Empress Royalty Corp · TSXV:EMPR
Empress Royalty — Investor Presentation (January 2022)
25 slides from Empress Royalty's investor presentation, January 2022
Slide 1: Presentation: Strategic Approach to Investing in Gold and Silver
JANUARY 2022 PRESENTATION STRATEGIC APPROACH TO INVESTING IN GOLD AND SILVER TSXV:EMPR
Slide 2: Forward Looking Statements
Forward Looking Statements TSXV: EMPR This Presentation contains or incorporates by reference "forward-looking statements" or "forward- achievements of Empress to be materially different from any future results, performance or looking information" within the meaning of applicable Canadian securities
Slide 3: Empress Royalty
Emp ress Ro yal t y TSXV: EMPR Creation of Diversified Revenue Strong Mining Path to Rapid Investments Portfolio Generation Finance Team Growth Empress creates new Diversified portfolio of Currently generating Management & board Building a strong royalties and/or streams 17 investments revenue and h
Slide 4: What are Royalties & Streams
W h at are Ro yal ti es & Streams TSXV: EMPR ROYALTY AGREEMENT STREAMING AGREEMENT Often called an NSR (Net Smelter Return), a royalty Often called a stream, a streaming agreement is agreement is where the mining company pays the where the mining company delivers to the stream royalty holder a perce
Slide 5: Empress Investment Benefits
Emp ress I n vest men t TSXV: EMPR Ben ef i t s EMPRESS SHAREHOLDER MINING COMPANY PARTNER + Leverage to gold & silver price + Non-dilutive & highly competitive cost of capital + Access to a globally diversified portfolio of assets + Provide needed upfront capital by immediately monetizing part of i
Slide 6: Types of Royalty & Streaming Companies
T yp es o f Ro yal t y & TSXV: EMPR St reami n g Co mp an i es EXPLORATION GENERATION TRADING / ACQUISITION CREATION / ORIGINATION + Early stage and typically + Royalty is already in place so a simple acquisition + Work with mining company to create a royalty or stream - Direct inexpensive relations
Slide 7: Royalty Company Growth
Ro yal t y Co mp an y G ro w t h TSXV: EMPR ROYALTY COMPANIES OUTPERFORM GOLD LIFE CYCLE OF A ROYALTY COMPANY th Grow id – Rap g e2 S ta Stage 1 – Establish Market Presence *Royalty Index: average of Wheaton Precious, Royal Gold, Franco Nevada & Sandstorm Gold Source: Bloomberg JANUARY 2022 | EMPRES
Slide 8: Investment Manager
I n vest men t M an ag er TSXV: EMPR ENDEAVOUR FINANCIAL | GLOBAL + Global mining finance team with proven experts in multi-sourced asset financings & extensive knowledge of the global mining industry + Identifies, structures & negotiates transactions for investments $740M $1.3B + Completes cash flo
Slide 9: Investment Focus & Criteria
I n vest men t F o cu s & TSXV: EMPR Cri t eri a 1 2 3 4 5 6 Project Stage Company Size Commodity Location Investment Size ESG Development & Small to Mid-Tier Gold & Silver Global $500,000 to ESG focused Production Stage $25,000,000 investments JANUARY 2022 | EMPRESS ROYALTY CORP | P9 . 9
Slide 10: Empress Investment Portfolio
TSXV: EMPR Emp ress I n vest men t Po rt f o l i o Producer 1 | Development 3 | Exploration 13 JANUARY 2022 | EMPRESS ROYALTY CORP | P . 10
Slide 11: Sierra Antapite Stream - Peru
Si erra An t ap i t e St ream PERU TSXV: EMPR Expanding Production from 750 tpd to 1,000 tpd PRO DUCT I O N PROJECT INVESTMENT ECONOMICS Location: Huancavelica, Peru Investment Size: US$10M Attributable Oz: 1,546 Au per annum Operator: Sierra Sun Group (Private) Type: 4.5% Stream Annual Cashflow: US
Slide 12: Tahuehueto Stream - Mexico
T ah u eh u et o St ream MEXICO DEVEL O PM ENT TSXV: EMPR In Construction - Forecasting Production Q1 2022 PROJECT INVESTMENT ECONOMICS Location: Durango, Mexico Investment Size: US$5M Attributable Oz: 183,000 oz Ag per annum Operator: Altaley Mining (TSXV:ATLY) Type: 100% Silver Stream Annual Cashf
Slide 13: Manica Royalty - Mozambique
