Elemental Royalty Announces Record Quarterly Revenue and Adjusted EBITDA
TSX: ELE | NASDAQ: ELE 1
ELEMENTAL ROYALTY ANNOUNCES RECORD QUARTERLY REVENUE AND ADJUSTED EBITDA
May 13, 2026 – Denver, Colorado : Elemental Royalty Corporation ( NASDAQ: ELE) (TSX: ELE) (“Elemental” or the
“Company”) is pleased to report results for the three months ended March 31, 2026. For the quarter, Elemental delivered
revenue of US$24.3 million, and adjusted EBITDA1 of US$17.7 million.
Q1 2026 Financial Highlights
• Record quarterly revenue of US$24.3 million, up 83% over revenue plus attributable share of Caserones in Q1
20251;
• Gold Equivalent Ounces (“GEOs”) of 4,983 for Q1 2026 ( 4,606 in Q1 2025), driven by significant contributions
from Karlawinda, Bonikro, Timok, and Caserones;
• Record adjusted EBITDA of US$17.7 million , up 55% over adjusted EBITDA 1 in Q1 2025, reflecting increased
operating leverage and portfolio performance;
• Operating cash flow of US$14.5 million, up 340% over adjusted operating cash flow 1 in the comparative period
demonstrating strong cash flow conversion; and
• Cash and cash equivalents as of March 31, 2026 of US$69.1 million and working capital 1 of US$92.5 million ,
demonstrating financial flexibility for growth.
David M. Cole, Elemental Chief Executive Officer, commented: "Q1 saw a strong start to the year for Elemental, with a
significant increase in revenue supported by strong metal prices and contributions from Bonikro, Karlawinda, Timok, and
Caserones. Following the transformational merger with EMX Royalty, Elemental now benefits from a larger, more diversified
royalty portfolio with enhanced scale, resilience, and growth potential.
During the quarter, we strengthened our financial capacity through a new US$150 million revolving credit facility, with a US$50
million accordion feature, providing enhanced flexibility to pursue meaningful growth opportunities. With a stronger balance
sheet, supportive metal price environment, and broader base of cash-flowing assets, Elemental is well positioned to build on its
Q1 momentum and continue delivering value for our shareholders."
Investor Webinar
An investor webinar will be held on Thursday May 14, 2026, starting at 11am Eastern 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/1jd8kJRkVWo
A replay of the event will be available on the Elemental website following the presentation.
Q1 2026 Quarterly Earnings Release
Expressed in U.S. Dollars
TSX: ELE | NASDAQ: ELE 2
Summary of Financial Highlights for the Period Ended March 31, 2026 and 2025:
Three months ended March 31,
(In thousands of US dollars) 2026 2025
Statement of Income
Revenue $ 24,322 $ 11,639
General and administrative expense $ 5,586 $ 1,600
Royalty generation expense, net $ 1,436 $ -
Net income $ 1,083 $ 3,448
Statement of Cash Flows
Cash flows from operating activities $ 14,494 $ 2,372
Non-IFRS Financial Measures1
Revenue plus attributable share of Caserones $ 24,322 $ 13,261
Adjusted cash flows from operating activities $ 14,494 $ 3,294
Adjusted EBITDA $ 17,741 $ 11,471
GEOs sold 4,983 4,606
Key Strategic Developments
Q1 2026 was a period of continued strategic execution for Elemental, building on the transformational steps completed
in 2025 and further strengthening the Company’s position as a growing mid -tier royalty and streaming company. Key
developments during and subsequent to the quarter included:
• Achieved a historic milestone by declaring an inaugural annual dividend of US$0.12 per share, payable quarterly
to qualifying shareholders in either cash or Tether Gold XAU₮ tokens, reflecting management’s confidence in the
sustainability of the Company’s cash flow profile while maintaining capacity for dividend growth in the coming
quarters.
• Strengthened financial capacity through an upsized revolving credit facility of US$150 million with a US$50
million accordion feature, providing up to US$200 million of additional capital to provide increased financial
flexibility and support for more material future transactions.
• Benefited from advancement across key royalty assets, including Timok, Caserones, Karlawinda, and Laverton,
where operators continued to progress development, optimization, production, and exploration activities that
support near-term cash flow visibility and long-term portfolio optionality.
• Continued to evaluate a pipeline of potential royalty and streaming opportunities across precious and base
metals, supported by an enhanced balance sheet, diversified portfolio, and disciplined capital allocation
approach.
Post Quarter Activities
TSX Listing
Post quarter end, on April 7, 2026, Elemental shares commenced trading on the Toronto Stock Exchange. The uplist to
the main exchange reflects the progress the Company has made in building a disciplined, growth -oriented public
company, and has already been beneficial in enhancing our capital markets visibility.
