Elemental Royalties was incorporated as a private company in the British Virgin Islands in 2016 to acquire a diversified portfolio of royalties in the mining sector.
Our initial focus was on securing royalties over producing or near-producing assets with established operators and counter-parties. Immediate cash-flow has enabled Elemental to limit dilutive fund-raisings to facilitate royalty acquisitions, and to pay a dividend to shareholders from inception.
During 2017 Elemental acquired 3 royalties, 2 of which are on producing mines. In Q3 2018 we completed a further 2 acquisitions, both on producing mines. For further details on Elemental’s assets please see the Portfolio page.
The ability to generate revenue from major mining operations from the outset was a key driver in creating a company which would succeed in a cyclical sector such as mining. Additionally, as a private company our operating costs have remained low, while the success of exploration on our royalty ground has meant that mine-lives have remained constant.
Risk has been shared where necessary, in one case syndicating an acquisition with a mining private equity fund. Elemental continues to review potential royalty acquisitions across commodities and geographies.
As the royalty and streaming sector continues to evolve Elemental anticipates playing an increasing part, as well as adding further value to our portfolio.