馃攳
EMX Royalty | Multiple Gold, Copper Royalties Generating Cash Flow - YouTube
Channel: Proven And Probable
[0]
Welcome to 'Proven and Probable'. Today
we're gonna highlight a project January
[3]
that we believe has a potential to see
its stock price melt up that's correct
[8]
melt up but before we begin I would
appreciate if you click the subscribe
[12]
button and click the bell now on to
today's interview mr. Kaul welcome to
[18]
the show sir Thank You Maurice always my
pleasure as a very proud shareholder let
[24]
me be the first to say congratulations
as Amex royalty recently rewarded
[27]
shareholders with a nine-year high what
an accomplishment yeah well thank you
[33]
yeah we have 6x the stock price in the
last four and a half years it's good to
[39]
see the market recognize the portfolio
growth let's discover what distinguishes
[44]
Emax royalty and why for the second year
oh I plan to match my bullion purchases
[49]
with shares in the royalty generator mr.
Cole for someone new to emx royalty
[54]
please introduce the business model in
the opportunity the company presents to
[58]
the market yes it's always good to focus
on the business model of vmx royalty
[62]
corporation because it is different than
our royalty company peers the bulk of
[68]
the royalties in our portfolio Maurice
were generated using the royalty
[72]
generation method which is which is the
prospect generation business model
[76]
focused on the royalty component so we
acquire large tracts of prospective
[81]
mineral rights around the world
utilizing our geologic talent add value
[86]
by building up geologic models to
illustrate the prospective nacelle goes
[91]
on to an industry that's hungry for new
discovery opportunities for a
[95]
combination of cash shares work
commitments annual payments and always a
[101]
royalty on the back end and we've been
doing this now successfully for 17 years
[106]
we've sold 46 projects creating 46 new
royalties just in the last two and a
[112]
half years as an example the one thing
that I'm proud of about emx
[116]
is the deal flow that we have on the
generative side through that royalty
[120]
generation methodology now we don't stop
there we also buy royalties to augment
[126]
that portfolio and the integration of
generating royalties utilizing our
[131]
geological expertise and having those
same entrepreneurial geologists identify
[135]
royalty acquisition opportunities is
very powerful and some of the key
[140]
royalties we have in our portfolio we
were able to acquire because we found
[145]
out about it because we had feet on the
ground and ears to the railroad tracks
[149]
the third thing that we do to round out
our unique business approach is make
[154]
strategic investments where that same
team of entrepreneurs is identifying
[158]
strategic investment opportunities and
our return on invested capital in our
[163]
17-year history is a 40 percent internal
rate of return on invested capital it's
[170]
fantastic that's helped maintain our
treasury throughout our history puts us
[175]
in a situation today where we have
nearly as much money in the bank as all
[178]
the money we've raised in the history of
the company plus a hundred and fifty
[183]
some mineral property positions around
the world you know one of the things
[188]
that resonated with me in our last
interview you said that royalties are
[191]
powerful financial instruments and they
certainly are and we're going to find
[195]
out exactly why here in today's
interview
[198]
you know MX royalty has a commanding
global property bank filled with
[201]
generative projects that continue to
demonstrate the company's proof of
[205]
concept and business and geological
acumen
[207]
let's visit some of your projects and
find out the latest details that have
[210]
shareholders excited beginning in Turkey
take us to the volume led to zinc silver
[215]
property and provide us with some
background on the transaction and one
[218]
does MX royalty expect to start seeing a
sizable royalty payments from the
[222]
property and what kind of cash flow are
you expecting Oh a well that's a that's
[226]
a good question
grace the you know we we've been in
[232]
Turkey a long time we cycle through over
250 licenses in that country executing
[237]
our business model and there are three
mines being built and constructed on our
[242]
properties where we have royalties the
most important one is value as you are
[245]
highlighting that one goes into
full-scale commercial production in late
[249]
2020 so another five months from now it
might go little over into the first
[257]
quarter of 2021 but it's expected to
ramp up into 2022 into full production
[263]
5000 ton per day mill has been
constructed and we're very excited about
[269]
this and we expect to see multiple
millions of dollars per annum and cash
[273]
flow three to four and a half depending
upon throughput and let's ink silver
[278]
prices from this asset this asset alone
which is organically grown through the
[284]
or royalty generation model will be
worth more money than all the money that
[288]
I have spent in royalty generation
history of the company it speaks volumes
[293]
to the astute allocation of capital and
intellect that royalty generation is if
[300]
you like the numbers on the value wait
till you hear about the team on copper
[304]
gold mine in Serbia ladies and gentlemen
this project is a monster mr. Kaul
[310]
provide us with an overview on the team
Ock and what can shareholders expect to
[314]
see from regarding cash flow in the
Treasury here yeah so team muck is the
[321]
monster in the portfolio and you
mentioned that royalties are phenomenal
[325]
financial instruments and that's because
of their embedded optionality to the
[330]
royalty holder that comes at no cost to
the royalty holder and we own a
[335]
portfolio of royalties in the teamwork
magmatic complex in serbia which is
[339]
europe's largest historic copper and
gold producing region and the site of
