Summary of EMX Royalty and Elemental Altus Royalty Merger Conference Call Companies Involved - **EMX Royalty Corporation** - **Elemental Altus Royalty** Core Points and Arguments Merger Announcement - The merger between Elemental Altus Royalty and EMX Royalty Corporation is a significant event in the royalty space, especially as gold prices reach new all-time highs [2][3][4] Value of Royalties - The value of mineral rights has historically increased, with gold prices rising from $35 to $3,500 per ounce over 50 years, indicating a compounded annual growth rate (CAGR) of approximately 8-9% [3] - Royalties provide exposure to mineral rights with embedded optionality, making scale crucial in the royalty business [3][4] Portfolio Strength - The combined portfolio will feature cornerstone royalties from key assets such as Caserones, Timok, Cactus, and Laverton, which are expected to enhance the company's position in the market [7][8][16] - The merger will create a portfolio of approximately 200 royalties, with many in pre-production stages, indicating significant future value [26][27] Financial Performance - EMX Royalty Corporation has achieved a 17% CAGR over 22.5 years, while Elemental Altus has surpassed 20% CAGR over eight years, showcasing strong historical performance [9][10] - The combined entity is projected to generate $70 to $80 million in revenue going forward, with 45% of the net asset value from cash-flowing assets and 55% from growth potential [21][18] Cost Synergies and Efficiency - The merger is expected to yield multiple millions in cost savings, with a focus on efficiency and value creation rather than just cost-cutting [22][24] - The increased scale will improve the companies' trading relative to their net asset value (PNAV), which is currently at one times PNAV, one of the lowest in the junior royalty space [24][26] Shareholder Support and Future Plans - Tether's involvement as a cornerstone shareholder is seen as a significant catalyst for growth and capital availability [6][75] - The companies plan to pursue a U.S. listing to enhance liquidity and attract more investors, qualifying for various indices that could drive capital flows [42][43] Management and Governance - The combined board will include experienced members from both companies, with a focus on maintaining a strong governance structure [34][35] - The management team is expected to leverage their combined expertise in prospect generation and royalty acquisition to drive future growth [31][32] Dividend Potential - The combined entity is in a strong position to consider dividends in the future, balancing shareholder returns with growth opportunities [68][69] Market Context - The merger announcement coincides with a peak in gold prices, positioning the new entity favorably in a bullish market environment [77] Other Important Content - The merger is framed as a strategic move to create a "dream team" in the royalty space, combining strengths in both royalty generation and acquisition [75] - The companies emphasize the importance of maintaining a disciplined approach to capital allocation and investment in high-quality assets [80][81] This summary encapsulates the key points discussed during the conference call regarding the merger between EMX Royalty Corporation and Elemental Altus Royalty, highlighting the strategic rationale, financial implications, and future outlook for the combined entity.

Core Insights - EMX Royalty Corporation reported strong financial results for the first half of 2025, with significant increases in adjusted royalty revenue and adjusted EBITDA, leading to an increase in 2025 revenue guidance due to rising commodity prices [1][2][7] Financial Performance - For the six months ended June 30, 2025, EMX achieved revenue and other income of $14.7 million, adjusted royalty revenue of $19.0 million, and adjusted EBITDA of $12.1 million [1][20] - In Q2 2025, the company recognized adjusted revenue and other income of $8.7 million, a 1% decrease from Q2 2024, while adjusted royalty revenue increased by 5% to $8.2 million [17][20] - Cash flows from operating activities for the first half of 2025 were $8.2 million, compared to $0.5 million in the same period of 2024, marking a significant improvement [5][34] Updated Guidance - EMX has updated its 2025 guidance, projecting GEO sales to range from 10,500 to 12,000 and adjusted royalty revenue between $30 million and $35 million, up from the previous guidance of $26 million to $32 million [7][8] Capital Management - The company made a $10 million early repayment towards its credit facility, reducing the principal from $35 million to $25 million [9] - EMX executed a new Normal-Course Issuer Bid program, allowing for the repurchase of up to 5,440,027 common shares, with 1,202,168 shares repurchased during the quarter [9][10] Portfolio Growth - Key growth drivers include producing assets at Caserones in Chile and Timok in Serbia, with ongoing exploration programs aimed at expanding mineral resources [12][16] - The acquisition of a royalty on the Chapi Copper Mine in Peru is expected to contribute to revenue starting in 2026 [13] Operational Highlights - The company reported a 20% decrease in operating expenditures compared to 2024, primarily due to reduced generative expenditures [10] - EMX's financial position remains strong, with cash and cash equivalents of $17.2 million and working capital of $30.2 million as of June 30, 2025 [5][9]