EMX Royalty update

Are Investors prepared?

The current news cycle is dominated by the Russia-Ukraine conflict and ever worsening inflation numbers. Central banks and governments have overplayed their hand for long enough and are now in a real pinch. But not only they have to worry. Investors and fund managers alike are not used to this inflationary environment, which also sees loses on the bond and equity markets. They simply were not yet alive or too young to really have witnessed the stagflation of the 70s. With a recession on the horizon, it will be interesting how everybody will manage or indeed mismanage the situation.

The business model

EMX Royalty is focusing on royalties. Through this process, they acquire mineral rights for the projects they invest in, which significantly increases their profit down the line. They manly focus on Northern Europe, North America, but also have assets in South America and in many other locations across the world. They profit from this very diverse portfolio. Furthermore, they sell and buy as well as created royalties, but also make strategic investments and are engaged in exploration. But the focus lies on royalty generation.

Bringing the big names on board

While EMX Royalty holds all the big names in the royalty and streaming sector with high esteem, Franco-Nevada has to be their favourite. Franco-Nevada also sees great possibilities in EMX Royalty and has therefore decide to invest in the company. They especially seem to value the great royalty generation process, which differentiate EMX Royalty from Franco-Nevada. This is great, since Franco-Nevada is the original royalty and streaming company and is therefore a well-known name in the business. If a project arises, which could be too big for EMX Royalty to handle, Franco-Nevada will be among the first who will be presented with this deal.

Why Northern Europe

If the world wants to stay on the path of green energy, we will soon find out that this is very costly in terms of metals needed. Scandinavia possesses large deposits in metals and is a region, which is very comfortable to work with. Reliable workers are a worthwhile trade off when you consider the higher labour prices these nations have. The infrastructure and geology are also great. Also, the legislation and the local rules are very clear and drilling permits and other forms of red tape which often take ages in other countries are often only a matter of weeks in Scandinavia.

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