Minimize

Welcome!

Elemental Royalties – A look ahead to 2021 forecasted revenues and near term production updates

Cory댊
April 8, 2021

Fredrick Bell, President and CEO of Elemental Royalties (TSX.V:ELE – OTCQX: ELEMF) joins me for an overview of 2020 revenue and the forecasted growth for this year. We also discuss a couple updates on key projects that the Company holds a royalty on.

If you have any follow up questions for Fred please email me at Fleck@kereport.com.

Click here for a summary of the recent news out of Elemental Royalties.

Discussion
16 Comments
    Apr 08, 2021 08:48 AM

    Thanks for the interview Cory. I did not know anything about this one except the name. Sounds like they have cash flow in the early stages. They look like a company to check into more deeply.

    Apr 08, 2021 08:54 AM

    Good update with Elemental Royalties. I own it, and treat my royalty holdings as some of my more conservative profit storage for longer term growth and appreciation. Right now, I also feel Elemental has a little room to run to catch up in valuation with some it’s peers like Maverix, Metalla, Nomad, etc…

      Apr 08, 2021 08:16 AM

      Today has a good vibe to it. They could have easily taken the metals the other way. I noticed the Porcupine had some decent drill results so I added a few.
      I have been using Sand and Ely as my store for upcoming tax payments hoping to het some more gains. Ex: where would you put Elemental in that group. I have one more ling term gain from Great Bear to liquidate tomorrow and am looking around at royalty options,

        Apr 08, 2021 08:23 PM

        Hi David. I put most of the Royalty companies in the same basic longer term growth bucket and as places to dump profits from good trades in the individual mining stocks. I consider Sandstorm more of a Senior company and Ely and Elemental more Junior Mid-tiers (like Metalla, Maverix, Nomad, and EMX), and then other royalty companies more smaller Juniors like Vox, Sailfish, Abitibi, Golden Valley, Empress, etc…

      Apr 08, 2021 08:23 AM

      I have a post wandering in “review”, but in it I asked Ex if he had an opinion where Elemental fit in compared to Ely and Sand.

      Apr 08, 2021 08:19 PM

      Elemental is an interesting royalty

      With the Teranga/Endeavour and the Premier/Equinox merger they now hold royalties from two mid tier producers that I like

      On EV/EBITA they are the second best royalty play

      NSR 9.9
      ELE 10.1
      SSL 12.7
      RGLD 13.3
      OR 14.1
      WPM 16.3
      MMX 16.7
      VOX 18.7

      I personally like Nomad the most. They are number 1 on EBITA and pay 2% dividend

        Apr 09, 2021 09:55 PM

        Those are good points about the EV to EBITA ratios, and yes, Nomad and Elemental are both attractive at current valuations. I agree that with Endeavour and Equinox as their new operators on those Elemental royalties, it gives enhanced strength and likelihood of a long life mine having the big boys as partners, so definitely a partner upgrade in both examples.

    Tom
    Apr 08, 2021 08:06 AM

    long KOPN and WPM

      Apr 08, 2021 08:24 PM

      WPM Wheaton Precious Metals is another good Senior Royalty company of note.

        Apr 09, 2021 09:15 AM

        Elemental is interesting, as they have after the Terranga/Endeavour and the Premier/Equinox merger now two mid tier producers that I like in their portfolio

        They are the second best royalty play on EV/EBITA

        NSR 9.9
        ELE 10.1
        SSL 12.7
        RGLD 13.3
        OR 14.1
        WPM 16.3
        MMX 16.7
        VOX 18.7
        FNV 21.0

        Nomad is still my favorite. They are not only the best in this list, they also pay the highest dividend with 2%

          Apr 09, 2021 09:14 AM

          Thanks Thomas and Ex. That is helpful. Playing catch-up today as slept in. Thanks for the responses.

          Apr 09, 2021 09:28 AM

          Thomas, we think alike. I know everything about all the royalty companies. Elemental and Nomad are my top two. Near term cash flow. I do not know what to think about Empress. So far a disaster. She talks about these strategic partnerships that have yet to produce much. The main Royalty Pinos is a risky junior. A big raise at a low share price leaves more shares and warrants. They have more shares than Metalla and only 3 months old!

            Apr 09, 2021 09:39 PM

            Thanks. I glad I checked back.

            Apr 09, 2021 09:41 PM

            I was quite surprised that Elemental is that high on this metric
            Most of the junior royalties haven’t any EBITA

            ELY the Sprott play for example has an EV/EBITA of 45

            Apr 09, 2021 09:59 PM

            I agree California. There has already been a dearth of new royalty companies so for new one’s to emerge, they need a differentiator and edge to be considered. So far, I’m not seeing that with Empress or Trident or even Gold Royalty, but companies like Nomad, Elemental, Maverix, and Metalla are combining a good business model with good operational partners, on long-life assets, that will pay nice revenues for years to come.

            Apr 09, 2021 09:11 PM

            Ex, you forgot Sandstorm and Osisko?

            From the big three, Wheaton is probably the best