EMX Royalty Announces Year-End Financial Results; Record Adjusted Royalty Revenue; and Positive Outlook for 2025
EMX Royalty (NYSE American: EMX) reported strong financial results for the year ended December 31, 2024, with significant growth across key metrics. The company achieved adjusted revenue of $36.7 million (up 14%) and adjusted royalty revenue of $33.1 million (up 28%).
Key financial highlights include adjusted EBITDA of $19.2 million (up 21%) and adjusted operating cash flow of $13.6 million (up 46%). The company maintained strong liquidity with $26.8 million in cash and a working capital surplus of $41.5 million.
Strategic developments in 2024 included:
- Increased NSR royalty in Caserones from 0.7775% to 0.8306%
- Refinanced corporate debt with Franco-Nevada
- Acquired 2% NSR royalty on Chapi Copper Mine for $10 million
- Repurchased 5 million shares (4.44% of outstanding shares)
For 2025, EMX projects GEO sales between 10,000-12,000 GEOs, with expected decrease due to copper price exposure. The company aims to reduce operating expenditures by 20% compared to 2024.
EMX Royalty (NYSE American: EMX) ha riportato risultati finanziari solidi per l'anno conclusosi il 31 dicembre 2024, con una crescita significativa in vari indicatori chiave. L'azienda ha raggiunto ricavi rettificati di 36,7 milioni di dollari (in aumento del 14%) e ricavi da royalty rettificati di 33,1 milioni di dollari (in aumento del 28%).
I principali punti salienti finanziari includono EBITDA rettificato di 19,2 milioni di dollari (in aumento del 21%) e flusso di cassa operativo rettificato di 13,6 milioni di dollari (in aumento del 46%). L'azienda ha mantenuto una solida liquidità con 26,8 milioni di dollari in contante e un surplus di capitale circolante di 41,5 milioni di dollari.
Sviluppi strategici nel 2024 hanno incluso:
- Aumento della royalty NSR a Caserones dallo 0,7775% allo 0,8306%
- Rifinanziamento del debito aziendale con Franco-Nevada
- Acquisizione di una royalty NSR del 2% sulla miniera di rame Chapi per 10 milioni di dollari
- Riacquisto di 5 milioni di azioni (4,44% delle azioni in circolazione)
Per il 2025, EMX prevede vendite di GEO tra 10.000 e 12.000 GEO, con una diminuzione attesa a causa dell'esposizione al prezzo del rame. L'azienda mira a ridurre le spese operative del 20% rispetto al 2024.
EMX Royalty (NYSE American: EMX) informó resultados financieros sólidos para el año que finalizó el 31 de diciembre de 2024, con un crecimiento significativo en métricas clave. La empresa logró ingresos ajustados de 36,7 millones de dólares (un aumento del 14%) y ingresos por regalías ajustados de 33,1 millones de dólares (un aumento del 28%).
Los aspectos financieros clave incluyen EBITDA ajustado de 19,2 millones de dólares (un aumento del 21%) y flujo de caja operativo ajustado de 13,6 millones de dólares (un aumento del 46%). La empresa mantuvo una sólida liquidez con 26,8 millones de dólares en efectivo y un superávit de capital de trabajo de 41,5 millones de dólares.
Los desarrollos estratégicos en 2024 incluyeron:
- Aumento de la regalía NSR en Caserones del 0,7775% al 0,8306%
- Refinanciación de la deuda corporativa con Franco-Nevada
- Adquisición de una regalía NSR del 2% en la mina de cobre Chapi por 10 millones de dólares
- Recompra de 5 millones de acciones (4,44% de las acciones en circulación)
Para 2025, EMX proyecta ventas de GEO entre 10,000 y 12,000 GEO, con una disminución esperada debido a la exposición al precio del cobre. La empresa busca reducir los gastos operativos en un 20% en comparación con 2024.
EMX 로열티 (NYSE American: EMX)는 2024년 12월 31일로 종료된 회계연도에 대한 강력한 재무 결과를 보고했으며, 주요 지표에서 상당한 성장을 기록했습니다. 회사는 조정된 수익 3,670만 달러 (14% 증가)와 조정된 로열티 수익 3,310만 달러 (28% 증가)를 달성했습니다.
