Uranium’s spot price doesn’t adequately reflect demand from nuclear power plants, Sprott says. Credit: Adobe Stock photo by pwmotion
The price of uranium will rebound from its lowest level in a year as supply shortages, nuclear energy’s promise for clean energy and president-elect Donald Trump’s America-first security stance provide support, the world’s largest investment fund in the physical metal says.
The heavy metal’s spot price fell to $76.56 per lb. this week, down from a 17-year high of $106 per lb. in February. But it should recover to between $90 and $100 a lb. by about June, according to John Ciampaglia, CEO of Sprott Asset Management. He runs the $5.1 billion Sprott Physical Uranium Trust (TSX: U.U for USD; U.UN for CAD).
The United States and other Western nations such as Canada, Australia and Namibia are restarting or ramping up production of uranium oxide. Yet, it’s nowhere near enough to meet just the 50 million lb. a year needed to power US nuclear power plants. Output from global leader Kazakhstan has been hampered by sulphuric acid shortages. The West is attempting to limit uranium supplies from pariah Russia, which controls some 40% of the world’s capacity to enrich uranium into fuel.
“What Trump will continue to do is support local industry in the name of national security and reshoring, and that obviously has implications right across the whole nuclear fuel supply chain,” Ciampaglia said in an interview on Friday with The Northern Miner. “Canada will be a huge winner here as we restart uranium projects and build new uranium mines.”
Utilities defer
However, utilities, which buy the majority of their uranium in long-term contracts, haven’t been stocking up on supplies during the supply shortage as much as Ciampaglia expected. Even some miners such as Cameco (TSX: CCO; NYSE: CCJ) have had to buy uranium on the spot market to meet utility supply contracts when production fell short. The needs for some 60 new nuclear plants under construction aren’t reflected in the spot price, he said.
“We’re a little bit confused sometimes around the utility behavior,” he said. “We would have thought that their urgency to buy more uranium would be higher, given the risks to the supply chain, given some of the production challenges with the restarts and given the long timelines to get new mines online. The market over the next four to six years is going to be very supply challenged.”
He said the price fell this year over uncertainty about the US Congress passing an import ban in August against Russian enriched uranium. However, it doesn’t take effect until 2028 and some utilities may wait to see if Russia-friendly Trump cuts a deal with President Vladimir Putin to lift the sanctions.
“Energy security is driving a lot of the energy policy, so we’re really bullish on uranium,” Ciampaglia said, adding that the US depends on nuclear for 19% of its power. “That price correction we’ve had in uranium this year is very overdone.”
Trump’s avowed stance to impose tariffs on all kinds of global trade and Putin’s own threat in September to retaliate against the West with sanctions on uranium, nickel and palladium complicates matters. Yet, energy security will be the driving force, the CEO said.
“The US Department of Energy wants to force users in the US to shift to domestic sources, given this capacity that’s being built is very, very expensive,” Ciampaglia said. “They want that capacity to be filled through long-term contracts with the new capacity being scaled.”
Big tech
Uranium demand has more catalysts to rise as energy-hungry artificial intelligence spreads among tech giants Alphabet, the parent of Google, Amazon, Oracle and Microsoft. They’ve all bought property near nuclear plants, or made long-term power deals and expressed interest in the development of small nuclear reactors (SMRs).
“It’s really interesting that big tech with very deep pockets of capital are really stepping up to the plate and acknowledging that they just can’t fund the building of new solar and wind farms to power these AI data centres,” Ciampaglia said. “They also need firm clean power coming from large-scale reactors.”
Microsoft announced a 20-year power purchase agreement with Constellation Energy in September. It includes nuclear power from the Crane Clean Energy Center and the restart of Three Mile Island Unit One. French state nuclear company Orano chose Tennessee in September to build an enrichment plant and its expanding another in southern France. Urenco, a British-Dutch-German nuclear fuel consortium, is expanding a site in New Mexico.
