[General Information](index=2&type=section&id=General%20Information) This section provides foundational details for the MD&A, covering reporting period, accounting standards, currency, forward-looking statements, and key definitions [Introduction](index=2&type=section&id=1.1%20Introduction) This Management's Discussion and Analysis (MD&A) for EMX Royalty Corporation covers the six months ended June 30, 2025, prepared as of August 6, 2025, in accordance with IFRS Accounting Standards, with all dollar amounts in United States dollars - The MD&A covers the six months ended June 30, 2025, and was prepared as of August 6, 2025, in accordance with IFRS Accounting Standards[2](index=2&type=chunk) - All dollar amounts are presented in United States dollars unless otherwise noted[2](index=2&type=chunk) [Forward-Looking Information and Cautionary Statement](index=2&type=section&id=1.2%20Forward-Looking%20Information%20and%20Cautionary%20Statement) The MD&A contains forward-looking statements, and readers are advised to consult the dedicated 'Forward-Looking Information and Cautionary Statement' section for details on potential variations from management's expectations - The MD&A contains forward-looking statements, and actual events may differ from management's expectations[3](index=3&type=chunk) - Additional company information, including Annual Information Form and Form 40-F, is available on SEDAR+ and EDGAR[3](index=3&type=chunk) [Abbreviated Definitions](index=2&type=section&id=1.3%20Abbreviated%20Definitions) This section provides a glossary of abbreviated definitions used throughout the MD&A, covering periods, measurements (e.g., GEO, oz, t), interest types (e.g., NSR, GSR, NPI), places and currencies, and other technical terms (e.g., FS, IRR, LOM) Key Abbreviated Definitions | Category | Definition | | :--- | :--- | | Periods under review | Q4 (Dec 31), Q3 (Sep 30), Q2 (Jun 30), Q1 (Mar 31) | | Measurement | GEO (Gold equivalent ounces), oz (Ounce), t (Tonne), lb (Pound), Kt (Thousand tonnes), Mlbs (Million pounds), Tsol (Total soluble) | | Interest types | NSR (Net smelter return), GSR (Gross smelter return), NPI (Net profits interest), AMR (Advance minimum royalty), AAR (Annual advance royalty) | | Places and currencies | U.S. (United States), $ or USD (United States dollars), C$ or CAD (Canadian dollars) | | Other | FS (Feasibility study), IRR (Internal rate of return), LOM (Life of mine), NPV (Net present value), PEA (Preliminary Economic Assessment), PFS (Pre-feasibility study), MRE (Mineral Resource Estimate) | [Overview](index=4&type=section&id=Overview) EMX Royalty Corporation specializes in the acquisition and management of royalties, strategic investments, and organic generation of royalties from a diverse portfolio of 212 mineral properties globally - EMX's business involves the acquisition and management of royalties, strategic investments, and organic generation of royalties from a portfolio of mineral property interests[6](index=6&type=chunk) EMX Royalty and Mineral Property Portfolio (as of June 30, 2025) | Asset Type | Quantity | | :--- | :--- | | Producing Royalties | 7 | | Advanced Royalties | 11 | | Exploration Royalties | 121 | | **Total Royalties** | **139** | | Royalty Generation Properties | 73 | - The Company's common shares are listed on the TSX Venture Exchange and NYSE American Exchange under 'EMX', and on the Frankfurt Stock Exchange under '6E9'[7](index=7&type=chunk) [Strategy](index=4&type=section&id=Strategy) EMX's core strategy is to offer shareholders exposure to exploration success and commodity upside through a balanced portfolio of precious and base metals, with a focus on gold and copper - EMX's strategy aims to provide shareholders exposure to exploration success and commodity upside, emphasizing a balanced portfolio of precious and base metals, particularly gold and copper[8](index=8&type=chunk) - The Company's business strategy combines producing royalties, advanced royalty projects, and early-stage exploration royalty properties to provide immediate cash flow, near-term development, and long-term discovery exposure[8](index=8&type=chunk) [Royalty Acquisition](index=4&type=section&id=3.1%20Royalty%20Acquisition) EMX acquires royalty interests across various stages, from producing mines to development projects, focusing on base metals, precious metals, and battery metals, while also considering other cash-flowing opportunities, including in the energy sector - EMX acquires royalty interests ranging from producing mines to development projects[9](index=9&type=chunk) - Acquisitions target base metals, precious metals, battery metals, and other cash-flowing royalty