Today, we take a deep dive into Platinum, exploring its market fundamentals, the potential for a new bull market, and whether now is the time to buy! We’re thrilled to be joined by the legendary Bob Moriarty, founder of 321Gold.com and 321Energy.com, who shares his unique contrarian insights.
Bob, welcome back to the show! With current market fundamentals hinting at a strong potential for a new bull cycle in Platinum Group Metals, specifically Platinum, it’s great to have you.
In this must-watch interview, we cover:
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Bob Moriarty’s Fascinating History with Precious Metals: Discover what ignited Bob’s interest in gold and silver back in 1969, and his observations on the Vietnam War’s impact on US currency.
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The Power of the “Contrarian” Mindset: Learn how Bob’s contrarian philosophy has shaped his investment approach, especially in resource markets. We’ll discuss his experiences with extreme crowd behavior in gold and silver (1979-80 vs. 1999-2001) and why understanding it is crucial for investors. Plus, hear the cautionary tale of the 100-ounce silver bars bought high/sold low!
Bob shares insights into the recent shift in investor interest in Platinum ETFs, from liquidation to accumulation, and its significance for future prices. Platinum’s Market Position: Given his contrarian philosophy, Bob offers his take on where platinum stands in its market cycle – is it oversold, undervalued, or fairly priced?
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Current Market Dynamics & Future Outlook: Macro-Financial Conditions: How do issues with bond markets (Japanese and US) and the “Carry-Trade” intersect with Bob’s bullish view on platinum? Investment Vehicles Beyond Physical: For those looking for exposure to platinum, Bob shares his most compelling resource stocks or investment vehicles in the current environment. Educating New Investors: Why is education crucial for young investors entering the PGM space, and what advice does Bob offer?
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Audience Q&A: Bob answers a critical question from Phil Acton of East Bay Motorsports regarding refined platinum holdings, mining locations, annual output vs. consumption, safe jurisdictions, expected mine life, and where future commercially feasible deposits might be found. Special Offer! This weekend only, get 1 oz Platinum Maples for $109 over spot and 1 ozPlatinum Valcambi’s for $79 over spot! Inventory is low, so act fast! Call us at 855.505.1900 to secure yours.
Key Takeaway: Bob shares his single most important message for investors considering platinum right now.
North Vancouver, British Columbia–(Newsfile Corp. – May 1, 2025) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (“Lion One” or the “Company”) is pleased to report significant new high-grade gold results from 4,123.8 meters of underground infill and grade control drilling at its 100% owned Tuvatu Alkaline Gold Project in Fiji (“Tuvatu“). The drilling is focused on the Zone 5 area of the deposit, which is currently being mined.
Drilling was conducted from two near surface underground drill stations. The Company intersected high-grade mineralized structures in 29 drill holes targeting the UR2 lode down-dip of current underground developments. Most of the drill holes did not exceed 150 m in length and most of the high-grade drill intercepts are located within 50 m of current underground workings. Drill results include multiple bonanza grade gold intercepts over narrow widths, such as 236.00 g/t over 0.4 m, 101.58 g/t over 0.5 m, 102.35 g/t over 0.3 m, 94.23 g/t over 0.3 m, and 89.63 g/t over 0.4 m. Due to the proximity of drill results to existing workings there is a strong probability that these intercepts can be incorporated into the mine plan in the next six to twelve months.
Tuvatu is a high-grade narrow vein alkaline gold deposit and bonanza grade drill results are not uncommon on the project. In January the Company released the highest grade assay ever returned from Zone 5 drilling; 2,749.86 g/t over 0.3 m (see press release dated January 23, 2025). Previous high-grade drill results from Zone 5 include 1,517.79 g/t gold over 0.3 m (see press release dated December 17, 2024), 1,568.55 g/t over 0.3 metres (see press release dated June 5, 2024), and 1,986.23 g/t gold over 0.6 m (see press release dated December 13, 2023).
Highlights of New Drill Results:
236.00 g/t Au over 0.4 m (TGC-0345, from 109.42 m depth)
25.89 g/t Au over 3.0 m (including 101.58 g/t Au over 0.5 m g/t) (TGC-0359, from 110.7 m depth)
16.85 g/t Au over 3.0 m (including 38.27 g/t Au over 0.9 m) (TGC-0339, from 104.7 m depth)
18.26 g/t Au over 2.5 m (including 89.63 g/t Au over 0.4 m) (TGC-0332, from 67.14 m depth)
15.36 g/t Au over 2.7 m (including 47.25 g/t Au over 0.3 m) (TGC-0343, from 75.3 m depth)
27.08 g/t Au over 1.5 m (including 94.23 g/t over 0.3 m) (TGC-0343, from 61.7 m depth)
16.34 g/t Au over 2.3 m (including 23.57 g/t over 0.6 m) (TGC-0335, from 102.1 m depth)
29.44 g/t Au over 1.3 m (including 102.35 g/t Au over 0.3 m) (TGC-0347, from 108.96 m depth)
25.96 g/t Au over 1.4 m (including 43.58 g/t Au over 0.6 m) (TGC-0343, from 68.9 m depth)
14.23 g/t Au over 2.4 m (including 23.37 g/t Au over 0.4 m) (TGC-0327, from 101.9 m depth)
*Drill intersects are downhole lengths, 3.0 g/t cutoff. True width not known. See Table 1 for additional data.
