Elemental Royalty buys five streams and royalties for US$290 million and spins out its Generation Business

Elemental Royalty (NASDAQ: ELE, TSX: ELE) announced two linked transactions just before the Beaver Creek Precious Metals Summit, and CEO Fred Bell used this KE Report interview to unpack both. The company is acquiring five streams and royalties from Orion Mine Finance Management LP for US$290 million — US$200 million in cash and US$90 million in equity. In parallel, it is selling its Generation Business, the exploration-ground operation that came with the EMX merger, into a private company called Carlin East Inc.

Bell's bottom line: on closing, Elemental becomes a larger, simpler, pure-play royalty company. The purchase adds three streams, takes the count of producing assets past 20, and per the announcement is expected to be immediately accretive to net asset value (NAV — the value of the underlying assets expressed per share) and materially accretive to revenue per share. It also lifts the portfolio's weighting to precious metals and Tier 1 jurisdictions, with exposure to the US and Nevada rising in particular.

## Ruby Hill: a top-five asset on arrival

The anchor is a silver stream over I-80 Gold's Ruby Hill complex in Nevada. A stream is an agreement to buy a fixed share of a mine's future metal output for an upfront payment. This one is unusually rich: Elemental receives 50% of the first 1.3 million ounces of silver produced, then an uncapped 10% after that. Bell said it will rank as a top-five asset in the portfolio from day one.

The stream covers Mineral Point, the silver-bearing main deposit within the Ruby Hill complex, which holds about 8 million gold-equivalent ounces (GEOs — gold-equivalent ounces, a common way to express output or resources containing multiple metals) in the measured, indicated and inferred categories. Bell expects that figure to grow. I-80 is running a 130,000-metre drill program, has reported step-out results extending the deposit both east and north, and is due to publish an updated resource next year. He added that the previous estimate used a low silver price assumption, so updated pricing alone should add ounces. The current mine plan runs about 16 years, and Bell thinks it will lengthen. He also noted Elemental knows several I-80 executives from mines they previously built on time and on budget, with first-year production ahead of guidance.

## Kouroussa: a stream over the mill in Guinea

The second most significant piece is a 5% gold stream over the Kouroussa mine in Guinea, operated by Mansa Resources. The mine produces roughly 90,000 to 100,000 ounces of gold a year. Because Elemental pays 20% of the costs on metal it receives, the effective interest is close to a 4% net stream, and it is uncapped.

Two features make it worth more than the headline percentage. It sits over the mill, so any ore Mansa processes there in future — including from newly consolidated ground, which Bell said has already roughly doubled around the existing license — falls under the stream. It was also the origin of the deal: Elemental bought a royalty on Mansa's Dugbe project in Liberia last September, argued that Mansa would consolidate its then-majority owner Passofino and fast-track the fully permitted, roughly 4-million-ounce project into production, and Mansa did exactly that in the first half of 2026. Bell said Kouroussa will rank in the company's top ten assets.

One dated risk: Mansa holds a one-time option to buy back half the stream, exercisable within about two years. Bell thinks it may go unused while Mansa funds Dugbe's construction, but it is a real possibility.

## Three smaller additions

A capped 1% stream over a New Zealand gold project held by private company Endura is closest to paying. First production is due in December, under executive chair Jake Klein, who previously ran Evolution in Australia. A royalty is the lighter cousin of a stream: a percentage of a mine's metal sales rather than a claim on physical ounces.

The 2.5% royalty over Silverco's La Negra mine in Mexico is already producing. Silverco published an updated preliminary economic assessment (an early-stage mine study) the same day the deal was announced, showing a production rate double what Elemental had modeled. At current silver prices, Bell now expects roughly US$4 million a year from this royalty instead of the about US$2 million assumed when the deal was priced.

The last piece is a royalty over part of Dakota Gold's Richmond Hill project in South Dakota. It covers part of the existing mine plan plus surrounding ground that faces a longer permitting path, wrapping several previously and currently operating mines. Host Shad Markwitz disclosed on air that he personally owns shares in both Silverco and Dakota Gold.

## The Carlin East divestment

This is where the simplification happens. Bell said the generative business created around 100 early-stage royalties over more than a decade, but had grown to about 60% of the company's people and 30% of its general and administrative (G&A) costs while earning little valuation credit inside Elemental. Carlin East takes the wholly-owned exploration projects, takes on management of the option agreements, and shares ownership of selected early-stage royalties. Elemental keeps its portfolio of roughly 250 to 260 royalties, splits about 20 early-stage royalties with Carlin East, and becomes the cornerstone shareholder in the new vehicle. CEO David M. Cole has resigned to lead Carlin East. Elemental's headcount drops from about 45 to about 20, and the company expects G&A to fall by more than 25%.

## Portfolio trajectory

Bell framed both deals inside an 18-month build-out that began when Tether came in as a shareholder with a stated ambition to make Elemental a mid-tier royalty player. He said the average value of the top eight assets has risen from about US$35 million to about US$170 million in 15 months. Revenue guidance sits at roughly 20,000 GEO this year, or 21,000 at the midpoint, rising to about 50,000 GEO by 2031 — an increase of around 160%. He also pointed to three material silver interests added in 14 months (Ruby Hill, Panuco via the earlier Vizla Royalties acquisition, and Abra Silver's project in Argentina), a US and Canada weighting of about 20% after closing, and cornerstone assets — several shared with Franco-Nevada and Royal Gold — that he argues can run for decades, led by the 66-year mine life at Timok. By his count, Elemental has been the third most active royalty and streaming company by capital deployed, and the most active relative to its size.

## What to watch

The Orion purchase is under definitive agreements, but the Carlin East transaction was a non-binding agreement at announcement, so the split still needs to be finalized. The 2031 revenue target depends on six to eight key assets delivering on schedule, and the Kouroussa buyback option is live and dated. Nearly every figure above is management's own account, delivered in a promotional interview format, so treat the growth numbers as claims to verify against company filings as closing, the updated Ruby Hill resource, and Dugbe's development play out.