PDAC JV video: Royalty ownership exposes EMX to new discoveries

EMX Royalty (TSXV: EMX; NYSE-AM: EMX) has mixed prospecting with royalty writing to build a portfolio of 140 royalties delivering eight consecutive quarters of free cash flow, CEO David Cole said.

The hands-on approach exposes EMX to new discoveries and helps it compete for assets, the executive said early this month in Toronto. EMX acquires mineral rights by prospecting, builds a geological database and then sells these rights to companies looking for discovery opportunities.

“The best way to be exposed to mineral rights is through royalty ownership, because royalties are phenomenal financial instruments with immense embedded optionality,” Cole told The Northern Miner during the PDAC conference.

The model has supported a five-million-share buyback last year and a joint venture with Franco-Nevada (TSX: FNV; NYSE: FNV). EMX’s approach shows in assets like the Caserones copper-molybdenum mine in Chile and the Timok copper-gold project in Serbia, where production and exploration efforts have boosted net asset value.

Watch the full interview below with Mining.com host Devan Murugan. Joint venture videos are paid-for content in arrangement with The Northern Miner.