Figure 1. Location of the UR2 drilling reported in this news release. Left image: Plan view of the UR2 drilling in relation to the UR2 lode shown in green and other mineralized lodes shown in grey, with Tuvatu underground development shown in red. Yellow dashed square represents the area shown in the right image. Right image: Section view of the UR2 drilling looking West.
The Zone 5 area of Tuvatu is located along the main decline and includes the principal north-south and northeast-southwest oriented lodes at Tuvatu, as well as several western lodes. These lodes are steeply dipping structures that converge at approximately 500 m depth to form Zone 500, which is the highest-grade part of the deposit and is interpreted to be a major feeder zone at Tuvatu. The system remains open at depth with the deepest high-grade intersections occurring below 1000 m depth.
The drilling reported in this news release targeted the near-surface portion of the UR2 lode down-dip of current underground developments. The UR2 lode is one of the main north-south oriented lodes at Tuvatu. It has a strike length of approximately 600 m and dips steeply to the east. Mine development is currently taking place along the UR2 lode at the 1100 and 1102 levels of the mine, which are the deepest levels in Zone 5, as well as at the 1134 level of the mine. The drilling reported here was conducted from two underground drill stations; the 1090 drill station and the 1135 drill station. Drilling from the 1090 drill station targeted a 60 m wide section of the UR2 lode between 30 m and 50 m below the 1100 level at the south end of the lode. Drilling from the 1135 drill station targeted a 100 m wide section of the UR2 lode approximately 10 m above and 10 m below the 1102 level in the middle portion of the lode.
The UR2 drill program consists of infill and grade control drilling with the purpose of providing a detailed understanding of the geometry and mineralization of the UR2 lode in advance of mining. Drilling is being conducted on 10 m centers. 29 out of the 32 drill holes reported in this news release intersected high-grade mineralization. Most of the high-grade intervals reported in this release are located within 50 m of underground developments and are anticipated to be included in the mine plan in the next 6 to 12 months. One additional hole (TGC-0311) was drilled to test a deeper portion of the UR2 lode and returned several high-grade intercepts approximately 80 m below the 1102 level. Highlights of the Zone 5 drilling reported here are shown in Figure 2.
Figure 2. UR2 drilling with high-grade intersects highlighted, 3.0 g/t gold cutoff. Oblique view looking down to the NW. The drill holes shown here primarily targeted areas of the UR2 lode scheduled for near-term mining below current underground developments.
The drill holes reported in this news release are oriented approximately perpendicular to mineralization. The reported intercepts therefore approximate the true width of mineralization. Tuvatu consists of high-grade narrow vein mineralization. The headline intercept of 236.00 g/t gold over 0.4 m therefore has an approximate true width of 0.4 m, as reported. The minimum mining width at Tuvatu is approximately 1.5 m. In reporting drillhole intercepts Lion One uses a grade composite cut-off of 3 g/t gold with <1 m internal dilution at <3 g/t. Drill hole intervals that are <3 g/t are below cutoff and are not included in Table 2.
Competent Person’s Statement
In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43- 101”), Melvyn Levrel, MAIG, Senior Geologist for Lion One Metals, is the Qualified Person for the Company and has reviewed and approved the technical and scientific content of this news release.
Lion One Laboratories / QAQC
Lion One adheres to rigorous QAQC procedures above and beyond basic regulatory guidelines in conducting its drilling, sampling, testing, and analyses. The Company operates its own geochemical assay laboratory and its own fleet of diamond drill rigs using PQ, HQ and NQ sized drill rods. The Lion One geochemical laboratory is accredited under the IANZ ISO/IEC 17025:2017 Standard – the international standard for testing and calibration of laboratories.
Diamond drill core samples are logged by Lion One personnel on site. Exploration diamond drill core is split by Lion One personnel on site, with half core samples sent for analysis and the other half core remaining on site. Grade control diamond drill core is whole core assayed. Core samples are delivered to the Lion One Laboratory for preparation and analysis. All samples are pulverized at the Lion One lab to 85% passing through 75 microns and gold analysis is carried out using fire assay with an AA finish. Samples that return grades greater than 10.00 g/t Au are re-analyzed by gravimetric method, which is considered more accurate for very high-grade samples.
