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]

Core Viewpoint - Royalties Inc. reported significant financial results for Q3 2025, highlighting a substantial increase in revenue driven by dividend income from Music Royalties Inc. and a successful legal outcome regarding a 2% net smelter royalty on Capstone Copper's Cozamin Mine [3][5]. Financial Performance - The company generated revenue of $41,240, reflecting a 60% increase, with $36,150 from dividend income and $5,090 from other royalty income [3]. - Operating expenses rose to $111,727, a 130% increase, primarily due to costs associated with OTC US listing, legal fees, and marketing efforts related to the Capstone lawsuit, resulting in an operating loss of $70,487 compared to $22,875 in Q3 2024 [3]. - A non-cash foreign exchange loss of $62,273 led to a net loss of $132,760 for the quarter, compared to a net loss of $31,454 in Q3 2024 [3]. - For the nine-month period, the net loss was $54,584, an improvement from a loss of $118,762 in the previous year [3]. Asset Growth - As of September 30, 2025, total assets increased to $2.775 million, up from $1.25 million at the end of 2024, largely due to a $1,525,000 investment in Music Royalties Inc., expected to generate $181,800 in annual dividend income [4]. Legal Developments - Royalties Inc.'s subsidiary, Minera Portree de Zacatecas, secured a legal victory confirming its entitlement to a 2% net smelter royalty on Capstone's Cozamin Mine, with the appellate court rejecting Capstone's appeal [5][10]. - The estimated amount owed to Minera Portree for past production is approximately $9 million, based on Capstone's public disclosures [5][8]. - The 2% NSR is projected to yield around $1.5 million annually, with potential future value estimated at $25 million due to ongoing copper price increases and additional resource potential [9]. Market Context - Capstone reported $234 million in net revenues in 2024, paying $4.4 million in royalties, indicating the financial significance of the royalties landscape [7]. - The ongoing legal disputes and the company's commitment to accountability may influence Capstone's management decisions moving forward [10].

Core Insights - Royalties Inc. will present at the Planet MicroCap Showcase: Toronto 2025 on October 22, 2025, at 11 AM EST [1] - The company is inviting investors to book one-on-one meetings during the event [1] Company Overview - Royalties Inc. holds a 100% interest in the Bilbao silver-zinc-lead project, which has a resource of 20 million ounces of silver equivalent located in Zacatecas, Mexico [4] - The company owns 88% of Minera Portree de Zacatecas, S.A. de C.V., which has a court-approved 2% net smelter royalty on five mining concessions known as the 'Portree claims' [4] - Royalties Inc. has a 4.9% stake in Music Royalties Inc., which has acquired 31 cash-flowing catalogs and has paid over $12 million in dividends since 2019, generating a 7.2% annual yield [4]

Financial Performance - In Q2 2025, the company generated revenue of $24,042, comprising $18,000 in dividend income from Music Royalties Inc. and $6,042 in music royalty income [3] - Operating expenses totaled $68,625, resulting in an operating loss of $44,583, compared to a loss of $39,027 in the prior year [3] - A non-cash foreign exchange gain of $156,357 led to a net income of $111,774 for the quarter, contrasting with a net loss of $46,642 in Q2 2024 [3] - For the six-month period, the company reported a net income of $78,176, compared to a loss of $87,308 in the previous year [3] Asset and Investment Update - As of June 30, 2025, total assets increased to $1.8 million from $1.25 million at the end of 2024, reflecting a $500,000 investment in Music Royalties Inc. [4] - The company completed an additional equity swap post-quarter, raising its holdings in Music Royalties Inc. to 4,000,000 shares valued at $2 million, which is expected to generate $144,000 in annual dividends [4] Legal Developments - The company achieved a significant legal victory on June 16, 2025, with a court judgment confirming its entitlement to a 2% net smelter royalty on concessions at Capstone Copper's Cozamin Mine [5] - Capstone has appealed this decision to the Supreme Court of Zacatecas, delaying the resolution [5] - The company estimates that the disputed 2% NSR could represent approximately $1.5 million per year based on production since 2019 [8][9] Strategic Focus - The company maintains a 100% interest in the Bilbao silver-zinc-lead project while exploring opportunities to monetize this project for cash-flowing royalties [10] - The chairman and CEO emphasized the importance of the legal victory and strategic investment in driving the company towards profitability and unlocking shareholder value [11]

Core Insights - Royalties Inc. has acquired an additional 1 million common shares of Music Royalties Inc. (MRI) for $500,000 at a price of $0.50 per share, increasing its total holdings in MRI to 4 million shares valued at $2 million [1] - MRI, a Toronto-based private company, specializes in acquiring passive music royalties and has a portfolio of 31 cash-flowing music royalties, generating a 7.2% annual yield and over $12 million in dividends since 2019 [1][6] - The acquisition is part of Royalties Inc.'s strategy to become cash flow positive by increasing its stake in MRI as more shares become available [1] Financial Performance - MRI has paid out over $12 million in 66 dividend payments since 2019, with an annual yield of 7.2% [1][6] - The acquisition will generate an annual dividend income of $144,000 for Royalties Inc. from its holdings in MRI [1] Future Plans - Royalties Inc. intends to acquire additional shares in MRI as they become available to enhance its cash flow position [1]