MD&A – Q4 Financial Statements & Management Discussion & Analysis MD&A

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# MD&A – Q4 Financial Statements & Management Discussion & Analysis MD&A

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# MD&A – Q4 Financial Statements & Management Discussion & Analysis MD&A
Elemental Royalty Corporation
(formerly Elemental Altus Royalties Corp.)
Management's Discussion and Analysis
Year Ended December 31, 2025
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 March 23, 2026.
This MD&A is intended to help the reader understand the consolidated financial statements and should be read in conjunction
with the consolidated financial statements of the Company for the year ended December 31, 2025, prepared in accordance with
IFRS Accounting Standards as issued by the International Accounting Standards Board. All dollar amounts included therein and in
this 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
Description of the Business 3 Periods under review
Strategy 3 "Q4" The three-month period ended December 31
Highlights 3 "Q3" The three-month period ended September 30
"Q2" The three-month period ended June 30
Guidance 6
"Q1" The three-month period ended March 31
Portfolio Growth 6
Corporate Updates 7 Measurement
"GEO" Gold equivalent ounces
Key Producing Royalty Updates 9
"oz" Ounce
Development Royalty Updates 11
"t" Tonne
Royalty Generation Updates 14 "lb" Pound
Results of Operations 15 "Kt" Thousand tonnes
Liquidity and Capital Resources 19 "Mlbs" Million pounds
Annual Information 21 "Tsol" Total soluble
Quarterly Information 21 Interest types
Risks and Uncertainties 22 "NSR" Net smelter return
Risk and Capital Management: Financial 23 "GSR" Gross smelter return
Instruments "GRR" Gross revenue royalty
Non-IFRS Financial Measures 29 "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" Australia 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.V: 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 TSX Venture Exchange ("TSX-V") and on the Nasdaq Exchange ("Nasdaq")
under the 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 sustainable long-term shareholder value.
Highlights
The financial year ended December 31, 2025 was transformational for Elemental. The Company completed its merger with EMX
Royalty Corporation (“EMX”), creating a larger, diversified mid-tier royalty and streaming company with enhanced scale, asset
quality, and long-term growth potential.
Elemental also welcomed a new strategic shareholder, Tether Investments S.A. de C.V., which acquired a significant equity
interest during the year and invested an additional $100 million in private placement proceeds concurrent with closing of the
acquisition of EMX. This investment, together with the Company’s amended and upsized $150.0 million revolving credit facility
with a $50.0 million accordion feature, enhances the Company's financial flexibility to support acquisitions, investments and
royalty generation efforts in the immediate future.
During the year, the Company completed several royalty acquisitions, including a 2% gross revenue royalty on the Laverton Gold
and Jasper Hills Projects in Western Australia for $52.0 million, and a 2% NSR royalty on the Dugbe Project in Liberia for $16.5
million, reflecting disciplined capital allocation toward high-quality assets with development and exploration upside.
The Company’s common shares also commenced trading on the Nasdaq under the ticker symbol “ELE,” expanding U.S. market
access and liquidity. Subsequent to year end, Elemental announced the initiation of a dividend, underscoring confidence in its
cash flow profile, while continuing to grow its royalty portfolio as partners advanced development, expansion, and exploration
activities across the asset portfolio. The Company also introduced an option for shareholders to receive dividends in Tether Gold