Projects due
One the production side, Cameco has been ramping up production at the MacArthur River and Key Lake mines in Saskatchewan. The plants were idled when uranium prices were low before the surge of green energy investments to limit climate change. Denison Mines (TSX: DML; NYSE: DNN) and NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) are progressing their advanced-stage Wheeler and Rook I projects, respectively.
Even so, the projects are years if not a decade away from producing. Also, the Canadian government has launched a national security review of Paladin Energy’s (ASX: PDN) proposed C$1.1 billion takeover of Saskatchewan uranium developer Fission Uranium (TSX: FCU).
Meantime, Cameco and Kazakhstan’s Kazatomprom (LSE: KAP), in a joint venture on the Inkai mine in the central Asian country, said this month it was performing about 20% below expectations.
Likewise, south of the border companies such as Uranium Energy (NYSE-AM: UEC) and Energy Fuels (NYSE: UUUU; TSX: EFR) are reopening sites in Wyoming, Texas, Arizona, and Utah after years of inactivity.
Delays
But Energy Fuels’ Canyon project near the Grand Canyon has faced delays due to regulatory challenges, environmental opposition and legal battles with groups concerned about its impact on the nearby national park and groundwater. EnCore Energy’s (TSXV: EU; NASDAQ: EU) Dewey Burdock project in South Dakota and Uranium Energy’s Sheep Mountain project in Wyoming have faced similar hurdles.
The Sprott Physical Uranium Trust raised about C$65 million to C$70 million in new equity in the last six weeks or so, the CEO said. It’s prepared for another September-to-May period when more long-term contracting tends to occur, he said.
“After having a little bit of a low, given all the distractions, we’re just going to get back into another up period,” he said. “We’d love to get back to buying more uranium.”
Vancouver, British Columbia–(Newsfile Corp. – November 14, 2024) – Riverside Resources Inc.(TSXV: RRI) (OTCQB: RVSDF) (FSE: 5YY) (“Riverside” or the “Company”), is pleased to announce the completed transfer of its three key Ontario gold properties: Pichette, Oakes, and Duc to its wholly-owned subsidiary, Blue Jay Resources Inc (“Blue Jay”). This move lays the groundwork for Riverside’s strategic plan to advance its Ontario portfolio by establishing Blue Jay as a standalone exploration company. Blue Jay can fully focus on the exploration, discovery, and value-creation potential that these assets deserve. This structure provides Riverside shareholders with exposure to potential gains, while also paving the way for capital investment aimed at unlocking value in these properties.
This approach is similar to Riverside’s past strategy with Capitan Silver Corp. (“CAPT”), where Riverside shareholders received shares of CAPT, which gained value as exploration progressed successfully. Now, Blue Jay offers another opportunity to further unlock shareholder value, while Riverside retains a 2% NSR on each project.
Blue Jay is led by Geordie Mark as Chief Executive Officer, with the company in the final stages of appointing its Chairman, John-Mark Staude, along with a strong lineup of board of directors. Geordie brings extensive experience in the mining industry, with leadership roles spanning exploration, academia, and financial markets. He has spent over 15 years as a mining analyst on both the buy and sell sides in North American equity markets. Under Geordie’s leadership, Blue Jay will leverage Riverside’s Ontario-based gold assets and is already working on an exploration strategy, with plans to initiate a targeted drill campaign during H1 2025.
“We are excited to see Blue Jay Resources rapidly progress towards becoming a focused exploration company, dedicated to advancing this quality portfolio of Ontario gold assets. This spinout provides our shareholders with exposure to a new vehicle for value creation, while Riverside retains upside through a 2% net smelter royalty (NSR) on the projects,” said Dr. John-Mark Staude, CEO of Riverside Resources. “Our goal is to unlock the inherent value of these properties for our shareholders through the potential share spinout.”
