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Ely Gold's Three Charms

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An innovative business model, a one-of-a-kind database and deep roots in the world’s best mining jurisdiction are Ely Gold’s three advantages, says CEO Trey Wasser.

Wasser spoke to Kitco Mining at the Metals Investors Forum in Toronto this month. 

Ely Gold Royalties (ELY:TSX.V; ELYGF:OTCQB) is an emerging-royalty company with development assets focused in Nevada and the Western U.S. Its portfolio of 31 deeded royalties and 19 optioned properties, ranging from ranges from fully permitted mines to projects that are being permitted for mine construction, are generating significant revenue. 

Ely Gold's innovative option/royalty model allows the company to sell 100% of its projects in an outright sale or on a four-year option contract. On every property Ely Gold retains a royalty on future production. All portfolio properties are sold or optioned on a 100% basis, while the company retains net smelter royalty interests. 

Wasser says the advantage to his model is that onerous work commitments are not placed on the company so the business can keep growing. And the model has also allowed Ely Gold to put more money to work.

"With the cash flow from the option portfolio last year we went out and bought two near-term producing royalties," says Wasser.

One of the projects was the Fenelon project in Quebec. 

"The Fenelon is a very exciting project. It has unbelievable grades. They are doing a bulk mining project, which is improving the infrastructure quite a bit."

Ely Gold’s database gives it a leg up in Nevada. The company maximizes value through claim consolidation and advancement using its extensive, proprietary data base. The company can analyze missed development opportunities by uncovering overlapping ownership claims.  

"The title issues can be very tough to clean up, and that is what we specialize in," says Wasser. 

Nevada is a mining state, and this year it was ranked the world’s best mining jurisdiction in the world by the Fraser Institute. 

Ely Gold also got a stamp of approval from a heavy-hitter Sprott Resource Holdings, which now holds 9 ½%. 

"While we really didn’t need the capital, one of our goals for 2108 was more institutional ownership, so we couldn’t have asked for a better institution than Sprott," says Wasser. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.