EMX Royalty Announces Share Buyback

Rhea-AI Summary

EMX Royalty (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) has announced a significant share buyback through its existing Normal Course Issuer Bid (NCIB). The company recently repurchased 2 million shares in a block trade at C$2.05 per share, totaling C$4.1 million (approximately US$3.0M). Since the NCIB's announcement on February 7, 2024, EMX has bought back a total of 2,805,346 shares at an average price of C$2.15, amounting to about C$6.0 million. The company can still purchase an additional 2,194,654 shares under the current NCIB program, which expires on February 13, 2025. EMX CEO Dave Cole stated that the company is committed to prudent capital allocation and believes EMX shares are undervalued, expecting the buybacks to provide exceptional risk-adjusted returns on capital.

Positive

• Repurchase of 2 million shares at C$2.05 per share, totaling C$4.1 million
• Total of 2,805,346 shares bought back since NCIB announcement at an average price of C$2.15
• Potential for additional 2,194,654 shares to be repurchased under current NCIB program
• Management believes shares are undervalued, indicating confidence in the company's future

Negative

• None.

Insights

Financial Analyst

EMX Royalty's recent share buyback of C$4.1 million (US$3.0 million) is a significant move, representing over 2% of its market cap. This action, part of a larger NCIB program, signals management's confidence in the company's intrinsic value. The average repurchase price of C$2.15 per share suggests they see the stock as undervalued. For investors, this could be positive as it potentially increases earnings per share and demonstrates efficient capital allocation. However, it's important to consider the opportunity cost of using C$6.0 million for buybacks instead of exploration or acquisitions in the royalty space. The remaining authorization for 2,194,654 shares provides flexibility for further repurchases, which could support the stock price in the short term.

Market Research Analyst

This share buyback initiative by EMX Royalty is noteworthy in the context of the junior mining sector. With a market cap of about $198 million, the company's commitment to repurchasing shares is substantial. The block trade at C$2.05 per share might indicate a large shareholder exit, which EMX capitalized on. This move could be seen as a strategic defense against potential undervaluation in a volatile commodities market. For investors, it's a double-edged sword: while it shows management's belief in the company's prospects, it also reduces cash available for project development. The timing and price of these buybacks will be important in determining their long-term value creation. Investors should monitor how this affects EMX's liquidity and its ability to pursue growth opportunities in the royalty and streaming space.

Vancouver, British Columbia--(Newsfile Corp. - October 4, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the "Company" or "EMX") is pleased to announce it has recently repurchased shares in a block trade from an undisclosed seller via its existing Normal Course Issuer Bid ("NCIB") in the amount of two million shares at a price of C$2.05, totaling C$4.1 million or approximately US$3.0M. Since the NCIB was announced on February 7, 2024, EMX has purchased a total of 2,805,346 shares at an average price of C$2.15, totaling approximately C$6.0M. EMX may purchase a remaining 2,194,654 shares under the current NCIB program expiring February 13, 2025.

EMX CEO Dave Cole commented "EMX is committed to astute allocation of capital. We believe EMX shares are undervalued. Buybacks at these levels should provide exceptional risk-adjusted returns on capital."

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, but which 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 the Company being unable to comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, 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 June 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/225549

FAQ

How many shares did EMX Royalty (EMX) repurchase in its recent block trade?

EMX Royalty repurchased 2 million shares in a recent block trade from an undisclosed seller.

What was the price per share for EMX Royalty's (EMX) recent share buyback?

The price per share for EMX Royalty's recent share buyback was C$2.05.

How many shares can EMX Royalty (EMX) still purchase under its current NCIB program?

EMX Royalty can still purchase 2,194,654 shares under its current NCIB program.

When does EMX Royalty's (EMX) current NCIB program expire?

EMX Royalty's current NCIB program expires on February 13, 2025.