Empress Royalty Corp · TSXV:EMPR
Empress Royalty — Investor Presentation (May 2024)
23 slides from Empress Royalty's investor presentation, May 2024
Slide 1: Corporate Presentation May 2024
TSXV | EMPR OTCQX | EMPYF S T R AT E G I C A P P R O A C H T O I N V E S T I N G I N G O L D & S I L V E R CORPORATE PRESENTATION M AY 2 0 2 4
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS TSXV: EMPR YOU SHOULD READ THIS This Presentation contains or incorporates by reference "forward-looking statements" or "forward-looking statements are subject to a variety of risks, uncertainties and other factors which could cause actual events information" within the me
Slide 3: Our Value Proposition
OUR VALUE PROPOSITION TSXV: EMPR THE BUSINESS STRATEGY Investment Expanding Increasing Experienced Mining Creation Diversified Portfolio Revenue & Growth Finance Team Empress creates new Globally diversified portfolio Generating revenue and Management & Board have royalties & streams to get of preci
Slide 4: Royalties & Streams: The Basics
ROYALTIES & STREAMS TSXV: EMPR THE BASICS Royalty Agreement Stream Agreement Royalty Companies Outperform Gold *Royalty Index: average of Wheaton Precious, Royal Gold, Franco Nevada & Sandstorm Gold. Source: Bloomberg Benefits to Empress Shareholders Gold & Silver Hedge Against High Returns Globally
Slide 5: Royalties & Streams: Types of Investment Strategies
ROYALTIES & STREAMS TSXV: EMPR TYPES OF INVESTMENT STRATEGIES Exploration Generation Third Party Acquisition Creation Early stage and typically inexpensive. Royalty exists so simple acquisition Work with mining company to create Exploration risk - no guarantee the process but no ability to negotiate
Slide 6: Our Team
OUR TEAM TSXV: EMPR STRONG TEAM WITH PROVEN TRACK RECORD OF SUCCESS Board of Directors & Advisors Management David Rhodes Alexandra Woodyer Jeremy Bond David Laing Alexandra Woodyer Nora Pincus Xavier Wenzel Executive Chairman Sherron Director Technical Advisor Sherron VP Corporate Chief Financial O
Slide 7: Investment Manager: Endeavour Financial
INVESTMENT MANAGER TSXV: EMPR ENDEAVOUR FINANCIAL Global Team 30+ Years US$740M US$1.3B Royalty & Stream JV & Strategic Est. 1988 Finance Investments 20+ US$28B US$8B International Awards Mergers & Acquisitions Debt Finance Since Endeavour began in 1988, it has operated exclusively in the natural re
Slide 8: Capital Structure
CAPITAL STRUCTURE TSXV: EMPR STRONG SHAREHOLDER BASE SHARES O/S MKT CAP* BOARD & MANAGEMENT 118M US$27M 25% Warrants, Options, DSUs & INSTITUTIONAL / RSUs = 27M Approx. C$38M 35% STRATEGIC INVESTORS - Rick Rule Fully Diluted = 146M - Stefan Gleason, Money - CASH** DEBT*** - Metals Exchange 40% - Spr
Slide 9: How We Invest
HOW WE INVEST TSXV: EMPR FOCUS & CRITERIA Project Stage Development and production Commodity Gold and silver only Location Investing globally Investment Size Up to US$25M ESG ESG focused investments EMPRESS ROYALTY | MAY 2024 | TSXV:EMPR 09
Slide 10: Our Portfolio
OUR PORTFOLIO TSXV: EMPR KEY REVENUE GENERATING INVESTMENTS Sierra Antapite Tahuehueto Manica Galaxy Gold Stream Silver Stream Gold Royalty Gold Stream Location Peru Location Mexico Location Mozambique Location South Africa Revenue* US$3.9M annual Revenue* US$4.7M annual Revenue* US$1M annual Revenu
Slide 11: Sierra Antapite
SIERRA ANTAPITE TSXV: EMPR GOLD STREAM Location Huancavelica, Peru Operator Sierra Sun Group (Private) Commodity Gold Stage Production Mine Type Underground 4.5% 11K oz 20% Gold stream then 1% LOM of spot price paid 2,072 US$3.9M US$17M GEO annually* Annual cashflow* Net Asset Value* Note: Managemen
Slide 12: Galaxy