opportunities, including the energy sector[9](index=9&type=chunk) [Royalty Generation and Project Evaluation](index=4&type=section&id=3.2%20Royalty%20Generation%20and%20Project%20Evaluation) Leveraging over 20 years of exploration expertise, EMX organically generates mineral property royalty interests by acquiring prospective ground, building value through low-cost work, and then selling or optioning these properties to partners for retained royalties, advance payments, milestone payments, and equity interests, providing early cash flow and future royalty potential - EMX organically generates mineral property royalty interests by leveraging in-country geological expertise to acquire prospective properties and build value through low-cost work programs[9](index=9&type=chunk) - Properties are sold or optioned to partner companies for retained royalty interests, advance minimum royalty (AMR) and annual advance royalty (AAR) payments, project milestone payments, and other considerations including equity interests[9](index=9&type=chunk) - This strategy provides early-stage cash flows to EMX and potential for future royalty payments upon production, with EMX participating in project upside optionality at no additional cost[9](index=9&type=chunk) [Strategic Investment](index=4&type=section&id=3.3%20Strategic%20Investment) EMX complements its royalty generation and acquisition efforts through strategic equity investments in companies with undervalued mineral assets that possess upside exploration or development potential, with exit strategies including equity sales, royalty positions, or a combination - Strategic equity investments are made in companies with undervalued mineral assets that have upside exploration or development potential[9](index=9&type=chunk) - Exit strategies for these investments can include equity sales, royalty positions, or a combination of both[9](index=9&type=chunk) [Highlights](index=5&type=section&id=Highlights) In Q2 2025, EMX Royalty Corporation demonstrated robust royalty production and benefited from strong metal prices, achieving significant debt repayment, share repurchases, and early property payments - In Q2 2025, EMX achieved robust royalty production, benefited from strong metal prices, repaid **$10,000,000** in corporate debt, and repurchased **1,202,168** common shares for **$2,554,000** under its NCIB program[10](index=10&type=chunk) - The Company received early property payments of **$6,850,000** from AbraSilver Resource Corp for Diablillos and **$1,500,000** from Aftermath Silver Ltd for Berenguela[10](index=10&type=chunk) - Adjusted cash flows from operating activities significantly increased to **$8,978,000** in Q2 2025, compared to **$1,341,000** in Q2 2024, primarily due to early property payments[11](index=11&type=chunk) [Financial Highlights](index=5&type=section&id=4.1%20Financial%20Highlights) EMX reported a net income of $642,000 in Q2 2025, a significant improvement from a net loss of $4,022,000 in Q2 2024, with adjusted royalty revenue increasing by 4.8% in Q2 2025 and 22.4% for the six-month period year-over-year Summary of Financial Highlights (in thousands of dollars) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue and other income | $6,239 | $6,005 | $14,661 | $12,245 | | Income (loss) from operations | $975 | $(837) | $1,514 | $(2,275) | | Net income (loss) | $642 | $(4,022) | $1,902 | $(6,249) | | Cash flows from operating activities | $6,892 | $(514) | $8,181 | $513 | | Adjusted revenue and other income | $8,686 | $8,758 | $20,114 | $17,051 | | Adjusted royalty revenue | $8,214 | $7,836 | $18,965 | $15,493 | | Adjusted cash flows from operating activities | $8,978 | $1,341 | $11,884 | $4,002 | | EBITDA | $3,065 | $(981) | $7,957 | $268 | | Adjusted EBITDA | $4,949 | $4,639 | $12,050 | $7,862 | | GEOs sold | 2,505 | 3,352 | 6,261 | 7,047 | | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $17,158 | $26,773 | | Working capital | $30,188 | $41,501 | - Adjusted royalty revenue increased by **4.8%** in Q2 2025 (YoY) and **22.4%** for the six months ended June 30, 2025 (YoY)[12](index=12&type=chunk) - Net income for Q2 2025 was **$642,000**, a significant improvement from a net loss of **$4,022

Core Viewpoint - EMX Royalty (NYSE: EMX) is a polymetallic royalty generator that has shown exceptional growth and is currently underappreciated by most investors, positioning it as a potential outperformer as gold prices rise [1] Company Summary - EMX Royalty operates in the royalty generation sector, focusing on polymetallic resources, which allows for diversified revenue streams [1] - The company has demonstrated strong growth metrics, indicating robust financial health and operational efficiency [1] Industry Insights - The rising price of gold is expected to positively impact companies like EMX Royalty, enhancing their market position and profitability [1]