Geordie Mark, CEO of Blue Jay Resources, stated, “I’m thrilled by the opportunity to lead Blue Jay as we explore Ontario’s well-established Beardmore-Geraldton greenstone belt, especially in such a proactive mining jurisdiction. Both the Pichette and Oakes projects are strategically positioned near the Equinox Gold Greenstone Gold project, Canada’s 4th largest open pit gold mine, which emphasizes the potential of this area. Our team is committed to realizing the value of these assets through a focused exploration strategy, and we’re eager to expand our work.”
The proposed spinout structure includes Riverside potentially issuing shares of Blue Jay to Riverside shareholders, allowing them direct ownership in the new exploration-focused entity. While terms of the spinout are under consideration and have not been finalized, Riverside’s intention is to ensure shareholders can benefit from the success of both Riverside and Blue Jay Resources and provide positive upside for the growth of both companies.
About the Projects:
Pichette Project The Pichette Gold Project, covering approximately 1190 hectares, is situated in the prolific Geraldton-Beardmore Greenstone Belt of Northwestern Ontario, a renowned gold-producing region in Canada. This 100%-owned project is strategically positioned near Equinox Gold’s Greenstone Gold Project, Canada’s newest large-scale mine and immediately east of Beardmore mining camp that produced from high grade veins similar to some of the targets found at Pichette.
Historical drilling at Pichette, primarily conducted in the 1950s, intersected shallow high-grade gold mineralization, including notable intercepts such as 3.4 meters at 16.7 g/t Au and 3.2 meters at 4.8 g/t Au, associated with banded iron formations (“BIF”). These BIF structures, which span over 15 kilometers of interpreted trend across the project, remain largely untested at depth, with gold mineralization open along strike. Positioned for efficient exploration, Pichette has road access via the Trans-Canada Highway and benefits from existing regional infrastructure. The assay information is historic in nature and will be retested as part of the planned work for Blue Jay to carry out in 2025.
Oakes Project The Oakes Gold Project, located within the productive Geraldton-Beardmore Greenstone Belt in Northwestern Ontario, sits 20km east of the Equinox Gold’s Greenstone Gold Mine. The project is approximately 5200 hectares in size and hosts a series of parallel favorable geology and shear zones with gold mineralization identified along its length. Historical drilling and recent surface sampling have returned high-grade gold values, with drill intercepts of up to 8 g/t Au and surface assays over 30 g/t Au. Geophysical surveys, including magnetics and induced polarization, have mapped several fault zones and structural features aligned with known geological units, offering significant exploration potential.
The project is accessible with robust local infrastructure, including roads, train line and power, which supports low-cost exploration efforts. The future exploration program could expand on previous findings by further testing mineralized zones along strike and at depth, positioning Oakes as a strong candidate for additional high-grade gold discoveries in a historically productive district.
Duc Project The Duc Project is located in the Porcupine Mining Division, approximately 50 km southwest of Kapuskasing, Ontario. Covering 580 hectares, it sits within the highly prospective Kapuskasing Structural Zone, near the open-pit phosphate mine of Agrium Ltd. The property is underlain by a mix of metasedimentary and metavolcanic rocks, with potential for gold and rare earth element (REE) mineralization. Recent exploration, including a 2023 helicopter magnetics survey, has confirmed key structural elements and identified promising areas for follow-up targeting work.
The Company is leading exploration efforts at Duc, focusing on gold mineralization and potential platinum group metals (PGMs). Historical drilling and geophysical data suggest significant gold and nickel potential, while current geophysical surveys have highlighted new targets. Planned work includes further integration of the new geophysical surveys, geochemical analysis, and then drilling to refine these targets and advance the project towards more detailed exploration.
