Elemental Royalty (ELE) Q2 2025 earnings summary

Executive summary

• Record revenue and operating cash flow achieved in Q2, with significant cash build, debt repayment, and increased revenue guidance, positioning for future growth.

• Strong support from new major investor Tether Investments, enhancing capital deployment capabilities.

• Over $27 million in cash at quarter end, with a fully undrawn $50 million credit facility and record free cash flow.

• Regulatory approval for Karlawinda Expansion Project expected to significantly boost long-term royalty income.

• The company is now able to pursue larger transactions independently, reflecting a shift from previous capital constraints.

Financial highlights

• Adjusted revenue for Q2 reached $10.5 million, up 102% year-over-year.

• Adjusted EBITDA rose 155% year-over-year to $8.8 million.

• Operating cash flow for Q2 was $14.4 million, up over 900% year-over-year.

• Free cash flow for the quarter was $9.7 million, with cash on hand growing from $4.8 million to $24.5 million by quarter-end and $30 million as of today.

• Net profit of $160K for Q2 2025, compared to a $114K loss in Q2 2024.

Outlook and guidance

• Revenue guidance for 2025 increased to $35–$40 million, reflecting higher gold prices.

• GEO production guidance reiterated at 11,600–13,200 ounces, up nearly 40% year-over-year at midpoint.

• Production and revenue expected to be weighted toward H1 2025, driven by Korali-Sud.

• Continued focus on organic growth and potential for further acquisitions.

• Full exposure to higher gold prices anticipated.