EMX Royalty (TSXV:EMX) - Significant Increase in Revenue
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12 ماه پیش
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Interview with David Cole, President
Interview with David Cole, President & CEO of EMX Royalty Corp.
Our previous interview: www.cruxinvestor.com/posts/emx-royalty-emx-talking…
Recording date: 13th September 2023
EMX Royalty Corp. (TSX-V, NYSE, Frankfurt: 6E9) generates royalty income, exploration upside, and strategic equity positions by identifying overlooked and underexplored mining assets. As a royalty company, EMX provides investors with exposure to the upside potential of precious, base, and battery metal discoveries while limiting typical mining risks. EMX advances projects through early-stage exploration and acquisition of royalty interests, while strategically retaining equity stakes in select projects. With a portfolio spanning North America, Turkey, Europe and Australia, EMX delivers discovery, development, and commodity price optionality to shareholders.
EMX Royalty: Growing Royalty Income Through Disciplined Acquisitions and Organic Creation
EMX Royalty Corporation (TSXV: EMX) generates royalty income from a diversified portfolio of assets spanning multiple commodities and jurisdictions. The company focuses on acquiring royalties and creating new royalties through low-cost project generation. This model provides mining exposure without direct commodity price risk, enabling EMX to grow royalty revenue even amidst volatile market conditions.
The Crown Jewel: Cukaru Peki Royalty
The highlight of EMX's portfolio is a 0.3625% gross smelter return royalty on copper production from the upper zone of the Cukaru Peki mine in Serbia, operated by China's Zijin Mining. This high-grade copper asset commenced production in 2021 and EMX received its first royalty payment of $6.68 million in August 2022 after a dispute was resolved.
EMX estimates the royalty will deliver around $3.8 million annually at current production rates, with significant upside as Zijin develops the much larger lower zone over the next 5-7 years. Zijin plans to invest up to $3.8 billion to potentially expand EMX’s royalty ground. This demonstrates the project’s world-class potential.
Growing Portfolio of Cash Flowing Royalties
Beyond Cukaru Peki, EMX is seeing royalty revenue growth across its portfolio of over 200 assets. The Gediktepe oxide gold mine in Turkey, Leeville royalty on Newmont’s Nevada gold production, and Balya lead-zinc-silver mine in Turkey are generating steady royalty income. EMX also holds a 1.5% royalty on the Caserones copper mine in Chile, operated by London Mining.
Disciplined Acquisitions and Organic Royalty Creation
EMX complements royalty acquisitions with a project generation model focused on organic royalty creation. The company vends projects to partners while retaining royalty interests. This royalty generation provides low-cost royalties and consistent revenue from project sales, averaging 20 per year.
To further leverage this model, EMX formed a joint venture with Franco-Nevada to capitalize on distressed market conditions. The JV acquires micro-royalties through small royalty financings of exploration companies.
Maintaining Financial Strength and Upside Exposure
With working capital of $72.7 million including $68.7 million in cash, EMX has financial capacity to continue acquiring royalties and assets at low valuations. The company is reducing debt to position for rising interest rates. Its strong balance sheet avoids unnecessary dilution while providing upside exposure as the portfolio grows.
Experienced management guides disciplined capital allocation across market cycles. As EMX unlocks the world-class potential of Cukaru Peki and expands its royalty portfolio, the company is poised to deliver significant royalty revenue growth in the long-term, making it an attractive investment opportunity.
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View EMX Royaltys' Company Profile: www.cruxinvestor.com/companies/emx-royalty
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12 ماه پیش
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