[345]
one of the most significant copper and
gold development stories on the planet
[350]
now being advanced by zhen jiang a
chinese company who have signed a
[354]
Memorandum of Understanding with the
serbian government to invest four
[358]
hundred and seventy four million dollars
to put into production the upper
[361]
high-grade portion of a big deposit that
they have found there and we have a
[367]
royalty that covers the upper zone as
well as the lower zone and in the upper
[371]
zone according to the bankable
feasibility study that was filed we will
[376]
see royalty income flow around two and a
half million dollars per year at
[380]
prevailing copper and gold prices
however when they get into the lower
[384]
zone which is huge Maurice it's a 1.7
billion ton resource at point eight six
[391]
percent copper in point one eight grams
per tonne gold and we have a one half of
[395]
one percent royalty on that you can do
the math
[399]
you know it's it's it's worth a lot of
money and that's the company making
[405]
royalty in our portfolio not to not to
speak poorly on any of the other royalty
[409]
assets we have but this one stands out
as as an absolute company maker we're
[414]
very pleased to have exposure that those
are both commodities that we like and
[419]
thanks to the most important part of
royalty optionality which is discovery
[423]
there's 12 drill rigs turning on that
property continuing to delineate more
[428]
resources to our benefit moving to the
United States take us to the rawhide
[434]
gold silver mine which is in the Walker
lane gold silver belt of Nevada
[438]
what sort of annual cash flow are you
expecting from that investment now and
[441]
looking into the future yeah that's an
interesting one and this falls in the
[446]
strategic investment camp it's not a
royalty and we bought those shares and
[452]
we're contributing intellectually as
well as financially to the success of
[456]
this mining operation we owned nineteen
point nine percent of the private
[460]
company that is in production producing
gold currently producing about a hundred
[464]
ounces of gold equivalent door a per day
with a view towards doubling production
[470]
with the permits that we have in hand to
increase our crushing capacity there and
[475]
we're very bullish with respect to cash
flows we do have a 43-101 report that is
[481]
in progress and once that's completed
and I can give specific details about
[486]
our anticipated cash flow from the
property but we do expect this
[490]
investment to have a healthy internal
rate of return and this we bought that
[496]
at $1400 gold and modeled it at $1,400
Gold reminded models at 1350 it was a
[502]
great investment at 1750 it's a it's an
absolute cash cow and this will be
[508]
another multi-million dollar per year
dividend-paying asset that we have on
[513]
our books moving up to Alaska where he
makes consummated a strategic investment
[518]
a year ago that looks very promising in
Mill Rock resources on the 64 North
[522]
project what are the terms and on the
deal and do you have any updates for
[527]
shares as have really good deals when
when we really think maracas
[532]
a fabulous job Greg buy shoes running a
great ship there they've got their hands
[537]
on a tiger of a district we're very very
pleased with the work they're doing
[543]
we're happy that we were able to make a
positive contribution the structure of
[546]
the deal from a MX's standpoint is that
we invested money into share equity and
[552]
mil rock and also purchased a block of
royalties covering grounds in that
[558]
district from them and put royalties on
to projects that they had to help give
[562]
them the money to be able to advance
that forward attract a good partner and
[567]
now they've got drill still going in the
ground and they're hit in great geology
[571]
and because of the move in the gold
price augmentation in the capital
[575]
markets on the natural resource side as
well as the very favorable geologic
[580]
indicators that are coming out of the
project their shares have done very very
[584]
well so by the time you factor in the
increase in share value those royalties
[591]
have a negative cost basis to emx so
forth you know we're very very very
[595]
pleased we're happy to have that option
ality of owning the shares in mel rock
[600]
in addition to two hundred and
thirty-five thousand acre percent that's
[606]
our percent royalty x acres of which
they are applied to in the good pasture
[611]
district around the Pogo mine sorry for
the reps and folks but I do whatever
[616]
mind you everything we're covering today
with david cole you can find in the
[619]
description box below and if you like
our content i would appreciate if they
[623]
give us a thumbs up now back to the
interview speaking of another strategic
[628]
investment back in february he makes
world's he made another remarkable
[632]
transaction within Searle solutions can
you walk us through and what is this all
[636]
about
this is another example of BMX thinking
[639]
laterally and in serial solutions if
they're anything they're just aqueous
[646]
chemistry is's these guys have figured
out methodologies for treating acid mine
[654]
drainage incredibly well and
inexpensively makes them very popular
[658]
with people that are concerned about the
environment that also facilitates social
[664]
licence and
have a track record of unlocking mineral
[668]
value of properties and we help take
them private they were in a public
[673]
company Alexa Co where they had an
excellent beginning a huge success story
[678]
at the Kino Hill property in the Yukon
we provided the funds for them to go
[683]
private became a seven and a half
percent equity holder in the company and
[687]
also have a preferred share that
structured similar to a loan where we
[692]
put in 3.8 million dollars you get paid
back eight point five million dollars
[696]
over a seven-year period what's nice
continued income flow immediately into
