Royalties Inc. Reports Yearend Results for 2025

Core Viewpoint - Royalties Inc. has reported significant advancements in its strategic investments, particularly in the legal victory regarding the 2% net smelter royalty (NSR) on the Cozamin Mine, which is expected to yield substantial financial returns for the company. Group 1: Legal and Financial Developments - The company won a lawsuit and appeal against Capstone Gold S.A. de C.V. to confirm a 2% NSR on the Portree claims at the Cozamin Mine, with an estimated owed amount of over US$10 million in royalties since 2019 [2][5][8] - The Federal Prosecutor has recommended denying Capstone's appeal, indicating a favorable outcome for the company in the upcoming final appeal [2] - The company reported a record revenue of $143.881 million in 2025, a 32% increase, primarily driven by $117.6 million in dividend income from its investment in Music Royalties Inc. [4] Group 2: Operational Performance - Operating expenses increased by 28% to $316.945 million due to costs associated with the OTC US listing, legal fees, and marketing efforts related to the lawsuit [4] - The company experienced an operating loss of $173.064 million, compared to a loss of $139.130 million in the previous year [4] - A non-cash foreign exchange gain of $134.776 million on a US$2 million contingent liability resulted in a net loss of $38.288 million for the year, an improvement from a net loss of $392.292 million in 2024 [4] Group 3: Resource and Investment Expansion - The rise in silver prices has significantly increased the potential value of the Bilbao silver-zinc-lead property, prompting the company to plan a new drill campaign [3] - The company increased its ownership in Music Royalties Inc. by $1.525 million, bringing total investment to $2.525 million, which is expected to yield dividends of $181,800 in 2026 [3] - The estimated value of the 2% NSR royalties from the Cozamin Mine is projected to be around US$25 million, reflecting the increased value due to rising copper and silver prices [9]