Elemental Royalty Corporation

Thank you for joining us. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the Elemental Royalty Corporation conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. For those of you viewing online, you can submit questions at any time using the component on the webcast console. Thank you. I would now like to turn the call over to David Cole, CEO of Elemental Royalty Corporation. Please go ahead.

Thank you very much. And thanks, everybody, for joining today and your interest in Elemental. I must say it's my immense pleasure to have the opportunity to be the CEO of this merged company and very pleased with the cultural results and financial results and portfolio combination that has occurred through the joining of Elemental, Altus Royalties Corporation, and EMX Royalty. And And key to that team of which I'm humbled by and pleasured to work with would be the president who's joining us today, Frederick Bell. And also, it's been a great pleasure over the last couple of years, a newer member of the team, but a key member is our CFO, Stefan Wenger. And the three of us will be here today to go through this presentation and to answer all of your questions. First of all, I'd like to say that, and if you've heard me speak before, you know I'm an aficionado of the royalty business model and all of the immense aspects of optionality within that. Key to that is that fundamentally, We believe that the value of mineral rights augments over time. No better example of that than the price of gold moving from $35 an ounce when I was 10 years old to $4,500 an ounce today. The price of copper also having had a nice move within my lifetime. And that is illustrative of the fact that minerals in the ground continue to augment in value. And the best way, in my opinion, to be exposed to the portfolio of mineral rights, which behooves us all, is through royalty ownership. And we have captured and built this royalty portfolio over the long course of the last two decades by implementing multiple aspects of how to accumulate royalties, royalty generation, purchase of existing royalties, doing royalty financings, and as a good example, corporate action as well, such as the merger between Elemental and EMX. This has resulted in a portfolio that is officially gold focused, as we do have approximately 60 or more percent of our current income coming from gold. And that is important because that aids the likelihood of us being included in various index funds. But from my perspective, the most important thing is to be exposed to prospective mineral rights within this portfolio. Of course, we love gold. And so that we can capture that aspect of discovery optionality, engineering advancement optionality, metallurgical optionality, which I've seen throughout my career, pay off handsomely to royalty holders. So currently today, we have a globally diversified portfolio with a number of operators of whom I have great respect operating around the world in 20 plus countries. And of course, within that portfolio, there's producing assets at the top and a plethora of 200, over 200 early stage assets. that all have that potential to be advanced and are advancing with resources and reserves moving forward, creating a whole host of near term catalysts with new mines coming into production, which we can go into in a little bit more detail as we go through the presentation. I'm particularly pleased to have the financial backing of Tether and Tether Investments, the largest stablecoin company in the world, one of the most profitable private enterprises in the world, and their vision that they have for the use of stablecoin, particularly XAUT, which is tied to physical metal stored in vaults in Switzerland as a mechanism to disrupt old school banking systems and move towards something much more efficient. It's a fascinating idea and we're delighted to have them as shareholders. And of course, it is because of their involvement that we are the first company to offer a dividend payable in XAUT, which is fully convertible to physical metal on demand. We'll go into more aspects as to how that is actuated. And there's already some pre-webinar questions coming in as to exactly how that will happen. And the guys will explain that. and come back to the team again. Oh, let's move on to the portfolio. So over 200, I believe it's actually almost 300, minimal property assets that we have in the world. 28 are advanced, 18 are currently cash flowing from production. There's a lot of pre-production cash flow as well. As many of the deals that we've written over time have pre-production payments built into them. That's been an important aspect of the model. Leeville is performing very nicely. That's a gold asset in Nevada, and it's a key example. Moving to South America, Casarone is one of our largest cash flowing operations in the world today. It is moving on very nicely with Lundin as the new operator there. They're putting 44 kilometers of drill holes into the Casarone system to further advance discovery on that property. That's great news for us. in addition to incrementally increasing production towards nameplate capacity of that operation. One very near and dear to my heart is TMUC, and Zijun is getting metal out of the ground at a breakneck pace and continuing to advance the discovery of four ore deposits that are within our footprint there. And that represents one of the largest, according to the analysts, net asset value assets within our portfolio. West Africa continues to produce nicely, and there's nicely enhancing production from Karlawinda, the gold asset in Western Australia. And long-term, we see Laverton as a cornerstone asset as they move within, move production within that district towards ground that are within our royalty footprint.

So we've been very busy.