Western Queen
On May 4, 2026, Elemental entered into a transaction with owner and operator Rumble Resources Ltd (“Rumble”) to
acquire 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. Rumble has made
material progress in the mine planning a nd permitting processes, providing confidence in the team’s ability to advance
the Western Queen Project toward production stage.
Q1 2026 Quarterly Earnings Release
Expressed in U.S. Dollars
TSX: ELE | NASDAQ: ELE 3
First Quarter 2026 Performance by Asset
The following table is a summary of GEOs1 sold and revenue plus attributable share of Caserones1 for the first quarter of
2026 and 2025:
GEOs Sold Revenue (in thousands of US dollars)
2026 2025 2026 2025
Ballarat 198 165 $ 966 $ 474
Bonikro 1,260 762 6,150 2,193
Caserones2 1,401 - 6,837 -
Gediktepe 222 - 1,084 -
Karlawinda 578 640 2,821 1,843
Korali-Sud - 2,309 - 6,648
Leeville 423 - 2,065 -
Timok 459 - 2,242 -
Other producing royalties 331 167 1,613 481
Advanced royalty payments 16 - 79 -
T otal royalty revenue 4,888 4,043 $ 23,857 $ 11,639
Option, property and other revenue 95 - 465 -
Caserones (before reclassification)2 - 563 - 1,622
Revenue plus attributable share of Caserones1 4,983 4,606 $ 24,322 $ 13,261
Qualified Person
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43 -101 and employee of the Company, has reviewed,
verified, and approved the above technical disclosure.
About Elemental Royalty Corporation.
Elemental Royalty is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of
18 producing assets and more than 200 royalties, anchored by cornerstone assets and operated by world -class mining
partners. Formed through the merger of Elemental Altus and EMX, the Company combines Elemental Altus’s track record
of accretive royalty acquisitions with EMX’s strengths in royalty generation and disciplined growth. This complementary
strategy delivers both immediate cash flow and long -term value creation, supported by a best -in-class asset base,
diversified production, and sector-leading management expertise.
Elemental Royalty trades on NASDAQ and on the TSX under the ticker symbol “ELE”.
For further information contact:
www.elementalroyalty.com
Phone: +1 (604) 688-6390
NASDAQ: ELE | TSX: ELE | ISIN: CA28620K1066 | CUSIP: 28620K
David M. Cole
Chief Executive Officer
Tara Vivian-Neal
Investor Relations
Q1 2026 Quarterly Earnings Release
Expressed in U.S. Dollars
TSX: ELE | NASDAQ: ELE 4
Cautionary note regarding forward-looking statements
This news release contains certain “forward looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws.
Forward-looking statements and information can generally be identified by the use of forward -looking terminology such as “may”, “will”, “should”, “expect”,
“intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology.
Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while
believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of
Elemental to control or predict, that may cause Elemental’s actual results, performance or achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, inc luding but not limited to: the
impact of general business and economic conditions, the absence of control over the mining operations from which Elemental will receive royalties, risks related
to international operations, government relations and environmental regulation, the inherent risks involved in the exploratio n and development of m ineral
properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and
continuity of mineral deposits; the possibility that future exploration, development o r mining results will not be consistent with Elemental’s expectations;
accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in opera tions; fluctuating metal prices;
unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production
and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including
environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors
which could cause actual results to differ from forward-looking statements, refer to the annual information form of Elemental for the year ended December 31,
2025. Elemental undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking
statements and information represents management’s best judgment based on information currently available. No forward -looking statement or information
can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements
or information.
Neither the Nasdaq Stock Market LLC, or the TSX or its Regulation Service Provider (as that term is defined in the policies o f the
TSX) accepts responsibility for the adequacy or accuracy of this press release.
Notes
Royalty revenue received carries no direct cash cost of sales: distributions from associates related to Elemental’s effective
royalty on Caserones were received net of Chilean taxes and have no other costs.
1. Refer to the "Non-IFRS financial measures" section below or on page 23 of the Q1 2026 MD&A for more information
on each non -IFRS financial measure. These non -IFRS measures are not standardized financial measures under the
financial reporting framework used to prepare the financial statements to which the measures relate and might not
be comparable to similar financial measures disclosed by other issuers.
2. Effective November 13, 2025, the Company discontinued accounting for SLM California as an investment in associate
and began recognizing its share of revenue from the Caserones royalty directly, rather than as a share of profit from
associate.
Non-IFRS Financial Measures
The Company has included performance measures which are non-IFRS and are intended to provide additional information
and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
IFRS Accounting Standards. The non-IFRS measures do not have any standard meaning under IFRS Accounting Standards
and other companies may calculate measures differently.
