EMX Provides Financial Update

Rhea-AI Summary

EMX Royalty (NYSE American: EMX) (TSXV: EMX) reported ending the year with approximately $27 million in cash and cash equivalents and $35 million in long-term debt maturing in July 2029 with Franco Nevada The company completed several transactions in Q4 2024:

1. Sold all holdings in Ensero Holdings for $5.6 million, having initially invested $3.8 million in 2020 and earned $1 million in dividends.

2. Received an early property payment of $2.9 million from Aftermath Silver for the Berenguela Royalty Property in Peru, with a final payment of $3.25 million due in November 2026.

3. Received $500,000 from Arizona Sonoran for a royalty buy-down at Park Salyer Property, reducing EMX's NSR royalty from 1.5% to 0.5%.

Positive

• Cash position of $27 million at year-end
• Profitable exit from Ensero investment with $1.8 million gain plus $1 million in dividends
• Early receipt of $2.9 million payment from Aftermath Silver
• $500,000 immediate cash from Arizona Sonoran royalty buy-down

Negative

• Long-term debt of $35 million
• Reduction in Park Salyer royalty interest from 1.5% to 0.5%

Insights

Financial Analyst

EMX's financial update reveals a strategic strengthening of its balance sheet through multiple transactions. The company's $27 million cash position against $35 million in long-term debt presents a manageable leverage ratio, with debt maturity extended to 2029 through Franco Nevada, a premier streaming company.

Three key transactions stand out: 1) The Ensero exit generated a 47% return on investment ($1.8 million profit plus $1.0 million in dividends from a $3.8 million investment), 2) The early payment from Aftermath Silver improves immediate liquidity while maintaining future royalty streams and 3) The Park Salyer royalty reduction, while decreasing future revenue potential, brought in immediate capital.

The retained sliding-scale NSR royalty on Berenguela is particularly noteworthy, as it provides leveraged exposure to both silver and copper prices, with automatic upside participation when commodity prices exceed key thresholds. This structure offers built-in inflation protection and commodity price upside without additional capital requirements.

Mining Industry Analyst

The company's strategic portfolio management demonstrates a sophisticated approach to royalty optimization. The Berenguela royalty structure is particularly well-crafted - the sliding scale mechanism tied to both silver and copper prices creates a natural hedge while maintaining upside exposure. The 0.25% royalty rate increase when silver exceeds $25/oz and copper tops $2/lb effectively positions EMX for commodity bull markets.

The Park Salyer royalty reduction to 0.5% NSR, while appearing to diminish value, actually represents smart capital recycling. Arizona Sonoran's willingness to pay $500,000 for the reduction signals their confidence in the project's development timeline. The remaining uncapped 0.5% royalty retains meaningful exposure to future production upside without impeding project advancement.

Vancouver, British Columbia--(Newsfile Corp. - January 9, 2025) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the "Company" or "EMX") is pleased to announce that the Company ended the year with approximately $27 million in cash and cash equivalents and $35 million in long term debt that matures in July 2029 under an agreement with Franco Nevada Corporation. The Company's balance sheet was strengthened because of several transactions closing before the end of the December quarter as discussed below.

Sale of Shares in Ensero Holdings Inc ("Ensero") - Ensero repurchased all our common and preferred share holdings in Ensero for approximately $5.6 million. The Company invested approximately $3.8 million in Ensero in 2020, and since making the investment has earned approximately $1.0 million in dividends. The Company has sold all its holdings in Ensero as of December 31, 2024.

Early Property Payment at Berenguela Royalty Property in Peru - The Company received an early property payment from Aftermath Silver Ltd ("Aftermath") totaling $2.9 million. Aftermath has one final payment totaling $3.25 million which is due in November 2026. The Company has a sliding-scale net smelter return (NSR) Royalty on all mineral production from the Project for the life of mine commencing at the declaration of commercial production, and includes a 1.0% NSR royalty on all mineral production when the silver market price is up to and including US$25 per ounce, and a 1.25% NSR royalty on all mineral production when the silver market price is over US$25 per ounce and when the copper market price is above US$2 per pound.

Royalty buy-down Completed at Park Salyer Property in Arizona - The Company has received $500,000 from Arizona Sonoran Copper Company Inc. ("Arizona Sonoran") from the buyback of 1.0% NSR royalty covering the Park Salyer Property which is part of the Arizona Sonoran's Cactus Property. The buy-down by Arizona Sonoran reduces the Company's NSR royalty on Park Salyer from 1.5% to 0.5% which is not capped and cannot be reduced.

About EMX - EMX is a precious, and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX". Please see www.EMXroyalty.com for more information.

For further information contact:

David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com

Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Statements

This news release may contain "forward looking statements" that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as "estimate," "intend," "expect," "anticipate," "will", "believe", "potential" and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company's future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company's MD&A for the quarter ended September 30, 2024 (the "MD&A"), and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC's EDGAR website at www.sec.gov.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236492

FAQ

What is EMX's current cash position and debt as of year-end 2024?

EMX reported approximately $27 million in cash and cash equivalents, with $35 million in long-term debt maturing in July 2029.

How much did EMX receive from selling its Ensero Holdings investment?

EMX received approximately $5.6 million from selling its Ensero holdings, having initially invested $3.8 million in 2020 and earned $1 million in dividends.

What is the status of EMX's Berenguela royalty payments from Aftermath Silver?

EMX received an early payment of $2.9 million, with a final payment of $3.25 million due in November 2026.

How has EMX's royalty interest in the Park Salyer Property changed?

EMX's NSR royalty on Park Salyer was reduced from 1.5% to 0.5% following a $500,000 buy-down payment from Arizona Sonoran.

What are the terms of EMX's sliding-scale NSR royalty at Berenguela?

The royalty is 1.0% NSR when silver price is up to $25/oz, and 1.25% NSR when silver price exceeds $25/oz and copper price is above $2/lb.