Qualified Person & QA/QC: The scientific and technical data contained in this news release was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources who is responsible for ensuring that the information provided in this news release is accurate and who acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.: Riverside is a well-funded exploration company driven by value generation and discovery. The Company has over $5M in cash, no debt and less than 75M shares outstanding with a strong portfolio of gold-silver and copper assets and royalties in North America. Riverside has extensive experience and knowledge operating in Mexico and Canada and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for discovery. Riverside has properties available for option, with information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
“John-Mark Staude”
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude President, CEO Riverside Resources Inc. info@rivres.com Phone: (778) 327-6671 Fax: (778) 327-6675 Web: www.rivres.com
Eric Negraeff Investor Relations Riverside Resources Inc. Phone: (778) 327-6671 TF: (877) RIV-RES1 Web: www.rivres.com
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
October’s Consumer Price Index (CPI) will serve as the latest test of whether an inflation resurgence is a risk to the US economy as the Federal Reserve debates its next interest rate decision after cutting rates by a quarter percentage point last week.
The report, set for release at 8:30 a.m. ET on Wednesday, is expected to show headline inflation of 2.6%, a slight uptick from September’s 2.4% annual gain in prices, which marked the lowest annual headline reading since February 2021. Consumer prices are expected to have risen 0.2% over the prior month, matching the monthly increase seen in September.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in October are expected to have risen 3.3% over last year for the third consecutive month. Economists expect monthly core price increases to also match the prior month’s reading of 0.3%, according to Bloomberg data.
“The October CPI report will likely support the notion that the last mile of inflation’s journey back to target will be the hardest,” Wells Fargo’s lead economist Jay Bryson wrote in a note to clients on Friday.
Bank of America economists Stephen Juneau and Jeseo Park agreed, writing in a preview note on Monday that “inflation [is] unlikely to show much progress” and that the upcoming CPI print will likely show inflation “moving sideways after a period of substantial disinflation.”
Although inflation has been slowing, it has remained above the Federal Reserve’s 2% target on an annual basis.
Compared to the current Biden administration, Trump and his proposed policies have been viewed as potentially more inflationary due to the president-elect’s campaign promises of high tariffs on imported goods, tax cuts for corporations, and curbs on immigration.
In a press conference following the latest rate cut, Federal Reserve Chair Jerome Powell said the central bank does not and will not make decisions based on expected policy changes from a new administration.
“In the near term, the election will have no effect on our policy decisions,” he said at the time. “We don’t know what the timing and substance of any policy changes will be. We, therefore, don’t know what the effects on the economy would be, specifically whether and to what extent those policies would matter for the achievement of our goal variables: maximum employment and price stability.”
Federal Reserve Board Chairman Jerome Powell speaks during a news conference at the Federal Reserve in Washington, Thursday, Nov. 7, 2024. (AP Photo/Mark Schiefelbein) · ASSOCIATED PRESS
As of Tuesday, markets continued to price in another 25 basis point cut in December, although the probability investors put on the central bank holding rates steady increased to roughly 35% compared to 22% one week ago, per the CME FedWatch Tool.
“Given Chair Powell’s remarks last week, we believe that would keep the Fed on track to cut rates again by 25 basis points at its December meeting,” BofA’s Juneau and Park wrote. “That said, the shift in risks around inflation, coupled with the resilience of the US economy, has increased uncertainty over the medium-term policy outlook.”
“While economic fundamentals suggest inflation should continue to moderate, policy changes pose an upside risk to the outlook,” the duo added.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
Vancouver, British Columbia–(Newsfile Corp. – November 12, 2024) – Silver47 Exploration Corp. (TSXV: AGA) (“Silver47” or the “Company), is pleased to announce the commencement of trading on the TSX Venture Exchange (the “TSXV“) under the new symbol “AGA“, effective at the open of trading on November 14, 2024.
