Elemental Royalties – Significant Gold Equivalent Ounce Production And Revenue Growth On Tap For 2022
Fred Bell, President and CEO of Elemental Royalties (TSX.V:ELE – OTCQX:ELEMF), joins us to discuss the significant growth in production and revenues the Company has on tap for the remainder of this year and heading into 2023, along with key updates on royalty partner projects.
We started off by recapping the news from May 12th, that the hostile takeover bid received from Gold Royalty Corp (NYSE: GROY), received less than 5% of its shares that got tendered, which proved insufficient, having failed to meet the statutory minimum tender condition of more than 50% of the Elemental shares outstanding. Fred points out that this underpins the value most shareholders see in the Company’s growth, and that the hostile bid didn’t capture the interest of investors and was not a compelling enough offer fully appreciating the company’s value proposition. 2022 is forecast to deliver a 50-80% increase in gold equivalent ounces and represents another consecutive record year for the Company.
Fred outlined some of the royalties driving the coming growth with the Mount Pleasant royalty start to contribute meaningfully in Q1, expectation of the additions of the Ming gold stream in Q2, and the Mercedes royalty in Q3 accelerating gold equivalent ounce production for the balance of the year. We also discussed the two largest royalties being the Karlawinda Gold Mine Royalty operated by Capricorn Metals (ASX.:CMM), which will almost double the Company’s royalty revenue with a mine life of over 10 years, and then the key long-life Wahgnion Gold Project Royalty operated by Endeavour Mining (TSX: EDV). The other point was made was the huge exploration upside built into the royalty business model, where Elemental Royalties will see upwards of 140,000 meters of drilling on it’s royalty properties this year, for compelling resource expansion and further discoveries
If you have any follow up questions for Fred about Elemental Royalties, then please email us at either Fleck@kereport.com or Shad@kereport.com.
Click here to visit the Elemental Royalties website and read over both news releases we discussed.
Hey there Charles. Yeah, I’ve been building back up my Elemental Royalties position in size, as I had trimmed some of the position back when the news broke about the hostile bid from Gold Royalty. Now that all that saga is behind them, it sounds like their production growth in Q2-Q4 of this year, and then heading into 2023 is going to really help their bottom line, and the best is yet to come.
Just became a shareholder recent. Like the outlook for coming quarters.