Duplicates of 5% of samples with grades above 0.5 g/t Au are delivered to ALS Global Laboratories in Australia for check assay determinations using the same methods (Au-AA26 and Au-GRA22 where applicable). ALS also analyses 33 pathfinder elements by HF-HNO3-HClO4 acid digestion, HCl leach and ICP-AES (method ME-ICP61). The Lion One lab can test a range of up to 71 elements through Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES), but currently focuses on a suite of 26 important pathfinder elements with an aqua regia digest and ICP-OES finish.
About Lion One Metals Limited
Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets.
On behalf of the Board of Directors, Walter Berukoff, Chairman & President
Neither the TSX-V nor its Regulation Service Provider accepts responsibility or the adequacy or accuracy of this release
This press release may contain statements that may be deemed to be “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Appendix 1: Full Drill Results and Collar Information
Table 1. Collar coordinates for drillholes reported in this release. Coordinates are in Fiji map grid.
Hole ID
Easting
Northing
Elevation
Azimuth
Dip
Depth
TGC-0311
1876383
3920627
128
79.2
-48.5
165.3
TGC-0313
1876384
3920429
94
107.5
-28.3
135.1
TGC-0315
1876384
3920625
128
111.7
-15.9
130.9
TGC-0316
1876384
3920429
94
96.5
-27.8
121.5
TGC-0318
1876383
3920626
128
111.3
-20.2
131.3
TGC-0319
1876384
3920429
94
99.9
-19.8
141.4
TGC-0321
1876384
3920626
128
100.8
-16.4
125.7
TGC-0323
1876384
3920428
94
114.9
-21.0
122.6
TGC-0325
1876384
3920626
128
103.4
-21.9
130.3
TGC-0326
1876384
3920427
94
129.7
-19.9
133.4
TGC-0327
1876384
3920626
128
92.0
-17.0
126.6
TGC-0330
1876384
3920426
94
143.5
-19.9
122.7
TGC-0331
1876384
3920626
128
93.4
-23.0
125.4
TGC-0332
1876384
3920428
94
122.0
-27.7
121.0
TGC-0333
1876384
3920627
128
88.1
-20.9
122.6
TGC-0335
1876384
3920627
128
157.4
0.8
131.6
TGC-0336
1876384
3920429
94
94.9
-22.5
109.7
TGC-0338
1876384
3920429
94
106.3
-22.8
95.8
TGC-0339
1876384
3920627
128
78.4
-19.9
120.0
TGC-0341
1876384
3920428
94
113.4
-25.2
95.6
TGC-0342
1876384
3920627
128
76.0
-14.5
121.3
TGC-0343
1876384
3920429
94
101.1
-25.8
105.0
TGC-0345
1876384
3920627
128
73.9
-22.0
125.7
TGC-0347
1876384
3920627
128
68.7
-20.7
111.5
TGC-0351
1876383
3920628
128
64.0
-18.1
130.0
TGC-0355
1876383
3920628
128
59.4
-17.4
135.0
TGC-0359
1876383
3920628
128
60.8
-9.3
135.0
TGC-0360
1876383
3920628
128
57.0
-11.3
139.0
TGC-0363
1876383
3920628
128
54.7
-16.1
143.3
TGC-0365
1876383
3920628
128
52.9
-11.1
148.0
TGC-0367
1876383
3920628
128
51.3
-17.8
155.6
TGC-0370
1876383
3920628
128
49.5
-13.0
165.9
Table 2. Composite intervals from drillholes reported in this news release (composite grade >3.0 g/t Au, with <1 m internal dilution at <3.0 g/t Au).
On March 31, 1984 an American ex-Vietnam war fighter-pilot Bob Moriarty flies a Beechcraft Bonanza under the Eiffel Tower…capturing the flight from both inside the plane and from the ground! Later, he says he did just for fun!
At Proven and Probable, we dive deep into the latest developments shaping the world of mining, royalties, and resource investments. 📈 Here’s what’s making headlines at EMX Royalty Corporation:
🔹 Strong Financial Results: EMX’s latest financial update showcases robust performance and strategic fiscal management. 🔹 Share Buyback Completion: The successful conclusion of their $5 million share buyback program underscores their commitment to enhancing shareholder value. 🔹 Strategic Divestment: EMX has executed an agreement to sell four projects in the western USA to Pacific Ridge Exploration, streamlining their portfolio. 🔹 Armenia Expansion: The acquisition of royalty interests in Hayasa’s Urasar Project further solidifies EMX’s position in the region. 🔹 Peruvian Opportunity: EMX’s purchase of a royalty on the Chapi Copper Mine highlights their continued focus on high-potential assets globally.
