EMX Royalty Corp.

EMX Royalty Corp. is a junior gold and copper royalty and streaming company headquartered in Vancouver, Canada, operating primarily in Chile and Europe. Key assets include Caserones and Timok (Cukaru Peki). Portfolio composition includes 7 cash-flowing royalties, 10 development royalties, and 125 exploration royalties. The business model is centered on acquiring and managing royalties, making strategic investments, and organically generating new royalty interests through its own exploration initiatives. This diversified, three-pronged approach provides exposure to immediate cash flow from producing assets, near-term growth from development projects, and long-term upside from exploration discoveries. The company maintains a balanced exposure to precious and base metals, with a particular emphasis on gold and copper. A key differentiator is the organic generation of royalties, which leverages in-house geological expertise to acquire and advance properties before partnering them with other companies for retained interests. This model is designed to create value and provide shareholder returns across different stages of the mining life cycle and commodity market conditions. The enterprise also complements its royalty activities with strategic equity investments in undervalued companies that present exploration or development potential.

Business strategy encompasses a three-pillared approach focused on royalty acquisition, organic royalty generation, and strategic investment. Royalty acquisition priorities involve purchasing interests in assets ranging from producing mines to development-stage projects across the precious, base, and battery metals sectors, with consideration for other cash-flowing opportunities. The royalty generation model, a core component of the long-term value creation plan, leverages in-country geological expertise to acquire prospective mineral properties on open ground. These properties are advanced through low-cost work programs before being optioned to partner companies in exchange for retained royalty interests, advance payments, and other considerations, thereby generating early-stage cash flow and retaining upside exposure at no further cost. Strategic investment initiatives complement the royalty business by targeting equity positions in companies with undervalued mineral assets that possess significant exploration or development potential. Exit strategies for these investments are flexible, including equity sales, the creation of new royalty positions, or a combination of both to maximize returns.

Executive leadership features a President and CEO with over 2 decades of experience leading the organization since 2003 and an Executive Chairman with a long tenure since 2012. Board composition includes 6 directors, with governance oversight managed through 4 specialized committees: Audit, Compensation, Environmental Social and Governance, and Nominating. The Audit Committee is composed of 3 independent and financially literate members. The governance framework includes established procedures for managing potential conflicts of interest, requiring directors to declare any such conflicts and abstain from related discussions and voting. Management's investment due diligence process incorporates a comprehensive assessment of counterparties’ environmental, social, and governance practices as a key gating item before any transaction. The board's oversight responsibilities include the direct appointment, compensation, and supervision of the independent external auditor, ensuring accountability and independence in financial reporting processes.

The organization's inaugural Sustainability Report, published in 2024 for the 2023 financial year, establishes a baseline for ESG performance and was developed with reference to the Global Reporting Initiative and the International Council on Mining and Metals. The company's investment due diligence process includes an extensive assessment of counterparties’ ESG and health and safety management practices, local stakeholder engagement, and permitting. A formal Health, Safety, Environment, Labor and Community Policy guides operations, with a stated aim of achieving zero lost-time injuries and fatalities. Labor standards are aligned with the International Finance Corporation's Performance Standard 2, promoting fair treatment, non-discrimination, and equal opportunity while prohibiting child or forced labor. Community relations policy emphasizes proactive and transparent engagement with all local stakeholders from the inception of fieldwork, including the identification of vulnerable groups to ensure inclusive consultation. Environmental policy focuses on implementing standard operating procedures designed to meet all applicable environmental requirements and industry best practices.

In 2023, the company entered into a binding agreement with Franco-Nevada for the joint acquisition of new royalties, a partnership where Franco-Nevada contributes 55% of capital and the company contributes 45%, with resulting interests split equally. The company manages all sourcing, due diligence, and negotiation for these transactions. A significant portfolio expansion occurred in 2021 through the acquisition of a royalty portfolio from SSR Mining. The company utilizes operationally significant subsidiaries, including Bronco Creek Exploration Inc. and Bullion Monarch Mining, Inc., to execute its business strategy, such as entering into exploration agreements and managing legal settlements. As part of a 2022 financing transaction for a royalty acquisition, Franco-Nevada became a strategic shareholder, holding approximately 3.5% of the issued and outstanding common shares at the time. The business model frequently involves the sale or optioning of internally generated properties to partner companies, which results in retained royalty interests, advance payments, and sometimes equity positions in the partner entities.