(XAU₮), an industry first, providing exposure to physical gold through tokenized payments.
TSX.V: 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 and Year Ended December 31, 2025:
For the three months ended For the year ended
December 31, December 31,
(In thousands of dollars) 2025 2024 2025 2024
Statement of Income
Revenue $ 16,047 $ 5,519 $ 43,643 $ 16,323
General and administrative expense 9,842 2,149 16,467 7,396
Royalty generation expense, net 1,058 - 1,058 -
Income (loss) from operations (1,957) 629 5,281 2,294
Net income (loss) from continuing operations $ (3,209) $ 132 $ 1,772 $ (312)
Statement of Cash Flows
Cash flows from operating activities $ 11,203 $ 2,555 $ 30,811 $ 4,816
Cash flows from investing activities (47,392) 556 (56,325) 4,514
Cash flows from financing activities $ 75,244 $ (4,624) $ 74,556 $ (16,109)
1
Non-IFRS Financial Measures
Revenue plus attributable share of Caserones $ 17,226 $ 6,827 $ 49,200 $ 21,600
Adjusted cash flows from operating activities $ 11,203 $ 3,315 $ 33,937 $ 8,738
Adjusted EBITDA $ 8,456 $ 4,769 $ 34,901 $ 15,111
GEOs sold 4,133 2,551 14,285 8,987
Statement of Financial Position
Cash and cash equivalents $ 53,143 $ 4,454
Working capital 80,064 17,737
Long-term debt $ - $ 2,687
Revenue plus attributable share of Caserones1 presented above are inclusive of revenue earned from assets acquired from EMX
Royalty Corporation after the closing of the transaction. Had the merger taken place on January 1, 2025, the Company would
have generated $72.2 million in revenue and $87.5 million in revenue plus attributable share of Caserones1.
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 -
Adjusted EBITDA by Asset
(in thousands) (in thousands)
$50,000 $50,000
$40,000 $40,000
$30,000 $30,000
$20,000 $20,000
$10,000 $10,000
$- $-
2021 2022 2023 2024 2025 2021 2022 2023 2024 2025
Revenue plus attributable share of Caserones Caserones Karlawinda
Option, property and other revenue Waghnion Bonikro
Stream revenue Korali-Sud Timok
Adjusted EBITDA Leeville Gediktepe
Other producing royalties Other revenue
1
Refer to the "Non-IFRS Financial Measures" section on page 29 of this MD&A for more information on each non-IFRS financial measure.
TSX.V: 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 and year ended
December 31, 2025 and 2024:
For the three months ended For the year ended
December 31, December 31,
(In thousands of dollars) 2025 2024 2025 2024
Ballarat $ 745 $ 403 $ 2,454 $ 807
Bonikro 2,886 2,407 10,886 5,430
Caserones2 3,665 - 3,665 -
Gediktepe3 1,613 - 1,613 -
Karlawinda 2,699 1,490 8,857 5,199
Korali-Sud 307 - 10,515 -
Leeville3 1,192 - 1,192 -
Timok3 1,086 - 1,086 -
Wahgnion - 764 - 2,692
Other producing royalties3 1,403 455 2,924 1,865
Advanced royalty payments3 167 - 167 -
Total royalty revenue $ 15,763 $ 5,519 $ 43,359 $ 15,993
Option, property and other revenue 284 - 284 330
Caserones (before reclassification)2 1,179 1,308 5,557 5,277
Revenue plus attributable share of Caserones1 $ 17,226 $ 6,827 $ 49,200 $ 21,600
The following table summarizes the Company’s GEOs1 during the three and twelve months ended December 31, 2025 and 2024:
For the three months ended For the year ended
December 31, December 31,
2025 2024 2025 2024
Ballarat 179 151 709 323
Bonikro 692 900 3,174 2,208
Caserones2 879 - 879 -
Gediktepe3 387 - 387 -
Karlawinda 648 556 2,563 2,171
Korali-Sud 74 - 3,446 -
Leeville3 286 - 286 -
Timok3 261 - 261 -
Wahgnion - 284 - 1,126
Other producing royalties3 337 172 812 789
Advanced royalty payments3 40 - 40 -
Total GEOs from royalty interests 3,782 2,063 12,556 6,617
Option, property and other revenue 68 - 68 140
Caserones (before reclassification)2 283 488 1,661 2,230
Total GEOs 4,133 2,551 14,285 8,987
1
Refer to the "Non-IFRS F

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