EMX Royalty – Overall Value Proposition, Royalty Partner Updates, Paying Down Debt, Buying Back Stock
Dave Cole, President and CEO of EMX Royalty Corp (TSX.V: EMX) (NSYE: EMX), joins us for a comprehensive update on their distinguishing value proposition in the royalty space, a number of copper, gold, and nickel royalty partner project updates, and the balance of paying down debt in tandem with buying back Company shares.
We start off discussing the multi-prong approach of generating revenues from existing properties optioned off to other operators, and then creating royalties, in addition to buying royalties in the market when the right value accretive dynamics are in place. At present EMX Royalty has 6 producing royalties and around 50 other royalties bringing in revenues from defined pre-production payments, option payments, and gate payments.
Next we discussed copper being a metal that more companies and investors are interested in at present. EMX has substantial copper exposure and incoming cashflows from both the Timok Project in Serbia operated by Zijin Mining, and the Casserones project in Chile operated by Lundin Mining, as cornerstone generational assets.
>> Then we touched on 2 more recent news releases, which Dave described as “bread & butter” transactions for their business model:
- On January 30th, EMX Royalty announced the acquisition of the royalty interest covering the Mustajärvi gold project in Finland, from a private Finish company, Aurora Exploration OY. The Mustajärvi project is located in the prolific Central Lapland Greenstone Belt in northern Finland, which hosts several recent gold discoveries as well as the Kittila Gold Mine, operated by Agnico Eagle Mines Ltd. The Mustajärvi project is currently being advanced by Firefox Gold Corporation (FFOX.V).
- Additionally, on January 3rd, the Company announced an option agreement for EMX’s Sagvoll and Meråker projects in Norway with Lumira Energy Ltd., a private Australian Company. The agreement provides EMX with 2.5% Net Smelter Return (“NSR”) royalty interests, cash and equity payments, work commitments and other considerations.
If you have any questions for Dave regarding EMX Royalty Corp, then please email us at either Fleck@kereport.com or Shad@kereport.com.
- In full disclosure, Shad is a shareholder of EMX Royalty at the time of this recording.
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