Elemental Royalty (ELE) Q2 2024 earnings summary

Executive summary

• Achieved adjusted revenue of $5.2M in Q2 2024, up 10% year-over-year, with royalty revenue at $3.8M and adjusted EBITDA at $3.4M, up 3% year-over-year.

• Attributable Gold Equivalent Ounces (GEOs) were 2,211, down 7% year-over-year, reflecting lower operational output but offset by portfolio diversification.

• Production remains weighted to H2 2024, with new contributions expected from the Diba royalty and ongoing exploration at key projects.

Financial highlights

• Operating cash flow plus Caserones dividends totaled $1.4M, down 33% year-over-year due to working capital movements.

• Cash balance stood at $6.5M with outstanding debt of $20.0M as of June 30, 2024.

• Net loss for the six months ended June 30, 2024, was $1.1M, a significant improvement from a $3.5M loss in the prior year period.

Outlook and guidance

• On track to meet the lower end of GEO guidance (10,000–11,700) and higher end of revenue guidance ($20.0–$23.3M) for 2024.

• Production and revenue expected to increase in H2 2024, especially from Diba and ongoing exploration at HCK (Rwanda) and Egypt projects.

• Continued focus on reducing credit facility drawdowns to lower interest costs while maintaining acquisition flexibility.