Elemental Royalties – A look ahead to 2021 forecasted revenues and near term production updates
Fredrick Bell, President and CEO of Elemental Royalties (TSX.V:ELE – OTCQX: ELEMF) joins me for an overview of 2020 revenue and the forecasted growth for this year. We also discuss a couple updates on key projects that the Company holds a royalty on.
If you have any follow up questions for Fred please email me at Fleck@kereport.com.
Click here for a summary of the recent news out of Elemental Royalties.
Good update with Elemental Royalties. I own it, and treat my royalty holdings as some of my more conservative profit storage for longer term growth and appreciation. Right now, I also feel Elemental has a little room to run to catch up in valuation with some it’s peers like Maverix, Metalla, Nomad, etc…
Today has a good vibe to it. They could have easily taken the metals the other way. I noticed the Porcupine had some decent drill results so I added a few.
I have been using Sand and Ely as my store for upcoming tax payments hoping to het some more gains. Ex: where would you put Elemental in that group. I have one more ling term gain from Great Bear to liquidate tomorrow and am looking around at royalty options,
Hi David. I put most of the Royalty companies in the same basic longer term growth bucket and as places to dump profits from good trades in the individual mining stocks. I consider Sandstorm more of a Senior company and Ely and Elemental more Junior Mid-tiers (like Metalla, Maverix, Nomad, and EMX), and then other royalty companies more smaller Juniors like Vox, Sailfish, Abitibi, Golden Valley, Empress, etc…
I have a post wandering in “review”, but in it I asked Ex if he had an opinion where Elemental fit in compared to Ely and Sand.
Elemental is an interesting royalty
With the Teranga/Endeavour and the Premier/Equinox merger they now hold royalties from two mid tier producers that I like
On EV/EBITA they are the second best royalty play
NSR 9.9
ELE 10.1
SSL 12.7
RGLD 13.3
OR 14.1
WPM 16.3
MMX 16.7
VOX 18.7
I personally like Nomad the most. They are number 1 on EBITA and pay 2% dividend
Those are good points about the EV to EBITA ratios, and yes, Nomad and Elemental are both attractive at current valuations. I agree that with Endeavour and Equinox as their new operators on those Elemental royalties, it gives enhanced strength and likelihood of a long life mine having the big boys as partners, so definitely a partner upgrade in both examples.
long KOPN and WPM
WPM Wheaton Precious Metals is another good Senior Royalty company of note.
Elemental is interesting, as they have after the Terranga/Endeavour and the Premier/Equinox merger now two mid tier producers that I like in their portfolio
They are the second best royalty play on EV/EBITA
NSR 9.9
ELE 10.1
SSL 12.7
RGLD 13.3
OR 14.1
WPM 16.3
MMX 16.7
VOX 18.7
FNV 21.0
Nomad is still my favorite. They are not only the best in this list, they also pay the highest dividend with 2%
Thanks Thomas and Ex. That is helpful. Playing catch-up today as slept in. Thanks for the responses.
Thomas, we think alike. I know everything about all the royalty companies. Elemental and Nomad are my top two. Near term cash flow. I do not know what to think about Empress. So far a disaster. She talks about these strategic partnerships that have yet to produce much. The main Royalty Pinos is a risky junior. A big raise at a low share price leaves more shares and warrants. They have more shares than Metalla and only 3 months old!
Thanks. I glad I checked back.
I was quite surprised that Elemental is that high on this metric
Most of the junior royalties haven’t any EBITA
ELY the Sprott play for example has an EV/EBITA of 45
I agree California. There has already been a dearth of new royalty companies so for new one’s to emerge, they need a differentiator and edge to be considered. So far, I’m not seeing that with Empress or Trident or even Gold Royalty, but companies like Nomad, Elemental, Maverix, and Metalla are combining a good business model with good operational partners, on long-life assets, that will pay nice revenues for years to come.
Ex, you forgot Sandstorm and Osisko?
From the big three, Wheaton is probably the best
Thanks for the interview Cory. I did not know anything about this one except the name. Sounds like they have cash flow in the early stages. They look like a company to check into more deeply.