EMX Royalty Announces Q3 2024 Results; Expects to Exceed 2024 Adjusted Royalty Revenue Guidance
EMX Royalty reported strong Q3 2024 results with significant growth in adjusted revenue. Excluding prior year catch-up payments, adjusted revenue increased by 23% and adjusted royalty revenue grew by 45% compared to Q3 2023. The company expects to exceed its 2024 adjusted royalty revenue guidance of $22-27.5 million, driven by strong performance from Caserones, Gediktepe, and Leeville operations.
Q3 2024 financial highlights include adjusted revenue of $9.66 million and adjusted royalty revenue of $8.82 million. The company maintained a strong working capital position of $41.83 million as of September 30, 2024. EMX secured a $35 million credit agreement with Franco-Nevada and continued its share buyback program, repurchasing 692,189 shares during the quarter.
EMX Royalty ha riportato risultati solidi per il terzo trimestre del 2024, con una crescita significativa del fatturato rettificato. Escludendo i pagamenti di recupero dell’anno precedente, il fatturato rettificato è aumentato del 23% e il fatturato delle royalties rettificate è cresciuto del 45% rispetto al terzo trimestre del 2023. L'azienda prevede di superare le stime di fatturato delle royalty rettificate per il 2024 di 22-27,5 milioni di dollari, supportata da una forte performance delle operazioni di Caserones, Gediktepe e Leeville.
I punti salienti finanziari del terzo trimestre del 2024 includono un fatturato rettificato di 9,66 milioni di dollari e un fatturato delle royalties rettificate di 8,82 milioni di dollari. L'azienda ha mantenuto una solida posizione di capitale circolante di 41,83 milioni di dollari al 30 settembre 2024. EMX ha garantito un accordo di credito di 35 milioni di dollari con Franco-Nevada e ha continuato il suo programma di riacquisto delle azioni, riacquistando 692.189 azioni durante il trimestre.
EMX Royalty reportó resultados sólidos para el tercer trimestre de 2024, con un crecimiento significativo en los ingresos ajustados. Excluyendo los pagos de recupero del año anterior, los ingresos ajustados aumentaron un 23% y los ingresos por regalías ajustados crecieron un 45% en comparación con el tercer trimestre de 2023. La empresa espera superar su guía de ingresos por regalías ajustadas de 22 a 27,5 millones de dólares para 2024, impulsada por un fuerte rendimiento de las operaciones de Caserones, Gediktepe y Leeville.
Los aspectos financieros destacados del tercer trimestre de 2024 incluyen ingresos ajustados de 9,66 millones de dólares y ingresos por regalías ajustadas de 8,82 millones de dólares. La empresa mantuvo una sólida posición de capital de trabajo de 41,83 millones de dólares al 30 de septiembre de 2024. EMX aseguró un acuerdo de crédito de 35 millones de dólares con Franco-Nevada y continuó su programa de recompra de acciones, recomprando 692,189 acciones durante el trimestre.
EMX Royalty는 2024년 3분기 실적을 발표하며 조정된 수익에서 유의미한 성장을 보였습니다. 전년도 지연된 지급을 제외하면, 조정된 수익은 23% 증가하였고 조정된 로열티 수익은 2023년 3분기 대비 45% 성장했습니다. 회사는 Caserones, Gediktepe 및 Leeville 운영의 강력한 성과에 힘입어 2024년 조정된 로열티 수익 지침인 2,200만~2,750만 달러를 초과할 것으로 기대하고 있습니다.
2024년 3분기 재무 하이라이트에는 966만 달러의 조정된 수익과 882만 달러의 조정된 로열티 수익이 포함됩니다. 회사는 2024년 9월 30일 기준으로 4,183만 달러의 강력한 운전 자본을 유지했습니다. EMX는 Franco-Nevada와 함께 3,500만 달러의 신용 계약을 확보하고 이번 분기 동안 692,189주를 재매입하는 주식 매입 프로그램을 지속했습니다.