Silver47’s listing on the TSXV marks a major milestone for the Company as it advances its strategy to continue to develop its exploration projects, including its flagship Red Mountain VMS project located in central Alaska, USA. The Red Mountain VMS project is detailed in the technical report titled “Technical Report on the Red Mountain VMS Property, Bonnifield Mining District, Alaska, USA” commissioned by the Company and completed by Apex Geoscience Ltd. and has been filed on the Company’s SEDAR+ profile at www.sedarplus.ca and is available on the Company’s website www.silver47.ca . Additional information about the Company can be found in Silver47’s long form prospectus dated October 25, 2024 available at www.sedarplus.ca.
Gary R. Thompson, Chief Executive Officer, commented:“We are excited to bring Silver47 to the market at a time when silver and gold prices have made tremendous moves higher this year. Silver47 is well positioned to capitalize on this rising demand trend in metals. The objective of the Company is to rapidly grow its resource base toward a milestone development decision while generating new discoveries.”
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Silver47 Exploration Corp. Silver47 is a Canadian exploration company focused on advancing its mining projects. Silver47 wholly-owns three exploration projects: the flagship Red Mountain VMS silver-zinc-lead-copper-gold project located in south central Alaska, USA; the Adams Plateau silver-zinc-lead-copper Project located in southern British Columbia; and the Michelle silver-lead-zinc-gallium-antimony Project located in the Yukon Territory. For more information about Silver47, please visit our website at www.silver47.ca.
On Behalf of the Board of Directors Mr. Gary R. Thompson, Director and CEO info@silver47.ca
No securities regulatory authority has either approved or disapproved of the contents of this release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements relating to the Company, its future plans and strategy relating to its properties or other similar expressions, the market for gold and silver and the Company’s ability to capitalize on same, the Company’s objectives, and all statements, other than statements of historical fact included herein including, without limitation, statements regarding the securities herein. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; regulatory risks; fluctuations in commodity prices; title matters; and the additional risks identified in the Company’s disclosure filed under its issuer profile on SEDAR+ or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION OR DISSEMINATION IN OR INTO THE U.S.
Initial Bulk Sample Returns 11.6 g/t Gold from 861 Tonnes
North Vancouver, British Columbia–(Newsfile Corp. – November 12, 2024) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (“Lion One” or the “Company”) is pleased to report that the development of a new high-grade near-surface roscoelite zone has commenced at the company’s 100% owned Tuvatu high-grade alkaline gold mine on the island of Viti Levu in Fiji.
Lion One CEO Walter Berukoff stated, “Quartz-roscoelite veining is the most economically significant mineral assemblage at several world class alkaline gold deposits that are similar to Tuvatu. Roscoelite is a defining characteristic of these alkaline systems and it is directly associated with high-grade gold. An initial bulk sample of the near-surface roscoelite zone at Tuvatu has returned 11.6 g/t gold from 861 tonnes of material mined at full mining widths. We are now enhancing our mine plan with this gold-rich roscoelite material, which is already being processed through the pilot plant”.
Roscoelite veining is directly related to high-grade mineralization at the nearby Vatukoula gold mine in Fiji where over 7 million ounces of gold have been produced over the last 85 years. Roscoelite is also observed in association with gold mineralization at the Porgera gold mine in PNG, which has been a top ten ranked gold mine globally and which has produced over 25 million ounces of gold.
At Porgera, the most economically significant veins are the Stage II quartz-roscoelite-pyrite veins with native gold, found in the Roamane fault zone.1 At Tuvatu the high-grade Stage II veins also ubiquitously occur with roscoelite – a rare dark green to black vanadium rich mica mineral.2 This same mineral assemblage is observed in the near-surface roscoelite zone at Tuvatu, which consists of a series of intersecting flat and sub-vertical banded veins composed primarily of low-temperature chalcedonic quartz intergrown with roscoelite, pyrite, lesser sphalerite and galena, and native gold. This same mineral assemblage is also observed at the high-grade Zone 500 at 500m depth in Tuvatu, at the West Zone near-mine expansion target 300 m to the West of Tuvatu, as well as in drill core throughout the Tuvatu deposit (Figure 1). See news releases: Lion One drills 20.86 g/t Au over 75.9 m from Zone 500, June 6, 2022, and Lion One drills 105.2 g/t Au over 2.1 m from near-mine exploration at the West Zone, October 1, 2024.
