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(Kitco News) Empress Royalty spent much of the past 18 months on the sidelines. Executive Chairman David Rhodes says that was deliberate.
As gold climbed to record highs, sellers wanted prices that Empress would not pay. Rhodes said the company kept its discipline, waiting for valuations to cool rather than chase deals into a rising market.
That pause ended July 10, when Empress agreed to acquire a portfolio of 14 royalties across Canada, the United States and Mexico from Almadex Minerals for US$2.5 million in cash and stock. The royalties cover projects operated by Alamos Gold, McEwen Inc., Kodiak Copper and Westhaven Gold, among others. The deal is expected to close before Aug. 31.
Rhodes laid out the strategy a day earlier, on July 9, at the Rule Symposium 2026 in Boca Raton, Florida.
“We haven’t actually done that many transactions in the last 18 months or so,” Rhodes said. “I’m not chasing higher gold prices.”
The approach reflects how Empress underwrites royalty and streaming deals. Rhodes said the company uses long-term metal prices rather than spot, looking back about five years instead of accepting the price assumption a seller brings to the table.
That can make it difficult to buy when metals are rising. It can also put Empress in a better position when markets pull back, and sellers become more realistic.
Rhodes was not describing a weak market. Gold was trading above $4,000 and silver near $60 at the time of the interview, levels he said still leave the sector well positioned even after the retreat from January’s highs.
“When you’re looking at $4,000 (gold) and $60, $70 silver, these are fantastic prices,” Rhodes said.
Empress operates in a part of the royalty business that the largest companies often ignore. Royalty and streaming companies provide capital to miners in exchange for future metal or revenue, without operating the mine. The biggest firms tend to focus on long-life, tier-one assets and larger transactions. Empress looks lower down the market.
Rhodes said the company is focused on smaller streams, typically $20 million to $30 million, tied to assets already in production or close to it. That part of the market is less crowded, he said, and can offer better margins because the largest royalty companies are not usually competing for the same deals.
The strategy also takes Empress into jurisdictions many investors treat cautiously. The company holds interests in Peru, Mexico, Mozambique, and South Africa. Rhodes said the point is not to ignore risk, but to price it.
Empress is doing that from a stronger base than it had in its early years. Rhodes said the company became cash flow positive within about three years of launching and, as of its last reporting, had roughly $20 million in cash alongside a banking facility. The Almadex portfolio, acquired largely in stock, adds exploration exposure without tying up much of that capital.
Rhodes said Empress also prefers streams that pay in physical metal. The company keeps close to two-thirds of its balance sheet in gold and silver rather than cash, keeping it exposed to the same metals its shareholders are seeking.
Deal sourcing has changed as well. Rhodes said Empress recently added an AI platform that scans databases and press releases for royalties that may not be widely followed.
“This royalty sitting there - no one knows about it,” he said.
Finding overlooked royalties is only part of the challenge. Empress still trades at a steep discount to the major royalty companies, and Rhodes said closing that gap depends on execution over multiple quarters, not one transaction.
He is not assuming generalist investors will return to mining quickly. For now, the Almadex deal gives Empress another portfolio to work with and another test of the strategy Rhodes has described: stay patient when prices run, buy when expectations reset, and keep exposure to gold and silver without taking on the operating risk of a mine.
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This article/video was produced with support from a Kitco sponsor. The views expressed in this content do not necessarily reflect the views of Kitco Metals Inc. Kitco does not endorse or recommend any company, security, investment product, or investment strategy. This content is for informational purposes only and should not be considered investment advice.
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