Elemental Royalty Posts Record GEOs and Cash Flow in Q2; CEO Outlines Growth Path to 35,000 Ounces by 2030

## Q2 numbers and balance sheet

President and COO Fred Bell used the Q2 results — reported on August 11 — to highlight a record quarter for gold equivalent ounces (GEOs — what it converts into at current gold price) and the second-highest quarterly revenue figure on a dollar basis, more than 120% above the equivalent quarter in 2025. He tied the operating result to a roughly $74 million cash position at quarter-end, an undrawn $200 million credit facility, and a transaction worth about $25 million completed just after quarter-end. The company also paid its second quarterly dividend in Q2 after launching the program in Q1.

## A dividend shareholders can take in gold

Bell walked through what he called a unique structure in the royalty and streaming space: shareholders can elect to receive the dividend in cash or in Tether Gold, a token backed one-for-one by physical gold. Tether itself is the company’s largest shareholder at about 31%, using its own principal capital for the stake. Bell noted Tether’s USDT stablecoin has roughly $190 billion in circulation and was, in his telling, the second-largest buyer of physical gold in 2025.

## Visler still pending Mexican antitrust

The Visler royalty transaction remains pending. Bell said shareholders and the court have approved the deal and that the company is awaiting clearance from the Mexican Antitrust Commission, a process he described as typically running three to four months and one that should conclude in the coming weeks. With Visler closing, Bell said Elemental will have added more than $800 million of NAV (net asset value — what the portfolio is worth on paper) over roughly the last 14 months.

## Asset updates across the portfolio

Bell confirmed the company is tracking the upper end of its 17,000–21,000 GEO guidance, sitting at 10,231 GEOs at the halfway mark. Casarones (Lundin Mining) reduced copper guidance from 130,000–140,000 tonnes to 120,000–130,000 tonnes after two back-to-back weather events in late July and early August; Bell framed the cut as a Q3 issue that does not change the long-term profile.

On copper growth, Bell described the Timok complex — owned by Zijin, with Elemental holding a life-of-mine royalty — as currently mining the upper zone while simultaneously developing a lower-zone block cave (a bulk underground mining method that caves the ore body and lets gravity feed it to drawpoints). Zijin, he noted, has publicly said Timok will become Europe’s largest copper mine when running. The "MG" (Mala Galagia) discovery, announced in 2024 seven kilometers to the southeast, is described by Bell as a future ore body that could be mined concurrently.

Bell also pointed to Getake Tepe transitioning from oxide to sulfide (a stronger H2 contributor), and to Chappie — a private Peruvian copper producer where Elemental increased its royalty and took a small equity stake post-Q2 — being prepared for an IPO. The Chappie CEO, he said, previously ran Antamina, Milpo (now Nexa), and Buenaventura. Carlawinda is commissioning a mine expansion that lifts annual output from roughly 120,000 ounces to about 150,000 ounces by the end of this quarter, alongside a resource update that increased resources by about 50% and reserves by about 30%.

Among development-stage assets, Bell flagged Abrasilva advancing its Diablios project toward a construction decision with engineering work awarded to Whalley, Mactung (Fireweed) heading into a feasibility study next year, and the private-operator gold project Dukbe fast-tracking toward a construction decision by year-end.

## Mactung and tungsten

Bell returned several times to Mactung, a tungsten royalty acquired two to three years ago for $4.5 million. Using today’s spot tungsten price and assuming the buyback right is exercised and the prior feasibility study holds, he argued the asset could be "an order of magnitude $200 million" royalty. Co-host Shad Markwitz added that tungsten has rallied roughly 10x on Chinese export controls and that Fireweed has received government funding and expedited permitting because of the metal’s strategic status. Tungsten is a defense metal — a very hard metal used in tanks and armor-piercing rounds.

## Growth path and the re-rating case

Bell laid out an organic GEO trajectory from roughly 19,000 ounces this year (the midpoint of guidance) to 25,000 in 2028, 30,000 in 2029, and 35,000 in 2030 — including Visler — calling it the strongest growth profile in the company’s history on a gold-equivalent-ounce basis. He argued the market has not yet digested a year of transformation: the EMX merger, two large acquisitions in the $67–$68 million range, a $100 million Tether private placement, a Nasdaq listing, an inaugural dividend, an upsized credit facility, and index inclusions (Russell in June, MSCI announced for late August, GDXJ expected in September). Liquidity, he said, is roughly 70 times mid-2025 levels.

Tether’s stake, Bell noted, will move to about 27–28% when Visler closes, with the major shareholder signaling appetite to backstop more equity if needed. Bell closed by arguing the royalty model is "fantastic" once it reaches scale, and that the cadence and size of Elemental’s deals relative to market cap is at the top of the sector.