EMX Royalty a rapporté de solides résultats pour le troisième trimestre 2024 avec une croissance significative des revenus ajustés. En excluant les paiements de régularisation de l'année précédente, les revenus ajustés ont augmenté de 23 % et les revenus des redevances ajustées ont crû de 45 % par rapport au troisième trimestre 2023. La société prévoit de dépasser son objectif de revenus de redevance ajustés de 22 à 27,5 millions de dollars pour 2024, soutenue par des performances solides des opérations de Caserones, Gediktepe et Leeville.
Les faits saillants financiers du troisième trimestre 2024 comprennent des revenus ajustés de 9,66 millions de dollars et des revenus de redevances ajustés de 8,82 millions de dollars. L'entreprise a maintenu une solide position de fonds de roulement de 41,83 millions de dollars au 30 septembre 2024. EMX a sécurisé un accord de crédit de 35 millions de dollars avec Franco-Nevada et a continué son programme de rachat d'actions, rachetant 692 189 actions au cours du trimestre.
EMX Royalty berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem signifikanten Wachstum der bereinigten Einnahmen. Ohne Berücksichtigung von Nachzahlungen des Vorjahres stiegen die bereinigten Einnahmen um 23% und die bereinigten Lizenzgebühren um 45% im Vergleich zum dritten Quartal 2023. Das Unternehmen erwartet, die Prognose für die bereinigten Lizenzgebühren für 2024 von 22 bis 27,5 Millionen Dollar zu übertreffen, unterstützt durch eine starke Leistung aus den Caserones, Gediktepe und Leeville-Betrieben.
Die finanziellen Höhepunkte des dritten Quartals 2024 umfassen bereinigte Einnahmen von 9,66 Millionen Dollar und bereinigte Lizenzgebühren von 8,82 Millionen Dollar. Das Unternehmen hielt zum 30. September 2024 eine starke Betriebskapitalposition von 41,83 Millionen Dollar. EMX sicherte sich einen Kreditvertrag über 35 Millionen Dollar mit Franco-Nevada und setzte sein Aktienrückkaufprogramm fort, indem es im Quartal 692.189 Aktien zurückkaufte.
- 45% increase in adjusted royalty revenue compared to Q3 2023
- 72% increase in Gediktepe royalty revenue
- 44% increase in Leeville royalty revenue
- Strong working capital position of $41.83 million
- Secured $35 million credit agreement with Franco-Nevada
- Operating cash flows decreased to -$187,000 from $7.12 million in Q3 2023
- Net income declined to $1.19 million from $2.44 million in Q3 2023
- General and administrative costs increased by 12.7% year-over-year
Insights
EMX Royalty's Q3 2024 results demonstrate robust financial performance with significant growth metrics. Adjusted royalty revenue increased by
Notable financial highlights include:
- Working capital position of
$41.8M - New
$35M credit agreement with Franco-Nevada - Strategic share buybacks totaling
$1.2M in Q3
The operational developments across EMX's portfolio are particularly encouraging. At Caserones, Lundin Mining's exploration program aims to expand resources while optimizing plant throughput. Zijin's activities at Timok, including the development of the lower zone and new exploration targets within EMX's royalty footprint, suggest significant upside potential.
Key operational highlights:
- Gediktepe exceeding 2024 production forecasts
- Increased production rates at Balya North
- Promising exploration results at Viscaria copper project
- Resource expansion at Diablillos project
Vancouver, British Columbia--(Newsfile Corp. - November 7, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the "Company" or "EMX") is pleased to report results for the three and nine months ended September 30, 2024 (in U.S. dollars unless otherwise noted).
In Q3 2024, EMX continued on a strong uptrend due to robust royalty production and strong metal prices. Strong performance during the quarter was marked from Caserones, Gediktepe, and Leeville. EMX continued to invest capital generating and acquiring royalties around the world while our partners invested significant capital to expand operations at existing mines, advance towards the development of new mines, and explore for new opportunities.