Tuvatu is optimally located on Fiji’s Viti Levu lineament, with a tectonic history and structural setting that created ideal conditions for the vertical ascent of deep alkalic magmas and the formation of the Navilawa volcanic caldera. Within the caldera, the precipitation of metals from hydrothemal fluids occurred through episodic phases of boiling, mixing and cooling. The presence of roscoelite in direct association with high-grade gold mineralization reflects a rare combination of criteria, shared by other notable world-class alkaline gold deposits, thus underscoring the enormous potential for Tuvatu as part of a potentially much larger high-grade alkaline gold system within Fiji’s Navilawa Caldera.
Figure 1. Example high-grade mineralization from Porgera3 (left), the new near-surface roscoelite zone at Tuvatu (center), and Zone 500 at Tuvatu (right; TUG-141 drill core, 492.5 m depth, 25.23 g/t Au). High grade mineralization at Porgera, Zone 500, and the new near-surface roscoelite zone at Tuvatu all consist of veins composed of quartz-roscoelite-pyrite with native gold.
Figure 2. Location of the new roscoelite zone in relation to underground developments. The new roscoelite zone is in Zone 2 of Tuvatu, in the northwest part of the deposit, approximately 65 m below surface. Preliminary evidence indicates that the zone extends to additional levels below the current underground workings.
Figure 3. Location of the new roscoelite zone in relation to Zone 500. Mineralization observed in the new near-surface roscoelite zone is like that observed in the high-grade Zone 500, which is approximately 350 m below the current underground workings.
The near-surface roscoelite zone at Tuvatu is located 65 m below surface and consists of a series of flat-lying and vertical veins. The strongest gold mineralization occurs in blow-out zones at the intersection of these structures (Figure 4). The primary vertical structures in this zone consist of quartz vein arrays with roscoelite and minor base metal sulfides, while the primary flat-lying structures consist of low-temperature quartz-roscoelite-pyrite veins. Both sets of veins contain high-grade gold. This is a very similar scenario to that observed at the Porgera gold mine, wherein there are high-grade ore shoots formed at the intersection of early Stage I base metal veins with later Stage II quartz-roscoelite-pyrite veins, with both sets of veins containing gold.1,4 In the near surface roscoelite zone at Tuvatu there is evidence of multiple stacked flat-lying quartz-roscoelite-pyrite veins, which would produce multiple stacked shoots of high-grade mineralization at the intersection of vertical structures below the current underground workings.
Figure 4. Simplified conceptual illustration of intersecting structures in the near-surface roscoelite zone. Multiple flat-lying quartz-roscoelite-pyrite veins have been observed underground.
1. Ronacher, E. (2002). The Porgera gold deposit: Fluid characteristics, ore deposition processes, and duration of the ore forming event. [Doctoral Thesis, University of Alberta]. p 55. Link to report 2. Schmidt, D. (2023). Petrographic Characterization and Evolution of the Alkalic-Type Epithermal Tuvatu Au-Te Deposit, Fiji. [Masters Thesis, Colorado School of Mines]. P50. Link to report 3. Supplied image of Porgera rock sample. 4. Cameron, G. (1998). The Hydrothermal Evolution and Genesis of the Porgera Gold Deposit, Papua New Guinea. [Doctoral Thesis, Australian National University]. p 53. Link to report
Competent Persons Statement The information in this report that relates to mineral exploration at the Tuvatu Gold Project is based on information compiled by the Lion One team and reviewed by Melvyn Levrel, who is the company’s Senior Geologist. Mr Levrel is a Member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC code). Mr Levrel consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.
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.
Diamond drill core samples are logged and split by Lion One personnel on site and 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 23 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 & CEO
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.
