EMX Royalty Shares Surge 5.41% on Merger with Elemental Altus, Analysts Boost Outlook

EMX Royalty (EMX) surged 5.41% on Friday, marking its second consecutive day of gains with a cumulative two-day rise of 12.30%. The share price hit a level not seen since September 2025, with an intraday jump of 7.37%, signaling strong investor confidence in the company’s strategic direction.

The recent momentum follows the announcement of a transformative merger between EMX and Elemental Altus, forming Elemental Royalty Corp. (ELE). Under the terms, EMX shareholders will receive 0.2822 shares of Elemental Altus per EMX share, reflecting a 9.8% premium to EMX’s pre-announcement price. This strategic combination leverages EMX’s project-generation expertise with Elemental Altus’ royalty-acquisition capabilities, creating a mid-tier gold-focused royalty company with a diversified portfolio of 16 producing royalties. Analysts highlight the merger’s potential to reduce sector-specific risks and capitalize on elevated gold prices, which have driven industry consolidation.

Financial analysts, including H.C. Wainwright, have reinforced optimism by maintaining a “Buy” rating and raising the price target to $5.75. The rationale centers on valuation arbitrage opportunities, with EMX’s current price near its 52-week high and the merged entity projecting $70 million in 2026 revenue. A $100 million investment from Tether, a major cryptocurrency firm, further bolsters Elemental Royalty’s capital structure and signals institutional support for its U.S. listing plans. Such listings are critical for accessing institutional capital and aligning with the sector’s growing indexation potential.

Recent financial results underscore EMX’s improved operational efficiency. For Q2 2025, the company reported a net income of $0.6 million, a stark contrast to a $4.0 million loss in the same period last year. These gains, combined with the merger’s projected $80 million in 2026 revenue, position Elemental Royalty to compete with larger players in the gold royalty sector. The company’s focus on gold and strategic acquisitions, such as Cornerstone Laverton and Dugbe assets, align with macroeconomic trends of rising gold prices and demand for scalable operations.

The merger’s success hinges on its ability to execute synergies and maintain momentum in a consolidating market. With a premium valuation, strong analyst backing, and enhanced liquidity prospects, EMX’s transformation into Elemental Royalty Corp. represents a compelling case for investors seeking exposure to the gold sector’s growth trajectory.