Summary of Financial Highlights for the Quarter Ended September 30, 2024 and 2023:
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (In thousands of U.S. dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Statement of Income (Loss) | ||||||||||||
| Revenue and other income2 | $ | 7,027 | $ | 12,925 | $ | 19,272 | $ | 19,075 | ||||
| General and administrative costs | (1,537) | (1,364) | (5,379) | (4,662) | ||||||||
| Royalty generation and project evaluation costs, net | (3,090) | (3,505) | (8,931) | (8,527) | ||||||||
| Net income (loss) | $ | 1,194 | $ | 2,441 | $ | (5,055) | $ | (6,007) | ||||
| Statement of Cash Flows | ||||||||||||
| Cash flows from operating activities | $ | (187) | $ | 7,122 | $ | 326 | $ | 2,787 | ||||
| Non-IFRS Financial Measures1,2 | ||||||||||||
| Adjusted revenue and other income | $ | 9,660 | $ | 14,527 | $ | 26,711 | $ | 26,108 | ||||
| Adjusted royalty revenue | $ | 8,817 | $ | 12,744 | $ | 24,310 | $ | 21,951 | ||||
| GEOs sold | 3,560 | 6,608 | 10,607 | 11,358 | ||||||||
| Adjusted cash flows from operating activities | $ | 1,760 | $ | 8,863 | $ | 5,762 | $ | 7,880 | ||||
| Adjusted EBITDA | $ | 5,071 | $ | 10,168 | $ | 12,933 | $ | 13,390 | ||||
Strong Revenue Growth
| Development of Flagship Assets
|
Exceeding Adjusted Royalty Revenue1 Guidance
| Other Q3 2024 Highlights
|
Outlook
The Company previously announced 2024 guidance of GEOs sales of 11,000 to 14,000, adjusted royalty revenue of
The Company is excited about the prospect for continued growth in the portfolio for 2024 and the coming years. The driver for near and long term growth in cash flow will come from the large deposits at Caserones in Chile and Timok in Serbia. At Caserones, Lundin has initiated an exploration program which is intended to expand mineral resources and mineral reserves while at the same time looking to increase throughput at the plant. At Timok, Zijin Mining Group Co. continues to increase its production rates in the upper zone copper-gold deposit while developing the lower zone, which we believe will be one of the more important block cave development projects in the world. Zijin also highlighted a recently discovered exploration target south of the Cukaru Peki mine and within EMX's royalty footprint. Analysis of recent satellite imagery over the Brestovac license, which contains the Cukaru Peki Mine and is covered by EMX's royalty, shows substantial development of new drill pads with numerous drill rigs visible in the images in the southeast corner of the license.
In terms of other producing royalty assets, the Company expects Gediktepe, Leeville, and Gold Bar South to mirror what occurred in 2023. In Türkiye, Gediktepe continues to perform well and is ahead of its production forecast for 2024 (as of the end of Q3) and production rates at Balya North continued to increase in Q3. New and compelling exploration results were announced at the Viscaria copper-iron-silver development project in Q3 and the new owner/operator of Gediktepe highlighted potential for additional oxide gold and polymetallic sulfide mineralization beyond the currently defined resources. We are also excited about the advancement of Diablillos in Argentina by AbraSilver Resource Corp. where the company continues to expand the mineral resource. These developments are all examples of the remarkable optionality that exists through EMX’s global royalty portfolio.
EMX believes it is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties heading into 2025. As the Company continues to generate revenues from its producing royalty assets and from other option, advance royalty and pre-production payments across its global asset portfolio, various opportunities for capital redeployment will be evaluated. Such opportunities may include the direct acquisition of royalties, continued organic generation of royalties through partner funded projects, purchase of strategic investments, share buybacks through the Normal Course Issuer Bid or debt repayment. Through the astute allocation of capital, EMX will seek to build upon its recent years of success and continue creating value for shareholders into the future.