주요 재무 하이라이트에는 조정된 EBITDA 1,920만 달러 (21% 증가)와 조정된 운영 현금 흐름 1,360만 달러 (46% 증가)가 포함됩니다. 회사는 2,680만 달러의 현금을 보유하고 있으며 4,150만 달러의 운전자본 잉여를 유지하여 강력한 유동성을 유지했습니다.
2024년의 전략적 개발에는:
- Caserones의 NSR 로열티를 0.7775%에서 0.8306%로 증가
- Franco-Nevada와의 기업 부채 재융자
- 10백만 달러에 Chapi 구리 광산의 2% NSR 로열티 인수
- 500만 주 매입 (발행 주식의 4.44%)
2025년을 위해 EMX는 10,000-12,000 GEO의 판매를 예상하며, 구리 가격 노출로 인해 감소할 것으로 보입니다. 회사는 2024년 대비 운영 비용을 20% 줄이는 것을 목표로 하고 있습니다.
EMX Royalty (NYSE American: EMX) a annoncé des résultats financiers solides pour l'année se terminant le 31 décembre 2024, avec une croissance significative dans des indicateurs clés. La société a atteint des revenus ajustés de 36,7 millions de dollars (en hausse de 14%) et des revenus de redevances ajustés de 33,1 millions de dollars (en hausse de 28%).
Les points forts financiers comprennent un EBITDA ajusté de 19,2 millions de dollars (en hausse de 21%) et un flux de trésorerie opérationnel ajusté de 13,6 millions de dollars (en hausse de 46%). La société a maintenu une forte liquidité avec 26,8 millions de dollars en espèces et un excédent de fonds de roulement de 41,5 millions de dollars.
Les développements stratégiques en 2024 ont inclus:
- Augmentation de la redevance NSR à Caserones de 0,7775% à 0,8306%
- Refinancement de la dette d'entreprise avec Franco-Nevada
- Acquisition d'une redevance NSR de 2% sur la mine de cuivre Chapi pour 10 millions de dollars
- Rachat de 5 millions d'actions (4,44% des actions en circulation)
Pour 2025, EMX prévoit des ventes de GEO entre 10 000 et 12 000 GEO, avec une diminution attendue en raison de l'exposition au prix du cuivre. La société vise à réduire ses dépenses d'exploitation de 20% par rapport à 2024.
EMX Royalty (NYSE American: EMX) berichtete über starke finanzielle Ergebnisse für das am 31. Dezember 2024 endende Jahr, mit erheblichem Wachstum in wichtigen Kennzahlen. Das Unternehmen erzielte bereinigte Einnahmen von 36,7 Millionen Dollar (ein Anstieg von 14%) und bereinigte Lizenzgebühren von 33,1 Millionen Dollar (ein Anstieg von 28%).
Wichtige finanzielle Höhepunkte umfassen bereinigtes EBITDA von 19,2 Millionen Dollar (ein Anstieg von 21%) und bereinigten operativen Cashflow von 13,6 Millionen Dollar (ein Anstieg von 46%). Das Unternehmen hielt eine starke Liquidität mit 26,8 Millionen Dollar in bar und einem Überschuss an Betriebskapital von 41,5 Millionen Dollar.
Strategische Entwicklungen im Jahr 2024 umfassten:
- Erhöhung der NSR-Lizenzgebühr in Caserones von 0,7775% auf 0,8306%
- Refinanzierung der Unternehmensschulden mit Franco-Nevada
- Erwerb einer 2% NSR-Lizenzgebühr auf die Chapi Kupfermine für 10 Millionen Dollar
- Rückkauf von 5 Millionen Aktien (4,44% der ausstehenden Aktien)
Für 2025 prognostiziert EMX GEO-Verkäufe zwischen 10.000 und 12.000 GEO, wobei ein Rückgang aufgrund der Kupferpreisaussetzung erwartet wird. Das Unternehmen plant, die Betriebsausgaben im Vergleich zu 2024 um 20% zu senken.
