Lithium Royalty Corp.

Good morning, ladies and gentlemen. Welcome to the Lithium Royalty Corp first quarter 2025 results call. At this time, all lines are in listen only mode. Following the presentation, we will conduct the question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, April 30, 2025. I would now like to turn the conference over to Anita Zaganori, Vice President of Investor Relations at Lithium Royalty Corp. Please go ahead.

Good morning and welcome to Lithium Royalty Corp's first quarter 2025 earnings call. Please note that our complete financial results are available on our website, lithiumroyaltycorp.com, under the Investors tab and on CR+. This event is being webcast live. A replay of this call will be available on our website. Joining us today are Ernie Ortiz, President and CEO of Lithium Royalty Corp, and Dominique Barker, Chief Financial Officer at LRC. Ernie will begin with introductory remarks, followed by Dominique, who will provide an overview of our financial results. After the presentations, we will transition to a Q&A session where our executive team will respond to your questions. We would like to remind participants that today's commentaries may contain forward looking information. For more details and other important notices, please refer to our press release dated April 30th, 2025. available on our website and on CDAR+. Please note that all figures referred to on today's call are in U.S. dollars unless otherwise noted. I will now turn the call over to Ernie.

Thank you, Anita, and good morning, everyone. In the first quarter of 2025, LRC revenue was down slightly year on year, driven by the 17% decline in spodumene prices. This was partially offset by the continued ramp up of operations of Sigma lithium, Our revenue continues to outperform the broader lithium price index. In fact, since LRC's initial public offering, LRC's year-on-year revenue growth has outperformed the report's spotting price index for the majority of times. This is because of our unique royalty structure with a diversified portfolio of 35 royalties that benefits from various assets ramping up at different times in a secular growing lithium market. In 2023, Sigma Lithium commenced production and ramped up throughout 2024. In 2025, Same as expected to start production from phase two, which will add another 25,000 tons of spodumene concentrate at full ramp up. Additionally, Gangsang Lithium officially inaugurates Mariana Lithium Project in Salta in February 2025. We expect to receive revenues from the project in the second half of the year. Seagate Mining has guided from the start of production at its Tres Cabrales project in Argentina in the third quarter of this year, highlighting its low cost position in the fast evolving lithium market. Recall, there is a 20,000 ton per annum operation for Phase I with substantial expansion potential given its multi-decade asset life. Furthermore, Atlas Lithium has received its DMS signed in Brazil, while Sinova Global anxious to start limited production at its silicon mine in British Columbia in the fourth quarter of 2025. Despite the challenges facing the broader lithium market, our focus on high-grade, low-cost assets allows for many of our largest net asset value contributors to continue advancing into production and cash flow. Our portfolio continues to mature, preparing us well for any market environment given our limited cost base as a royalty company. Lithium prices have largely remained range bound in 2025, with spotting prices trading in the $800 to $900 per ton range and lithium carbonate prices in the $10,000 per ton range. These prices are below reinvestment economics for several operators and developers. Prices are expected to improve over time, given the robust demand figures still projected in the industry. On another note, a number of our operators have discovered additional commodities on their properties that could accelerate their path to revenue generation with commodities that are enjoying stronger pricing at the moment. This opportunity is most prevalent with cesium discoveries at some of our assets in the portfolio, including Power Metals Case Lake, Winsome Cermak, and Grid Metals Donner Lake projects. To this effect, Power metal is the most advanced with a Mineral Resource Statement and PEA expected shortly. Power metal is expected to start production in 2026. LRC holds a 2% score on the K-State project. To expand on this point, this highlights a substantial optionality at our disposal. LRC's underwriting methodology is intentionally conservative as we do not factor in resource upgrades or production expansions in our going-in valuations. Given that lithium is our primary focus, We also provide no value for other commodities beyond lithium in our initial underwriting. Therefore, any value from additional resource expansions, production expansions, or additional commodities are free carried assets to the LRC shareholder. In the quarter, we completed a partial sale of our Tresca Bras royalty to Triple Flag for $28 million. This solidifies our balance sheet strength and opens up the opportunity to acquire additional assets at distressed valuations. Our pipeline remains strong, and our preference is for assets that have high proximity to cash flow with strong asset qualities. Given the balance sheet strength, we also announced a substantial issuer bid, SID, as we believe our shares are substantially undervalued in the context of the cash flow growth for the company. We expect to announce results of the SID this week. We look forward to driving additional value for shareholders via attractive royalty acquisitions, potential additional share repurchases, and continued uncovering of value via our royalty portfolio. I will now talk to Dominique who will discuss our financial results.