# Financial Statement – Q1 Financial Statements & Management Discussion & Analysis Financial Statement

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EGM generated: 2026-09-27
Company: Elemental Royalty Corporation (ELE)

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# Financial Statement – Q1 Financial Statements & Management Discussion & Analysis Financial Statement

Source: https://wp-elemental-royalty-2026.s3.eu-west-2.amazonaws.com/media/2026/05/ELE-2026-03-31-EX-99.1-FS-Q1-2026-FINAL-1.pdf
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## Content

# Financial Statement – Q1 Financial Statements & Management Discussion & Analysis Financial Statement
Elemental Royalty Corporation
(formerly Elemental Altus Royalties Corp.)
Condensed Consolidated Interim Financial Statements
(Unaudited)
March 31, 2026
Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s)
Condensed Consolidated Interim Statements of Financial Position
As at March 31, As at December 31,
2026 2025
Assets
Cash and cash equivalents (Note 4) $ 69,121 $ 53,143
Trade receivables and other assets (Note 5) 24,959 25,154
Investments (Note 6) 16,780 16,115
Total current assets 110,860 94,412
Trade receivables and other assets (Note 5) 2,996 2,043
Investment in associate 996 1,000
Royalty interests (Note 7) 800,103 808,720
Property and equipment 1,143 1,141
Total non-current assets 805,238 812,904
Total Assets $ 916,098 $ 907,316
Liabilities
Accounts payable and accrued liabilities (Note 8) $ 8,924 $ 6,664
Warrant liability (Note 9) 9,437 7,684
Total current liabilities 18,361 14,348
Deferred income tax liability 112,930 112,553
Total non-current liabilities 112,930 112,553
Total Liabilities 131,291 126,901
Shareholders' Equity
Share capital (Note 11) 793,789 787,682
Contributed surplus 16,499 17,481
Accumulated other comprehensive income ("AOCI") 1,615 1,503
Deficit (27,096) (26,251)
Total Shareholders' Equity 784,807 780,415
Total Liabilities and Shareholders' Equity $ 916,098 $ 907,316
Event subsequent to the reporting date (Note 20)
Approved on behalf of the Board of Directors on May 11, 2026
Signed: "David M Cole" Director Signed: "Sunny Lowe" Director
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s), except per share amounts
Condensed Consolidated Interim Statements of Income and Comprehensive Income
Three months ended March 31,
2026 2025
Revenue (Note 12) $ 24,322 $ 11,639
Depletion of royalty interests (Note 7) (8,617) (5,374)
Gross profit 15,705 6,265
General and administrative expenses (Note 13)1 (5,586) (1,600)
Royalty generation expenses, net (Note 14) (1,436) -
Share-based compensation expense (Note 8 and 11) (2,008) (757)
Share of profit (loss) from associate (4) 445
Gains (losses) on disposals (30) 26
Profit from operations 6,641 4,379
Other income and expenses
Interest income 213 29
Interest and finance expenses (Note 10) (179) (131)
Gain (loss) on revaluation of financial instruments (Note 6 and 9) (2,478) 179
Foreign exchange gain (loss) (44) 28
Other income - 129
Income before income taxes 4,153 4,613
Tax expense (3,070) (1,165)
Total net income 1,083 3,448
Other comprehensive income
Gain on revaluation of digital currency (Note 6) 105 -
Foreign currency translation adjustment 7 (28)
Other comprehensive income (loss) 112 (28)
Total comprehensive income $ 1,195 $ 3,420
Earnings per share
Basic earnings per share (Note 16) $ 0.02 $ 0.14
Diluted earnings per share (Note 16) $ 0.02 $ 0.14
Weighted average number of common shares outstanding - basic (Note 16) 64,066,984 24,576,259
Weighted average number of common shares outstanding - diluted (Note 16) 66,355,518 24,576,259
1
Certain comparative figures have been reclassified to general and administrative expenses to conform to current year presentation as illustrated in Note 13.
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s)
Condensed Consolidated Interim Statements of Cash Flows
Three months ended March 31,
2026 2025
Cash flows from operating activities
Income for the period $ 1,083 $ 3,448
Adjustments for:
Depletion and depreciation 8,675 5,374
Share-based compensation expense (Note 8 and 11) 2,008 757
Loss (gain) on revaluation of financial instruments 2,478 (179)
Interest and finance expenses (Note 10) 179 131
Tax expense 3,070 1,165
Other non-cash movements (Note 19) (270) (698)
Changes in non-cash working capital items:
Accounts receivable 346 (5,868)
Accounts payable and accrued liabilities (39) (1,582)
Total cash provided by operating activities before taxes 17,530 2,548
Taxes paid (3,036) (176)
Total cash provided by operating activities 14,494 2,372
Cash flows from investing activities
Distributions from SLM California - 922
Proceeds from the sale of investments (Note 6) 576 95
Purchase of marketable securities (Note 6) (461) -
Purchase of Tether Gold cryptocurrency tokens (Note 6) (1,000) -
Other movements (Note 19) (66) -
Total cash provided by (used in) investing activities (951) 1,017
Cash flows from financing activities
Interest received 185 29
Interest paid (80) (99)
Loan repayments (Note 10) - (3,000)
Deferred financing costs (Note 10) (1,134) -
Proceeds from exercise of options (Note 11) 3,405 -
Finance lease payments (31) -
Total cash provided by (used in) financing activities 2,345 (3,070)
Effect of exchange rate changes on cash and cash equivalents 90 28
Change in cash and cash equivalents 15,978 347
Cash and cash equivalents, beginning 53,143 4,454
Cash and cash equivalents, ending $ 69,121 $ 4,801
Supplemental disclosure with respect to cash flows (Note 19)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s), except per share amounts
