GROY - Elemental Royalties: Limited Upside From Current Levels

• Elemental Royalties is one of the best performing royalty/streaming companies following a hostile takeover offer from Gold Royalty Corporation.
• Elemental Royalties has argued that the deal should be rejected, and when considering that this is an all-share deal and Gold Royalty Corporation remains overvalued, the recommendation makes sense.
• However, with a very low likelihood of a second suitor coming over top or matching the deal, I don't see much upside case for Elemental.
• So, while I can understand Elemental's position on not selling out to an inferior company at an inadequate price, it's hard to argue for owning Elemental at these prices from a valuation standpoint.

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