- Record-high adjusted royalty revenue of $33.1 million, up 28%
- Strong adjusted EBITDA growth of 21% to $19.2 million
- Increased Caserones NSR royalty from 0.7775% to 0.8306%
- Solid liquidity position with $26.8M cash and $41.5M working capital surplus
- Expected $3.0M reduction in cash operating expenditures for 2025
- Projected decrease in GEO sales for 2025 due to copper price exposure
- Missed option and property income guidance due to lower deal flow
- Delayed sale of 20,000 tonnes of copper concentrates from Caserones to 2025
- Lower than expected revenue at Caserones in Q4 2024 with $0.4M downward adjustment
Insights
EMX Royalty's 2024 financial results reveal solid performance with record-high adjusted royalty revenue of $33.1 million (up 28% year-over-year) and adjusted EBITDA of $19.2 million (up 21%). The company demonstrated strong cash flow conversion with adjusted operating cash flow increasing 46% to $13.6 million. Its balance sheet remains robust with $26.8 million in cash and a $41.5 million working capital surplus, providing ample financial flexibility.
The key royalty assets - Caserones, Timok, Leeville, and Gediktepe - all performed well, driving EMX to the upper range of its GEO sales guidance for 2024. However, EMX expects 2025 GEO sales to range from 10,000-12,000, potentially lower than 2024 due to copper exposure at Caserones and Timok amid rising gold prices (which reduces copper-based GEOs).
Strategic developments are promising - EMX increased its effective NSR royalty at Caserones from 0.7775% to 0.8306%, refinanced corporate debt into a long-term senior secured loan maturing in 2029, and acquired a 2% NSR royalty on the Chapi Copper Mine for
A temporary issue worth noting: Caserones experienced a delay in selling approximately 20,000 tonnes of copper concentrates in December 2024 due to operational and weather issues, with this revenue now expected in 2025. Despite this delay, EMX's diversified royalty portfolio and disciplined capital management position it well for continued growth.
EMX's 2024 performance underscores the power of a diversified royalty portfolio in capturing commodity market strength. The strategic increase in the Caserones NSR royalty to 0.8306% is particularly significant as Lundin Mining has initiated exploration programs aimed at expanding resources and reserves while working to increase plant throughput - creating multiple vectors for potential royalty revenue growth.
The Timok royalty also shows promising upside beyond current production. Satellite imagery reveals substantial development of new drill pads with multiple rigs visible in the southeast corner of the Brestovac license, which contains the Cukaru Peki mine. Zijin Mining has highlighted a newly discovered exploration target south of the mine that sits within EMX's royalty footprint. The continued development of the lower zone at Timok represents significant potential value that isn't fully reflected in current financials.
The
Vancouver, British Columbia--(Newsfile Corp. - March 12, 2025) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the "Company" or "EMX") is pleased to report results for the year ended December 31, 2024. For the year, EMX delivered revenue and other income of
Dave Cole, EMX CEO, commented, "2024 was a transformational year for EMX. We achieved record-high adjusted royalty revenue, secured a royalty expansion at Caserones, and strengthened our financial position through disciplined capital management and opportunistic share buybacks. With Caserones, Timok, Leeville and Gediktepe performing well, and with a strong balance sheet, we enter 2025 with good momentum. Further, I anticipate a reduction in our cash operating expenditures in 2025 of more than
2024 Financial Highlights
Adjusted revenue and other income1 of
$36.7 million , up14% 2 over prior year;Adjusted royalty revenue1 of
$33.1 million , up28% 2 over prior year;Adjusted EBITDA1 of
$19.2 million , up21% 2 over prior year, demonstrating strong cash flow conversion;Adjusted operating cash flow1 of
$13.6 million , up46% 2 over prior year; andCash and cash equivalents as of December 31, 2024 of
$26.8 million and a working capital surplus1 of$41.5 million , demonstrating financial flexibility for growth.