This is a pivotal moment for EMX Royalty, showcasing their strategic approach to growth, value creation, and global asset diversification.
A conversation with Maurice Jackson of ‘Proven and Probable’ and David Cole of EMX Royalty, the Royalty Generator – NYSE: EMX | TSX.V: EMX
Maurice: EMX Royalty is off to a strong start in 2025. For readers, could you briefly introduce EMX Royalty and its unique investment proposition?
David: Certainly. I’ll start by saying royalties are phenomenal financial instruments embedded with huge optionality, and you want to be exposed to a lot of royalties. My fundamental thesis is that the value of mineral rights is only going to go up over time, as it has throughout our lifetimes. The best way to be exposed to mineral rights is through royalty ownership.
We accumulate royalties around the world, spanning 14 countries, and have built a portfolio of over 150 royalties. We do this through two primary mechanisms: acquiring royalties and generating royalties ourselves by acquiring mineral rights, adding value through geological data, selling assets, and retaining royalties.
Additionally, we make strategic investments along the way, which have been quite profitable. By integrating these three aspects into a synergistic business model, we have built a significant portfolio over the past two decades.
Maurice: You just referenced optionality. Could you expand on that term for someone who might be new to it?
David: That’s a fair question, Maurice, and I get asked about optionality often. It’s a common term within the industry. Essentially, optionality refers to the potential for outcomes—both good and bad—associated with an asset over time. There’s value that can be attributed to this potential.
The most significant aspect of optionality, in our view, is the potential for new discoveries. For example, if we generate or acquire a royalty on a project with a known resource—let’s say, a million ounces of gold in reserve with a 1% royalty—and during production, the geologists discover another half a million or even a million ounces, that additional discovery was not factored into our original acquisition price. That’s discovery optionality.
Other aspects of optionality include commodity prices, which can fluctuate. Over the course of my career, I’ve seen prices generally increase. Over time, as geological understanding improves, infrastructure is developed, and engineering and metallurgical techniques advance, the likelihood of additional discoveries and improved project economics increases.
A great example is the Goldstrike Royalty, which Pierre Lassonde of Franco Nevada acquired for $2 million Canadian dollars. Thanks to discovery optionality and other factors, that royalty has now generated over a billion dollars in cash flow and is still paying. It’s a tremendous example of how optionality can create extraordinary returns. Not every royalty turns out that way, of course, but the potential for these outcomes is what makes royalties so compelling.
Maurice: Within your portfolio, you have the Timok investment—$200,000 initially, I believe. I don’t want to steal your thunder, so can you share the numbers with us?
David: Certainly. So far, Timok has paid about $7 million to us. But that’s just the beginning—there’s potentially half a billion dollars or more coming to us over time based on the existing, known resource. And that’s before we fully account for the new MG Discovery. Zijin Mining recently announced in their last quarterly report that they’ve made a significant, high-grade copper-gold discovery within our royalty footprint. This new discovery is called the MG Zone.
We’ve been able to see its location through satellite imagery, but Zijin hasn’t disclosed the tonnage and grade yet. They’ve indicated they’ll provide more details in their next reporting period. We expect their annual report to be released toward the end of the first quarter or early second quarter.
Maurice: That’s a fantastic example. You mentioned commodity price optionality and the cost to shareholders. Could you explain how royalties mitigate those risks and costs?
David: Absolutely. The beauty of a royalty is that we get paid on the top-line revenue of a mine. Most of our royalties are net smelter return (NSR) royalties, which means we earn a percentage—commonly 1%-4%—of the revenue the mine receives from the smelter. As royalty holders, we don’t pay for the mine’s capital expenditures, exploration costs, or reclamation expenses. We simply receive our royalty payment based on production revenue. This structure exposes us to the upside potential of a project—like discoveries or commodity price increases—without the operational risks and costs borne by the mining company.
Maurice: That’s an profitable value proposition. Let’s transition to EMX’s recent developments. The company recently reported $27 million in cash and cash equivalents and $35 million in long-term debt maturing in 2029. How does this financial standing influence your strategic decisions for 2025 and beyond?
David: Capital allocation is one of the most critical decisions we make to benefit our shareholders. With our shares trading at a discount to price-to-net-asset value (PNAV), we’ve focused on buying back stock. Over the past year, we’ve purchased 5 million shares, fully utilizing the allotment permitted by the TSX exchange. We’ll likely apply for approval to buy back more in the coming year. We’re also incrementally paying down debt and acquiring royalties, all while generating cash flow from top assets like Timok, Caserones in Chile, and Carlin Trend in Nevada.
