NASDAQ:ELE)
Elemental Royalties (NASDAQ: ELE) is a publicly traded company that acquires and manages royalty and streaming interests in the mining sector. The firm focuses on securing long‑lived, low‑cost interests that provide ongoing, contractually defined payments or metal deliveries from producing and near‑term development mineral projects. By targeting royalties and streams rather than operating mines, the company seeks exposure to commodity price upside while avoiding the capital intensity and operating risks of miners.
Elemental Royalties’ activities include sourcing and negotiating royalty and stream transactions, performing technical and commercial due diligence on potential assets, and actively managing a diversified portfolio of interests.