Caserones Reclassification
Effective November 13, 2025, the shareholders of SLM California executed an amendment to the entity's shareholder
agreement, resulting in the Company reassessing the classification of its interest in SLM California, which holds the
Company’s Caserones royalty. As a result of the amendment to the shareholder agreement, the Company determined
that the revised arrangement constituted a joint operation in accordance with IFRS 11 Joint Arrangements. Consequently,
on November 13, 2025, the Company discontinued equity accounting under IAS 28 Investments in Associates and Joint
Ventures and began recognizing its proportionate share of the assets, liabilities, revenues, and expenses of SLM California
as a joint operation. As a result, there are no adjustments in the current period for revenue plus attributable share of
Caserones, depletion plus attributable share of Caserones, or tax expense plus attributable share of Caserones.
Q1 2026 Quarterly Earnings Release
Expressed in U.S. Dollars
TSX: ELE | NASDAQ: ELE 5
Reconciliation of Adjusted EBITDA:
The following is the reconciliation of adjusted EBITDA:
Three months ended March 31,
(In thousands of dollars) 2026 2025
Net income for the period $ 1,083 $ 3,448
Project evaluation and transaction related expenses 442 16
Interest Income (213) (29)
Interest and finance expenses 179 131
Tax expense plus attributable share of Caserones 3,070 1,603
Depletion plus attributable share of Caserones 8,617 5,750
Depreciation 47 -
Losses (gains) on revaluation of financial instruments 2,478 (179)
Share-based compensation 2,008 757
Losses (gains) on disposals 30 (26)
Adjusted EBITDA $ 17,741 $ 11,471
The presentation of this non-IFRS measure is intended to provide additional information and should not be considered
in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. Other
companies may calculate these non-IFRS measures differently.
Reconciliation of Revenue, Depletion and Tax Expense plus Attributable Share of Caserones:
Revenue plus attributable share of Caserones is a non-IFRS financial measure, which is defined as including gross royalty
revenue from associated entities holding royalty interests related to Elemental’s effective royalty on the Caserones
copper mine. Mana gement uses revenue plus attributable share of Caserones to evaluate the underlying operating
performance of the Company for the reporting periods presented, to assist with the planning and forecasting of future
operating results, and to supplement informa tion in its financial statements. Management believes that in addition to
measures prepared in accordance with IFRS Accounting Standards such as revenue, investors may use revenue plus
attributable share of Caserones to evaluate the results of the underlyi ng business, particularly as the revenue plus
attributable share of Caserones may not typically be included in operating results. Management believes that revenue
plus attributable share of Caserones is a useful measure of the Company performance because it adjusts for items which
management believes reflect the Company’s core operating results from period to period. Revenue plus attributable share
of Caserones is intended to provide additional information to investors and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with IFRS Accounting Standards. It does not have any
standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by
other issuers.
Depletion plus attributable share of Caserones and tax expense plus attributable share of Caserones are non -IFRS
measures which include depletion and tax expense from the Caserones royalty asset respectively, consistent with the
recognition of revenue plus attributable share of Caserones as described above.
The following is the reconciliation of revenue plus attributable share of Caserones:
Three months ended March 31,
(In thousands of dollars) 2026 2025
Revenue $ 24,322 $ 11,639
The Company's share of royalty revenue from Caserones - 1,622
Revenue plus attributable share of Caserones $ 24,322 $ 13,261
Q1 2026 Quarterly Earnings Release
Expressed in U.S. Dollars
TSX: ELE | NASDAQ: ELE 6
The following is the reconciliation of depletion plus attributable share of Caserones:
Three months ended March 31,
(In thousands of dollars) 2026 2025
Depletion of royalties $ (8,617) $ (5,374)
Depletion of Caserones - (376)
Depletion plus attributable share of Caserones $ (8,617) $ (5,750)
The following is the reconciliation of tax expense plus attributable share of Caserones:
Three months ended March 31,
(In thousands of dollars) 2026 2025
Tax expense $ (3,070) $ (1,165)
Tax expense related to Caserones - (438)
Tax expense plus attributable share of Caserones $ (3,070) $ (1,603)
Reconciliation of Adjusted Cash Flows from Operating Activities:
Adjusted cash flows from operating activities is a non-IFRS measure which includes dividends from the Caserones royalty
asset.
The following is the reconciliation of adjusted cash flows from operating activities:
Three months ended March 31,
(In thousands of dollars) 2026 2025
Cash provided by operating activities $ 14,494 $ 2,372
Caserones royalty distributions - 922
Adjusted cash flows from operating activities $ 14,494 $ 3,294
Reconciliation of Gold Equivalent Ounces Sold
Elemental's revenue plus attributable share of Caserones is converted to an attributable gold equivalent ounce, or GEO,
basis by dividing the royalty and other revenue from associates in a period by the average gold price for the same
respective period. The presentation of this non -IFRS measure is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
Accounting Standards. Other companies may calculate these non-IFRS measures differently.
The following is the reconciliation of gold equivalent ounces sold:
Three months ended March 31,
2026 2025
Revenue plus attributable share of Caserones (in $000s) $ 24,322 $ 13,261
Average gold price $ 4,881 $ 2,879
T otal GEOs 4,983 4,606