I would now like to turn the conference over to David Cole, CEO. You may begin.
Yeah. Thank you very much, and thanks to everybody for joining. Particularly pleased to be here today representing this great company. What a wonderful time to be in the mining business with these strong metal prices. I've had a chance to reflect on that when I woke up this morning, and I was thinking about when I started my career, the mining industry was not very popular. We're in a situation today where there's been a paradigm shift, and I'm sure we've all seen this, of people recognizing the strong contribution that we make to society across the globe. That is recognized in commodity prices, but it's also been recognized in the capital markets, where mining companies are starting to get the recognition that they deserve for their production.
More and more people are focused on understanding of strategic metals and base metals, et cetera. We're in a particularly good situation to take advantage of that. Those of you that heard us speak before, you know that, you know, we understand that royalties are phenomenal financial instruments. The value of mineral rights augments over time, and the best way to be exposed to that is through royalties, and specifically the optionality that the royalty instrument affords to us as the owner of that. One way that we've done that and to create further portfolio effect as scale is rewarded within the royalty space, is to effect the merger between EMX Royalty Corporation and Elemental Altus Royalty.
I'm very pleased with how that merger has come to fruition and the results that we're seeing, which are producing the numbers that we have seen today in the quarterly report. Near and dear to my heart is the team, and my pleasure to introduce Frederick Bell and Stefan Wenger, a great example of the integration of the two teams coming forward with an immense amount of experience base to put us in a position where we can make the right decisions to allocate your capital moving forward. If we look at some of the highlights, you know, we are, we are gold focused. We remain gold focused, but I'm very pleased that we, as per announcement today, we are augmenting our silver exposure.
I believe that silver is a strong commodity in the current world from an industrial demand perspective, but also from an investment perspective. To ensure that we remain precious metals focused so that we have the strong potential to be GDXJ index included and other various index funds that are focused on precious metals, we'll make sure that we stay over 50%. Right now, we're over 60%, in fact, precious metals, on a ongoing revenue basis. We have 300 mineral property assets in the world in 20-some countries, and 200 of those are royalties.
This is a portfolio that has an immense amount of over CAD 100 million a year in exploratory drilling ongoing, creating that discovery optionality, which is the real reason why you wanna own royalties and royalty portfolios long term. We have crossed an important boundary, from my perspective, in the last quarter where we have reached the point where we feel very comfortable paying a dividend, and our inaugural dividend gives our shareholders the option to take that dividend with an in-kind instrument with the XAUT Tether Gold stablec oin. We're the first company to do this. I wouldn't be surprised if this ends up becoming popular within the business.
It's a nice option for our shareholders to have to be able to take the dividend in cash or in XAUT, which is fully convertible into physical metal on demand. I'll point out that our dividend payout ratio is modest, and that is because we're confident that we can continue to allocate capital within the space to augment our portfolio and do exactly what you want us to do. We've also increased our revolving credit facility to CAD 200 million, and this is a good example of how the gaining of scale through the merger has increased our capital availability and decreased our cost of capital, enabling us to further our business transactions, and today's a great example with the deal that we have announced today. We've also up listed now onto the TSX Big Board from the TSX Venture Exchange.
I'll point out that the augmentation of our liquidity, trading liquidity on Nasdaq, which has done fantastically well, in addition to now on the Big Board on the TSX, our trading liquidity is multiples ahead of where the two companies were combined pre-merger. We're very pleased to see that. Once again, that is very likely adding to the probability of us being included in a number of index funds in the near future, which is a salient point. There's a whole host of smaller deal flows that are ongoing within the company. I'm pleased that even though we're in a competitive environment, we don't bemoan that competition.
We're confident that we have the alpha to be able to outperform our competitors, that's exemplified by the deals that we continue to do, both base hit, small individual deals that we're doing, in addition to M&A such as the one that was announced today. I will point out that there will be a call specifically for this transaction with Vizsla, after this call, later in an hour after this call, in fact. We will focus on that. This call is to highlight the quarterly results. With those quarterly results, I want to introduce the very capable Stefan Wenger, who will walk us through the record-breaking numbers that we have today.
