# MD&A – Q1 Financial Statements & Management Discussion & Analysis MD&A Source Brief: https://evesgoldminers.com/research/source-briefs/elemental-royalty-corporation-md-and-a-q1-financial-statements-and-management-dis-c5a365ab Original source: https://wp-elemental-royalty-2026.s3.eu-west-2.amazonaws.com/media/2026/05/ELE-2026-03-31-EX-99.2-MDA-Q1-2026-FINAL-1.pdf EGM generated: 2026-09-27 Company: Elemental Royalty Corporation (ELE) ## Use Note This is the Eve's Gold Miners normalized Markdown copy of an official or regulatory public source. It is provided for readability, search discovery, and research resilience. The original source remains authoritative for legal, regulatory, and investment decisions. ## Extracted Document Text # MD&A – Q1 Financial Statements & Management Discussion & Analysis MD&A Source: https://wp-elemental-royalty-2026.s3.eu-west-2.amazonaws.com/media/2026/05/ELE-2026-03-31-EX-99.2-MDA-Q1-2026-FINAL-1.pdf Fetched: 2026-09-12T07:01:17.817+00:00 Source artifact: c5a365ab-4fa9-49f8-8af4-137ca7379dc6 Normalizer input: text ## Content # MD&A – Q1 Financial Statements & Management Discussion & Analysis MD&A Elemental Royalty Corporation (formerly Elemental Altus Royalties Corp.) Management's Discussion and Analysis Three Months Ended March 31, 2026 Management's Discussion & Analysis (Expressed in U.S. Dollars, except where indicated) General This Management's Discussion and Analysis ("MD&A") for Elemental Royalty Corporation (formerly Elemental Altus Royalties Corp.) (the "Company", or "Elemental") has been prepared based on information known to management as of May 11, 2026. This MD&A is intended to help the reader understand the consolidated financial statements and should be read in conjunction with the condensed consolidated interim financial statements of the Company for the three months ended March 31, 2026 prepared in accordance with IFRS Accounting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All dollar amounts included therein and in the following MD&A are in United States dollars except where noted. Readers are cautioned that the MD&A contains forward-looking statements and that actual events may vary from management's expectations. Readers are encouraged to read the "Forward-Looking Information" at the end of this MD&A. Additional information related to the Company, including our Annual Information Form ("AIF") and Form 40-F, are available on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov, respectively. These documents contain descriptions of certain of Elemental's producing royalties as well as summaries of the Company's advanced royalties, exploration royalties and royalty generation assets. For additional information, please see our website at www.elementalroyalty.com. Table of Contents Abbreviated Definitions General 2 Periods under review Description of the Business 3 "Q4" The three-month period ended December 31 Strategy 3 "Q3" The three-month period ended September 30 "Q2" The three-month period ended June 30 Highlights 3 "Q1" The three-month period ended March 31 Revenue and GEO Performance 5 Corporate Updates for Q1 2026 6 Measurement "GEO" Gold equivalent ounces Key Producing Royalty Updates 7 "oz" Ounce Development Royalty Updates 9 "t" Tonne Royalty Generation Updates 10 "lb" Pound Results of Operations 11 "Kt" Thousand tonnes Liquidity and Capital Resources 14 "Mlbs" Million pounds Quarterly Information 16 "Tsol" Total soluble Risk and Capital Management: Financial 17 Interest types Instruments "NSR" Net smelter return Non-IFRS Financial Measures 23 "GSR" Gross smelter return "GRR" Gross revenue royalty "NPI" Net profits interest "AMR" Advance minimum royalty "AAR" Annual advance royalty Places and currencies "U.S." United States "$" or "USD" United States dollars "C$" or "CAD" Canadian dollars "A$" or "AUD" Australian dollars Other "FS" Feasibility study "IRR" Internal rate of return "LOM" Life of mine "NPV" Net present value "PEA" Preliminary Economic Assessment "PFS" Pre-feasibility study TSX: ELE / NASDAQ: ELE Elemental Royalty Corporation 2 Management's Discussion & Analysis (Expressed in U.S. Dollars, except where indicated) Description of the Business Elemental is in the business of acquisition and management