GALAXY TSXV: EMPR GOLD STREAM Location Mpumalanga Province, South Africa Operator Golconda Gold (TSXV: GG) Commodity Gold Stage Production Mine Type Underground 3.5% 8K oz 20% then 2% up to 20K Gold Stream Of spot price paid oz or 20 years 929 US$1.7M US$11M GEO annually* Annual cashflow* Net Asset
Slide 13: Manica
MANICA TSXV: EMPR GOLD ROYALTY Location Manica, Mozambique Operator Mutapa Mining MMP (Private) Commodity Gold Stage Production Mine Type Open Pit 3.375% 95K oz LOM Gold royalty then 1.125% Gold royalty 509 US$1M US$5M GEO annually* Annual cashflow* Net Asset Value* Note: Management case assumption
Slide 14: Tahuehueto
TAHUEHUETO TSXV: EMPR SILVER STREAM Location Durango, Mexico Operator Luca Mining (TSXV: LUCA) Commodity Silver, Gold, Zinc, Lead Stage Production Mine Type Underground 100% 1.25M oz 20% Silver Stream then 20% for 10yr of spot price paid 2,471 US$4.7M US$20M GEO annually* Annual cashflow* Net Asset
Slide 15: Pinos
PINOS TSXV: EMPR GOLD & SILVER ROYALTY Location Zacatecas, Mexico Operator Candelaria (TSXV: CAND) Commodity Gold & silver Stage Development Mine Type Underground 1% LOM 29 NSR Royalty Concessions 3,816 2018 7 year Hectares PEA Completed Mine life Note: Management case assumption of US$1,900/oz gold
Slide 16: Canadian Exploration
CANADIAN EXPLORATION TSXV: EMPR EARLY STAGE Ontario Saskatchewan Coldstream Fisher Miner Lake Manitoba Greenoaks Oxford Lake Mud Lake Empress Quebec Dog Lake Windfall East Destiny EMPRESS ROYALTY | MAY 2024 | TSXV:EMPR 16
Slide 17: The Pipeline
THE PIPELINE TSXV: EMPR EVALUATING OPPORTUNITIES Consistent flow of investment opportunities Evaluating over US$50M in potential investments in the pipeline Focusing on producing mines or late-stage development projects to increase revenue EMPRESS ROYALTY | MAY 2024 | TSXV:EMPR 17
Slide 18: Leverage to Commodity Prices
LEVERAGE TO COMMODITY PRICES TSXV: EMPR REVENUE GROWTH WITH CONSERVATIVE PRICE OUTLOOK Incremental Potential Revenue From Higher Commodity Prices $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $- 2021 2022 2023* 2024 2025 2026 2027 Projected revenue calculated using management estimates GOLD PRICE SILVER PRICE
Slide 19: Upside Potential: The Industry Comparison
UPSIDE POTENTIAL TSXV: EMPR THE INDUSTRY COMPARISON PRICE / NET ASSET VALUE¹ PRICE / CASH FLOW (2024E)¹ Trading at a Trading at a 50% discount 73% discount Industry Average = 0.86x Industry Average = 23.29x 0.46x 0.48x 5.81x 6.21x o m x PM la t n lty a ra e) a e) l PM o lty e) e) ta m la x t n a ra
Slide 20: Path to Growth
PATH TO GROWTH TSXV: EMPR NEAR TERM CATALYSTS Sierra Antapite Golconda Tahuehueto Invest in Pipeline Expanding production Increasing underground Ramping up production US$20M debt facility to capacity production and fill mill to double capacity fund new investments capacity EMPRESS ROYALTY | MAY 2024
Slide 21: Value Proposition
VALUE PROPOSITION TSXV: EMPR FOCUSED ON REVENUE CREATION Invested to Date Projected Revenue** Since inception invested into With the current portfolio forecasted key assets over the next 5 years US$24.5M US$54M US$60M+ Net Asset Value* The portfolio NAV includes Sierra Antapite, Tahuehueto, Manica a
Slide 22: Why Invest
WHY INVEST TSXV: EMPR PATH TO REVENUE GROWTH 1 3 Investment Creation Experienced Mining Finance Team Empress creates new royalties & streams Management & Board have completed over US$8B to get mines into production or expand in mining finance transactions with track record of production capacity whi
Slide 23: Contact Us
CONTACT Vancouver, Canada empressroyalty.com US +1.604.331.2080 @empressroyaltycorp info@empressroyalty.com EmpressRoyaltyCorp Minimal X 23 EMPRESS ROYALTY | MAY 2024 | TSXV:EMPR 23