It's a little bit funny that these fantastic financial results are gonna get overshadowed by a really fantastic deal we announced this morning. As the CFO, I'll take that any day, and excited to share with you. Q1 of 2026 that we reported last night is really the 1st quarter of our combined results as the new combined Elemental following the EMX merger. I'm really pleased to report that the results are tracking even better than we anticipated when we did the deal. Today we're reporting record quarterly revenue, record EBITDA and cash flow, and we're well on track to meet our 2026 guidance. On this slide, you can see that our revenue of CAD 24.3 million is an 83% increase over the prior year for Elemental.
If you annualize that number, you know, we're pushing up towards that CAD 100 million run rate for revenue, which is advanced beyond our guidance on a revenue basis. From a GEO perspective, just about 5,000 GEOs sold during the quarter, which is right slightly just under our guidance for the full year. We're on track to meet that and demonstrating, you know, we're what we're going to be at that 20,000 GEO a year level solidly. From a cash flow perspective, nearly CAD 18 million in adjusted EBITDA. I'll discuss our cost side on the next slide.
That EBITDA, I see strengthening even more because this quarter we had quite a higher cost number than our anticipated annual run rate, just as you can imagine from all of the closing deal costs, the uplist on the TSX and the Nasdaq, our inaugural dividend, upsizing the credit facility. We had quite a busy quarter, and that doesn't even speak to the fact that we are spending and quite active with respect to new royalty acquisitions, which we also expensed during the quarter for most of those costs. Really excited about the CAD 18 million adjusted EBITDA, 55% increase over the prior year. Operating cash flow of nearly CAD 15 million, a substantial increase. As David mentioned, we upsized our credit facility during the quarter as well.
We have a CAD 150 million draw, undrawn credit facility with a CAD 50 million accordion feature, so CAD 200 million potential available. Add that to CAD 70 million on the balance sheet. Even after the cash component of the Vizsla transaction we announced this morning, we'll be cash net cash positive and fully ready to continue to transact in our space. As we look a little deeper into the financials, just to follow up on my comment on a couple of the items. Revenue continues to be strong. Our G&A expenses at CAD 5.5 million are above our annualized run rate that I would expect. I would expect us to be closer to a CAD 16 million annualized run rate on the G&A.
Royalty generation expenses are right on budget and on track for a full year expectation there. We continue to generate strong cash flow. There were two non-cash items in the net income, including a mark-to-market on some warrants that are outstanding, and taxes and others. We continue to generate strong results on a cash flow basis. You also see the 1st full quarter of full Caserones reflected in our revenue line item as a royalty instead of as an investment. On a comparative basis, we continue to show sort of that revenue plus a attributable share of Caserones, all of Caserones is baked into our revenue line for this quarter. We're quite pleased to have Caserones, along with Timok, Bonikro, and Carlin really driving these results from our cornerstone assets.
Caserones with copper at $6.20 a pound right now, we're not going to argue with that either. Just moving forward to the cash flow bridge. We really had tremendous cash flow during the period and, you know, driven by collection of royalties primarily from our December quarter. Some transaction costs related to the credit facility and some deal costs that came out of it. We also had quite a positive impact from stock option exercises for some options that were expiring during the quarter. A very clean, very targeted growth in our cash flow that we're quite pleased with. I'm not going to spend a lot more time. It was a fantastic quarter, really driven by our assets.
I'd like to ask Frederick Bell to go ahead and give you an update on the portfolio. Again, invite you all to join us for the conference call on the transaction, in about 45 minutes' time.
Focus of these quarterly presentations when we go, when we go through the financials there. The real focus of our presentation here is on the producing assets, and we touch on a few of the development assets that are really progressing. I think that one thing that often gets underappreciated is that greater portfolio of, call it, 200 royalties at various stages, and we are seeing record investment and record exploration dollars going into those projects by our counterparties around the world. I think for that it doesn't always make the front page of the news, but that is a really important level of optionality that is inherent in our portfolio that I think stands out versus a lot of other companies our size and scale.
We'll talk through on the next slide then just to a couple of the key assets here. We had record revenues this quarter from Karlawinda, from Leeville, from Bonikro, and from Timok. You can see with Caserones that it was a near record quarter as well from that. On the Karlawinda front, one of the important developments there that has been progressing over the last year has been this mine expansion that they are looking to do 150,000 ounces per annum from H2 onwards. As of their last results, that is on track for commissioning in Q3 of this year. I think they're looking to complete the build-out around the middle of the year.
