EMX Royalty Inc.

Raj, thank you very much. Yeah, I appreciate that. And, can everybody hear me OK in the back? A good deal, good deal. Delighted to be here today to present on behalf of the combined companies. I'll point out that Fred Bell will also be giving a presentation on the combination at 1:40 p.m. stage two Tuesday. I want to make sure you have the chance to see that as well. I'm sure that he'll go into some further details that I will not. There's a lot in this deck that we're going to go through, some of which I will skip over because there's areas I want to highlight. One thing I want to highlight right away is that this is just not a marriage between two successful. Royalty companies coming together with some excellent view to the future here with some strong cash flow, strong revenues, but it's also bringing in an important shareholder with Tether. Tether bought a meaningful stake of shares in Elemental. Tether is the world's leading stablecoin company. They are extraordinarily bullish hard assets that have been accumulating physical gold at the rate of approximately 1 metric ton a week. So they're very bullish on gold prices and very bullish on owning gold royalties, but also other hard assets including farmland, and they're huge holders of T bills. And that's just a quick background on Tether. So we're delighted to have Tether as a large shareholder and representing Tether is Juan Sartori, who is the chairman of Elemental, and Juan was instrumental in getting Fred and I, who have been talking to each other about the possibility of this merger as we both recognize the synergies of bringing the groups together for nearly 2 years now. Juan said, let's really get this done. And hats off to him for getting us together and having this deal move forward. We expect the deal to consummate in early November. And we believe that it's distinctly accretive for both groups largely because of the increased liquidity, increased scale, increased portfolio effect across that business and the resultant reduction in the cost of capital and the availability of capital for us to continue to grow, and it's my delight to have the opportunity to continue on as CEO of this merged entity is what we anticipate and for Pred to be president. We've been working with Fred doing royalty syndication. Previously we own a number of royalties immediately adjacent to each other and we've been friendly competitors for quite some time now, and I think there's a lot of synergies in the team here financially and intellectually. This will put together a portfolio of in roughly 20 countries over 200 royalties. $70 million in combined revenues this year, $80 million next year, and even more the year after. Strong growth profile and the cash flow perspective. At today's share prices, it's about a $1 billion market cap company which will put us in a position where they'll be. ETF buying for sure, whereas neither of us have that at this point in time and meaningful scale, people will wake up and realize the power of the portfolio and certainly there'll be increased coverage across the banks. Most importantly, however, is the growth within the portfolio. Extensive tens of millions of dollars actually pushing $100 million a year in exploration expenditures across this portfolio, creating discovery optionality, which is the main reason why you want to own royalties and royalty portfolios because that's where the meaningful growth comes from. So combined 218 royalties within this portfolio. I want to point out that the history of EMX and Elemental is a little bit different than the history of most other junior royalty companies. We both have a history in prospect generation and royalty generation. And being very careful as to how we invest money in the purchasing of royalties to augment the portfolios that we've been growing that we have grown organically, and this has resulted in a strong compounded annual growth rate in our share prices from the time that we first raised monies from outside sources in both cases. I'm very proud of the fact that I have a graph coming up at the end that I'll show about EMX from the EMX perspective of this, but as of today's share price, we're 18% compounded annual growth rate from the time we first raised money from outside sources, not including seed stock. Over a nearly 23 year period, and that's a meaningful kegger. In any industry, particularly the mining business, which has had challenges in this regard, if we all look internally and analyze that, and Fred's done a fantastic job with over 20% compounded annual growth rate in the eight years that he's been driving forward elemental. So here's our global portfolio, and you might take a glance at that and say holy smokes, that looks like something a major would have and and that's exactly what we are accomplishing. I want to go through this. I'm going to point out some of the highlights here and it's a combination of things that are producing nicely with strong production profile increases in addition to discoveries being made throughout the portfolio. So we'll start off in North America. Leville's been a great asset for EMX. Currently paying around $5 million a year. Nice discovery that we're associated with at Cactus. Both companies own a portion of the royalty over that system. Now combined, we have the whole system covered. That's one of the nice synergies within this combined portfolio. And moving on to South