'This is a catalyst for us' - EMX Royalty anticipates royalty stream from Turkey, Chile operations
(Kitco News) - Streams in Chile and Turkey are expected to give EMX Royalty a lift, said company CEO David Cole.
In May Cole spoke to Kitco at the Deutsche Goldmesse conference in Frankfurt, Germany.
EMX Royalty (NYSE American: EMX; CVE:EMX) had income of $12.4 million in 2021, up from $7.2 million the year prior.
Cole is anticipating EMX's Gediktepe and Yenipazar royalties, part of the company's SSR royalty portfolio. Production at Gediktepe is expected to commence in early 2022.
"We expect cash to start flowing after they cross the 10,000 ounce threshold then our 10% royalty kicks in. That's literally a few weeks away. This will be a catalyst for us. We're very pleased to see that we expect annualized after-tax income from there around $12 million per year," said Cole.
He also highlighted the Caserones' 0.7335% net smelter royalty stream. Caserones is copper-molybdenum mine in Chile.
Royalty and streaming companies have been enjoying an upswing due protection from rising energy costs, which has been hurting miner's margins.
EMX Royalty has a mix of metals in its portfolio
"We love diversity. We love being exposed across the metal space. I know that that investors in the past have focused on gold royalty companies. We've always been unabashed about our desire to be exposed to copper and base metals. We think that's smart."
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Kitco's coverage of Deutsche Goldmesse was sponsored by Defiance Silver.