Elemental Royalties – What To Understand About The Hostile Bid And Reviewing Key Royalties Growth On Tap For 2022
Fred Bell, President and CEO of Elemental Royalties (TSX.V:ELE – OTCQX:ELEMF), joins us to discuss the recent hostile takeover bid received from Gold Royalty Corp (NYSE: GROY), and why the key shareholders he has talked to are not inclined to vote towards accepting the offer for a number of factors seen as inadequate. The company issues a press release on January 26th titled: “Elemental Board Of Directors Unanimously Recommends Shareholders Reject The Hostile Bid.”
We discussed that the attraction was to the Company’s pipeline of cash flowing assets which are very hard to come by in this competitive market, and that they have a great deal of growth over the next few years that has not been daylighted yet in the current valuation. Fred unpacks 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). Fred also outlined the expected revenues to start by the second half of 2022 at the Mercedes Mine Royalty, that just changed hands from Equinox (NYSE: EQX) to Bear Creek Mining (TSX.V: BCM) and the Mt Pleasant Royalty operated by Zijin Mining (OTC: ZIJMF) that is starting to mine from their royalty concession this year.
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.