America, both Elemental and DMX own a portion of the royalty on casses. Now combined, that will be over a 1.3% NSR royalty with combined backward looking revenues in excess of $15 million per year. We know that Lundin plans to increase production there, but even more importantly, Our royalty footprint is the size of Phoenix, literally. And there's multiple prospects within that that Lundin is drilling aggressively tens of thousands of meters a year, and they're talking openly about the incipient discovery at Angelica immediately next door to Casones, and then from in pit drilling to finding high grade wretched bodies at depth at Casarones. There's no better place from a royalty holder's perspective to find more or than in the pit, and we're just delighted and we're delighted to be able to bring these two royalties together. And those are key assets within this portfolio. Now we move on to Europe. EMX has brought a strong portfolio of early stage assets in northern Europe, specifically Viscaria, Copper, gold, iron will be in production next year. And then arguably one of the most exciting royalties within the entire portfolio is at TM, where Zin is doing a phenomenal job of advancing production there on now 4 ore deposits that. Been found within our licenses. And continuing to drill currently 12 drill rigs operating on site. They're expanding the lower zone. They're expanding the new discovery at the MG deposit to the point where people have glossed over it and may not fully realize the incredible potential that this royalty has. They added 250 million tons at over 1% equivalent to the lower zone last year as per their annual report. In addition to the new discovery of the MG zone, 150 million tons at 1.87% copper 0.61 g per ton of gold, phenomenal example of discovery optionality happening within this portfolio and a key asset here to bring together on the elemental side, Carlawenda is a phenomenal gold mine with immense long-term potential and increased production, and the current or the recent increase in the royalty footprint at Laverton. This is a phenomenal example. It's a great asset to bring together, and this has created a balanced portfolio. You'll note that Europe is an inordinate amount of the chunk of that diagram which is NAV-based, and that is because of the team royalty and the immense net asset value represented in that as per the analysts with a strong contribution from Australia, South America, and Africa. And then if we look at the on the NAV basis, the distribution between producing and non-producing, 45% of the NAV is currently tied to producing assets, but 55% represent assets that are not yet producing, and that's the catalyst for future revenue growth right there and speaks handsomely to the way these portfolios come together and what's been done to create them. We're currently 67% precious metals in terms of current revenues. A lot of the longer term net asset value is tied to copper because of the long lives of Casarones and Tu in Europe., and 33%. Excuse me. of current revenues from base metals. I'll point out I got a frog in my throat. Excuse me. Some water down here. Sorry about that. So about 90% of the precious metal income is gold, not silver. So This shows that nice up into the right growth of the of the revenues from this combined portfolio and speaks for itself. There's some distinct advantages of gaining scale within the royalty sector, as we're all aware, the PNA tends to increase as you increase scale. We're in a situation now where our peers are trading at PAs at nearly 2x and even after nice share price moves in elemental NDMX associated with this transaction and the bull market that we've had over the course of the last three quarters of a year. We're still only trading at PNA on a pro forma basis of about one. So there's an immense opportunity here for a rewrite and for that rewrite to continue. But I want to point out that that. There's a very important force that will augment that and cause a multiplicative effect, and that is that our NAV per share is growing because of distinct discovery occurring throughout the world, in addition to commodity prices going up. So on EMX's and Elemental's case, our NAV per shares have been moving up and to the right strongly. And that's only going to be fueled further as the PNA increases, so we're looking at a scenario here where there's a lot of upside left in the stock in my humble opinion. So you can see how we've separated ourselves with this merger from the other junior royalty companies moving into that mid-tier space. And there's a lot of potential just on a PNAV adjustment basis to continue to move up and to the right. So I mentioned that both of our companies have a history in royalty generation. That's an important feature from my perspective. I've always been a proponent of royalty generation. The real secret sauce is in not only the royalty generation side, but the fact that that gives you intelligent scientists and businessmen around the world in the different mineral belts, and they turn over stones and find royalties to to buy that are not going through a sales process. In addition to investment opportunities. And That gives us an ability to do due diligence to find assets for sale that other people are not seeing, to be able to effectively grow our portfolio, because a lot of my competitors are in a situation where they mostly buy assets that are going through sale