Core Viewpoint - EMX Royalty Corporation holds a 2% NSR royalty on the Vittangi graphite project, which is advancing towards mine permitting in Sweden, with all major permits now in force for the Nunasvaara South Mine, part of Europe's largest and highest grade natural graphite resource [1][2]. Company Summary - EMX Royalty Corporation congratulates Talga Group Ltd on its progress with the Vittangi graphite project, which is crucial for producing high-performance battery graphite anode materials for electric vehicles and defense industries [1][2]. - The company acquired its 2% NSR royalty through the acquisition of Phelps Dodge Exploration Sweden AB in July 2010, which included a royalty agreement covering the Vittangi project exploration permits [5]. Industry Summary - The Vittangi project is strategically important as graphite is classified as a critical element by the EU and the US, with current production largely dominated by China [2][3]. - Demand for graphite is expected to rise significantly due to the increasing production of lithium-ion batteries, highlighting the potential of the Vittangi project within EMX's royalty portfolio [4]. - The project has received EU funding support and is designated as a Strategic Project under the European Commission's Critical Raw Materials Act, aiming to produce natural graphite anode materials with a low emissions footprint [3].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of "buying high, hoping to sell even higher" [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: EMX Royalty Corp. Performance - EMX Royalty Corp. currently has a Momentum Style Score of A and a Zacks Rank of 2 (Buy) [3][4] - Over the past week, EMX shares increased by 2.55%, outperforming the Zacks Mining - Miscellaneous industry, which rose by 1.46% [6] - In the last month, EMX shares rose by 16.8%, compared to the industry's 7.88% [6] - Over the past quarter, EMX shares have risen by 23.91%, and by 50.79% over the last year, while the S&P 500 increased by 19.7% and 14.09%, respectively [7] Group 3: Trading Volume and Earnings Outlook - EMX's average 20-day trading volume is 387,652 shares, indicating a bullish sign with rising stock prices [8] - In the past two months, one earnings estimate for EMX moved higher, increasing the consensus estimate from $0.02 to $0.04 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions [10] Group 4: Conclusion - Given the strong performance metrics and positive earnings outlook, EMX Royalty Corp. is positioned as a promising investment opportunity [12]

Core Viewpoint - EMX Royalty Corporation has entered into an exploration alliance with Avesoro Morocco LTD to advance its Moroccan exploration portfolio while reducing operational expenses [4][2]. Company Overview - EMX Royalty Corporation is a precious and base metals royalty company, providing investors with discovery, development, and commodity price optionality [13]. - Avesoro Resources Inc. is a privately owned mid-tier gold producer focused on West Africa, committed to sustainable mining practices and recognized for its technical expertise [14]. Strategic Rationale - The sale of EMX's Moroccan business unit exemplifies efficient execution of its Royalty Generation business, allowing for continued upside royalty exposure across a large portfolio of exploration assets [4]. - The exploration alliance aims to leverage Avesoro's operational and exploration experience in western Africa to explore new opportunities in Morocco [1][2]. Financial Terms - Avesoro will fully fund alliance activities with an initial capital pool of at least $1.5 million per year [8]. - EMX has received an execution payment of $650,000 from Avesoro [8]. - Each Designated Project (DP) will have a minimum work commitment of $2.5 million for the first five years, with EMX receiving escalating advance royalty payments starting at $50,000 [16]. Project Overview - EMX has acquired 18 exploration projects in Morocco, covering 860 square kilometers, including gold, copper, and other base metal projects [9]. - Morocco is viewed as an attractive jurisdiction for mineral exploration due to its stable regulatory framework and underexplored geological settings [10]. Alliance Structure - The initial term of the alliance is two years, with the possibility of extension by mutual agreement [3]. - Projects will be designated as Alliance Exploration Projects (AEPs) and can be converted to Designated Projects (DPs) for further advancement [2][3].