In addition to share buybacks, we plan to incrementally pay down debt, which, by the way, is held by Franco-Nevada—our capital partner and a significant shareholder. They’ve been a great partner in various royalty acquisitions.
Maurice: For shareholders who may not fully understand, how does the share buyback program impact EMX’s financial health?
David: By reducing the number of outstanding shares, we increase each shareholder’s proportional ownership in the company. When shares are trading below NAV, buybacks effectively create value for shareholders. It’s a tax-efficient alternative to dividends and reflects our confidence in the company’s intrinsic value. Of course, we’re also growing the portfolio organically and through strategic acquisitions, as you’ve seen with recent transactions.
Maurice: Speaking of transactions, let’s start with Armenia, where EMX acquired a royalty interest in the Urasar gold-copper project. What motivated this acquisition, and what potential do you see in the project?
David: This acquisition was motivated by two factors: the geology of Armenia and our trust in the project’s steward, Dennis Moore. Dennis has a proven track record of world-class discoveries, and his involvement gives us confidence.
Geologically, Armenia offers excellent mineral potential, which aligns with our strategy of acquiring assets with strong long-term discovery potential. This royalty adds to the base of our portfolio, exposing us to future upside at minimal upfront cost.
Maurice: How does this transaction align with EMX’s broader strategy and portfolio?
David: This fits perfectly with our early-stage royalty acquisition strategy, where we aim to augment the foundation of our portfolio with assets that offer significant long-term potential.
This deal was part of our joint venture with Franco-Nevada, where they provide a premium for royalties we identify and acquire. This partnership not only validates our due diligence but also allows us to achieve a financial “lift” on the transaction.
Maurice: Let’s move to South America, where EMX recently acquired a royalty on the Chapi copper mine in Peru. Could you elaborate on the significance of this acquisition?
David: Certainly. The Chapi copper mine is located in a region with world-class copper endowment. This acquisition gives us exposure to a proven project with immediate cash-flow potential and substantial long-term discovery potential.
This project is being restarted by a team with a solid track record of copper production, and we anticipate cash flow within a couple of years. Beyond the restart, the exploration upside is what excites us most—it’s a classic example of how optionality can transform a royalty into a company-making asset.
Maurice: The optionality in the Chapi copper mine acquisition seems consistent with EMX’s strategy. Can you expand on the timing and significance of securing cash-flowing assets like this?
David: Acquiring cash-flowing or near-term cash-flowing assets is a deliberate part of our strategy. While we excel at generating royalties organically, the reality is that acquiring royalties on producing or development-stage assets can accelerate the financial returns to our shareholders.
The Chapi royalty exemplifies this. It strengthens our portfolio’s cash flow potential while maintaining long-term upside through exploration. By securing a mix of cash-flowing and earlier-stage royalties, we achieve a balanced portfolio that supports near-term financial health and long-term growth.
Maurice: Sticking in Peru, where EMX received an early property payment from Aftermath Silver. Aftermath Silver made an early $2.9 million property payment for the Berenguela project in Peru. How does this early payment impact EMX’s cash flow and plans for similar agreements?
David: EMX is fully supportive of what Aftermath Silver is doing on the ground there. They’re advancing a very interesting manganese and silver deposit, with some copper exploration on the property as well. We’re quite interested in that long-term copper optionality; there’s potential for the discovery of new copper deposits. But the manganese and silver deposit is particularly compelling.
The manganese, of course, is an important metal in the battery business, and this deposit has the potential to be a key source of manganese for batteries. That said, we’ll let them work on that. For us, a nice aspect is that we’re just sitting back here as a royalty holder. There are specific payments that have to be made to us over time. We’ve allowed them some flexibility—one payment was made a little late in exchange for an interest fee, and another was made a little early for a small reduction. We’re supportive of them advancing this asset. I believe it’s being managed by some very capable people.
Maurice: A good symbiotic relationship there. Now, let’s visit the U.S., where EMX announced the sale of four projects to Pacific Ridge Exploration. What benefits does this transaction bring to EMX, and how does it align with your growth strategy?
David: This is right down the alley of EMX’s bread-and-butter royalty generation business. We go out, acquire prospective mineral rights—commonly very inexpensively—consolidate data, collect additional field data, and illustrate prospectivity by building geological models. These models demonstrate the potential for significant gold or copper deposits. We then sell the projects on, often to junior companies, for a combination of commercial terms. These typically include share payments, incremental payments over time, and always a royalty at the end of the day.
This transaction with Pacific Ridge is just another example of what we do repeatedly—roughly 20 projects a year, and we might exceed that this year. These deals build long-term discovery optionality at the base of our portfolio pyramid. At the top, we have producing royalties; at the base, we have exploration assets being advanced using other people’s expertise and money, with EMX as the long-term beneficiary.