TORONTO, Ontario – (NewMediaWire) – November 11, 2024 – Silver Crown Royalties Inc. (“Silver Crown”, “SCRi”, the “Corporation”, or the “Company”) (Cboe:SCRI; OTCQX:SLCRF; FRA:QS0) is pleased to announce financial results and MD&A for the third quarter ended September 30, 2024 are being filed on SEDAR+ and our website today.
In the third quarter, SCRi received payments on 4,245 silver ounces (C$164,425). This compares favorably to the prior quarter ended June 30, 2024 of 2,880 ounces (C$107,875) and last year’s third quarter ended September 30, 2023 of 1,500 ounces (C$42,627).
Peter Bures, Silver Crown’s Chief Executive Officer, commented, “We’re very proud to note that over the last year, we were able to increase silver delivery payments by 183%. Further, we increased revenues by almost 300% while the silver price increased 40% over the same timeframe. With our robust pipeline of opportunities, we continue to target aggressive silver delivery growth into next year and beyond.”
Summary of Quarterly Results:
Three months ended 30-Sep-24
Three months ended 30-Jun-24
Three months ended 30-Sep-23
Attributable Silver Deliveries
4,245
2,880
1,500
% change (Q/Q and Y/Y)
47%
183%
Revenue
164,425
107,785
42,627
% change (Q/Q and Y/Y)
52%
286%
ABOUT SILVER CROWN ROYALTIES INC.
Founded by industry veterans, Silver Crown is a publicly traded, silver royalty company. SCRi currently has four silver royalties of which two are revenue-generating. Its business model presents investors with precious metals exposure allowing for a natural hedge against currency devaluation while minimizing the negative impact of cost inflation associated with production. SCRi endeavors to minimize the economic impact on mining projects while maximizing returns for shareholders.
This release contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. The forward-looking information contained herein is provided for the purpose of assisting readers in understanding management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Forward-looking statements and information include but are not limited to statements with respect to our robust pipeline of opportunities, we continue to target aggressive silver delivery growth into next year and beyond. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual actions, events or results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the impact of general business and economic conditions; the absence of control over mining operations from which SCRi will purchase gold and other metals or from which it will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation, delays in mine construction and operations, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; SCRi’s ability to enter into definitive agreements and close proposed royalty transactions; the inherent uncertainties related to the valuations ascribed by SCRi to its royalty interests; problems inherent to the marketability of gold and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects SCRi; stock market volatility; regulatory restrictions; liability, competition, the potential impact of epidemics, pandemics or other public health crises on SCRi’s business, operations and financial condition, loss of key employees. SCRi has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. SCRi undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available.
This document does not constitute an offer to sell, or a solicitation of an offer to buy, securities of the Company in Canada, the United States or any other jurisdiction. Any such offer to sell or solicitation of an offer to buy the securities described herein will be made only pursuant to subscription documentation between the Company and prospective purchasers. Any such offering will be made in reliance upon exemptions from the prospectus and registration requirements under applicable securities laws, pursuant to a subscription agreement to be entered into by the Company and prospective investors. 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. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
CBOE CANADA DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Bolivia’s central bank ditched new rules on reporting its gold reserves which it had published just two days earlier.
The bank said in a statement Friday that it wouldn’t implement the resolution to avoid “speculation that seeks to damage the economic stability of the country.”
The resolution would have allowed the bank to report its gold holdings twice a year: on Nov. 5 and May 5. That could potentially have allowed it to access more liquidity to pay for imports and address a crippling fuel shortage.
By law, the institution must keep at least 22 tons of the metal, but the change might have allowed it to drop below this level between the reporting dates.
Bolivia needs “flexibility” in the management of its gold holdings in order to maintain “the normal functioning of international payments in the country”, the bank said in the original resolution posted on its website.
On Friday, the bank’s president Edwin Rojas told reporters in La Paz that as of Nov. 7 the bank had $121 million in cash and about $1.9 billion in gold. The bank has more than 22 tons of the metal, he said.