Financial Summary for the Three Months and Year Ended December 31, 2024:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Statement of Income | ||||||||||||
| Revenue and other income | $ | 8,176 | $ | 7,546 | $ | 27,448 | $ | 26,621 | ||||
| General and administrative | $ | (1,705 | ) | $ | (1,383 | ) | $ | (7,084 | ) | $ | (6,045 | ) |
| Royalty generation and project evaluation costs, net | $ | (2,053 | ) | $ | (2,279 | ) | $ | (10,984 | ) | $ | (10,806 | ) |
| Net income (loss) | $ | 1,767 | $ | 1,374 | $ | (3,288 | ) | $ | (4,633 | ) | ||
| Statement of Cash Flows | ||||||||||||
| Cash flows from operating activities | $ | 6,492 | $ | 4,272 | $ | 6,818 | $ | 7,059 | ||||
| Non-IFRS Financial Measures1 | ||||||||||||
| Adjusted revenue and other income | $ | 10,000 | $ | 10,920 | $ | 36,711 | $ | 37,028 | ||||
| Adjusted royalty revenue | $ | 8,757 | $ | 8,743 | $ | 33,067 | $ | 30,694 | ||||
| Adjusted cash flows from operating activities | $ | 7,828 | $ | 6,192 | $ | 13,590 | $ | 14,072 | ||||
| EBITDA | $ | 6,258 | $ | 2,123 | $ | 10,903 | $ | 6,944 | ||||
| Adjusted EBITDA | $ | 6,287 | $ | 7,279 | $ | 19,220 | $ | 20,668 | ||||
| GEOs sold | 3,290 | 4,424 | 13,897 | 15,782 | ||||||||
[1] Refer to the "Non-IFRS financial measures" section below or on page 44 of the Q4 2024 MD&A for more information on each non-IFRS financial measure. These non-IFRS measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements to which the measures relates and might not be comparable to similar financial measures disclosed by other issuers.
[2] Excluding
Key Strategic Developments
During the year ended December 31, 2024, and the period subsequent to year end, EMX has completed several key transactions that demonstrate our strategy of incremental revenue growth and disciplined capital management as we move into 2025. These key developments include:
We increased our (effective) net smelter return ("NSR") royalty in the Caserones property from
0.7775% to0.8306% ;Refinanced our corporate debt into a long-term senior secured term loan with Franco-Nevada Corporation maturing in July 2029;
In September 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;
Completed the acquisition of a
2% NSR royalty on the Chapi Copper Mine in Peru for a total purchase price of$10 million , which we expect will begin contributing revenue to EMX in 2026; andWe repurchased and cancelled 5,000,000 shares over the past twelve months, representing approximately
4.44% of issued and outstanding shares.
2024 Results and 2025 Guidance
Please see our MD&A for the year ended December 31, 2024 for more details on our guidance and see "Forward-Looking Statements" and "Future-Oriented Financial Information" below.
GEO Sales and Revenue Guidance
The following is the Company's 2025 guidance and an evaluation of the Company's 2024 performance compared to our 2024 Guidance:
| 2025 Guidance1 | 2024 Results | 2024 Guidance2 | |
| GEO sales3 | 10,000 to 12,000 | 13,897 | 11,000 to 14,000 |
| Adjusted royalty revenue3 | |||
| Option and other property income |
For 2024, strong performances during the year were marked by all producing royalties including Gediktepe, Caserones, Timok, and Leeville. This resulted in the achievement of the upper range of our GEO sales guidance and significantly exceeding our adjusted royalty revenue guidance. The Company did not meet its option and other property income guidance due to lower than expected deal flow during the year.
Based on the Company's existing royalties and information available from its counterparties, we expect GEO sales to range from 10,000 to 12,000 GEOs in 2025. The noted decrease in expected GEOs compared to 2024 is due to EMX's heavy exposure to copper-based assets, specifically, Caserones and Timok. With copper prices being relatively stable, a significant increase in gold prices will have a negative impact on the GEOs of a copper-based asset.
Guidance in 2025 is based on public forecasts, other disclosure by the owners and operators of our assets, historical performance, and management's understanding of the underlying producing assets. Additionally, the Company may receive information from the owners and operators of the properties, which the Company is not permitted to disclose to the public pursuant to the underlying agreement or the information has not been prepared in accordance with Canadian disclosure standards, including National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
[1] Assumed commodity prices of
[2] See news released dated March 25, 2024. Assumed commodity prices of
[3] Refer to the "Non-IFRS financial measures" section below or on page 44 of the Q4 2024 MD&A for more information on each non-IFRS financial measure.
Outlook
Capital Management
We have established the following capital allocation goals for 2025:
Achieve a
20% decrease in operating expenditures when compared to 2024, primarily resulting from a decrease in generative expenditures;Continued return of capital through a renewed Normal-Course Issuer Bid ("NCIB") program in 2025;
Implementation of a measured and consistent debt repayment strategy; and
Evaluation of a potential revolving credit facility available to EMX to fund royalty acquisitions.
