Royalties Inc. Reports Capstone Inexplicably Files an Amparo

Core Viewpoint - Royalties Inc. is optimistic about the legal proceedings against Capstone Copper Corp. regarding unpaid royalties, expecting a favorable resolution that could significantly enhance the company's market valuation due to soaring copper and silver prices [2][3]. Group 1: Legal Proceedings - Minera Portree de Zacatecas S.A. de C.V. (MPZ), in which Royalties Inc. holds an 88% stake, is involved in a legal dispute with Capstone Copper Corp. over improperly transferred royalties [1]. - Capstone filed an Amparo with the Federal Collegiate Tribunal, which is seen as a weak legal position since the Federal Court rarely overturns lower court decisions in civil cases [2]. - The company anticipates that the Federal Court will uphold previous rulings, allowing for the collection of seven years of royalties owed from 2019 to 2025 [2]. Group 2: Financial Implications - If Capstone had paid the 2% NSR royalties since 2019, it would equate to approximately $2 million per year, potentially valuing Royalties Inc. at $100 million based on industry valuation models [2]. - Capstone's market capitalization has increased from $200 million to over $10 billion since the dispute began, highlighting the financial stakes involved [2]. Group 3: Company Background - Royalties Inc. owns a 100% interest in the Bilbao silver-zinc-lead project and has a 5% stake in Music Royalties Inc., which has paid out over $14 million in dividends since 2019 [5]. - The company holds an 88% stake in MPZ, which has a court-confirmed claim to a 2% NSR on five mining concessions, including the Cozamin mine where Capstone has been operating since 2010 [5].