Core Viewpoint - Aftermath Silver Ltd. has made a partial payment of US$1.5 million towards the acquisition of the Berenguela silver-copper-manganese project in Peru, ahead of the due date, which has resulted in a reduced balance owed to EMX Royalty Corp. [3][5] Group 1: Financial Transactions - The company has an option to acquire a 100% interest in the Berenguela project through agreements with SSR Mining Inc. and EMX Royalty Corp. [2] - Aftermath Silver's payment obligations total US$13 million, with the remaining payments summarized as follows: US$3 million paid on May 15, 2025; US$1.5 million paid in June 2025; and US$1.65 million due in November 2026 [5][7]. - A sliding-scale NSR royalty will be applied to all mineral production from the project, starting at 1.0% when silver prices are up to US$25 per ounce, and increasing to 1.25% when silver prices exceed US$25 and copper prices are above US$2 per pound [7]. Group 2: Project Development - The company is focusing on the Berenguela project and expects an updated NI43-101 mineral resource estimate to be completed soon [4]. - Recent drilling in the eastern part of Berenguela intersected 153 meters of mineralization, including 1.12% copper, 290 g/t silver, and 7% manganese [4]. Group 3: Company Background - Aftermath Silver is a Canadian junior exploration company focused on silver, aiming to deliver shareholder value through the discovery, acquisition, and development of quality silver projects in stable jurisdictions [9]. - The company has developed a pipeline of projects at various stages of advancement, selected based on growth and development potential [9].

Core Points - EMX Royalty Corporation announced that all proposed resolutions were approved at its Annual General Meeting held on June 2, 2025, in Vancouver, British Columbia [1] - The number of directors was set at six, and all nominated directors were elected to serve a one-year term [1] - Shareholder voting results showed strong support for the resolutions, with 99.14% in favor of setting the number of directors at six and 99.10% in favor of appointing Davidson & Company LLP as auditors [1][2] Voting Results - Dawson C. Brisco received 99.41% votes in favor, while 0.59% votes were withheld [1] - David M. Cole received 99.55% votes in favor, with 0.45% votes withheld [1] - Sunny S.C. Lowe received 96.88% votes in favor, with 3.12% votes withheld [1] - Henrik K.B. Lundin received 99.34% votes in favor, with 0.66% votes withheld [1] - Geoff G. Smith received 99.52% votes in favor, with 0.48% votes withheld [1] - Michael D. Winn received 99.51% votes in favor, with 0.49% votes withheld [1] Company Overview - EMX is a precious and base metals royalty company that provides investors with discovery, development, and commodity price optionality while limiting exposure to risks associated with operating companies [3] - The company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX" [3]

Core Viewpoint - EMX Royalty Corporation has announced the sale of its Nordic operational platform to First Nordic Metals Corporation, which is expected to streamline operations and reduce costs while maintaining royalty exposure in the region [1][2]. Strategic Rationale and Long-Term Benefits - The transaction aims to streamline EMX's global operations and reduce administrative costs while retaining upside royalty exposure from partner-funded exploration efforts [2]. - EMX has over 15 years of generative exploration experience in the Nordic countries and will retain a broad portfolio of royalties in the region [2]. - Future royalty interests will be granted to EMX on projects generated by FNM for five years, aligning with EMX's strategic objectives [2]. Commercial Terms - EMX will receive staged payments totaling 3.25 million SEK (approximately US$335,000) over two years, with payments made in equal parts of cash and shares of FNM [3]. - EMX will also receive a 1% net smelter return (NSR) royalty on any new projects generated in Sweden and Finland over the next five years [3]. Company Background - EMX is a precious and base metals royalty company, providing investors with discovery, development, and commodity price optionality while limiting exposure to operational risks [5]. - First Nordic Metals Corp. is a Canadian-based gold exploration company with assets in Sweden and Finland, including the Barsele gold project and the Oijärvi greenstone belt [6].

