Empress Royalty - A Unique Royalty Company Building Future Revenue Streams

• Empress Royalty (EMPR) is a precious metals royalty and streaming creation company.
• CEO Alexandra Whittier Sharon and Executive Chairman David Rhodes discuss the company's progress.
• They currently have 17 investments and are focusing on building a diversified portfolio of gold and silver investments.
• Recent transactions include Talawara silver stream, Manica gold royalty, and the Sarah and Topeka gold project in Peru.
• Empress Royalty has strategic partnerships with Endeavor Financial, Terra Capital Australia, and Ascendo Banco, providing unique access to investment opportunities in various regions.

About Empress Royalty

Empress Royalty is a precious metals royalty and streaming company focused on providing development capital to mining projects around the world in exchange for royalties and streams. With a current portfolio of 17 royalty and stream investments, Empress Royalty works closely with mining companies to structure win-win deals, providing capital to advance projects while securing attractive returns for shareholders.

Interview with President & CEO Alexandra Woodyer Sherron

Adding Near-Term Cash Flow

In recent months, Empress has added three new royalties to its portfolio - the Talawaan silver stream, the Manica gold royalty, and the Sara Antipayco gold royalty. These deals demonstrate Empress’ ability to source and structure quality royalties that will begin generating cash flow in the near future.

The Talawaan silver stream, on a mine in Zacatecas, Mexico operated by Talawaan Resources, will provide Empress Royalty with 50% of the silver production from the mine up to 1.5 million ounces, dropping to 33% thereafter. With construction of the mine nearing completion and expected to commence production by end of 2022, this stream is anticipated to start contributing revenue next year.

Similarly, the Manica gold royalty covers an expansion project on a producing mine in Mozambique operated by Mutapa Mining & Processing. By providing capital to expand production from 750 to 1,000 tons per day, Empress secured a 4.5% royalty on the first 11,000 ounces, reducing to 1% thereafter. With expanded production expected online in Q1 2023, this royalty will also begin throwing off cash flow next year.

Building a Diversified Portfolio

In addition to near-term cash flowing royalties, Empress continues to build out a diversified portfolio covering projects in various stages of development around the world. With deals now spanning Mexico, Peru, Mozambique, Australia, and Canada, the company has assembled a globally diversified mix of royalties.

And with over a dozen potential transactions currently under review, Empress plans to continue steadily building out its portfolio in a disciplined manner, targeting quality royalties capable of delivering meaningful returns to shareholders.

Attractive Returns on Invested Capital

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A key aspect of Empress Royalty’s deals is the ability to generate outsized returns on the invested capital. The recent Sara Antipayco gold royalty provides a good example. While the deal carries an 11% interest rate, modeling suggests an internal rate of return above 17% over the life of the mine. By funding high return royalties like this, often on projects that lack access to traditional financing, Empress can leverage its capital to drive significant shareholder value.

Path to Dividends

A unique aspect of Empress Royalty’s strategy is the intent to pay dividends to shareholders as royalty cash flows build. Committed to becoming a yield vehicle in the precious metals sector, once the portfolio reaches sufficient scale to support sustainable dividend payments, regular dividends will commence.

With construction underway on near-term cash flowing royalties like Talawaan and Manica, Empress Royalty is firmly on track to reaching this dividend paying threshold within the next 12-24 months.

Conclusion

For investors interested in gaining exposure to a portfolio of high growth precious metals royalties, now may be an opportune time to consider an investment in Empress Royalty. With key assets nearing production, expanding deal flow, and a clear path to initiating dividends, exciting times appear ahead for this unique royalty company.

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