Empress Royalty Corp · TSXV:EMPR
Empress Royalty — Investor Presentation (February 2023)
28 slides from Empress Royalty's investor presentation, February 2023
Slide 1: Strategic Approach to Investing in Gold & Silver
STRATEGIC APPROACH TO INVESTING IN GOLD & SILVER CORPORATE PRESENTATION TSXV | EMPR FEBRUARY 2023 OTCQX | EMPYF
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 the actual results, performance, or achievements of Empress to be materially different from any future results, information" within the
Slide 3: Our Value Proposition
OUR VALUE PROPOSITION TSXV: EMPR EMPRESS ROYALTY Strong Mining Creation of Diversified Substantial Revenue Finance Team Investments Portfolio & Growth Completed over US$6B in Empress creates new royalties Diversified portfolio of 17 Currently generating revenue & mining finance transactions & stream
Slide 4: Royalties & Streams: What Are They?
ROYALTIES & STREAMS TSXV: EMPR WHAT ARE THEY? Royalty Agreement Stream Agreement Often called an NSR (Net Smelter Return), a royalty agreement is where Often called a stream, a streaming agreement is where the mining the mining company pays the royalty holder a percentage of total company delivers t
Slide 5: The Benefits to an Empress Shareholder
THE BENEFITS TSXV: EMPR TO AN EMPRESS SHAREHOLDER Leverage to gold & silver High Returns Provides direct exposure to gold & silver Present portfolio has average returns in through streaming credits & revenue from excess of 31% IRR royalties Hedge Against Inflation Global Portfolio Protected from inf
Slide 6: Royalty Company Growth
ROYALTY COMPANY GROWTH TSXV: EMPR ROYALTIES OUTPERFORM GOLD Royalty Companies Outperform Gold Life Cycle of a Royalty Company th ow Gr id Rap 2 – ta ge S Stage 1 – Establish Market Presence *Royalty Index: average of Wheaton Precious, Royal Gold, Franco Nevada & Sandstorm Gold Source: Bloomberg EMPR
Slide 7: Three Types of Royalty & Streaming Companies
THREE TYPES TSXV: EMPR OF ROYALTY & STREAMING COMPANIES Exploration Generation Third Party Acquisition Creation Early stage and typically inexpensive Royalty is already in place so a simple Work with mining company to create a acquisition process - no ability to royalty or stream - Direct relationsh
Slide 8: 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 9: How We Invest
HOW WE INVEST TSXV: EMPR INVESTMENT FOCUS & CRITERIA 1 2 3 4 5 Project Stage Commodity Location Investment Size ESG Development & Production Gold & Silver Globally Up to US$25M ESG focused investments EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 09
Slide 10: Empress Portfolio Royalties & Streams
TSXV: EMPR EMPRESS PORTFOLIO 17 ROYALTIES & STREAMS EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 10
Slide 11: Sierra Antapite
TSXV: EMPR SIERRA ANTAPITE 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 1,430 US$2.2M US$15M Oz Au annually Annual cashflow Net Asset Value* Note: Base
Slide 12: Tahuehueto
TSXV: EMPR TAHUEHUETO SILVER STREAM Location: Durango, Mexico Operator: Altaley Mining (TSXV:ALTY) 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 177,651 US$3.3M US$20M Oz Ag annually Annual cashflow N
Slide 13: Manica
TSXV: EMPR MANICA 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 866 US$1.6M US$5M Oz Au annually Annual cashflow Net Asset Value* Note: Base case assumption
Slide 14: Pinos
TSXV: EMPR PINOS 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: Base case assumption of US$1,750/oz gold
Slide 15: Canadian Portfolio
CANADIAN PORTFOLIO TSXV: EMPR EXPLORATION Ontario Saskatchewan Brookbank East Fisher Coldstream Miner Lake Manitoba Greenoaks Oxford Lake Mud Lake Empress Three Towers Quebec Golden Heart Windfall East Dog Lake Destiny EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 15
Slide 16: The Pipeline