Core Viewpoint - EMX Royalty Corporation has entered into an exploration and option agreement with Ridgeline Minerals for the Trench oxide gold project in Nevada, which includes cash and share payments, a 3% net smelter returns royalty, and annual advanced royalty payments upon option exercise [1][4]. Group 1: Project Overview - The Trench Project is an oxide gold, Carlin-type system located in Eureka County, Nevada, approximately 30 kilometers southwest of Carlin [2]. - Historical exploration in the 1990s included surface trenching and limited drilling, with results remaining unknown [2]. - EMX's recent fieldwork has identified significant silicification within the Ordovician section, which may represent overlooked mineralization potential [2][3]. Group 2: Agreement Details - Ridgeline can earn a 100% interest in the Project by making an execution payment of 250,000 shares, option payments totaling $650,000, and completing $500,000 in exploration expenditures over five years [4]. - Upon exercise of the option, EMX will retain a 3% NSR royalty interest, with the possibility for Ridgeline to buy back up to 1% of the royalty [5]. - Ridgeline will also make annual advance royalty payments of $50,000, which will cease upon the commencement of commercial production [5]. Group 3: Strategic Implications - The Trench Agreement represents EMX's strategy to grow its royalty portfolio at a nominal cost while providing near-term cash flow and future exploration upside [3]. - This agreement marks the fourth collaboration between EMX and Ridgeline, highlighting Ridgeline's ongoing efforts to assemble and advance projects in Nevada [3].

Core Viewpoint - EMX Royalty Corporation has executed an exploration royalty agreement with Galileo Resources for the Ferber polymetallic project in Nevada, allowing EMX to earn up to a 1% net smelter returns royalty through exploration and management services [2][6]. Project Overview - The Ferber Project is a copper-gold system located in eastern Nevada, with historical production of copper, lead, silver, and gold dating back to the late 1800s [3]. - Historical drilling in the 1980s-1990s showed encouraging results for gold and copper, which are favorable given current metal prices [3]. Geological Potential - Mineralization at Ferber is centered around an Eocene-age composite intrusive center, indicating potential for a porphyry copper-gold system and associated mineralization [4]. - The geological setting and hydrothermal alteration at Ferber have analogues to other significant porphyry systems in the Great Basin [4]. Agreement Details - The agreement allows EMX to earn a 1% NSR royalty through two milestones: a 0.33% NSR for target generation and an additional 0.67% NSR for managing the first phase of exploration drilling [6]. - EMX will receive a 7.5% management fee for the reconnaissance drilling program, with all exploration work funded by Galileo [6]. Future Plans - EMX plans to commence work on the Target Generation program imminently, indicating a proactive approach to advancing the Ferber Project [5]. - Should Galileo wish to extend the exploration program, further assistance from EMX would require a new agreement [7]. Business Model - This transaction exemplifies EMX's royalty generation business model, leveraging geological expertise to add value to partner-funded exploration programs in exchange for royalty interests [8].