M an i ca Ro yal t y DEVEL O PM ENT TSXV: EMPR In Construction - Forecasting Production Q2 2022 MOZAMBIQUE PROJECT INVESTMENT ECONOMICS Location: Manica, Mozambique Investment Size: US$3M Attributable Oz: 866 oz Au per annum Operator: Mutapa Mining MMP (Private) Type: 3.375% Royalty Avg Annual Cashf
Slide 14: Pinos Royalty - Mexico
Pi n o s Ro yal t y MEXICO DEVEL O PM ENT TSXV: EMPR Development Stage PROJECT INVESTMENT ECONOMICS Location: Zacatecas, Mexico Investment Size: US$1.5M Attributable Oz: 146 oz Au eqv per annum Operator: Candelaria (TSXV:CAND) Type: 1% Royalty Annual Cashflow: US$254K Commodity: Gold & Silver NAV: U
Slide 15: Canadian Portfolio
Can ad i an Po rt f o l i o TSXV: EMPR EXPL O RAT I O N Saskatchewan Fisher Manitoba Oxford Lake YT Ontario NT NU Brookbank East Coldstream Miner Lake NL Greenoaks BC Mud Lake AB SK MB Empress ON Three Towers QC PE Golden Heart NB NS Dog Lake Quebec Windfall East Destiny *Exploration portfolio does
Slide 16: Projected Revenue
Pro j ect ed Reven u e TSXV: EMPR Forecasted Revenue 16M 14M US$ $14.8M US$47M $12.8M Net Asset Value* 12M $10.6M 10M $9.3M 8M $6.3M US$19.5M 6M $5.6M Invested to date 4M US$23M 2M 0 Market Capitalization** Note: Empress Base revenue based on US$1,750/oz gold & US$21/oz silver, upside based on US$1,
Slide 17: Peer Comparison
Peer Co mp ari so n Empress trades at a significant discount on all key metrics TSXV: EMPR P/NAV1 EV/REVENUE (2022E)1 P/CF (2022E)1 Franco-Nevada 2.50x Gold Royalty 88.4x Metalla 92.3x WPM 1.93x Metalla 55.3x Vox 65.9x Royal Gold 1.77x Orogen 23.3x Franco-Nevada 27.2x Franco-Nevada 21.1x Metalla 1.3
Slide 18: Board of Directors & Advisors
BOARD OF DIRECTORS TSXV: EMPR David Rhodes Alexandra Woodyer Sherron Jeremy Bond Executive Chairman, Director & Director, CEO, President Director & Investment Investment Committee Chair & Investment Committee Committee & ADVISORS Paul Mainwaring Wes Roberts Natascha Kiernan David Laing Director Dire
Slide 19: Management
TSXV: EMPR Alexandra Woodyer Sherron Richard Vigil Kaitlin Taylor CEO & President Global Vice President Marketing Strategy MANAGEMENT & Communications SENIOR Dan O’Brien Doris Meyer Ben Meyer CFO Corporate Secretary Assistant Corporate Secretary JANUARY 2022 | EMPRESS ROYALTY CORP | P . 19
Slide 20: Capital Structure
Cap i t al St ru ct u re TSXV: EMPR CAPITAL STRUCTURE SHAREHOLDERS Shares Outstanding 104.5M STRATEGIC PARTNERS, Market Capitalization* C$29.2M MANAGEMENT INSTITUTIONAL & BOARD INVESTORS Warrants & Options 33.7M Fully Diluted S/O 138.2M 38 % 32 % Cash** US$1.0M Debt*** US$4.8M Research Coverage 30 %
Slide 21: Near Term Catalysts
Near T erm Cat al yst s TSXV: EMPR Sierra Antapite Tahuehueto Manica Revenue Build Portfolio Expanding Commence Commence Projecting US$28M Continuing to production from 750 production production over the next three expand the portfolio tpd to 1,000 tpd Q1 2022 Q2 2022 years JANUARY 2022 | EMPRESS RO
Slide 22: The Investment Case
T h e I n vest men t Case TSXV: EMPR Diversified Forecasted Value Significant Trading at Portfolio Revenue Creation Returns Discount 17 US$28M US$47M 35.8% US$24M Gold & silver royalties Generating significant Net Asset Value* Internal Rate of Market Capitalization - and streams with a revenue over
Slide 23: Thank you
TSXV: EMPR T h an k yo u “Focusing on global gold and silver projects, Empress aims to Alexandra Woodyer Sherron create a diverse and robust portfolio of investment opportunities CEO & President creating value for its shareholders, as well as its partner mining T: +1.604.331.2080 companies.” E: info
Slide 24: Appendix
APPENDIX APPENDIX JANUARY 2022 | EMPRESS ROYALTY CORP | P . 24
Slide 25: Investment Portfolio
I n vest men t Po rt f o l i o TSXV: EMPR # Property Operator Location Stage Commodity Royalty Terms 1 Sierra Antapite Sierra Sun Group Peru Production Gold 4.5% Stream 2 Pinos Candelaria Mining Mexico Development Gold 1% NSR 3 Manica MMP Mozambique Development Gold 2.25% NSR 4 Tahuehueto Altaley Mi
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