Elemental board approves inaugural dividend policy

Executive Summary

• Elemental Royalty Corp. announced the approval of its inaugural dividend policy, declaring an annual cash dividend of 12 U.S. cents per common share, paid in quarterly installments of 3 U.S. cents.
• The company introduced a unique feature allowing qualifying registered shareholders to elect to receive their dividend in the form of Tether Gold (XAUT) tokens, providing direct ownership of physical gold.
• The first dividend is scheduled to be paid at the end of the first calendar quarter of 2026, with a total anticipated payout for that quarter of approximately $1.9 million (U.S.).

Key Details

• Dividend Structure: Annual cash dividend of 12 U.S. cents per share, paid quarterly at 3 U.S. cents per share.
• Payment Schedule: The inaugural dividend record date is set for the end of the first calendar quarter of 2026; subsequent dividends will follow at the end of each calendar quarter.
• Dividend in Kind Option: Qualifying registered shareholders may elect to have their cash dividends invested in Tether Gold’s XAUT token, which represents ownership of physical gold on a 1:1 basis with LBMA-standard gold bars.
• Financial Basis: The dividend is supported by a strong balance sheet with approximately $53 million (U.S.) in cash and no debt as of December 31, 2025.
• Yield and Volume: Based on a closing share price of $21.05 (U.S.) on February 13, 2026, the implied forward annualized dividend yield is 0.6%.
• Total Payout Estimate: Based on 63.9 million shares outstanding as of February 13, 2026, the total dividend anticipated for the first calendar quarter of 2026 is approximately $1.9 million (U.S.).
• Future Actions: A subsequent news release will formally declare the dividend, specify the record date, and provide instructions for shareholders to elect the XAUT token option.

Notable Quotes

• David M. Cole, CEO: "The approval of this dividend policy marks an important milestone in Elemental's strategic trajectory and reflects our confidence in the strength and momentum of the business; we believe this is the right time to introduce a sustainable, long-term, dividend. The decision to offer investors a dividend in kind, in the form of Tether Gold, further differentiates Elemental as a forward-thinking, growth-oriented investment."
• Stefan Wenger, CFO: "Our inaugural dividend is underpinned by Elemental's strong balance sheet and future revenue outlook in the near and longer term: As of Dec. 31, 2025, we had approximately $53-million (U.S.) of cash and no debt, providing substantial financial flexibility as we continue to invest in growth. We will continue to maintain a disciplined approach to capital allocation, balancing returning capital to shareholders through a progressive dividend which we intend to maintain, or even increase, without compromising on our strategy of accretive growth through the acquisition and generation of precious metals streams and royalties."
• Juan Sartori, Executive Chairman: "We believe the initiation of this dividend policy is a world first for a royalty company: We anticipate enabling qualifying shareholders to elect to have their cash dividend invested in the purchase of the Tether XAUT token, thereby facilitating for shareholders greater exposure to physical gold through Tether Gold's stablecoin and retaining real long-term value storage via a practical mechanism for gold-denominated investment returns."