of royalties and organically generating royalties derived from a portfolio of mineral property interests. Elemental's royalty and mineral property portfolio consists of 256 assets across North America, South America, Europe, Africa, and Australia. The Company's common shares are listed on the Nasdaq Exchange ("NASDAQ") and as of April 7, 2026, on the Toronto Stock Exchange ("TSX") under the ticker symbol "ELE". Strategy Elemental’s strategy is to advance a disciplined growth strategy focused on building a diversified portfolio of high-quality royalty and streaming interests across both precious and base metals. The Company focuses on acquiring and creating high-quality royalty and streaming interests, making strategic investments, and selectively generating royalties, with a balanced exposure to precious and base metals and an emphasis on gold and copper. The key components of Elemental’s business strategy are summarized as follows: Royalty and Streaming Acquisitions and Financing Elemental seeks to acquire and finance royalty and streaming interests across a spectrum of asset stages, ranging from producing operations to advanced development projects. The Company targets opportunities in the precious metals, base metals, and battery metals sectors, and will also consider other cash-flowing royalty and streaming opportunities, including within the energy sector. Through disciplined capital allocation and transaction structuring, Elemental aims to build a portfolio that delivers near-term cash flow, long-term optionality and exposure to commodity price upside. Royalty Generation Royalty generation is a complementary component of Elemental’s broader acquisition, financing, and investment strategy. The Company leverages in-country geological expertise to originate and evaluate mineral projects, partner with major and junior companies, and selectively retain royalty interests. These activities can result in royalties, advance royalty payments, milestone payments, and occasional equity consideration, providing modest early-stage cash flows and long-term upside optionality with limited capital deployment. Elemental’s diversified portfolio of producing, development-stage, and exploration royalties provides exposure to near-term cash flow and long-term discovery upside. By integrating acquisitions and financing, strategic investments, and selective royalty generation, the Company has established a resilient platform for long-term shareholder value. Highlights Q1 2026 was a strong start to the year for Elemental, with a significant increase in revenue supported by strong metal prices and contributions from a broader base of cash-flowing assets, including Bonikro, Karlawinda, Timok, and Caserones. Following the transformational merger with EMX Royalty Corporation ("EMX"), the Company continued to benefit from enhanced scale, greater portfolio diversification, and increased exposure to both near-term cash flow and long-term organic growth opportunities. During the quarter, Elemental strengthened its financial capacity through an upsized revolving credit facility of $150.0 million, with a $50.0 million accordion feature, providing up to $200.0 million of additional liquidity. The facility enhances financial flexibility and supports the Company’s ability to pursue meaningful growth opportunities, including more material acquisitions and royalty generation initiatives. Elemental also advanced its capital allocation framework through the declaration of an inaugural annual dividend of $0.12 per share, payable quarterly to qualifying shareholders in either cash or Tether Gold XAU₮ tokens, reflecting management's confidence in the sustainability of the Company’s cash flow profile while maintaining capacity for portfolio growth. Supported by strong commodity markets, an expanded asset base, and disciplined capital allocation, Elemental remains well positioned to build on the momentum from Q1 and continue delivering long-term value for shareholders. TSX: ELE / NASDAQ: ELE Elemental Royalty Corporation 3 Management's Discussion & Analysis (Expressed in U.S. Dollars, except where indicated) Summary of Financial Highlights for the Three Months Ended March 31, 2026 and 2025: Three months