THE PIPELINE TSXV: EMPR EVALUATING US$50M+ OF POTENTIAL DEALS Gold Stream Silver Stream Gold Stream Inv Size: US$10M Size: US$5M Size: US$5M Metal: Gold Metal: Silver Metal: Gold Stage: Production Stage: Development Stage: Production EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 16
Slide 17: Projected Revenue
PROJECTED REVENUE TSXV: EMPR SIGNIFICANT GROWTH Forecasted Gross Revenue Value Proposition $14 Millions Base Current Price $12 $10 US$54M US$47M Projected revenue* Net Asset Value** $8 $6 $4 US$19.5M US$30M $2 Market Capitalization*** Invested to date $- 2023 2024 2025 2026 2027 Note: Empress Base c
Slide 18: The Industry: Peer Comparison
THE INDUSTRY TSXV: EMPR PEER COMPARISON P/NAV1 EV/REVENUE (2023E)1 P/CF (2023E)1 Fra nco-Nevada 2.27x Me talla 38.4x Me talla 51.3x Royal Gold 2.07x Gold Royalty 32.9x Orogen 49.0x WP M 1.94x Fra nco-Nevada 19.6x Fra nco-Nevada 25.5x Trip le Flag 1.37x WP M 16.5x Average = 1.18x Average = 16.6x Aver
Slide 19: Our Team: Board of Directors
OUR TEAM TSXV: EMPR BOARD OF DIRECTORS David Rhodes Alexandra Woodyer Jeremy Natascha Paul Wes Roberts Sherron Bond Kiernan Mainwaring Executive Chairman CEO & President Director Lead Director Director Director Director EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 19
Slide 20: Our Team: Management & Advisors
OUR TEAM TSXV: EMPR MANAGEMENT & ADVISORS Alexandra Woodyer Richard Vigil Janet Meiklejohn Kaitlin Taylor Allison Rippin David Laing Sherron Armstrong CEO & President, Global Vice Chief Financial VP Marketing & ESG Advisor Technical Advisor Director President Officer Investor Relations EMPRESS ROYAL
Slide 21: Capital Structure
CAPITAL STRUCTURE TSXV: EMPR STRONG SHAREHOLDER BASE Capitalization Balance Sheet Shares O/S 113M Cash** US$2M 25% Market Capitalization* C$40M Debt*** US$3.4M Warrants & Options. 41M Debt Facility Available US$10M 41% Ownership Ownership Fully Diluted S/O 154M 34% Research Coverage Red Cloud Securi
Slide 22: Our Milestones
OUR MILESTONES TSXV: EMPR SINCE INCEPTION IN DECEMBER 2020 Portfolio Corporate Deployed US$19.5M into four key assets Publicly Listed in December 2020 on the TSXV:EMPR Two development assets have commenced production since Listed on the OTCQB:EMPYF in February 2021 and upgraded investment, totaling
Slide 23: Near-Term Catalysts
NEAR-TERM CATALYSTS TSXV: EMPR BUILDING THE COMPANY Sierra Antapite Tahuehueto Manica Invest in Project Pipeline Increasing Production Ramping Up Ramping Up Expand Portfolio with Capacity Production Production New Investments EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 23
Slide 24: Investment Case
INVESTMENT CASE TSXV: EMPR PATH TO RAPID GROWTH Invested to date Projected Revenue Value Creation Value Proposition $19.5M $54M $47M $30M Invested into Generating significant Net Asset Value Market Capitalization four key assets revenue over the of the portfolio** trades at significant discount next
Slide 25: Contact Us
CONTACT US Alexandra Woodyer Sherron CEO & President Kaitlin Taylor VP Marketing & IR Vancouver, New York, London, Australia fb.com/EmpressRoyaltyCorp EmpressRoyaltyCorp +1.604.331.2080 @empressroyaltycorp @empressroyaltycorp info@empressroyalty.com @empressroyalty_ empressroyalty.com
Slide 26: The Appendix: Investment Portfolio
TSXV: EMPR THE APPENDIX INVESTMENT PORTFOLIO EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 26
Slide 27: Global Presence & Diversification
GLOBAL PRESENCE TSXV: EMPR & DIVERSIFICATION Canadian Exploration Royalties Sierra Antapite Tahuehueto Gold Stream Silver Stream & Manica Pinos Royalty Gold Royalty EMPRESS ROYALTY | FEBRUARY 2023 | TSXV:EMPR 27
Slide 28: Investment Portfolio
INVESTMENT PORTFOLIO TSXV: EMPR Property Owner Location Stage Commodity Terms Sierra Antapite Sierra Sun Group Peru Production Gold 4.5% Stream Tahuehueto Altaley Mining Corporation Mexico Production Silver 100% Stream Manica MMP Mozambique Production Gold 3.375% NSR Pinos Candelaria Mining Mexico D
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