Maurice: Diversification seems to be a recurring theme in EMX’s strategy. How does the company ensure that its acquisitions align with its broader objectives?
David: Diversification is indeed one of our core principles. When evaluating acquisitions, we focus on several key criteria: the quality of the underlying asset, the jurisdiction, the operator’s track record, and the potential for long-term upside.
Our acquisitions span various geographies, commodities, and stages of development to reduce risk and enhance returns. For example, our portfolio includes royalties on gold, copper, and polymetallic projects in North and South America, Europe, Asia, and Australia. This global reach allows us to capitalize on opportunities in different markets while mitigating exposure to regional risks.
Maurice: It’s clear that EMX has been strategic in its acquisitions. As we wrap up, what’s next for the company in 2025 and beyond?
David: We’re fortunate to be in a strong position with positive cash flow for seven consecutive quarters. We anticipate this continuing for some time, driven by key assets like our Caserones royalty in Chile, operated by Lundin Mining Corporation. That’s performing nicely, with significant exploration work ongoing.
Zijin Mining is also producing at Timok in Serbia, generating handsome payments. Additionally, our royalty on the Carlin Trend in Nevada—advanced and produced by Barrick as part of their joint venture with Newmont—is generating over $4 million annually.
With these assets delivering robust returns, our focus is on astute capital allocation. This includes paying down debt, buying back shares while undervalued, and pursuing incremental acquisitions like the one at the Chapi Mine in Peru.
Maurice: Has EMX considered changing its logo to a cow surrounded by cash? EMX is quite literally becoming a cash cow.
David: I’ve said for years we’d become one, and we have! We’re thrilled to be in this position, allocating cash strategically to grow the portfolio, buy more royalties, and repurchase shares when the price is low. Managing long-term debt and driving shareholder value remains our priority.
Maurice: You’ve touched on this, but how do you plan to navigate potential challenges in the current market environment?
David: The money is coming in, and our royalties are performing exceptionally well. While metal prices are strong, the natural resource capital markets have been tough. It’s an intriguing bifurcation, but we’re capitalizing on our strengths.
By buying back stock at a discount to our net asset value, we maximize value. Once rectified, we’ll allocate more capital to expand the royalty portfolio. It’s about understanding and deploying our capital effectively in any market.
Our portfolio also boasts exciting developments. For instance, Zijin’s MG Zone in Serbia, with 12 drill rigs on-site, is remarkable. South 32’s Peak Discovery in Arizona could be a game-changer with promising copper-zinc-silver drill results. These discoveries reinforce why owning royalties is so valuable.
Maurice: Absolutely! In closing, what did I forget to ask?
David: Nothing comes to mind, Maurice. Insider buying, share buybacks, strong cash flow, and global discoveries—all make EMX a company worth following.
Maurice: If someone wants to learn more about EMX Royalty, where can they go?
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💡 Don’t miss this chance to learn about the growth of Canadian resource exploration and its role in powering the future of clean energy!
TORONTO, Dec. 19, 2024 /CNW/ – Franco-Nevada Corporation (“Franco-Nevada” or the “Company“) (TSX: FNV) (NYSE: FNV) is pleased to announce that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation (“FNB“), has entered into a precious metals stream (the “Stream“) with reference to specific production from Sibanye-Stillwater Limited’s (“Sibanye-Stillwater“) Marikana, Rustenburg and Kroondal mining operations (the “Stream Area“) located on the Western Limb of the Bushveld Complex in South Africa. The Stream is primarily comprised of a gold component for the life of mine (“LOM“) and a platinum component for approximately 25 years supporting a more stable gold equivalent ounce (“GEO“) delivery profile to FNB over this period.
“We are excited to partner with Sibanye-Stillwater and gain exposure to production from this fully integrated, long life, platinum group metal (“PGM“) complex,” said Paul Brink, President & CEO of Franco-Nevada. “The Bushveld complex represents a unique and essential source of PGMs, with Sibanye-Stillwater’s Western Limb operations currently providing approximately 15% of global platinum supply. The combination of extensive resources, established infrastructure, and a large pipeline of extension projects, operated by a leading global PGM producer, makes for a high-quality stream with very long-life potential. This immediately cash flowing transaction, along with our recent Cascabel and Yanacocha deals, provide both meaningful medium and long-term growth.”
Neal Froneman, CEO of Sibanye-Stillwater said, “We are pleased to have concluded this US$500 million (R8.8bn) Stream with Franco-Nevada which unlocks further value from our SA PGM operations, a core part of our business, bolstering our balance sheet. By primarily streaming gold, which is a single component of the diverse production mix at our SA PGM operations, we retain significant leverage to higher PGM prices, which we anticipate. The support from Franco-Nevada underscores the quality and long-term viability of our PGM assets. We welcome this opportunity to continue to build our relationship with Franco-Nevada.”
