Elemental Royalty Corporation (TSX-V: ELE, NASDAQ: ELE) announced it would be offering a gold dividend to all qualifying shareholders. This makes Elemental the first publicly traded gold company to allow shareholders to receive a cash dividend in Tether Gold (XAU₮). The company will pay an initial annual dividend of USD 0.12 in four quarterly installments of USD 0.03 each. Qualifying registered shareholders will be able to opt for the cash dividend to be converted into tokenized gold representing physical ownership of the metal.
How a Gold Dividend in XAU₮ Actually Works
The gold dividend in XAU₮ represents a significant new way for mining-related companies to distribute value back to their shareholders. In this case, qualifying shareholders of Elemental will be able to use their cash dividends to acquire XAU₮ tokens, representing a one-to-one backing of a fine troy ounce of gold (a delivered bar) in a London Good Delivery Format.
This structure creates a method of directly owning physical gold instead of receiving cash, whereby the tokens can be stored in an Ethereum or TRON wallet. CEO David Cole stated that this initiative “further differentiates Elemental as a forward-thinking, growth-oriented investment,” while CFO Stefan Wenger stated Elemental’s $53 million cash on hand and zero debt position provide the company with the ability to support a sustainable dividend.
A Bridge Between Centuries
The importance of this action is not limited to just the corporation associated with it. The gold dividend represents, for Tether, that XAU₮ is actually becoming a form of operational infrastructure and not just a sort of speculative instrument, for instance, a token actually used for corporate distributions. On the other hand, Elemental’s shareholders can now receive dividends in an easily accessible way (tokenized gold) and not have to worry about where to store their physical gold.
According to Executive Chairman Juan Sartori, this is “a world first for a royalty company,” and provides investors with a practical solution for storing long-term value. The surge of tokenized real-world assets (RWAs) on a global scale has created a great deal of institutional investor interest.
Gold Price Overview
Gold (XAU₮) is showing a strong bullish sentiment, having swept liquidity below its trendline support and successfully reclaimed its previous structure.
Current Price Action & Accumulation:
The price is currently consolidating in an accumulation range between USD 4,985 and USD 5,020.
Outlook and Key Levels:
- Continuation: As long as higher lows are maintained, the move toward USD 5,200 and potentially USD 5,600 remains a valid target.
- Retracement Buys: The key zone to watch for buying opportunities on a retracement is between USD 4,980 and USD 4,950.
- Invalidation: The bullish thesis is invalidated if the price drops below USD 4,700.