Portfolio Growth
The Company is excited about the prospect for continued growth in the portfolio for 2025 and the coming years. The drivers 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 Mining Corporation 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. ("Zijin") continues to develop the lower zone. 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 Türkiye, Gediktepe continues to perform well and beats its production forecast for 2024 and the new owner/operator of Gediktepe highlighted potential for additional oxide gold and polymetallic sulfide mineralization beyond the currently defined resources.
We anticipate the recently announced
AbraSilver Resource Corp. ("AbraSilver") continues to advance Diablillos in Argentina and announced results from a pre-feasibility study in December 2024. Additionally, we are due to receive at
EMX is well positioned to identify and pursue new royalty and investment opportunities in 2025, while continuing to grow a pipeline of royalty generation properties. 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 and purchase of select strategic investments.
Fourth Quarter and Full Year 2024 GEOs1 Sold and Adjusted Royalty Revenue1 by Asset
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the fourth quarter of 2024 and 2023:
| 2024 | 2023 | |||||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands) | |||||||||
| Caserones | 685 | $ | 1,824 | 1,707 | $ | 3,374 | ||||||
| Timok | 423 | 1,127 | 477 | 943 | ||||||||
| Gediktepe | 1,430 | 3,805 | 1,335 | 2,638 | ||||||||
| Leeville | 414 | 1,101 | 589 | 1,164 | ||||||||
| Other producing royalties | 231 | 614 | 159 | 315 | ||||||||
| Advanced royalty payments | 107 | 286 | 156 | 309 | ||||||||
| Total | 3,290 | $ | 8,757 | 4,424 | $ | 8,743 | ||||||
In Q4 2024 there was an adjustment at Caserones to decrease revenue by
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the year ended December 31, 2024 and 2023:
| 2024 | 2023 | |||||||||||
| GEOs Sold | Revenue (in thousands) | GEOs Sold | Revenue (in thousands | |||||||||
| Caserones | 3,917 | $ | 9,263 | 5,351 | $ | 10,407 | ||||||
| Timok2 | 2,212 | 5,216 | 4,438 | 8,632 | ||||||||
| Gediktepe | 4,999 | 11,954 | 3,442 | 6,694 | ||||||||
| Leeville | 1,787 | 4,264 | 1,612 | 3,135 | ||||||||
| Other producing royalties | 747 | 1,812 | 637 | 1,238 | ||||||||
| Advanced royalty payments | 235 | 558 | 302 | 588 | ||||||||
| Adjusted royalty revenue | 13,897 | $ | 33,067 | 15,782 | $ | 30,694 | ||||||
The decrease in revenue at Caserones for the year ended December 31, 2024 was primarily attributed to the delay of the sale of approximately 20,000 tonnes of copper concentrates that were planned to be sold in December 2024 due to operational and weather related issues. EMX expects to recognize the revenue associated with the delayed shipments in 2025.
[1] Refer to the "Non-IFRS financial measures" section below or on page 44 of the Q4 2024 MD&A for more information on each non-IFRS financial measure.
[2] Includes
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 President and CEO Phone: (303) 973-8585 Dave@EMXroyalty.com | Stefan Wenger Chief Financial Officer Phone: (303) 973-8585 SWenger@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 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 mineral 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 2025 and future outlook, including revenue and GEO estimates, anticipated reductions in operating expenditures, repayment of outstanding debt and the timing thereof, the acquisition of additional royalty and royalty generation interests and other investment opportunities, the purchase of securities pursuant to the Company's NCIB, exploration and development plans at the Company's royalty properties and the expected timing thereof 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 March 3, 2025), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company's mineral resource and mineral 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, global trade uncertainties, 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 year ended December 31, 2024, and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2024, 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 Results and 2025 Guidance", "Outlook" and "Forward-Looking Statements" and assumptions with respect to the future metal prices, the estimation of mineral reserves and mineral 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. Each non-IFRS financial measure in this press release is not a standardized financial measure under the financial reporting framework used to prepare the consolidated financial statements of the Company for years ended December 31, 2024 and 2023, and might not be comparable to similar financial measures disclosed by other issuers.