Condensed Consolidated Interim Statements of Shareholders' Equity
Number of
common Share Contributed
shares Capital Surplus AOCI Deficit Total
Balance as at December 31, 2025 63,829,995 $ 787,682 $ 17,481 $ 1,503 $ (26,251) $ 780,415
Issued during the period:
Shares issued for exercise of stock
395,165 6,107 (2,702) - - 3,405
options
Share-based payments - - 1,720 - - 1,720
Dividends declared - - - - (1,928) (1,928)
Net income and comprehensive
income for the period - - - 112 1,083 1,195
Balance as at March 31, 2026 64,225,160 $ 793,789 $ 16,499 $ 1,615 $ (27,096) $ 784,807
Number of
common Share Contributed
shares Capital Surplus AOCI Deficit Total
Balance as at December 31, 2024 24,576,259 $ 217,449 $ 6,535 $ 1,416 $ (29,016) $ 196,384
Share-based payments - - 757 - - 757
Net income and comprehensive
income (loss) for the period - - - (28) 3,448 3,420
Balance as at March 31, 2025 24,576,259 $ 217,449 $ 7,292 $ 1,388 $ (25,568) $ 200,561
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
Notes to the Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s), except where indicated
Note 1 - Nature of Operations
Elemental Royalty Corporation (formerly Elemental Altus Royalties Corp.) (the “Company” or “Elemental”), was incorporated
under the laws of the Province of British Columbia. The Company is primarily involved in the acquisition and generation of
precious and base metal royalties. The Company's head office is 10001 W. Titan Road, Littleton, Colorado, USA and the
registered office address is Suite 905, 815 West Hastings Street, Vancouver, British Columbia, Canada. The Company’s common
shares trade on the Nasdaq Exchange under the trading symbol “ELE” and on the Toronto Stock Exchange ("TSX") under the
ticker symbol “ELE”.
These condensed consolidated financial statements of the Company are presented in United States Dollars ("US Dollars" or
"US$"), unless otherwise noted, which is the functional currency of the parent company. The notation “$” represents US dollars,
“C$” represents Canadian dollars, and “A$” represents Australian dollars.
Note 2 - Basis of Presentation
Statement of Compliance
The unaudited condensed consolidated interim financial statements have been prepared in accordance with IFRS Accounting
Standards applicable to the preparation of interim financial statements, under International Accounting Standard 34, Interim
Financial Reporting, as issued by the International Accounting Standards Board ("IASB") (the “IFRS Accounting Standards”).
The condensed consolidated interim financial statements were approved by the board and authorized for issue on May 11,
2026.
Summary of Material Accounting Policies
The Company uses the same accounting policies and methods of computation as in the annual consolidated financial statements
for the year ended December 31, 2025, except as described below. There was no material impact on the financial statements
from new accounting standards or amendments to accounting standards, effective January 1, 2026.
New Accounting Policies
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments
In May 2024, the International Accounting Standards Board issued amendments to IFRS 7 Financial Instruments: Disclosures and
IFRS 9 Financial Instruments relating to settling financial liabilities using electronic payment systems and assessing contractual
cash flow characteristics of financial assets. The IASB clarified the recognition and derecognition date of certain financial assets
and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also
clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they meet the solely
payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance
(ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments
with contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to equity
instruments designated at fair value through other comprehensive income.
The amendments are effective for periods beginning on or after January 1, 2026, and adoption of these amendments did not
have a material effect on our condensed consolidated interim financial statements. For financial liabilities settled in cash using
an electronic payment system, we applied the election to deem these financial liabilities to be discharged before the settlement
date. The amendments have been applied retrospectively with no restatement of comparative information, in accordance with
transition requirements on initial application of IFRS 9.
Deferred Share Units ("DSUs")
Share-based payment arrangements related to deferred share units are measured at fair value. Deferred share units are liability
awards settled in cash and measured at the quoted market price at the grant date and the corresponding liability is adjusted for
changes in fair value at each subsequent reporting date until the awards are settled.
TSX: ELE / NASDAQ: ELE Elemental Royalty Corporation 6
Notes to the Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s), except where indicated
Note 2 - Basis of Presentation (continued)
New Accounting Policies Issued But Not Yet Effective
Certain pronouncements have been issued by the IASB or the International Financial Reporting Interpretations Committee
("IFRIC") that are not mandatory for the current period and have not been early adopted. The Company has reviewed these
updates and the amendment that is applicable to the Company is discussed below:
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1, Presentation of Financial Statements aims
to improve how compani

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