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Electric Royalties – Focused on energy metal royalties with a cash flowing royalty

Cory댊
March 12, 2021

Brendan Yurik, CEO of Electric Royalties (TSX.V:ELEC) joins me to introduce this new royalty Company that just acquired a cash flowing royalty.

As one of the only royalty companies focused on the move toward electrification and Electric Vehicles we discuss what royalties are available and where the Company is focused. The acquisition yesterday was a big step in establishing the Company and royalty model in these metals.

If you have any follow up questions for Branden regarding the Company or anything else in the royalty space please email me at Fleck@kereport.com.

Click here to read over the Electric Royalties Corporate Presentation.

Discussion
12 Comments
    cfs
    Mar 12, 2021 12:18 AM

    Management unproven as yet. I own shares under ELECF symbol.

    Mar 12, 2021 12:24 AM
    cfs
    Mar 12, 2021 12:28 AM

    IS Globex up because they now have financing to do work, or because Elec royalties overpaid ?
    We will see, I guess.

      Mar 12, 2021 12:27 AM

      Globex has plenty of cash. From the press release:

      Globex at present owns 192 assets including over 70 royalties, has more than $10,000,000 in cash and shares of other companies and no debt. At the projected completion of this transaction, Globex should have approximately $30,000,000 in cash and shares.

        cfs
        Mar 12, 2021 12:34 AM

        Methinks I should have better bought Globex

    cfs
    Mar 12, 2021 12:37 AM

    There is a danger in Royalty companies not seen in 40 years (before which they did not exist anyway)

    The reason royalty companies work is that can typically borrow money more cheaply than mining companies. They (royalty companies) are buying future income based on current interest rates.
    The danger for all Royalty companies will occur if interest rates rise, because THEN future income is discounted at higher percentage rates.
    For the first time in 30 years, inflation may drive interest rates higher AND DOLLAR LOWER.
    The balance between the price of currencies and real assets is likely to be disturbed.

      Mar 12, 2021 12:21 PM

      That is a valid point to bring up CFS, but their borrowing costs are not the only reason Royalty companies work. They also have a diversified basket of projects, where other operators take on the majority of the execution and mining risks, and then the royalty company gets paid a percentage of the production revenues. This takes away the single company risk and allows for long life streams of revenues and cashflows for the royalty company, spread over a tiny staff of employees, instead of hundreds or thousands like mining producers. It is a superior business model in many regards, and why royalty companies tend to trade at much higher P/E ratios than mining companies.

    Mar 12, 2021 12:33 PM

    I saw Globex two days ago, when they had that news release with Elec Royalties. I wished I had bagged them but not to worry I have been busy scooping up juniors around New Found Gold. There are some really attractive plays that are undervalued and Newfoundland has always had an abundance of mineral wealth as well as oil and hydro electric power plays. I just bought Sokoman and today they are up 43%. Newfoundland has a lot of mineral wealth and it is now hitting investors screens. Get in, and get in early, you better be aware of the Newfoundland Gold Rush. It will cause a huge frenzy like California did in 1840’s. DT

    Mar 12, 2021 12:08 PM

    I bought several around New Found because Schwab won’t let me buy New Found without calling them. I don’t want to call them. But, I picked up Labrador, Sky Gold, Maritime, Sokoman, and Anaconda. Some of those are in the area and Labrador which has QH as an advisor and is actually on the same fault, although they have had drill results not so special yet. Some of these like Sokoman And Anaconda I have had before. Anaconda was recently included in the Top 50 of whoever does that and Sokoman expanded their land area. Both had some interest lately.

      Mar 12, 2021 12:52 PM

      You’ve done well covering that jurisdiction David..

      Out of those I only hold Anaconda, but used to own both Maritime and Sokoman. I’ll have to take another look at those, and have considered Labrador as well, but never pulled the trigger on it.

    Mar 13, 2021 13:24 AM

    I originally got Labador because somebody put up a map of the New Found area and Labrador seemed to be on New Found’s fault. They reported drill results that were so-so but it appeared they didn’t drill the fault. I sold and a day or two later they announced QH was signing on and was already part of New Found. I bought back as I expect QH will identify good targets. Sky Gold has an area within the New Found area but not on the fault. Anyway….I currently have gains in Sokoman and Anaconda and loss in Maritime. One of Cory’s periodic interviews (I believe he is Indian with first name with a J) likes Maritime.