Non-IFRS financial measures or "non-GAAP 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. | |||
| 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. | |||
| 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. | |||
| Working capital | Defined as current assets less current liabilities. Working capital does not include assets held for sale and liabilities associated with assets held for sale. | Current assets, current liabilities | We believe that working capital is a useful indicator of the Company's liquidity. |
Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:
During the three months and years ended December 31, 2024 and 2023, the Company had the following sources of revenue and other income:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Royalty revenue | $ | 6,933 | $ | 5,369 | $ | 23,804 | $ | 20,287 | ||||
| Option and other property income | 734 | 1,676 | 1,724 | 4,785 | ||||||||
| Interest income | 509 | 501 | 1,920 | 1,549 | ||||||||
| Total revenue and other income | $ | 8,176 | $ | 7,546 | $ | 27,448 | $ | 26,621 | ||||
The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Total revenue and other income | $ | 8,176 | $ | 7,546 | $ | 27,448 | $ | 26,621 | ||||
| SLM California royalty revenue | $ | 4,269 | $ | 8,438 | $ | 21,678 | $ | 26,024 | ||||
| The Company's ownership % | 42.7 | 40.0 | 42.7 | 40.0 | ||||||||
| The Company's share of royalty revenue | $ | 1,824 | $ | 3,374 | $ | 9,263 | $ | 10,407 | ||||
| Adjusted revenue and other income | $ | 10,000 | $ | 10,920 | $ | 36,711 | $ | 37,028 | ||||
| Royalty Revenue | $ | 6,933 | $ | 5,369 | $ | 23,804 | $ | 20,287 | ||||
| The Company's share of royalty revenue | 1,824 | 3,374 | 9,263 | 10,407 | ||||||||
| Adjusted royalty revenue | $ | 8,757 | $ | 8,743 | $ | 33,067 | $ | 30,694 | ||||
Reconciliation of Adjusted Cash Flows from Operating Activities:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash provided by operating activities | $ | 6,492 | $ | 4,272 | $ | 6,818 | $ | 7,059 | ||||
| Caserones royalty distributions | 1,336 | 1,920 | 6,772 | 7,013 | ||||||||
| Adjusted cash flows from operating activities | $ | 7,828 | $ | 6,192 | $ | 13,590 | $ | 14,072 | ||||
Reconciliation of EBITDA and Adjusted EBITDA:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| (In thousands of dollars) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Income (loss) before income taxes | $ | 4,881 | $ | (1,168 | ) | $ | 442 | $ | (3,393 | ) | ||
| Finance expense | 748 | 1,282 | 3,814 | 5,091 | ||||||||
| Depletion, depreciation, and direct royalty taxes | 629 | 2,009 | 6,647 | 5,246 | ||||||||
| EBITDA | $ | 6,258 | $ | 2,123 | $ | 10,903 | $ | 6,944 | ||||
| Attributable revenue from Caserones royalty | 1,824 | 3,374 | 9,263 | 10,407 | ||||||||
| Equity income from investment in SLM California | (845) | (1,146 | ) | (4,329) | (4,134 | ) | ||||||
| Share-based payments | 444 | 305 | 2,346 | 2,068 | ||||||||
| Loss (gain) on revaluation of investments | (1,067) | 863 | (4,071) | 1,732 | ||||||||
| Loss (gain) on sale of marketable securities | (233) | (347 | ) | 2,020 | 73 | |||||||
| Foreign exchange loss (gain) | 396 | (356 | ) | 600 | 1,010 | |||||||
| Gain on revaluation of derivative liabilities | (106 | ) | (613 | ) | (282 | ) | (551 | ) | ||||
| Loss (gain) on revaluation and provisioning of receivables | (8 | ) | 2,735 | (8 | ) | 2,735 | ||||||
| Other losses | - | - | 2,326 | - | ||||||||
| Loss (gain) on settlements, net | (730 | ) | 314 | 53 | 314 | |||||||
| Impairment charges | 354 | 27 | 399 | 70 | ||||||||
| Adjusted EBITDA | $ | 6,287 | $ | 7,279 | $ | 19,220 | $ | 20,668 | ||||
Reconciliation of GEOs:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Adjusted royalty revenue | $ | 8,757 | $ | 8,743 | $ | 33,067 | $ | 30,694 | ||||
| Average gold price per ounce | $ | 2,662 | $ | 1,976 | $ | 2,379 | $ | 1,945 | ||||
| Total GEOs | 3,290 | 4,424 | 13,897 | 15,782 | ||||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/244341
FAQ
What was EMX Royalty's adjusted revenue growth in 2024?
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