processes. Everybody knows that a royalty is a phenomenal financial instrument, and they tend to trade at strong valuations, and it's always a challenge to be able to find those assets to buy inexpensively. The best example that I can think of of this secret sauce is how we got into Serbia early, generated royalties, found a royalty for sale that augmented our portfolio which I purchased for $200,000 Canadian dollars. has now paid over 16 million. And the net asset value as per the analysts exceeds $200 million for that royalty. That was a phenomenal. It's a company making transaction, but that speaks specifically to the secret sauce of this royalty generation integrated with royalty purchase that we have executed for 23 years and will continue to execute in the combined company. Proud to have the opportunity to be able to work with this great group of people here. Juan Sartori is a phenomenal guy, really had the pleasure to get to know him over the course of the last couple of months, and we very quickly agreed that we need to do this deal. He's very enthusiastic, huge goal. Fred and I's job will be to make sure that we move slow enough that we're making the smart decisions to grow intelligently and really looking forward to. I've always enjoyed Fred's company and look forward to working with them hand in hand. Stefan Wenger, who's here in the room, it's been a huge addition to the staff at EMX, and he will be the CFO of the combined entity. His background is really helping to grow royal gold, and he was with Royal Goldman's a couple $100 million dollar market cap and left after it was a few billion dollars, and he wants to do it again and we're on our way. Thanks., Dave Baker, chief investment officer previously there or right now he's the chief financial officer at Elemental would be the chief investment officer going forward and, real astute gentlemen, and great to have the opportunity to work with him on the board side. Representing EMX will be Sonny Lowe, very sharp., finance person out of Toronto, really had the pleasure to work with her on the EMX board over the years myself, Juan, Simon, Mukamba and Ravi Sood, all very interesting board and looking forward to working with these folks to grow this company. I'm gonna skip through some of this, and I know Fred will go into more of the details on this, but you know, in summary. We've got a major portfolio here, strong, growing a track record of growing the cash flow and a track record of, more importantly from my perspective, growing per share NAF. From the multiplicative aspect of discovery and commodity prices both moving in our direction, resulting in per share significant advancements of net asset value. We bring these together, we're going to increase the PNA. And this is going to work hugely to our favor. It already has with respect to the stock price, and we will continue to do so as we've now created meaningful scale and we're poised exceptionally well for growth. So in all likelihood, 99% probability this will be my last presentation on behalf of AMX. I've been presenting here for many years, always had, always appreciated the opportunity to be a member of Denver Gold Group and and to present here. And those who listen to me talk before have always noted that our fiduciary responsibility is compounded annual growth rate of our share price for our shareholders. That's why CEOs are here. And I'm proud to say that our 23 year track record is over 18%. Happy to take some questions, Rash. Thank you David there's a question. I've got a two part question if you may. You showed the breakdown of resources by revenue. Can you tell us what the breakdown of resources by NA is? And then the second part of that is given Tether's particular interest in gold. Might we see, you know, might we see a forward on goldies as opposed to coer? So Adrian, that those are great questions. First of all, let me get the first half of that question. So on a on a current income basis, 67% precious, 33% base metals on a NAB basis, I don't have the number committed to my memory, but I'll get it to you, but I would say it'd be closer to 50/50, but I can get that number to you specifically. The second part of the question is, will there be more focus on gold moving forward. So clearly Tether is buying a metric ton of gold a week and are very bullish on gold. I had this conversation with Juan in New York the first time we met. And he said, you know, you're copper, that looks very interesting to me, but we need to focus on gold. I said, Juan. Copper is the most strategic metal in the world. Gold is the most precious. They tend to occur in similar geological environments. Whilst we're looking for gold, we commonly find other opportunities lead, zinc, silver, copper. It'd be foolish for us not to take advantage of those, he said. That's very interesting. I agree. I said. You're buying farmland because you want to own hard assets. If you're buying farmland, you should also be buying copper, and he said, that's a very good point. You could not disagree. I personally am a fan of diversification. I love gold, always have. I grew up in the gold business. I'm personally very bullish copper. I think it's a great way to diversify the portfolio, Adrian, but I'd be happy to hear your opinions on that subject. OK, later. No, I For the record, Adrian agrees. I'll see if there are any other questions. If not, then David, thanks a lot for the Raj, thank you.