Empress Royalty Corp · TSXV:EMPR
Empress Royalty — Investor Presentation (November 2023)
26 slides from Empress Royalty's investor presentation, November 2023
Slide 1: Strategic Approach to Investing in Gold & Silver
STRATEGIC APPROACH TO INVESTING IN GOLD & SILVER CORPORATE PRESENTATION TSXV | EMPR NOVEMBER 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 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 EMPRESS ROYALTY BUSINESS STRATEGY Creation of Diversified Revenue Strong Mining Investments Portfolio & Growth Finance Team Empress creates new Globally diversified Currently generating Completed over US$6B in royalties & streams to get portfolio of precious meta
Slide 4: Our Vision
OUR VISION TSXV: EMPR WHY WE LAUNCHED EMPRESS Precious Metals Financial Expertise Strong belief that precious metals offer Significant returns using our team of mining finance experts superior investment opportunities Wealth Protection Niche Market In an uncertain world, precious Gap in the market w
Slide 5: Our Strategy
OUR STRATEGY TSXV: EMPR HOW WE INVEST Strategic & patient use of capital Taking advantage of market inefficiencies to maximise returns Creating long-term value for shareholders, more Buffet than Ark EMPRESS ROYALTY | NOVEMBER 2023 | TSXV:EMPR 03
Slide 6: Royalties & Streams
ROYALTIES & STREAMS TSXV: EMPR WHAT ARE THEY? Royalty Agreement Stream Agreement Often called an NSR (Net Smelter Return), a royalty Often called a stream, a streaming agreement is where agreement is where the mining company pays the the mining company delivers to the stream holder a royalty holder
Slide 7: Royalty Company Growth
ROYALTY COMPANY GROWTH TSXV: EMPR ROYALTIES OUTPERFORM GOLD Royalty Companies Outperform Gold Life Cycle of a Royalty Company h owt Gr id ap 2 –R ge St a Stage 1 – Establish Market Presence *Royalty Index: average of Wheaton Precious, Royal Gold, Franco Nevada & Sandstorm Gold. Source: Bloomberg EMP
Slide 8: High Profit Margins
HIGH PROFIT MARGINS TSXV: EMPR COMPARED TO TYPICAL MINING COMPANIES Average Mining 13.2% Company profit Margin Gold Fields Limited 22.8% Kinross Gold -4.9% AngloGold Ashanti 13.8% Agnico Eagle Average Royalty 17.5% 51.4% Company profit Margin Barrick 17.1% Newmont 12.7% Royal Gold 49.1% Wheaton Prec
Slide 9: The Benefits
THE BENEFITS TSXV: EMPR TO AN EMPRESS SHAREHOLDER Leveraging Gold & Silver Inflationary Hedge High Returns Global Portfolio Provides direct exposure to Protected from inflationary Present portfolio has Access to a globally gold & silver through costs compared to mining average returns in excess of d
Slide 10: 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 acquisition process - no ability to a royalty or stream - Direct Exploratio
Slide 11: 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 12: How We Invest
HOW WE INVEST TSXV: EMPR INVESTMENT FOCUS & CRITERIA Project Stage Commodity Location Investment Size ESG Development Gold & Silver Globally Up to US$25M ESG focused & Production investments EMPRESS ROYALTY | NOVEMBER 2023 | TSXV:EMPR 09
Slide 13: Empress Portfolio
TSXV: EMPR EMPRESS PORTFOLIO PRECIOUS METAL ROYALTIES & STREAMS EMPRESS ROYALTY | NOVEMBER 2023 | TSXV:EMPR 10
Slide 14: 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 case
Slide 15: Tahuehueto
TSXV: EMPR TAHUEHUETO 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 177,651 US$3.3M US$20M Oz Ag annually Annual cashflow Net Asse
Slide 16: 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 of U
Slide 17: 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$1,750/oz gold & US$
Slide 18: Canadian Portfolio
CANADIAN PORTFOLIO TSXV: EMPR EXPLORATION Ontario Saskatchewan Coldstream Fisher Miner Lake Manitoba Greenoaks Oxford Lake Mud Lake Quebec Empress Windfall East Dog Lake Destiny EMPRESS ROYALTY | NOVEMBER 2023 | TSXV:EMPR 15
Slide 19: Value Proposition
VALUE PROPOSITION TSXV: EMPR FOCUSED ON REVENUE CREATION Invested to date Projected Revenue** Since inception we have With the current portfolio forecasted invested into 4 key assets over the next 5 years $19.5M $47M +$50M Net Asset Value* The portfolio NAV includes Sierra Antapite, Tahuehueto and M
Slide 20: The Industry: Peer Comparison
THE INDUSTRY TSXV: EMPR PEER COMPARISON PRICE / NET ASSET VALUE1 ENTERPRISE VALUE / REVENUE (2024E)1 PRICE / CASHFLOW (2024E)1 Average = 1.18x Average = 13.3x Average = 18.0x Franco-Nevada 2.32x Gold Royalty 22.7x Franco-Nevada 26.3x WPM 1.98x Metalla 19.0x Trident 26.3x Royal Gold 1.97x Franco-Neva
Slide 21: The Pipeline
THE PIPELINE TSXV: EMPR EVALUATING US$50M+ OF POTENTIAL DEALS Gold Stream Gold Stream Gold Stream/Royalty Inv Size US$7.5M Inv Size US$5M Inv Size US$10M Metal Gold Metal Gold Metal Gold Stage Production Stage Production Stage Development Status Exclusivity signed Status Exclusivity signed Status In
Slide 22: Our Team
OUR TEAM TSXV: EMPR STRONG TEAM WITH PROVEN TRACK RECORD OF SUCCESS Board of Directors Management & Advisors David Rhodes Alexandra Woodyer Jeremy Bond Alexandra Woodyer Richard Vigil Xavier Wenzel Executive Chairman Sherron Director Sherron Global Vice President Chief Financial Officer Director CEO
Slide 23: Capital Structure
CAPITAL STRUCTURE TSXV: EMPR STRONG SHAREHOLDER BASE Capitalization Balance Sheet Shares O/S 118M Cash** US$1.1M 25% 35% Market Capitalization* C$34M Debt*** US$2.8M Warrants & Options 23M Debt Facility Available US$10M Ownership Fully Diluted S/O 141M 40% Research Coverage Red Cloud Securities | Da
Slide 24: Near-Term Catalysts
NEAR-TERM CATALYSTS TSXV: EMPR PATH TO RAPID GROWTH Sierra Antapite Tahuehueto Invest in Manica Project Pipeline Increasing Production Ramping Up Ramping Up Expand Portfolio with Capacity Production Production New Investments EMPRESS ROYALTY | NOVEMBER 2023 | TSXV:EMPR 21
Slide 25: Investment Case
INVESTMENT CASE TSXV: EMPR REAL VALUE CREATION Invested to Date Projected Revenue Value Creation Value Proposition $19.5M +$50M $47M $25M Invested into Potential to generate Net Asset Value Market Capitalization four key assets significant revenue over the of the portfolio** trades at significant di
Slide 26: Contact Us
CONTACT US Alexandra Woodyer Sherron CEO & President Kaitlin Taylor VP Marketing & Investor Relations Vancouver, Toronto, New York, London fb.com/EmpressRoyaltyCorp EmpressRoyaltyCorp +1.604.331.2080 @empressroyaltycorp @empressroyaltycorp info@empressroyalty.com @empressroyalty_ empressroyalty.com
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