Financial Statement – Q3 Financial Statements & Management Discussion & Analysis Financial Statement

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# Financial Statement – Q3 Financial Statements & Management Discussion & Analysis Financial Statement

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# Financial Statement – Q3 Financial Statements & Management Discussion & Analysis Financial Statement
ELEMENTAL ALTUS ROYALTIES CORP.
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in US Dollars)
ELEMENTAL ALTUS ROYALTIES CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at September 30, 2025 and December 31, 2024
(Unaudited - expressed in thousands of US Dollars)
September 30, December 31,
2025 2024
Notes $’000 $’000
Assets
Current assets
Cash and cash equivalents 14,536 4,454
Accounts receivable and other 3 9,138 16,632
Total current assets 23,674 21,086
Non-current assets
Royalty interests 4 141,467 135,720
Accounts receivable and other 3 4,275 4,031
Investments in associates 5 36,829 41,087
Investments 6 3,328 2,243
Total non-current assets 185,899 183,081
Total assets 209,573 204,167
Liabilities
Current liabilities
Accounts payable and accrued liabilities 7 2,292 3,349
Total current liabilities 2,292 3,349
Non-current liabilities
Borrowings 8 - 2,687
Deferred tax liability 1,747 1,747
Total non-current liabilities 1,747 4,434
Total liabilities 4,039 7,783
Equity
Share capital 9 220,492 217,449
Contributed surplus 6,769 6,535
Accumulated other comprehensive income (“AOCI”) 1,385 1,416
Deficit (23,112) (29,016)
Total equity 205,534 196,384
Total liabilities and equity 209,573 204,167
Approved by the Board of Directors on November 12, 2025
Subsequent events (note 14)
Sandeep Singh, Director ______
Ravi Sood, Director ______
2
ELEMENTAL ALTUS ROYALTIES CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE PROFIT
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in thousands of US Dollars)
Three months ended Nine months ended
Notes
September 30, September 30,
2025 2024 2025 2024
$’000 $’000 $’000 $’000
Revenue from royalty interests 4 6,863 3,725 27,596 10,474
Other income - - - 330
Total revenue 6,863 3,725 27,596 10,804
Depletion of royalty interests (2,449) (1,561) (11,452) (4,826)
4
Gross profit 4,414 2,164 16,144 5,978
General and administrative expenses 10 (2,150) (1,331) (5,557) (4,697)
Project evaluation expenses 10 211 (51) (225) (150)
Merger transaction costs 10 (843) - (843) (400)
Share-based compensation expense 9 (678) (321) (1,991) (1,020)
Share of profit of associates 5 542 426 1,594 1,581
(Loss) / gain on disposal 4 (77) 126 (1,884) 373
Profit from operations 1,419 1,013 7,238 1,665
Other income and expenses
Interest income 239 41 344 133
Interest and finance expenses (103) (406) (338) (1,641)
Fair value loss on investments 6 6 34 (20) 9
Foreign exchange (loss) / gain (45) 59 95 (33)
Other income 172 152 328 440
Profit before income taxes 1,688 893 7,647 573
Tax expense (315) (309) (2,666) (1,017)
Net profit / (loss) for the period of continuing
1,373 584 4,981 (444)
operations
Net income / (loss) of discontinued operations - 46 - (54)
Total net profit / (loss) 1,373 630 4,981 (498)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to
profit and loss:
Foreign currency translation adjustment 5 175 (31) 158
Other comprehensive income / (loss) 5 175 (31) 158
Total comprehensive income / (loss) 1,378 805 4,950 (340)
Profit per share – basic and diluted
Continuing operations 0.06 0.00 0.20 0.00
Discontinued operations - - - -
Total net profit 0.06 0.00 0.20 0.00
Weighted average number of shares outstanding –
24,608,197 19,521,148 24,671,031 19,572,886
basic and diluted
3
ELEMENTAL ALTUS ROYALTIES CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in thousands of US Dollars)
Three months ended Nine months ended
September 30, September 30,
2025 2024 2025 2024
$’000 $’000 $’000 $’000
Operating activities
Net (loss) / profit for the period 1,373 630 4,981 (498)
Adjustments for:
Depletion of royalty interests 2,449 1,561 11,452 4,826
Unrealized foreign exchange 50 115 (127) 202
Share-based compensation expense 678 321 1,991 1,020
Loss / (gain) on disposal 77 (126) 1,884 (373)
Fair value gain on investments (6) (34) 20 (9)
Share of profit of associate (542) (426) (1,594) (1,581)
Interest income (239) (41) (344) (133)
Interest and finance expenses 103 406 338 1,641
Tax expense 315 309 2,666 1,017
Other non-cash items (28) (152) (212) (451)
4,230 2,563 21,055 5,661
Changes in non-cash working capital items:
Accounts receivable and other 1,258 366 2,275 (1,123)
Accounts payable and accrued liabilities (982) (1,030) (1,898) (1,451)
Cash generated from operating activities before taxes 4,506 1,899 21,432 3,087
Taxes paid (492) (191) (1,824) (826)
Net cash generated from operating activities 4,014 1,708 19,608 2,261
Investing activities
Purchase of royalty interests (note 4) (19,195) (3,037) (19,195) (3,037)
Proceeds from royalty buy-back (note 4) 1,913 - 1,913 -
Proceeds from sale of equity investments (note 3) 5 - 5,223 3,500
Proceeds from disposal of stream assets - - - 283
Proceeds from disposal of subsidiary - 50 - 50
Distribution from associate (note 5) 1,016 1,110 3,126 3,162
Cash (used in) / generated from investing activities (16,261) (1,877) (8,933) 3,958
Financing activities
Proceeds from share exercises 2,209 - 2,209 -
Interest received 239 41 344 133
Interest and finance costs paid (70) (389) (241) (1,618)
Repayment of loan principal (note 8) - - (3,000) (10,000)
Cash generated from / (used for) financing activities 2,378 (348) (688) (11,485)
