Empress Royalty Corp · TSXV:EMPR
Empress Royalty — Investor Presentation (February 2024)
23 slides from Empress Royalty's investor presentation, February 2024
Slide 1: Corporate Presentation February 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 FEBRUARY 2024
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 Creation of Investments Diversified Portfolio Revenue & Growth Mining Finance Team Empress creates new Globally diversified portfolio Generating revenue and Management & Board have royalties & streams to get of precious metals royalties & foreca
Slide 4: 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 5: 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 6: The Benefits to an Empress Shareholder
THE BENEFITS TSXV: EMPR TO AN EMPRESS SHAREHOLDER Leveraging Gold & Silver Low operating cost High Returns Global Portfolio Provides direct exposure to Protected from inflationary Present portfolio has strong Access to a globally diversified gold & silver through costs compared to mining Internal Ra
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 • Royalty is already in place so a • Work with mining company to inexpensive simple acquisition process - no create a royalty or stream - ability to negotiate t
Slide 8: Benefits of Creation
BENEFITS OF CREATION TSXV: EMPR WHY CREATION IS BETTER Due Diligence Security Reporting Impact Our DD process includes We structure mutually Monthly reporting is Our mining company Technical, Legal & Tax DD beneficial investments, provided by our mining partners benefit from our with independent inc
Slide 9: 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 10: 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 11: How We Invest
HOW WE INVEST TSXV: EMPR FOCUS & CRITERIA Project Stage Commodity Location Investment Size ESG Development Gold & Silver Globally Up to US$25M ESG focused & Production investments EMPRESS ROYALTY | FEBRUARY 2024 | TSXV:EMPR 11
Slide 12: The Portfolio
TSXV: EMPR THE PORTFOLIO PRECIOUS METAL ROYALTIES & STREAMS EMPRESS ROYALTY | FEBRUARY 2024 | TSXV:EMPR 12
Slide 13: Sierra Antapite Gold Stream
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 1,430 US$2.2M US$15M Oz Au annually Annual cashflow Net Asset Value* Note: Base case
Slide 14: Tahuehueto Silver Stream
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 177,651 US$3.3M US$20M Oz Ag annually Annual cashflow Net Asse
Slide 15: Manica Gold Royalty
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 866 US$1.6M US$5M Oz Au annually Annual cashflow Net Asset Value* Note: Base case assumption of U
Slide 16: Pinos Gold & Silver Royalty
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: Base case assumption of US$1,750/oz gold & US$
Slide 17: Canadian Exploration
CANADIAN EXPLORATION TSXV: EMPR EARLY STAGE Ontario Saskatchewan Coldstream Fisher Miner Lake Manitoba Greenoaks Oxford Lake Mud Lake Quebec Empress Windfall East Dog Lake Destiny EMPRESS ROYALTY | FEBRUARY 2024 | TSXV:EMPR 17
Slide 18: Revenue Progression
REVENUE PROGRESSION TSXV: EMPR QUARTERLY REVENUE (US$) QUARTERLY REVENUE 1,200,000 2024 Projected 1,000,000 Annual Revenue US$10M+* 800,000 600,000 400,000 200,000 - Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2O23 Q3 2023 Per company quarterly and Audited Annual Finan
Slide 19: The Pipeline
THE PIPELINE Galaxy Gold Stream TSXV: EMPR EVALUATING OPPORTUNITIES US$5M gold stream on Golconda’s Galaxy gold mine. Executed agreement. Funding & CPs expected shortly. Africa Gold Stream US$7.5M gold stream on a producing mine in Africa. Exclusivity signed. In the process of due diligence. Pipelin
Slide 20: Capital Structure
CAPITAL STRUCTURE TSXV: EMPR S TRONG S H ARE H OLDE R BA S E SHARES O/S MKT CAP* BOARD & MANAGEMENT 118M US$26M 25% INSTITUTIONAL / STRATEGIC INVESTORS Warrants & Options 23M* Fully Diluted = 141M Approx. C$35M 35% - Rick Rule - Stefan Gleason, Money Metals xExchange - Sprott Asset Management USA, C
Slide 21: Near-Term Catalysts
NEAR-TERM CATALYSTS TSXV: EMPR PATH TO RAPID GROWTH Sierra Antapite Tahuehueto Golconda Invest in Pipeline Increasing production Ramping up production Bringing additional revenue US$28.5M debt facility to capacity to double capacity into the portfolio fund new investments EMPRESS ROYALTY | FEBRUARY
Slide 22: 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 23: Contact Us
CONTACT Vancouver, Toronto, London empressroyalty.com US +1.604.331.2080 @empressroyaltycorp info@empressroyalty.com EmpressRoyaltyCorp Minimal X 23 EMPRESS ROYALTY | FEBRUARY 2024 | TSXV:EMPR 23
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