That is going to add 30%, 30,000 GEOs in terms of what they're doing. 30,000 ounces of production there attributable to us on the royalty going forwards. At Caserones, we have broken it out here between the EMX and the Elemental portions historically so that you can see it on a like-for-like basis, but you can see both Q4 and Q1 there as being historically high contributions from that asset. It's great to see alongside the gold price. It's great to see strong copper prices, of course, after gold, copper is the second most material commodity for us and where we get our exposure.
Going on to the next slide, we talk here to Timok, and that was a record quarter for Timok and again, really important for, I think, people to appreciate that this is just from the upper zone. They have been over, Zijin have over the past year, two years, they have been increasingly in development in the lower zone, and we're looking forward to a site visit shortly to the mine and getting an update there on progress and development. As we have previously spoken to that lower zone at Timok is going to be an order of magnitude larger than what they are currently doing at the upper zone and will be operating in parallel with the upper zone and is all subject to our royalty.
As well as hitting record revenue, from the upper zone where they completed the expansion in December last year, they are also going forwards, getting into that lower zone. A really important asset for us there. We had record revenue at Bonikro. As the market is aware, that is Allied Gold currently being acquired by Zijin and that has been, I believe, approved by shareholders and subject to getting that closed shortly. Leeville, where we were fortunate to get an update from the operator there on the plans going forwards. I think we remain really positive on the exploration upside in that royalty coverage area. It was also a record quarter in terms of absolute revenue for us from what they are currently mining.
On the next slide here, we do just pull out a few of the assets here that are, I think experiencing key catalysts from that wider portfolio. Laverton have said that they're updating their five-year plan, and they will have that out around the middle of the year in Q3. We expect that to show for the first time some of the focused Laverton ground where we have our royalty, 2%-4% royalty, to have that coming into the mine plan as part of that. I think there is one deposit in particular, Beasley Creek, where we have 4% royalty coverage that they have highlighted as being a key resource, approximately double the grade of what they're existing mining, that they would like to get into that mine plan straight away.
I think that will be an important update from Genesis there. At Cactus, we saw Arizona Sonoran being acquired by Hudbay. They had the shareholder vote 99% approval recently. Again, like Allied Gold to Zijin, we see the operator here moving to a bigger, larger mining company, which I think will have positive read-through for the project development going forwards. We had AbraSilver's Diablillos actually putting out a resource update this week, and they have guided to a feasibility study expected this year and a construction decision alongside that. That is I think it's great to see the resource growth that we saw just in the last week, and it talks a bit to the quality of some of these underlying assets that are out there.
Diablillos, a bit like the Panuco royalty that we're acquiring today, is one of the assets in the portfolio that gives us some silver exposure. At Mactung, this is a royalty we only acquired in the last couple of years, but they are updating the historical feasibility study, still continuing to expect that to come out in 2027. I think we've seen a surge in tungsten market interest, both in the commodity pricing and look, this is the world's largest, highest grade deposit. On a standalone basis, we expect it to be a material contributor to the West's tungsten demand in the coming decades. That will actually be a really material royalty for us going forwards, and we look forward to seeing Fireweed updates coming out later this year on it.
On Dugbe, an asset that I think historically has really been underlooked. We have a 2% to 2.5% NSR on this. The previous feasibility was targeting 200,000 ounces plus a year of production. They are updating that feasibility study now. The majority shareholder acquired the company, consolidated their ownership. That was done this quarter, in Q2. They are now wholly owned by Mansa, which is a private operator in West Africa, and they already operate the Kouroussa mine. It's about 100,000 ounces a year. They are looking to now develop Dugbe and talking about a construction decision in H2 of this year. Look, it's now a private company, so there's limited visibility.
For us, this is an asset that if they get through to that final investment decision, and construction and fully financed, we are talking about a 2%-2.5% uncapped royalty on 200,000 ounces a year plus of production on the last feasibility study. A potential to be a really material contributor to the portfolio going forwards. Lastly, Vizsla, where they're working on the debt financing, and they have first production targeted for 2027. Just taking those six projects alone in the portfolio, I think it contributes to our organic growth profile that we see if you go to the next slide here, and we highlighted a bit here.