Transaction Highlights:
Immediate Precious Metals Growth: The Stream will deliver immediate cash flow from a diversified production base in South Africa, a seasoned mining jurisdiction. The Stream is expected to generate a stable GEO profile over the next 20 years based off the platinum, palladium, rhodium and gold (“4E PGM“) production profile shown in the chart below. This profile is based on Sibanye-Stillwater’s board-approved ore reserve LOM as at December 31, 2023 for its existing operations and includes certain pre-feasibility and feasibility stage projects being studied, which leverage existing infrastructure (the “Replacement Projects“). The Stream GEO profile is comprised of approximately 70% gold and 30% platinum deliveries1 at consensus commodity prices with a 45+ year LOM.
Proven Operator and Significant Invested Capital in an Integrated Complex: Sibanye-Stillwater’s Western Limb operations benefit from extensive existing infrastructure consolidated through the merger of three prior operators, which has unlocked numerous synergies. The complex is expected to operate at the lower half of the PGM cost curve2. These operations consist of the Marikana, Rustenburg, and Kroondal operations and a total of 13 underground mines. The mines are supported by Sibanye-Stillwater’s concentrators and smelter and refining complex. Sibanye-Stillwater is a leader in South African mine safety and has committed to continuous safety improvements. The operations have strong relationships with their Black Economic Empowerment (“BEE“) partners and local communities.
Long Reserve Lives with Extensive Resources: The Stream is referenced to production from the Stream Area, which extends over 500 km2 of Sibanye-Stillwater’s Western Limb operations in South Africa. The Stream Area assets have a mine life up to 2070 including ore Reserves and Replacement Projects, based on current projections. Sibanye-Stillwater has the potential to sustain higher production levels for longer, with 4E PGM Measured and Indicated (“M&I“) Resources of 182 Moz inclusive of the 34 Moz of 4E PGM Reserves3, providing extensive long-term optionality.
Operations Benefit from a Unique and Diversified Basket of Metals: Sibanye-Stillwater’s Western Limb operations currently produce approximately 15% of the world’s platinum supply4. In addition, they produce palladium, rhodium and gold as primary 4E PGM components and a significant amount of chrome and other by-products, including approximately 28% of current global iridium and ruthenium supply4. The latter are both important to data storage and chip manufacturing and with platinum to a potential future hydrogen economy. By-products provide a more diversified basket price to the operations compared to many other global PGM producers. By-products contributed approximately 18% of Sibanye-Stillwater’s SA PGM revenue basket in H1 2024 with potential to expand this component of the business.
Gold Deliveries linked to PGM Production: For approximately the first 25 years5, gold deliveries are linked to the volume of 4E PGM ounces produced. This reference to the overall production of these key metals helps ensure that gold deliveries are aligned with Sibanye-Stillwater’s PGM production, mitigating variations in gold grade between deposits.
Key Transaction Terms:
Gold Stream Parameters
Stream deliveries to FNB are based on production from the Steam Area, according to the following schedule:
Gold ounces equal to 1.1% of 4E PGM ounces contained in concentrate until delivery of 87.5 koz of gold, then
Gold ounces equal to 0.75% of 4E PGM ounces contained in concentrate until total delivery of 237 koz of gold, then
80% of gold contained in concentrate for the remaining LOM.
Platinum Stream Parameters
Stream deliveries to FNB are based on platinum production from the Stream Area, according to the following schedule:
1.0% of platinum contained in concentrate until the delivery of 48 koz of platinum, then
Step-up to 2.1% of platinum contained in concentrate until total delivery of 294 koz of platinum, then
No further platinum deliveries.
Additional Considerations
Effective start date of the Stream is September 1, 2024 with funding of the $500 million deposit anticipated in the next few weeks and first delivery approximately 45 days after closing of the transaction
Gold and platinum ounces delivered will be subject to an ongoing payment of 5% of spot prices respectively to Sibanye-Stillwater. In the case of gold, the ongoing payment will increase to 10% following completion of the 4E PGM link (after the delivery of 237 koz of gold to FNB)6
Deliveries will be based on production from the mining operations from the Stream Area and exclude surface tailings retreatment, except in certain circumstances
Corporate guarantees will be provided to FNB by Sibanye-Stillwater and the Marikana, Rustenburg and Kroondal operations’ operating companies, amongst others
FNB will maintain a right of first refusal on future streams and royalties related to the Stream Area
The transaction is subject to customary closing conditions, including the approval from the South African Reserve Bank
Medium-Term Production Profile
Figure 1.: Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate) details a 20-year production profile from Sibanye-Stillwater’s Western Limb PGM operations based on reserve LOM declared at the end of 2023 and in addition, includes the Replacement Projects (including the Kroondal depth extension projects, E3, E4, and Saffy projects)7. Sibanye-Stillwater’s total reserve LOM plan based on 34 Moz of 4E PGM Mineral Reserves (100% basis) extends production beyond this period to 2070 at a reduced rate due to its long life K4 project at the Marikana operation.
