Summary of Elemental Altus Royalties and EMX Royalty Corporation M&A Announcement Industry Overview - The discussion revolves around the royalty sector in the mining industry, specifically focusing on the merger between Elemental Altus Royalties Corp. and EMX Royalty Corporation, which is seen as a significant consolidation trend in the royalty space as gold prices reach new all-time highs [2][3]. Key Points and Arguments 1. **Merger Announcement**: The merger between Elemental Altus Royalties Corp. and EMX Royalty Corporation is highlighted as a major event in the royalty space, with both companies bringing complementary strengths and assets [1][2]. 2. **Historical Context**: The value of mineral rights has historically increased, with gold prices rising from $35 to $3,500 per ounce over several decades, indicating a strong long-term growth potential in the royalty business [3][4]. 3. **Portfolio Strength**: The combined portfolio will feature cornerstone royalties from significant assets such as Caserones, Timok, Karlawinda, and Laverton, which are expected to enhance the company's market position [8][9]. 4. **CAGR Performance**: EMX has achieved a 17% compounded annual growth rate (CAGR) over 22.5 years, while Elemental has surpassed 20% CAGR over its eight years, showcasing the effectiveness of their business models [10][11]. 5. **Revenue Growth**: The companies project continued revenue growth, with expectations of generating $70 to $80 million in revenue going forward, supported by a strong cash flow from existing assets [20][19]. 6. **Cost Synergies**: The merger is anticipated to yield multiple millions in cost savings, enhancing operational efficiency and shareholder value [21][22]. 7. **Net Asset Value (NAV)**: The combined entity is trading at approximately one times its net asset value, which is considered low for the junior royalty space, indicating potential for valuation uplift as analysts reassess the assets [24][26]. 8. **Diversity of Assets**: The portfolio is diversified geographically and across different metals, with 67% of current income derived from precious metals, which is seen as a strategic advantage [18][12]. 9. **Future Growth Potential**: The companies emphasize the significant optionality in their portfolios, with many assets yet to enter production, providing a strong foundation for future growth [11][12]. 10. **Shareholder Support**: The merger has garnered strong backing from shareholders, including Tether Investments, which is expected to play a crucial role in supporting the combined entity's growth strategy [33][72]. Additional Important Insights - **Management and Board Composition**: The merger will result in a strong management team and board, combining expertise from both companies to drive future growth [33][36]. - **U.S. Listing Plans**: The combined company is working towards a U.S. listing, which is expected to enhance liquidity and attract more investors [41][59]. - **Dividend Potential**: There is a discussion about the potential for dividends in the future, with the combined entity positioned to support a sensible dividend while still pursuing growth opportunities [66][65]. - **Market Sentiment**: The timing of the merger is seen as strategic, coinciding with rising gold prices and a favorable market environment for royalty companies [74][69]. This summary encapsulates the key points from the conference call regarding the merger between Elemental Altus Royalties Corp. and EMX Royalty Corporation, highlighting the strategic advantages, growth potential, and market context of the transaction.

Core Viewpoint - Elemental Altus and EMX Royalty Corporation are merging to form a new mid-tier gold-focused royalty company named Elemental Royalty Corp, with a projected revenue of approximately US$80 million in 2026 [1][3]. Transaction Overview - The merger involves Elemental Altus acquiring all outstanding shares of EMX through a court-approved plan of arrangement [1]. - Tether Investments has agreed to purchase approximately 75 million Elemental Altus Shares for gross proceeds of US$100 million, supporting the transaction [2]. Financial Projections - The merged entity is expected to generate combined revenue of US$70 million in 2025 and US$80 million in 2026, with a commodity split of 67% precious metals and 33% base metals [6][3]. - The implied market capitalization of the merged company is estimated at US$933 million [11]. Strategic Rationale - The merger creates a peer-leading revenue-generating royalty company with a diversified portfolio of 16 producing royalties and 200 total royalties [6]. - The combined company will have a stronger asset portfolio anchored by four cornerstone royalties with world-class operators [6]. Management and Governance - The Board of Directors will consist of three representatives from Elemental Altus and two from EMX, with Juan Sartori as Executive Chairman and David Cole as CEO [19]. - The merger is supported by significant shareholder backing, with certain EMX shareholders holding approximately 23% of the outstanding shares entering into voting support agreements [18]. Future Growth Potential - The merged company aims to leverage its combined management expertise to pursue further accretive royalty opportunities in the market [10]. - The transaction is expected to enhance trading liquidity and capital markets exposure, facilitating access to new investors [10]. Shareholder Considerations - EMX shareholders will receive either 0.2822 or 2.822 Elemental Altus Shares for each EMX Share held, depending on the timing of a share consolidation [11][14]. - The transaction offers a premium of 9.8% based on closing prices and 21.5% based on the 20-day volume-weighted average price [15]. Regulatory and Approval Process - The transaction requires approval from at least 66 2/3% of EMX shareholders and is subject to various regulatory and court approvals [16][20]. - The completion of the transaction is expected in the fourth quarter of 2025, pending necessary approvals [31].