Third Quarter Results for 2024
In Q3 2024, the Company recognized
The following table is a summary of GEOs4 sold and adjusted royalty revenue4 for the three months ended September 30, 2024 and 2023:
| 2024 | 2023 | |||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands) | |||||||
| Caserones | 1,063 | $ | 2,633 | 831 | $ | 1,602 | ||||
| Timok6 | 499 | 1,236 | 3,987 | 7,689 | ||||||
| Gediktepe | 1,354 | 3,353 | 1,014 | 1,955 | ||||||
| Leeville | 449 | 1,112 | 401 | 773 | ||||||
| Balya | 139 | 344 | 295 | 568 | ||||||
| Gold Bar South | 42 | 104 | 31 | 59 | ||||||
| Advanced royalty payments | 14 | 35 | 51 | 98 | ||||||
| Adjusted royalty revenue | 3,560 | $ | 8,817 | 6,608 | $ | 12,744 | ||||
Included in the quarterly revenue for Caserones was a true up of
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the nine months ended September 30, 2024 and 2023:
| 2024 | 2023 | |||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands) | |||||||
| Caserones | 3,232 | $ | 7,439 | 3,630 | $ | 7,033 | ||||
| Timok6 | 1,789 | 4,089 | 3,987 | 7,689 | ||||||
| Gediktepe | 3,569 | 8,149 | 2,098 | 4,056 | ||||||
| Leeville | 1,374 | 3,163 | 1,019 | 1,971 | ||||||
| Balya | 367 | 852 | 380 | 730 | ||||||
| Gold Bar South | 150 | 346 | 98 | 193 | ||||||
| Advanced royalty payments | 127 | 272 | 145 | 279 | ||||||
| Adjusted royalty revenue | 10,607 | $ | 24,310 | 11,358 | $ | 21,951 | ||||
Net royalty generation and project evaluation costs decreased from
Not inclusive of the net royalty generation and project evaluation cost, EMX earned
Third Quarter Corporate Updates
Appointment of Stefan Wenger as Chief Financial Officer
During the three months ended September 30, 2024, the Company announced the appointment of Mr. Stefan L. Wenger as Chief Financial Officer effective October 1, 2024. Mr. Wenger was previously the Chief Financial Officer and Treasurer of Royal Gold, Inc., one of the mining industry's leading royalty companies, from 2006 to 2018.
Credit Agreement with Franco-Nevada Corporation
In August 2024, the Company entered into a
Normal Course Issuer Bid
During Q3 2024 the Company repurchased and returned to treasury 692,189 common shares at a cost of
Qualified Persons
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America and Latin America, except for Caserones. Consulting Chief Mining Engineer Mark S. Ramirez, SME Registered Member #04039495, a Qualified Person as defined by NI 43-101 and consultant to the Company, has reviewed, verified and approved the above technical disclosure with respect to the Caserones Mine. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Türkiye and Australia.
Shareholder Information - The Company's filings for the year are available on SEDAR+ at www.sedarplus.ca, on the U.S. Securities and Exchange Commission's EDGAR website at www.sec.gov, and on EMX's website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
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 | Isabel Belger Investor Relations |
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 information" or "forward-looking statements" that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding the future price of copper, gold and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production, the Company's growth strategy and expectations regarding the guidance for 2024 and future outlook, including revenue and GEO estimates, refinancing outstanding debt and the timing thereof, the acquisition of additional royalty interests and partnerships, the purchase of securities pursuant to the Company's NCIB or other statements that are not statements of fact. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "expects," "anticipates," "believes," "plans," "projects," "estimates," "assumes," "intends," "strategy," "goals," "objectives," "potential," "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect, including disruption to production at any of the mineral properties in which the Company has a royalty, or other interest; estimated capital costs, operating costs, production and economic returns; estimated metal pricing (including the estimates from the CIBC Global Mining Group's Consensus Commodity Price Forecasts published on January 2, 2024), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company's resource and reserve estimates; the expected ability of any of the properties in which the Company holds a royalty, or other interest to develop adequate infrastructure at a reasonable cost; assumptions that all necessary permits and governmental approvals will remain in effect or be obtained as required to operate, develop or explore the various properties in which the Company holds an interest; and the activities on any on the properties in which the Company holds a royalty, or other interest will not be adversely disrupted or impeded by development, operating or regulatory risks or any other government actions.
Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to maintain or receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, copper, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the Company's MD&A for the quarter ended September 30, 2024, 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. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
Future-Oriented Financial Information
This news release may contain future-oriented financial information ("FOFI") within the meaning of Canadian securities legislation, about prospective results of operations, financial position, GEOs and anticipated royalty payments based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by management to provide an outlook of the Company's activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the headings above entitled "2024 Guidance", "Outlook" and "Forward-Looking Statements" and assumptions with respect to the future metal prices, the estimation of mineral reserves and resources, realization of mineral reserve estimates and the timing and amount of estimated future production. Management does not have, or may not have had at the relevant date, or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects are not, or may not have been at the relevant date of the FOFI, objectively determinable.
Importantly, the FOFI contained in this news release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing of metals, (ii) the future market demand and trends within the jurisdictions in which the Company or the mining operators operate, and (iii) the operating cost and effect on the production of the Company's royalty partners. The FOFI or financial outlook contained in this news release do not purport to present the Company's financial condition in accordance with IFRS, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled "Forward-Looking Statements" and under the heading "Risk Factors" in the Company's public disclosures, FOFI or financial outlook within this news release should not be relied on as necessarily indicative of future results.
Non-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this press release, as discussed below. EMX believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. These non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation. A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.
The following table outlines the non-IFRS financial measures, their definitions, the most directly comparable IFRS measures and why the Company use these measures.
| Non-IFRS financial measure | Definition | Most directly comparable IFRS measure | Why we use the measure and why it is useful to investors |
| Adjusted revenue and other income | Defined as revenue and other income including the Company's share of royalty revenue related to the Company's effective royalty on Caserones. | Revenue and other income | The Company believes these measures more accurately depict the Company's revenue related to operations as the adjustment is to account for revenue from a material asset |
| Adjusted royalty revenue | Defined as royalty revenue including the Company's share of royalty revenue related to the Company's effective royalty on Caserones. | Royalty revenue | |
| Adjusted cash flows from operating activities | Defined as cash flows from operating activities plus the cash distributions related to the Company's effective royalty on Caserones. | Cash flows from operating activities | The Company believes this measure more accurately depicts the Company's cash flows from operations as the adjustment is to account for cash flows from a material asset. |
| Gold equivalent ounces (GEOs) | GEOs is a non-IFRS measure that is based on royalty interests and calculated on a quarterly basis by dividing adjusted royalty revenue by the average gold price during such quarter. The gold price is determined based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period. | Royalty revenue | The Company uses this measure internally to evaluate our underlying operating performance across the royalty portfolio for the reporting periods presented and to assist with the planning and forecasting of future operating results. |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA | EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, finance costs. Adjusted EBITDA adds all revenue from the Caserones Royalty less any equity income from the equity investment in SLM California (Caserones Royalty holder). Additionally, it removes the effects of items that do not reflect our underlying operating performance and are not necessarily indicative of future operating results. These may include: share based payments expense; unrealized and realized gains and losses on investments; write-downs of assets; impairments or reversals of impairments; foreign exchange gains or losses; and other non-cash or non-recurring expenses or recoveries. | Earnings or loss before income tax | The Company believes EBITDA and adjusted EBITDA are widely used by investors and analysts as useful indicators of our operating performance, our ability to invest in capital expenditures, our ability to incur and service debt and also as a valuation metric. |
Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:
During the three months ended September 30, 2024 and 2023, the Company had the following sources of revenue and other income:
| (In thousands of dollars) | Three months ended September 30, | Nine months ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Royalty revenue | $ | 6,184 | $ | 11,142 | $ | 16,871 | $ | 14,918 | ||||
| Option and other property income | 310 | 1,409 | 990 | 3,109 | ||||||||
| Interest income | 533 | 374 | 1,411 | 1,048 | ||||||||
| Total revenue and other income | $ | 7,027 | $ | 12,925 | $ | 19,272 | $ | 19,075 | ||||
The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||
| Revenue and other income | $ | 7,027 | $ | 12,925 | $ | 19,272 | $ | 19,075 | |||
| SLM California royalty revenue | $ | 6,162 | $ | 4,002 | $ | 17,409 | $ | 17,586 | |||
| The Company's ownership % | 42.7 | 40.0 | 42.7 | 40.0 | |||||||
| The Company's share of royalty revenue | $ | 2,633 | $ | 1,602 | $ | 7,439 | $ | 7,033 | |||
| Adjusted revenue and other income | $ | 9,660 | $ | 14,527 | $ | 26,711 | $ | 26,108 | |||
| Royalty revenue | $ | 6,184 | $ | 11,142 | $ | 16,871 | $ | 14,918 | |||
| The Company's share of royalty revenue | 2,633 | 1,602 | 7,439 | 7,033 | |||||||
| Adjusted royalty revenue | $ | 8,817 | $ | 12,744 | $ | 24,310 | $ | 21,951 | |||
Reconciliation of GEOs:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||
| Adjusted royalty revenue | $ | 8,817 | $ | 12,744 | $ | 24,310 | $ | 21,951 | |||
| Average gold price per ounce | $ | 2,477 | $ | 1,929 | $ | 2,292 | $ | 1,933 | |||
| Total GEOs | 3,560 | 6,608 | 10,607 | 11,358 | |||||||
Reconciliation of Adjusted Cash Flows from Operating Activities:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||
| Cash provided by (used in) operating activities | $ | (187) | $ | 7,122 | $ | 326 | $ | 2,787 | |||
| Caserones royalty distributions | 1,947 | 1,741 | 5,436 | 5,093 | |||||||
| Adjusted cash flows from operating activities | $ | 1,760 | $ | 8,863 | $ | 5,762 | $ | 7,880 | |||
Reconciliation of EBITDA and Adjusted EBITDA:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | |||||||
| Income (loss) before income taxes | $ | 1,226 | $ | 4,515 | $ | (4,439) | $ | (2,225) | |||
| Finance expense | 921 | 1,298 | 3,066 | 3,809 | |||||||
| Depletion, depreciation, and direct royalty taxes | 2,230 | 1,595 | 6,018 | 3,237 | |||||||
| EBITDA | $ | 4,377 | $ | 7,408 | $ | 4,645 | $ | 4,821 | |||
| Attributable revenue from Caserones royalty | 2,633 | 1,602 | 7,439 | 7,034 | |||||||
| Equity income from investment in SLM California | (1,276) | (733) | (3,484) | (2,988) | |||||||
| Share-based payments | 359 | 1,538 | 1,902 | 1,763 | |||||||
| Loss (gain) on revaluation of investments | (1,778) | 160 | (3,004) | 869 | |||||||
| Loss (gain) on sale of marketable securities | 307 | (39) | 2,253 | 420 | |||||||
| Foreign exchange (gain) loss | (51) | 401 | 204 | 1,366 | |||||||
| Loss (gain) on revaluation of derivative liabilities | (283) | (336) | (176) | 62 | |||||||
| Loss on revaluation of receivables | - | 124 | - | - | |||||||
| Other losses | - | - | 2,326 | - | |||||||
| Loss on debt settlement | 783 | - | 783 | - | |||||||
| Impairment charges | - | 43 | 45 | 43 | |||||||
| Adjusted EBITDA | $ | 5,071 | $ | 10,168 | $ | 12,933 | $ | 13,390 | |||
1 Refer to the "Non-IFRS financial measures" section below and on page 29 of the Q3 2024 MD&A for more information on each non-IFRS financial measure.
2 Included in Q3 2023 and Q3 YTD 2023 was
3 Excluding
4 Refer to the "Non-IFRS financial measures" section below and on page 29 of the Q3 2024 MD&A for more information on each non-IFRS financial measure.
5 Excluding
6 Included in Q3 2023 and Q3 YTD 2023 was
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FAQ
What was EMX Royalty's adjusted revenue growth in Q3 2024?
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