Financial Statement – Q2 Financial Statements & Management Discussion & Analysis Financial Statement

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# Financial Statement – Q2 Financial Statements & Management Discussion & Analysis Financial Statement

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# Financial Statement – Q2 Financial Statements & Management Discussion & Analysis Financial Statement
Elemental Royalty Corporation
(formerly Elemental Altus Royalties Corp.)
Condensed Consolidated Interim Financial Statements
(Unaudited)
June 30, 2026
Condensed Consolidated Interim Financial Statements
Unaudited - Expressed in U.S. Dollars ($000s)
Condensed Consolidated Interim Statements of Financial Position
As at June 30, As at December 31,
2026 2025
Restated (Note 2)
Assets
Cash and cash equivalents (Note 4) $ 74,221 $ 53,143
Trade receivables and other assets (Note 5) 27,487 25,154
Investments (Note 6) 16,052 16,115
Total current assets 117,760 94,412
Trade receivables and other assets (Note 5) 3,626 2,043
Investment in associate 990 1,000
Royalty interests (Note 7) 797,425 807,676
Property and equipment 2,539 2,610
Total non-current assets 804,580 813,329
Total Assets $ 922,340 $ 907,741
Liabilities
Accounts payable and accrued liabilities (Note 8) $ 13,242 $ 6,664
Warrant liability (Note 9) 8,233 7,684
Total current liabilities 21,475 14,348
Deferred income tax liability 114,233 112,978
Total non-current liabilities 114,233 112,978
Total Liabilities 135,708 127,326
Shareholders' Equity
Share capital (Note 11) 794,648 787,682
Contributed surplus 16,307 17,481
Accumulated other comprehensive income ("AOCI") 1,085 1,503
Deficit (25,408) (26,251)
Total Shareholders' Equity 786,632 780,415
Total Liabilities and Shareholders' Equity $ 922,340 $ 907,741
Event subsequent to the reporting date (Note 19)
Approved on behalf of the Board of Directors on August 10, 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 June 30, Six months ended June 30,
2026 2025 2026 2025
Revenue (Note 12) $ 23,788 $ 9,094 $ 48,110 $ 20,733
Depletion of royalty interests (Note 7) (8,139) (3,629) (16,756) (9,003)
Gross profit 15,649 5,465 31,354 11,730
General and administrative expenses (Note 13)1 (5,603) (2,243) (11,189) (3,843)
Royalty generation expenses, net (Note 14) (1,081) - (2,517) -
Share-based compensation expense (Note 8 and 11) (1,761) (556) (3,769) (1,313)
Share of profit (loss) from associate (6) 607 (10) 1,052
Loss on disposals (213) (1,833) (243) (1,807)
Impairment charges (677) - (677) -
Profit from operations 6,308 1,440 12,949 5,819
Other income and expenses
Interest income 444 76 657 105
Interest and finance expenses (381) (104) (560) (235)
Gain (loss) on revaluation of financial instruments (Note 6 and 9) 1,010 (205) (1,468) (26)
Foreign exchange gain (loss) 34 112 (10) 140
Other income - 27 - 156
Income before income taxes 7,415 1,346 11,568 5,959
Deferred tax expense (461) - (838) -
Current tax expense (3,356) (1,186) (6,049) (2,351)
Total net income 3,598 160 4,681 3,608
Other comprehensive income
Loss on revaluation of digital currency (Note 6) (533) - (428) -
Foreign currency translation adjustment 3 (8) 10 (36)
Other comprehensive loss (530) (8) (418) (36)
Total comprehensive income $ 3,068 $$— 152 $ 4,263 $ 3,572
Earnings per share
Basic earnings per share (Note 16) $ 0.06 $ 0.01 $ 0.07 $ 0.15
Diluted earnings per share (Note 16) $ 0.05 $ 0.01 $ 0.07 $ 0.15
Weighted average number of common shares outstanding -
64,368,938 24,576,259 64,218,795 24,576,259
basic (Note 16)
Weighted average number of common shares outstanding -
diluted (Note 16) 66,545,178 24,576,259 66,421,869 24,744,102
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 June 30, Six months ended June 30,
2026 2025 2026 2025
Cash flows from operating activities
Income for the period $ 3,598 $ 160 $ 4,681 $ 3,608
Adjustments for:
Depletion and depreciation 8,212 3,629 16,887 9,003
Share-based compensation expense (Note 8 and 11) 1,761 556 3,769 1,313
(Gain) loss on revaluation of financial instruments (1,010) 205 1,468 26
Interest and finance expenses 381 104 560 235
Impairment charges 677 - 677 -
Tax expense 3,817 1,186 6,887 2,351
Other (131) 987 (401) 289
Changes in non-cash working capital items:
Accounts receivable (2,169) 6,885 (1,823) 1,017
Accounts payable and accrued liabilities 3,468 666 3,429 (916)
Total cash provided by operating activities before taxes 18,604 14,378 36,134 16,926
Taxes paid (3,072) (1,156) (6,108) (1,332)
Total cash provided by operating activities 15,532 13,222 30,026 15,594
Cash flows from investing activities
Acquisition of royalty interests (Note 7) (7,182) - (7,182) -
Distributions from SLM California - 1,188 - 2,110
Proceeds from the sale of investments (Note 6) 456 5,123 1,032 5,218
Purchase of marketable securities (Note 6) - - (461) -
Purchase of Tether Gold cryptocurrency tokens (Note 6) - - (1,000) -
Other (401) - (467) -
Total cash provided by (used in) investing activities (7,127) 6,311 (8,078) 7,328
Cash flows from financing activities
Interest received 426 76 611 105
Interest paid (103) (72) (183) (171)
Loan repayments (Note 10) - - - (3,000)
Deferred financing costs (Note 10) (474) - (1,608) -
Proceeds from exercise of options (Note 11) 891 - 4,296 -
Dividends paid (1,927) - (1,927) -
Repurchase and cancellation of common shares (Note 11) (1,993) - (1,993) -
Finance lease payments (30) - (61) -
Total cash provided by (used in) financing activities (3,210) 4 (865) (3,066)
Effect of exchange rate changes on cash and cash equivalents (95) 112 (5) 140
Change in cash and cash equivalents 5,100 19,649 21,078 19,996
Cash and cash equivalents, beginning 69,121 4,801 53,143 4,454
Cash and cash equivalents, ending $ 74,221 $ 24,450 $ 74,221 $ 24,450
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
Exercise of stock options 542,660 8,264 (3,347) - - 4,917
Settlement of restricted share units 78,103 695 (1,316) - - (621)
Repurchase and cancellation of
common shares (128,280) (1,993) - - - (1,993)
Share-based payments - - 3,507 - - 3,507
Expiry of stock options - - (18) - 18 -
Dividends declared - - - - (3,856) (3,856)
Net income and comprehensive
income (loss) for the period - - - (418) 4,681 4,263
Balance as at June 30, 2026 64,322,478 $ 794,648 $ 16,307 $ 1,085 $ (25,408) $ 786,632
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 - - 1,313 - - 1,313
Expiry of stock options - - (232) - 232 -
Net income and comprehensive
income (loss) for the period - - - (36) 3,608 3,572
Balance as at June 30, 2025 24,576,259 $ 217,449 $ 7,616 $ 1,380 $ (25,176) $ 201,269
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 ($000s), except where indicated
Note 1 - Nature of Operations
Elemental Royalty Corporation (formerly Elemental Altus Royalties Corp.) (the “Company” or “Elemental”), was incorporated
under the laws of the Province of British Columbia. The Company is primarily involved in the acquisition and generation of
precious and base metal royalties. The Company's head office is 10001 W. Titan Road, Littleton, Colorado, USA and the
registered office address is Suite 905, 815 West Hastings Street, Vancouver, British Columbia, Canada. The Company’s common
shares trade on the Nasdaq Exchange under the trading symbol “ELE” and on the Toronto Stock Exchange ("TSX") under the
ticker symbol “ELE”.
These condensed consolidated interim financial statements of the Company are presented in thousands of United States Dollars
("US Dollars" or "US$"), 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 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 August 10,
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 were 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 a

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