[701]
emx but the most important part of the
whole deal is so we have a regional
[706]
strategic alliance to find
environmentally encumbered assets with
[711]
high prospectivity
to come in and solve the environmental
[714]
problems and unlock the mineral
potential and we see a number of
[718]
different key assets in the west where
we can accomplish this switching gears
[723]
let's look at some numbers mr. Cole
please provide us with the current
[726]
capital structure for emx royalty you
know it's it's pretty simple and pretty
[731]
good we're sitting here with plus 45
million u.s. dollars in cash plus 50
[741]
million u.s. dollars in working capital
and no debt speaking of the cash what
[747]
are your plans for that big pile of
capital so we're going to continue to do
[751]
what we've always done that's execute
our three-pronged approach and we're
[755]
continuing to fund our generative
business which is our bread and butter
[759]
and that's where the ideas come from for
the strategic investments and that's
[763]
where the opportunities come from to buy
royalties now with more money in the
[767]
bank we can lever up our strategic
investing and royalty purchasing but not
[774]
at the expense of our world of our
royalty generation business that's our
[778]
core looking forward multi-layered
question what is the next unanswered
[783]
question for emx royalty one can we
expect a response and what determines
[786]
success well ultimately success is us
continuing to ramp up the value of our
[795]
portfolio ramp up cash flow
and see the market recognize that and
[800]
move our share price forward I believe
that our share price has lagged the
[805]
growth of the portfolio in the recent
past we're in the process of people
[810]
starting to wake up and realize that
realize that we're sitting on assets
[814]
such as the teamwork project in Serbia
the level royalty in Nevada operated now
[821]
by Barrick where they're finding a lot
of gold all these things cumulating up
[826]
to a portfolio that is enhancing in
value continually thanks to the the
[832]
positive optionality of these phenomenal
financial instruments and you know the
[838]
this is a buy-and-hold business model
and you've seen my insider trades
[844]
Maurice you know I've been buying for
seven years now having sold shares stock
[848]
of an exercising my options holding them
but by now the open market accumulated
[852]
roughly two hundred thousand shares
during the cogut dip as an example and
[859]
you know ultimately it's going to be
better market recognition of an enhanced
[864]
value of our portfolio last question sir
what did I forget to ask we were always
[875]
pretty good at covering things Murray so
let me think about that for a second you
[880]
always asked me that so I should always
have one on the sidelines well how about
[883]
this as anyone told you look like David
Letterman come up me on the streets of
[892]
New York just getting ready to ask me
for a autograph and then I think they
[896]
realized that I was probably a few years
younger but you come up with some good
[902]
David Letterman lines and the top ten
reasons to buy emx royalty Corporation
[909]
are one
Maurice Jackson says to buy the stock to
[914]
Rick rule says to buy the stock three
Paul Stephen says to buy the stock and
[920]
owns a lot himself how about that number
four the CEO has been insider buying for
[927]
seven years
number five a portfolio that continues
[931]
to grow in value number six exposure to
copper and gold to the best metal
[938]
commodities there are well you know one
question I forgot to ask is can you just
[942]
share with us what is the prime
objective of what you're looking for the
[945]
minerals that you're looking for
so we've always loved copper and gold
[949]
and we have a lot of geological
expertise and our whole business premise
[953]
starts with people and we have strategic
vantage because of their intellect in
[958]
their experience and then we build on
that with respect to the business model
[962]
we have a lot of geological expertise
around the the geological trains at
[966]
hosts copper and gold deposits and a
growing amount of expertise around poly
[971]
metallic systems volcano genic massive
sulfides and we do believe that it
[975]
behooves us to to be exposed to copper
cobalt nickel pges lead zinc other
[982]
metals as well and so we're happy to
have a diversified portfolio focused on
[987]
dominantly metal commodities the mr.
Cole if someone wants to get more
[991]
information on emx royalty please share
the website address emx
[996]
royalty corp calm mr. Cole is always a
pleasure and I look forward to speaking
[1001]
to you in the very near future and by
the way I'm sorry if I've got to ask
[1003]
this question here you're gonna be part
of the Sprott natural resource symposium
[1007]
is that correct that is correct looking
forward to it all right we look forward
[1011]
to seeing you sir it's always a good one
right sir
[1014]
all the best to you take care Morris
thank you eeehm x royalty trades on the
[1020]
tsx V symbol e M X and on the New York
Stock Exchange symbol e
[1025]
M X Ian mix world is a sponsor of proven
and probable and we are proud
[1031]
shareholders for the virtues conveyed in
today's message the information
[1038]
presented on proven improbable is
provided for educational and information
[1041]
mrs. own without any express or implied
warranty of any kind including
[1045]
warranties of accuracy completeness or
fitness for any particular purpose the
[1049]
information is not intended to be and
does not constitute financial investment
[1053]
or trading advice or any other advice
you should not make any financial
[1056]
investment or trading decision based on
any of the information presented without
[1060]
first undertaking independent due
diligence and consultation with a
[1063]
professional broker or competent
financial advisor
Most Recent Videos:
You can go back to the homepage right here: Homepage