EMX Royalty (EMX) 2025 Precious Metals Summit - Beaver Creek summary

Merger announcement and strategic rationale

• Announced a merger between two royalty companies, emphasizing mutual respect and shared history in royalty syndication and board participation.

• The merger creates a combined entity with four cornerstone assets: Caserones, Timok, Karlawinda, and Laverton, enhancing portfolio quality and scale.

• The pro-forma company will have a market cap of approximately $950 million and projected $80 million in revenue for 2026.

• The combined portfolio includes over 200 royalties, with 16 producing assets, providing significant diversification and global reach.

• Multimillion dollar synergies are expected from the transaction, contributing to record revenue and production at attractive valuations.

Portfolio growth, asset performance, and financial outlook

• Portfolio benefits from discovery optionality, with counterparties investing over $50 million annually in mine development.

• Notable assets like Diabloyos, Caserones, and Timok are delivering strong returns and ongoing discoveries, with Timok already yielding $16 million from a $200,000 investment.

• 45% of net asset value is from producing assets, while 55% is from development-stage assets, supporting future cash flow and growth.

• Revenue growth has set consecutive records, with forecasts for further records in 2025 and 2026 based on existing producing assets.

• The company is trading at a lower P/NAV multiple than peers, despite scale and quality, and is moving toward the intermediate royalty space.

Business model, strategy, and management vision

• Both companies originated from royalty generation and will continue to integrate royalty generation, acquisition, and strategic investments.

• Management is committed to strong compounded annual growth rates, with historical rates of 18% and 20% over long periods.

• The company aims to allocate capital astutely, seeking further growth through royalty purchases, generation, and large-scale acquisitions.

• Executive Chairman Juan Sartori introduced Tether's investment, highlighting a $100 million commitment and a 51% stake in Elemental.

• Tether's involvement is driven by a macro view favoring gold and royalty models as a hedge against U.S. dollar instability.