ended March 31, (In thousands of dollars) 2026 2025 Statement of Income Revenue $ 24,322 $ 11,639 General and administrative costs 5,586 1,600 Royalty generation expenses, net 1,436 - Income from operations 6,641 4,379 Net income $ 1,083 $ 3,448 Statement of Cash Flows Cash flows from operating activities $ 14,494 $ 2,372 Cash flows from investing activities (951) 1,017 Cash flows from financing activities $ 2,345 $ (3,070) 1 Non-IFRS Financial Measures Revenue plus attributable share of Caserones $ 24,322 $ 13,261 Adjusted cash flows from operating activities $ 14,494 $ 3,294 Adjusted EBITDA $ 17,741 $ 11,471 GEOs sold 4,983 4,606 March 31, December 31, Statement of Financial Position 2026 2025 Cash and cash equivalents $ 69,121 $ 53,143 Working capital1 $ 92,499 $ 80,064 Non-IFRS Financial Measures1: The Company had revenue plus attributable share of Caserones, and adjusted EBITDA of the following: Revenue plus Attributable Share of Caserones & Revenue plus Attributable Share of Caserones - by Adjusted EBITDA Asset (in thousands) (in thousands) $24,000 $24,000 $20,000 $20,000 $16,000 $16,000 $12,000 $12,000 $8,000 $8,000 $4,000 $4,000 $- $- Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Bonikro Caserones Revenue plus attributable share of Caserones Karlawinda Korali-Sud Adjusted EBITDA Leeville Timok Other producing royalties Advanced royalty payments Other revenue 1 Refer to the "Non-IFRS Financial Measures" section on page 23 of this MD&A for more information on each non-IFRS financial measure. TSX: ELE / NASDAQ: ELE Elemental Royalty Corporation 4 Management's Discussion & Analysis (Expressed in U.S. Dollars, except where indicated) Revenue and GEO1 Performance The following table summarizes the Company’s revenue from royalty interests during the three months ended March 31, 2026 and 2025: Three months ended March 31, (In thousands of dollars) 2026 2025 Ballarat $ 966 $ 474 Bonikro 6,150 2,193 Caserones2 6,837 - Gediktepe 1,084 - Karlawinda 2,821 1,843 Korali-Sud - 6,648 Leeville 2,065 - Timok 2,242 - Other producing royalties 1,613 481 Advanced royalty payments 79 - Total royalty revenue $ 23,857 $ 11,639 Option, property and other revenue 465 - Caserones (before reclassification)2 - 1,622 Revenue plus attributable share of Caserones1 $ 24,322 $ 13,261 The following table summarizes the Company’s GEOs1 during the three months ended March 31, 2026 and 2025: Three months ended March 31, 2026 2025 Ballarat 198 165 Bonikro 1,260 762 Caserones2 1,401 - Gediktepe 222 - Karlawinda 578 640 Korali-Sud - 2,309 Leeville 423 - Timok 459 - Other producing royalties 331 167 Advanced royalty payments 16 - Total GEOs from royalty interests 4,888 4,043 Option, property and other revenue 95 - Caserones (before reclassification)2 - 563 Total GEOs 4,983 4,606 1 Refer to the "Non-IFRS Financial Measures" section on page 23 of this MD&A for more information on each non-IFRS financial measure. 2 The Caserones royalty is held by Sociedad Legal Minera California Una de la Sierra Peña Negra (“SLM California”) in which the Company held an effective 67.1% equity interest as at December 31, 2025. Effective November 13, 2025, the Company discontinued accounting for SLM California as an investment in associate and began recognizing its proportionate share of assets, liabilities, revenues and expenses of the entity. TSX: ELE / NASDAQ: ELE Elemental Royalty Corporation 5 Management's Discussion & Analysis (Expressed in U.S. Dollars, except where indicated) Portfolio Growth Elemental continues to advance a disciplined growth strategy focused on building a globally diversified portfolio of high-quality royalty and streaming interests, with a core emphasis on gold and precious metals. The Company’s portfolio provides exposure to a range of assets throughout the development and production pipeline, including cornerstone interests such as Karlawinda, Laverton, and Leeville. This gold-focused approach is complemented by selective exposure to large-scale base metals assets such as Caserones and Timok, with diversification across commodities, jurisdictions, and operators supporting stable cash flow genera [Excerpt trimmed for readability. Open the original source for the complete filing or document.]