Elemental Royalty's asset tour: the portfolio behind a ~50% gold-equivalent growth plan

Elemental Royalty (TSX and Nasdaq: ELE) came on The KE Report not to promote a single project but to walk through the whole book: roughly 250 royalties and streams across 23 countries, 18 of them cash-flowing today, plus 28 advanced development assets and more than 200 early-stage properties. President and COO Fred Bell said producing assets rose from 10 to 18 over the past year, liquidity is up more than 60 times, and revenue should land about $30 million higher this year than last. CEO Dave Cole put 2026 revenue guidance at roughly $90 million and set a personal goal of approaching, or breaking, $100 million at current commodity prices.

The growth case is measured in gold equivalent ounces (GEOs — a way to add up output of different metals as if it were all gold). Bell guided to 17,000–21,000 GEOs this year and described roughly 50% growth to about 30,000 GEOs by 2029, and about 37,500 once the pending Vizsla Royalties acquisition adds an expected 7,500 GEOs — a figure that excludes the new Chapi copper investment. Cole added that many royalties outside the producing list already pay through pre-production payments, which he credited as a key part of how the company has grown.

## The cornerstones

**Timok, Serbia.** Elemental holds a half-dozen royalties in the district for a cumulative few hundred thousand dollars, Cole said. Upper zones already pay about $7–8 million a year, and the operator is sinking multiple shafts in parallel to reach the lower zone, which he described as 2.2 billion tonnes at close to 1% copper and open at depth. A new discovery 7 kilometres away — an initial resource of 150 million tonnes at 1.87% copper and 0.61 g/t gold — also sits inside the royalty footprint.

**Caserones, Chile.** A 1.3% net smelter return (NSR — the share of metal sales revenue paid to the royalty holder), assembled by combining the Elemental and EMX royalties. It generated about $19 million in 2025, and Cole expects it to break $20 million this year. Operator Lundin Mining is spending over $20 million a year on exploration and has pushed production toward nameplate capacity.

**Karlawinda, Australia.** The royalty closed in 2021 and has nearly repaid its acquisition cost from cash flow, Bell said. Operator Capricorn has fully funded an expansion, due to commission in Q3, that lifts gold output about 30% — with reserves still priced off a $1,660 per ounce gold assumption.

**Laverton, Australia.** Uncapped royalties of 2–4% on ground beside Gold Fields' Granny Smith and AngloGold Ashanti's Sunrise Dam mines. Bell highlighted Beasley Creek, a permitted prospect carrying a 4% royalty and roughly double the grade of current mill feed: 100,000 ounces through the mill would yield about 4,000 GEOs, against total company guidance of 17,000–21,000 this year. He said operator Genesis is discussing a mill expansion and possibly a second mill.

## Chapi: a flexible-financing template

Elemental announced a US$25 million package with Quilla Resources on July 15 — equity plus royalty financing that adds a perpetual, uncapped 1.0% NSR over the Pampa Negra and Candelaria concessions, lifting Elemental's royalty to a total 3.0% at the producing Chapi copper project in Peru. Cole said the operator built its mine on time and on budget, runs at about 10,000 tonnes of copper a year, and is working toward a threefold expansion to 30,000 tonnes. He presented the structure as the deal model he wants to repeat: fund teams the company already knows, take royalty plus equity, and skip competitive auctions — with an expected uplift if and when Quilla reaches the public market.

## Vizsla Royalties: large silver exposure, conservative timelines

The May 14 agreement to acquire Vizsla Royalties by court-approved plan of arrangement (a court-supervised acquisition structure) pays shareholders, per Bell, 75% in Elemental shares and 25% cash. After closing, Elemental will hold both royalty rates on the Vizsla silver-gold ground in Mexico — 3.5% on one parcel, 2% on the rest — adding an expected 7,500 GEOs per Vizsla's mine plan. Asked about the site security incident and schedule risk, Cole said the company almost never uses operator timelines and models production starting one to two years late, and called it "entirely geologically reasonable" for the deposit's resource to double. The deal has cleared its shareholder vote and court hearing and awaits Mexican antitrust approval. Bell called it the best or second-best primary silver development project in the world, and said Elemental's Mexico weighting sits below Wheaton's and near Franco's.

## Other names on the board

- **MacTung** (tungsten, operated by Fireweed Metals): bought for $4.5 million about two years ago; Bell put consensus value near $40–50 million today, with US and Canadian government grants behind the project, a feasibility study due next year, and permits already in hand. - **Diablillos** (Argentina, Abra Silver): bought for roughly $13 million, more than half repaid through pre-production payments; Cole put the undiscounted value of the royalty above $200 million. - **Mansa**: a $16.5 million royalty (plus deferred payments) bought last September on a producing gold company fast-tracking a third mine; the prior plan ran 200,000-plus ounces a year at a 2–2.5% NSR — about 4,000 more GEOs at full production. - **Cactus** (Arizona): a combined royalty of roughly 0.5% over most of the discovered mineralization, held on private land management says allows a fast path to production; a preliminary feasibility study (PFS) is on the catalyst list. - **Viscaria** (Sweden): copper, gold and iron in the Kiruna district, expected in production around late 2026 or early 2027. - Steady payers: **Leeville** (operated by Nevada Gold Mines) has returned over $40 million cumulatively and should pay about $7 million this year; **Balia** pays a couple of million dollars a year on a $17,000 purchase.

## Tether, the dividend, and the index bid

Cole said Tether owns 32% of Elemental and cannot buy more shares on the open market without making a bid for the whole company; Juan Sartori serves as executive chairman. Elemental pays a quarterly cash dividend, and shareholders may elect to receive the same dollar amount in XAU-T, a Tether gold token convertible into physical gold on demand — Cole called it the first in-kind dividend option of its kind and said uptake rose in the latest quarter. The company also joined the Russell 2000 and Russell 3000 for the first time; Cole said more than $85 million of stock changed hands on the rebalancing day, about 8% of shares outstanding, and that bankers expect further index-driven buying, with GDXJ eligibility tied to staying above 50% precious metals revenue.

On valuation, Bell estimated the stock trades near 0.8 times net asset value (NAV — analysts' estimate of what the royalty portfolio is worth), and both executives pointed to company buybacks under a re-initiated normal course issuer bid and to their own share purchases. Cole's chosen scorecard is the NAV-per-share trend, which he said has risen every year since 2021.