Empress Royalty (EMPR) Q3 2024 earnings summary

Executive summary

• Achieved net income of $557,163 for the nine months ended September 30, 2024, reversing a loss of $1,778,623 year-over-year.

• Revenue more than doubled to $5,460,499 from $2,568,240 year-over-year, driven by increased contributions from all major streams and royalties.

• Significant revenue recognition in Q3 2024 due to settlement and recommencement of Tahuehueto silver stream deliveries.

• Expanded portfolio with the addition of the Galaxy gold stream in South Africa, funded by a new credit facility.

• Maintained focus on small to mid-tier producing and near-term production mining projects globally.

Financial highlights

• Q3 2024 revenue reached $3,453,256, up from $1,012,940 in Q3 2023; net income for Q3 2024 was $1,549,233 versus a loss of $743,648 in Q3 2023.

• Cost of sales (excluding depletion) for nine months was $777,266 (2023: $288,168); depletion was $1,174,045 (2023: $864,671).

• General and administrative expenses for nine months were $1,295,034, down from $1,562,143 year-over-year.

• Share-based compensation for nine months totaled $456,498 (2023: $425,298).

• Cash balance at September 30, 2024, was $806,331, with a net working capital deficit of $984,592.

Outlook and guidance

• Management expects to fund future investments through cash flow and aims to generate free cash flow to pay dividends.

• Actively evaluating over $50 million in potential new royalty and streaming opportunities.

• Ongoing focus on expanding the portfolio with globally diversified assets and maintaining prudent risk mitigation.