Sibanye-Stillwater’s Western Limb Production (Metal in Concentrate)
Figure 1. (CNW Group/Franco-Nevada Corporation)
Source: Sibanye-Stillwater Note: Production profiles of the first three data sets (in blue shade) are based on Mineral reserves declared as at December 31, 2023 on a 100% basis and excludes existing tailings reprocessing. Projects included represent E4, E3 deepening, Saffy Deeps and Kroondal depth extension (Siphumelele UG2). Price assumptions to support the attached profile are US$923/oz pt, US$1,055/oz pd, US$4,350/oz rh US$1,925/oz gold. The approved total Mineral reserve LOM 4E prill split has been disclosed in the Reserve and resources supplement available at https://www.sibanyestillwater.com/news-investors/reports/annual/2023/. Platinum ranges from a prill split of approximately 58.1% – 63.6% and gold ranges from approximately 0.6% – 7.1% depending on MER versus UG2 and varies by SA PGM operation.
Pandora Royalty
Franco-Nevada and Sibanye-Stillwater have agreed to convert the 5% net profit interest that Franco-Nevada holds on the Pandora property to a 1% net smelter return royalty. Sibanye-Stillwater’s Pandora property forms a portion of its Marikana operations and includes the currently operating E3 decline. Three of the Replacement Projects being studied fall on a portion of the Pandora royalty ground.
Financing the Transactions
Franco-Nevada intends to finance the Stream from cash on hand, with approximately $1.3 billion in cash and cash equivalents and $2.3 billion in available capital as at September 30, 2024.
Franco-Nevada Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges.
About Sibanye-Stillwater
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations.
Sibanye-Stillwater is one of the world’s largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium, ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to diversify its asset portfolio into battery metals mining and processing and increase its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally. For more information refer to www.sibanyestillwater.com.
Sibanye-Stillwater Mineral Resources and Mineral Reserves
Sibanye-Stillwater’s Mineral Resources and Mineral Reserves are estimates at a particular date (as at December 31, 2023), and are affected by fluctuations in mineral prices, the exchange rates, operating costs, mining permits, changes in legislation and operating factors. Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves in accordance with the rules and regulations promulgated by each of the United States Securities and Exchange Commission (SEC) and the JSE at all managed operations, development, and exploration properties.
Additional Information
Information relating to the Sibanye-Stillwater PGM assets contained in this news release has been provided by Sibanye-Stillwater.
Scientific and technical information included in this news release has been reviewed by Gregory Snow, P Eng, Senior Manager, Geology of Franco-Nevada, a non-independent qualified person under National Instrument 43-101.
Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, including the expected timing of closing the transaction, the expected future performance of Sibanye-Stillwater’s South African PGM assets and the Stream, and production and mine life estimates relating to Sibanye-Stillwater’s South African PGM assets. In addition, statements relating to reserves and resources, gold equivalent ounces (“GEOs”) and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources, GEOs or mine life will be realized. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “potential for”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of the COVID-19 (coronavirus) pandemic; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to the outcome of the ongoing audit by the CRA or the Company’s exposure as a result thereof. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein.
For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.
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1 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects at consensus commodity prices
2 Combined costs (excluding by-products) following the Marikana K4 mine ramp-up
3 Attributable M&I Resource of 1.0 Bt at 4.3 g/t 4E PGM grade for 142 Moz 4E PGM (182 Moz 4E PGM on a 100% basis) and attributable Inferred Resources of 227.5 Mt at 4.6 g/t 4E PGM grade for 33.7 Moz 4E PGM (41.7 Moz on a 100% basis) as at December 31, 2023. Attributable Reserves of 231 Mt at 3.6 g/t 4E PGM grade for 26.5 Moz 4E PGM (33.9 Moz 4E PGM on a 100% basis) as at December 31, 2023. M&I Resources are inclusive of Reserves.
4 Based on 2023 production per Sibanye-Stillwater’s public disclosure and total 2023 supply per Johnson Matthey PGM market report (May 2024)
5 Assuming current projections of 4E PGM production based on Reserves and Replacement Projects currently being studied by Sibanye-Stillwater
6 The ongoing payments are subject to reduction in certain circumstances
7 The development and timing of these replacement projects is subject to achieving positive commercial and economic outcomes from the feasibility studies underway.
