EMX is like **Qualcomm (QCOM)**, but instead of licensing technology patents for royalties, they license rights to mineral properties to mining companies.

Imagine a **real estate investment trust (REIT)**, but instead of owning buildings and collecting rent, EMX owns mineral rights and collects royalties from mining operations.

Think of them as the **Y Combinator for mining**, finding and de-risking early-stage mineral projects for bigger companies to develop.

• Mineral Royalties: The right to receive a percentage of future production or revenue from mineral properties, which is EMX's primary income stream.
• Equity Interests: Shares in other exploration and mining companies, typically acquired as part of property option or sale agreements.
• Mineral Property Deal Generation: A service involving the identification, acquisition, early-stage exploration, and subsequent vending of mineral properties to generate royalties, equity, and cash payments.

EMX Royalty (TSX: EMX) is a royalty generator and strategic investor in the mineral resource sector. Its business model involves discovering mineral projects and royalty opportunities, funding initial exploration, and then partnering with other companies to advance these projects through further exploration, development, and eventual production. EMX generates revenue primarily from royalty payments, option payments from partners, and strategic investments.

Therefore, EMX sells primarily to other companies in the mining industry. Its major customers are typically mining companies that operate properties on which EMX holds a royalty interest, or companies that option or acquire mineral projects from EMX.

Major Customers:

• Esan Eczacıbaşı Endüstriyel Hammaddeler San. ve Tic. A.Ş. (a private Turkish company): Esan is EMX's most significant current royalty payor. It operates the Balya lead-zinc-silver mine in Turkey, on which EMX holds a 4% net smelter return (NSR) royalty. This royalty consistently represents a substantial portion of EMX's revenue.

Beyond the primary royalty revenue from Esan, EMX also has numerous partnerships with exploration and development companies. While these companies may not yet be major royalty payors from production, they represent key strategic relationships for EMX's project generation business model, providing option payments and advancing projects that could generate significant royalties in the future. Prominent public companies that are partners or have optioned projects from EMX include:

• AbraPlata Resource Corp. (TSXV: ABRA): Holds an option on EMX's Malaga River Gold Project in Argentina.
• Banyan Gold Corp. (TSXV: BYN): Holds an option on EMX's Regal Ridge property in the Yukon, Canada.
• Gold Line Resources Ltd. (TSXV: GLDL): Holds an option on EMX's Gold Line project in Sweden.
• South Star Battery Metals Corp. (TSXV: STS): Holds an option on EMX's Gold Point Project in Nevada, USA.

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EMX Royalty (symbol: EMX) holds a diversified global portfolio of royalties on precious, base, and battery metals, including gold, copper, nickel, cobalt, and lithium. The addressable markets for these main commodities are substantial:

• Gold: The global gold market size was valued at approximately USD 5,103.47 billion in 2024, with projections to reach USD 5,627.81 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 1.23%.
• Copper: The global copper market size was estimated at around USD 333.15 billion in 2024 and is expected to reach approximately USD 548.20 billion by 2034, exhibiting a CAGR of 5.11% from 2025 to 2034.
• Nickel: The global nickel market was valued at about USD 41.62 billion in 2024 and is projected to surge to USD 83.77 billion by 2034, with a CAGR of 7.25% from 2025 to 2034.
• Cobalt: The global cobalt market size was valued at USD 12.42 billion in 2024 and is projected to reach USD 32.78 billion by 2032, demonstrating a CAGR of 12.90% during the forecast period of 2025 to 2032.
• Lithium: The global lithium market size was valued at USD 37.43 billion in 2024 and is projected to reach USD 164.77 billion by 2033, registering a CAGR of 17.9% during the forecast period of 2025-2033.
• Battery Metals (overall): The broader global battery metals market, which includes lithium, nickel, cobalt, manganese, and graphite, was valued between approximately USD 11.35 billion and USD 119.04 billion in 2024, with various reports projecting significant growth. For instance, one estimate places the market at USD 119.04 billion in 2024, forecast to hit USD 342.44 billion by 2034, at a 10.08% CAGR.

