Business
Letter from the CEO: Unlocking the True Value of Electric Royalties Ltd
VANCOUVER, BC / ACCESS Newswire / March 25, 2025 / Dear Valued Shareholders, Partners and Frie...
About this update from Electric Royalties Ltd.
[{"type":"text","content":"Letter from the CEO: Unlocking the True Value of Electric Royalties LtdVANCOUVER, BC / ACCESS Newswire / March 25, 2025 / Dear Valued Shareholders, Partners and Friends. Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (\"Electric Royalties\" or the \"Company\") was founded on a simple yet powerful premise: to build a portfolio of royalties on critical metals that are essential to the clean energy transition. In the past five years, we have outperformed our original growth expectations by expanding our portfolio from 11 royalties to 43, and acquired 17 lithium properties that are optioned out with potential to become future cash-flowing royalties.And yet, despite this ~290% increase in our portfolio size, our stock trades well below its value when we went public. Let me be clear-the value of the Electric Royalties portfolio is not reflected in our market capitalization. The market does not yet recognize this valuation gap.A Portfolio Packed with ValueOur asset base is diversified across metals critical to the clean energy revolution. To underscore the potential intrinsic value of our portfolio, I would like to recap some of our cornerstone royalties and the progress they have enjoyed since we acquired them.We acquired a cash flowing 0.75% Gross Revenue Royalty on the producing Punitaqui copper-gold mine in Chile in December 2024. The operator is currently focused on ramping up production to achieve 19 to 23 million pounds of copper annually, and near-mine exploration to extend mine life beyond the current seven years1.The Battery Hill Manganese Project has seen excellent progress since we acquired our royalty in June 2020. Battery Hill is one of the largest carbonate manganese deposits in North America and has the potential to be a substantial contributor to the supply chain of high-purity manganese for the EV industry2. The project has moved smartly through establishing mineral resources, completing a Preliminary Economic Assessment (PEA) and now has a Pre-Feasibility Study (PFS) underway.The PEA showcases a base case 47-year mine life with average annual revenues of approximately US$177 million3. Once Battery Hill is in production, Electric Royalties is entitled to 2% of annual revenues from the project arising from our 2% Gross Metal Royalty. We are not the only ones recognizing the potential at Battery Hill, as mining lumina...