If we're looking in the years ahead, we're seeing order of magnitude, I think 50% organic growth to 2029 just from our existing portfolio before the addition of Panuco and Vizsla. With that coming in, we are seeing the growth going up, you know, 75% in terms of organic growth from where we are today. That is one of the strongest, if not the strongest absolute growth profile in the industry in the royalty space in the coming years. The great position that we're in today is that even after closing this acquisition, we will be in a net cash position. We will have an undrawn credit facility. We have a very supportive shareholder base that would like to see us continue to grow the company.
With that, I'll, I think hand over to the next slide and let David take it from here.
Thank you very much. I'd like to point out that in a conversation I had with Michael Pettingell, the CEO of Vizsla Silver, we were negotiating and talking about the merits of a potential merger. I started talking about this portfolio that we have. Michael interrupted me. He says, "David, we're familiar with the portfolio. We know how great it is. You don't need to convince me." That was music to my ears. It's always good to see recognition of the portfolio that we have from outside sources. It's producing the results that we're seeing in the numbers today and enabling us to be able to attract such strong merger candidates as Vizsla Silver.
That's going to enable us to do exactly what Frederick Bell just said, and that is further this portfolio even beyond what the numbers from the existing portfolio suggest. Just continuing to march forward with our management team. I would like to point out specifically that a real catalyst for our advancement has been the investment from Tether. As a significant shareholder and highly supportive shareholder, and specifically Juan Sartori as a passionate Chairman of the Board who believes in this business model even more than we do. It's just a delight to work with Juan Sartori and to have the support of one of the most profitable private companies in the world, Tether. We'd be happy to take questions, Matt.
Your first question from the phones comes from Brian MacArthur with Raymond James.
Good morning. Thank you for taking my questions. I'll keep them away from the transaction until the next call. Just on two assets, you mentioned Bonikro did very, very well. That, if I remember that royalty doesn't cover everything and it moves around a fair bit. Was the outperformance gold price only, or were you just on a better part of royalty land, and how does that look for the rest of this year?
Fred, do you wanna take that call? That question from Brian. Good morning, Brian.
Morning.
Appreciate.
Morning.
Appreciate the question. Look, I think it is partly related to the timing of some of the sales that, you know, fluctuate from quarter to quarter. In terms of the ore that went through, I think that was relatively consistent. I think it was partly just sales falling into the quarter, more than displacement ore coming in and out of the royalty area.
Got it. Do you expect it to kind of remain the same the rest of this year?
Look, I think we're in terms of where it is, I think we're sticking with the sort of guidance we had for the year. I think that was a strong quarter for us versus where we expect it to be. It has fluctuated sometimes quarter to quarter in terms of the timing of sales and where it is. Yeah, ahead of where we had it for the year, certainly on a quarterly basis.
Great. Thanks. My other one is Korali-Sud, where you got zero, and I know it's supposed to be down. How should I think about that for the rest of the year? Are there any of those payments still left that you could get any time soon?
Yeah, that's a good question. Look, I think in terms of the mine planning, I think obviously there is a, with the residual coming in, there's probably gonna be a sort of refreshed mine plan alongside that deal closing. We do expect some further payments from that relating to both already mined royalty revenue and some of the milestone payments. That is something that we are working on in parallel. In terms of the mine plan, look, we don't have something that is up to date from the new operator yet. We do have certain rights under the royalty agreement.
I think that given the acquisition of Allied, and the new ownership coming in, we're waiting to get an updated plan there. We do expect some residual payments either from the royalty revenue or from the milestones this year.
Great. Thanks very much. I question. Thank you.
There are no further questions from the phone line. I will turn it back to you.
With that, there are no questions on the webcast either. David Cole, would you like to close this out?
Well, I just invite everybody to join us on the call where we'll discuss this next M&A deal with Vizsla Silver. We're very pleased. We think it fits into the portfolio exceptionally well. We're always driven by the potential for discovery optionality because that's what drives royalty valuation long term. We think this asset is an exceptional example. Thank you for joining us.
Thanks a lot.
Thank you. This concludes today's meeting. You may disconnect at this time.