EMX Royalty Corp

Website: www.emxroyalty.com
Primary ticker: TSXV:EMX; NYSE:EMX; FRA:6E9
Stage of development: Exploration, Development, Production
Commodity:Gold, Copper and Base Metals

Project to promote: Royalties
Project location: On five continents
Company presentation: Click here
Company video: Click here

Live financials

Cash: C$69 M
Debt: NIL

Major shareholders:
Management and Employees of EMX – 15.5%
Paul Stephens – 12.6%
Sprott Global – 5.6%
Newmont Corp – 5.8%
Adrian Day Asset Management – 2.3%
Management ownership – 15.5%

EMX Royalty, The Royalty Generator, enjoys cash flow from producing mines and a mining centric environmental services company as well as advance royalties from pre-production properties, annual and milestone payments from property partners and management fees from projects.
In the past two years, EMX has sold 40 projects around the globe, retaining a royalty on each transaction. The Company’s October 2018 sale of the Malmyzh copper-gold project, yielded $69 million.
Additionally, the company has seen considerable insider buying in the past 18 months with the CEO, David Cole buying over 673,000 shares of company stock.

Management Profile

Dave Cole, President & CEO

CEO & Founder, David Cole has over 30 years of industry experience, coming to EMX from Newmont Mining Corporation. At Newmont, he held a number of management and senior geologic positions, gaining extensive global experience as a project, mine, and generative exploration geologist in Nevada, Southeast Asia, South America, Europe, and Central Asia. Mr. Cole’s success as part of Newmont’s exploration team includes contributions at the world class Carlin Trend, Yanacocha, and Minahasa mines. Subsequently, he established and managed Newmont’s exploration programs in Turkey while also identifying early-stage acquisition targets in Eastern Europe. Mr. Cole specializes in developing new exploration ideas and opportunities, based upon solid technical expertise coupled with a keen business sense. He studied under Dr. Tommy Thompson at Colorado State University, earning an M.S. in Geology.

What is your rationale for attending 121 Mining Investment?

With $69 million in cash, $11.7 million in marketable securities, investments and notes receivable and zero debt, we are not looking to raise capital, but simply present the value proposition that we offer to investors. Several recent developments will begin producing immediate, near and mid-term additional cash flow.

What recent news would you like to highlight to investors attending?

EMX recently acquired a 19.9% equity interest in the Rawhide Acquisition Holding LLC’s
Rawhide Gold-Silver mine, located within the prolific Walker Lane gold-silver belt of Nevada.
The LLC distributes 50% of its taxable income to the LLC members on a quarterly basis.

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Continue to execute our business model of royalty generation where we sell or option properties and receive cash and/or shares as payment, as well as a variety of future payments, plus retain a royalty.

6 Months:

Continue to execute our business model of royalty generation where we sell or option properties and receive cash and/or shares as payment, as well as a variety of future payments, plus retain a royalty.

12 Months:

To achieve a high enough level of sustainable and continual flow of royalty income in order to implement a quarterly dividend.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The reduced ability of the smaller companies to raise capital in order to acquire and advance our properties. To circumvent that, we are moving more of our deals up the “food chain” to larger, better funded companies which already constitute a portion of our partnership profile.

What do you think makes your company such a compelling investment?

$80+ million in cash and liquid assets, multiple royalties, including a 0.5% NSR on Zijin’s developing Timok Cu-Au mine in Serbia, the 1% GSR Leeville royalty on the Carlin Trend in Nevada, USA, our 19.95% interest in the Rawhide Au-Ag mine LLC in Nevada and numerous other cash flowing vehicles, but still with a modest $215 million market capitalization.

Analyst Insight – provided by Independent Investment Research

EMX Royalty Corp is a TSX-V-listed company that enjoys production royalty cash flow from gold, silver, zinc and lead assets.

Additionally EMX realizes advance royalty revenues from pre-production properties, periodic property and milestone payments, as well as property management fees. EMX’s royalty and mineral property portfolio totals over 100 projects on five continents and it works with property partners including Rio Tinto, Newmont, Anglo American, Antofagasta, Coeur, South 32 and Freeport-McMoRan among others.

Cash flow from royalties, advance royalties, and other mineral property payments provides ongoing revenue for EMX’s sustainable growth and value creation. EMX supplements royalty generation with the prudent acquisition of royalty interests in production and advanced development assets.

EMX’s generative exploration properties are optioned to quality partners for advancement, with EMX retaining a royalty interest and receiving pre-production cash payments. EMX invests in upside mineral exploration opportunities, with exit strategies that favour royalty positions or equity sales.

EMX ended 2019 with a strong balance sheet – including cash of $68,994,000, marketable securities, investments and notes receivable valued at $11,479,000, and no debt. The majority of the company’s cash is held in USD.

EMX’s recent accomplishments provide context for the strong foundation laid for the company to move forward during 2020. The company continued to see strong industry interest in its royalty generation properties in 2019. This interest was marked by the execution of agreements for 17 royalty generation projects that were partnered during the year. That is a record pace of annual deal flow for the company.

Importantly, many of EMX’s current partners are well financed top tier companies (i.e., South32 and Kennecott). More than $10 million is slated for advancing EMX’s organically generated royalty properties during 2020, albeit with schedules pushed out by a quarter or two due to the pandemic related slow down.