EMX Royalty (symbol: EMX) is anticipated to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Production and Expansion from Cornerstone Assets: EMX's revenue growth will continue to be fueled by its major producing assets, notably the Caserones Copper-Molybdenum Mine in Chile, the Timok Copper-Gold Project in Serbia, the Leeville Gold Mine in Nevada, USA, and the Gediktepe polymetallic (copper-gold) project in Turkey. Exploration programs aimed at expanding mineral resources and reserves, as well as efforts to increase throughput at the Caserones plant by Lundin Mining Corporation, are expected to boost royalty income. Similarly, Zijin Mining Group Co.'s ongoing development of the Timok Lower Zone copper porphyry block cave project will contribute to future cash flow.
2. Acquisition of New Royalties and Strategic Investments: The company actively pursues and completes acquisitions of new royalty interests. A significant example is the acquisition of an additional 1% Net Smelter Return (NSR) royalty on the Chapi Copper Mine in Peru, bringing EMX's total to a 2% NSR, with revenue contributions expected to commence in 2026. This strategy of identifying and acquiring new royalty and investment opportunities is a stated capital allocation goal for 2025 and beyond, augmenting its organically generated royalties.
3. Fluctuations in Commodity Prices: As a royalty company, EMX Royalty directly benefits from increases in the prices of the commodities it has royalties on, primarily gold and copper. Strong and rising gold and copper prices are explicitly identified as a crucial driver for EMX's revenue growth, with analysts noting that higher gold prices have more than offset declines in Gold Equivalent Ounces (GEOs) sold in recent periods.
4. Synergies and Portfolio Diversification from the Elemental Altus Merger: The definitive agreement for Elemental Altus Royalties Corp. to acquire all of EMX Royalty's shares is expected to create a new mid-tier gold-focused royalty company. This merger is projected to result in a combined revenue guidance of US$70 million in 2025 and analyst consensus revenue of US$80 million in 2026, underpinned by strong growth visibility. It will also lead to a strengthened, diversified asset portfolio anchored by four cornerstone royalties with world-class operators, offering exposure to Tier-1 Australian gold producing assets and further optionality through Elemental Altus' development royalty portfolio.

Share Repurchases

• EMX Royalty completed a Normal Course Issuer Bid (NCIB) program, announced on February 7, 2024, repurchasing and cancelling the maximum allowed 5 million common shares at an average price of US$1.65 per share, totaling approximately US$8.3 million.
• Under the NCIB program announced on February 7, 2024, EMX had purchased a total of 2,805,346 shares at an average price of C$2.15 (approximately US$6.0M) as of October 4, 2024.
• As of October 4, 2024, EMX had a remaining authorization to purchase 2,194,654 shares under the NCIB program expiring February 13, 2025.

Share Issuance

• In 2021, EMX issued 12,323,048 common shares valued at US$32.5 million to SSR Mining as part of the acquisition of a royalty portfolio, resulting in SSR Mining owning approximately a 12% undiluted equity interest in EMX.
• Franco-Nevada Corporation acquired 6.1% of EMX shares on a fully diluted basis as part of a US$10 million financing deal in April 2022.

Inbound Investments

• In April 2022, EMX completed a US$10 million financing with Franco-Nevada Corporation, which resulted in Franco-Nevada owning 6.1% of EMX shares on a fully diluted basis.
• In August 2024, EMX entered into a $35,000,000 credit agreement with Franco-Nevada Corporation, with proceeds used to repay an outstanding Sprott credit facility and for general working capital.

Outbound Investments

• In Q1 2024, EMX acquired an additional 0.0531% Net Smelter Return (NSR) royalty interest in the Caserones property for cash consideration of $4,742,000, increasing its total effective NSR royalty interest to 0.8306%.
• In December 2024, EMX acquired an initial 1% NSR royalty on the Chapi Copper Mine in Peru for $3,000,000, and subsequently acquired a second 1% NSR interest for an additional $7,000,000, bringing its total royalty on the property to 2% for a total purchase price of $10,000,000.
• In 2021, EMX acquired an effective 0.418% NSR royalty on the Caserones Copper-Molybdenum Mine in Chile for US$34.1 million in cash. This was further increased by an additional 0.3155% NSR royalty interest in April 2022 for US$25,742,000, bringing the effective interest to 0.7335%.

Capital Expenditures

• Royalty generation costs totaled $16,392,000 in 2020, with $7,962,000 recovered from partners. In 2021, these costs increased to $18,155,000, with $8,661,000 recovered from partners.
• Net royalty generation and project evaluation costs were $11,245,000 in 2023, up from $8,636,000 in 2022, with a focus on executing new royalty partnerships.
• For 2025, EMX anticipates a reduction in cash operating expenditures by more than $3.0 million, primarily resulting from a decrease in generative expenditures. The capital allocation strategy for 2025 also focuses on achieving a 20% decrease in operating expenditures compared to 2024.