Elemental Royalty (ELE) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record adjusted EBITDA of $3.7 million, up 70–72% year-over-year, and adjusted revenue of $4.8 million, up 32%, driven by higher gold prices and disciplined cost management.

• Net cash position achieved post quarter-end, with $20.1 million in the bank and $50 million in available liquidity, supported by a $12.8 million private placement and expanded credit facility.

• Completed AlphaStream acquisition for $28 million in equity, consolidating key royalties and adding 21 Australian exploration royalties, with immediate cash flow and margin expansion.

• Portfolio underpinned by established, revenue-producing assets and significant exploration potential, with near-term catalysts from new and expanded royalties.

• Record quarterly cash flow and improved balance sheet position, reversing prior year losses.

Financial highlights

• Adjusted revenue for Q3 2024 was $4.8 million, up 32% year-over-year; royalty revenue was $3.7 million.

• Adjusted EBITDA reached $3.7 million, up 72% year-over-year, with a record EBITDA margin of 77%.

• Operating cash flow after working capital adjustments was $2.8 million, up 44% year-over-year; free cash flow for the quarter was $2.5 million.

• Net profit for Q3 2024 was $0.63 million, reversing a loss in Q3 2023.

• Attributable gold equivalent ounces (GEOs) for Q3 2024 were 1,941, up 3% year-over-year.

Outlook and guidance

• 2024 adjusted revenue guidance set at $21.6–$23.1 million, reflecting higher gold prices.

• 2024 GEOs guidance lowered to 9,000–9,500 ounces due to delays at Korali Sud (Diba); significant revenue from Diba expected in 2025.

• Pro forma 2025 revenue expected at $37 million, driven by AlphaStream and Korali Sud contributions.

• Significant organic growth anticipated in 2025 and 2026 from cornerstone assets and new royalties.

• Expects to maintain a net cash position by year-end, supporting new acquisitions and reducing interest costs.