Elemental Royalty Corporation Common Stock Q4 FY2025 earnings call

• David Cole emphasizes the royalty business model, the increasing value of mineral rights over time, and the company's royalty portfolio built through various means such as merger, acquisition, etc. He mentions the global diversified portfolio with numerous operators, producing and early stage assets. - Stefan Wenger discusses the post-merger record year in terms of revenue, GEOs, adjusted EBITDA, and operating cash flow growth. He talks about G&A expenses, royalty generation expenses, cash flow in Q4, and the accounting change for Casarones to joint operation accounting. - Fred Bell presents the growth outlook to 2030, highlighting key assets like Timok lower zone, Laverton, and the Car Window expansion project. He also provides details on specific assets like Dubai royalty, Casarones, Karlawinda, Bonacro, Timok, Levo, and the pipeline of feasibility studies and projects. - Dave Cole mentions the royalty generation business model, past deals with large mining companies, and the belief in per share measurements and increasing net asset value.

The company has a globally diversified portfolio with over 200 mineral property assets. Approximately 60 or more percent of current income comes from gold. Key assets include producing ones like Casarone, Karlawinda, and early stage assets like TMUC. Gold contributes over 60% of current income in terms of revenue contribution.

• Stefan expects an effective tax rate of about 20% in 2026 with cash rate tax rates likely lower, and will update depreciation, depletion expense guidance at the end of Q1, expecting around $1,500 an ounce for depreciation, depletion. - Stefan expects G&A to be slightly lower than the full year experience of Elemental in 2025, around 15 - 17 million dollars. - Guidance on adjusted EBITDA as a percentage of revenue, expecting to move closer to 75% or above in 2026. - Mention of a transitional year with factors like Crowley Sue, Getatepe transitioning from oxide to sulfide affecting GEOs guidance of 17,000 to 21,000 GEOs in 2026. - Plan to have an investor day in 2026, working on scheduling for spring.

• Q: What do you expect run rate, normalized depreciation, depletion expense, and taxation rate for the combined company now?

A: Taxation rate expected to be about 20% in 2026 with cash rate tax rates likely lower, working on tax structure efficiencies. Depreciation, depletion expense guidance to be updated at end of Q1, expecting around $1,500 an ounce. - Q: View on discount rates and competing interest for newfound assets given geopolitical risk factors offset by strong commodity pricing?

A: Royalty space is competitive, quality of underlying asset and management team drives evaluation. Sourced deals outside competitive process in some cases. - Q: Will you do an investor day in 2026?

A: Yes, working on scheduling for sometime this spring. - Q: Details on dividend?

A: Maiden dividend, record date March 31st, paid in cash unless elected to pay in Tether XAUT tokens, available for registered holders on computer share and institutional investors with Ethereum-based digital wallet, election form on website under dividends, expanding availability in future periods. - Q: Royalty generation business and terms of earning agreements?

A: Negotiate best terms for each transaction, have boilerplate template for repeat business, structure includes pre-production payments, work commitments, production royalty, royalty generation expenditure is around $5 million, and it's decreasing as a percentage of overall business as the business grows.