Exchange differences on cash and cash equivalents (45) 59 95 (33)
Change in cash and cash equivalents (9,914) (458) 10,082 (5,299)
Cash and cash equivalents, beginning of the period 24,450 6,446 4,454 11,287
Cash and cash equivalents, end of the period 14,536 5,988 14,536 5,988
4
ELEMENTAL ALTUS ROYALTIES CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the nine months ended September 30, 2025 and 2024
(Unaudited - expressed in thousands of US Dollars)
Ordinary Share Contributed Total
shares capital Surplus AOCI Deficit Equity
#1 $’000 $’000 $’000 $’000 $’000
Balance as at December 31, 2023 19,599,039 177,424 5,664 1,280 (29,169) 155,199
Share-based compensation expense - - 1,020 - - 1,020
Forfeit of share options - - (357) - 357 -
Share cancellation (81,432) (646) - - - (646)
Income / (loss) and comprehensive loss for the period - - - 158 (498) (340)
Balance as at September 30, 2024 19,517,607 176,778 6,327 1,438 (29,310) 155,233
Balance as at December 31, 2024 24,576,259 217,449 6,535 1,416 (29,016) 196,384
Share-based compensation expense - - 1,991 - - 1,991
Forfeit of share options - - (923) - 923 -
Exercise of share-based options 190,880 3,043 (834) - - 2,209
(Loss) / income and comprehensive income / (loss) for the
- - - (31) 4,981 4,950
period
Balance as at September 30, 2025 24,767,139 220,492 6,769 1,385 (23,112) 205,534
1
On September 16, 2025, Elemental Altus consolidated its shares on the basis of ten pre-consolidation common shares for one post-consolidation common share
(the “Share Consolidation”). For more information see note 9.
The number of Ordinary shares in the Condensed Interim Consolidated Statements of Changes in Equity have all be restated to reflect the share consolidation.
5
ELEMENTAL ALTUS ROYALTIES CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in US Dollars, except where otherwise noted)
1. NATURE OF OPERATIONS
Elemental Altus Royalties Corp. (the “Company” or “Elemental Altus”), is incorporated under the laws of the Province
of British Columbia. The Company is primarily involved in the acquisition and generation of precious metal royalties.
The registered office address is Suite 1020, 800 West Pender Street, Vancouver, British Columbia, Canada. The
Company’s common shares trade on the TSX Venture Exchange under the ticker symbol “ELE” and the OTCQX
market under the trading symbol “ELEMF”.
On September 4, 2025, the Company entered into a definitive arrangement agreement whereby Elemental Altus
will acquire all of the issued and outstanding common shares of EMX Royalty Corporation (“EMX”) pursuant to a
court-approved plan of arrangement (“EMX Merger”). The Merged Company (the “Merged Company”) will continue
under the new name Elemental Royalty Corp. Refer to note 14.
Subsequent to the end of the reporting period:
(a) Tether Investments S.A. de C.V. (“Tether”) increased its ownership interest in the Company to approximately
52% of the issued and outstanding common shares, thereby becoming the ultimate parent company of the
Group.
(b) The Company has submitted a registration statement to the United States Securities and Exchange Commission
(“SEC”) to list its common shares on the Nasdaq under the proposed ticker symbol “ELE”. The listing remains
subject to SEC and other applicable regulatory approvals.
These unaudited condensed interim consolidated financial statements have been prepared on a going concern
basis, which assumes that the Company will be able to meet its obligations and continue its operations for at least
twelve months from September 30, 2025.
2. BASIS OF PRESENTATION
(A) Statement of compliance
The unaudited condensed interim consolidated 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 (“IFRS
Accounting Standards”).
The Company uses the same accounting policies and methods of computation as in the annual consolidated
financial statements for the year ended December 31, 2024. There was no material impact on the financial
statements from new accounting standards or amendments to accounting standards, effective January 1, 2025.
The condensed interim consolidated financial statements are presented in US Dollars. The notation “$” represents
US dollars, “C$” represents Canadian dollars, and “A$” represents Australian dollars.
The condensed interim consolidated financial statements were approved by the board and authorized for issue on
November 12, 2025.
6
ELEMENTAL ALTUS ROYALTIES CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in US Dollars, except where otherwise noted)
(B) Basis of consolidation
These condensed interim consolidated financial statements include the accounts of the Company and its
subsidiaries. Material subsidiaries are listed in the following table:
% Equity Interest as at
Name Country of Functional September 30, December 31,
Incorporation Currency 2025 2024
Altus Royalties Limited England & Wales US Dollar 100 100
Altus Strategies Limited England & Wales US Dollar 100 100
Alcrest Royalties Australia Pty Limited Australia US Dollar 100 100
Elemental One Limited BVI US Dollar 100 100
Elemental Royalties (Australia) Pty Ltd Australia US Dollar 100 100
Elemental Resources Limited England & Wales Pound Sterling 100 100
United States of
Elemental Royalties Delaware LLC US Dollar 100 100
America
7
ELEMENTAL ALTUS ROYALTIES CORP.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2025 and 2024
(Unaudited - expressed in US Dollars, except where otherwise noted)
2. BASIS OF PRESENTATION (continued)
(C) Critical accounting estimates and judgements
The Company uses the same critical accounting estimates and judgements as

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