Bolivia is undergoing an economic crisis as a shortage of foreign currency causes scarcity of fuel and other key goods as well as accelerating inflation. The crisis is being aggravated by clashes between supporters of President Luis Arce and former President Evo Morales.
Vancouver, British Columbia–(Newsfile Corp. – October 31, 2024) – Silver47 Exploration Corp. (“Silver47” or the “Company), is pleased to announce that it has received a receipt for the Company’s final long form prospectus dated October 25, 2024 (the “Prospectus“), filed with the securities regulatory authorities in the provinces of British Columbia, Alberta, and Ontario. The Prospectus qualifies the distribution of 6,297,393 units of the Company (“Units“) issuable for no additional consideration on the automatic exercise of 6,297,393 special warrants (the “Special Warrants“) issued by the Company between April 2, 2024 to July 31, 2024. The Company also announces that it received the conditional acceptance from the TSX Venture Exchange (“TSXV“) on October 22, 2024 to list (the “Listing“), subject to customary conditions. In accordance with the terms of the certificates representing the Special Warrants, each Special Warrant automatically converted into a Unit comprised of one common share of the Company (a “Share“) and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant“) on filing and being receipted for the Prospectus and receipt of conditional acceptance for the Listing. Each Warrant is exercisable for one Share at a price of $1.00 per Share and is exercisable until the date that is 24 months from the Listing of the Shares on the TSXV. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. About Silver47 Exploration Corp. Silver47 is a Canadian exploration company focused on the advancement of its mining projects. Silver47 wholly owns three exploration projects: Silver47’s flagship Red Mountain VMS silver-zinc-lead-copper-gold project located in central Alaska, USA; the Adams Plateau silver-zinc-lead-copper project located in southern British Columbia; and the Michelle silver-lead-zinc Project located in the Yukon Territory. Silver47 has received conditional acceptance from the TSXV for the Listing of its Shares and intends to complete the Listing under the ticker symbol AGA. For more information about Silver47, please visit our website at www.silver47.ca. On Behalf of the Board of Directors Mr. Gary R. Thompson, Director and CEO info@silver47.ca No securities regulatory authority has either approved or disapproved of the contents of this release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. FORWARD-LOOKING STATEMENTS Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-Looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements relating to the issuance of securities and their characteristics described herein, approval of the Company’s Listing application, or other similar expressions, all statements, other than statements of historical fact included herein including, without limitation, statements regarding the securities herein. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; the satisfaction of the conditions imposed by the TSXV on the Listing; operational risks associated with mineral exploration; regulatory risks; fluctuations in commodity prices; title matters; and the additional risks identified in the Prospectus filed under its issuer profile on SEDAR+ or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-Looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
Sergio Mendoza Fri, November 8, 2024 at 3:05 PM EST
(Bloomberg) — Bolivia’s central bank is easing its rules on national gold reserves, potentially allowing it to access more liquidity to pay for imports and address a crippling fuel shortage.
The resolution, issued by the board this week, allows the bank to report its gold holdings twice a year: on Nov. 5 and May 5. By law, the institution must keep at least 22 tons of the metal, but the change could potentially allow it to drop below this level between the reporting dates.
Bolivia needs “flexibility” in the management of its gold holdings in order to maintain “the normal functioning of international payments in the country”, according to the resolution posted on its website.
The bank didn’t say it if plans to sell some of its holdings in the short term, and didn’t immediately reply to a written request for comment.
The bank reported 22.37 tons of gold holdings at the end of August, with a value of $1.8 billion.
Bolivia is undergoing an economic crisis as a shortage of foreign currency causes scarcity of fuel and other key goods as well as accelerating inflation. The crisis is being aggravated by clashes between supporters of President Luis Arce and former President Evo Morales.
Vancouver, British Columbia–(Newsfile Corp. – November 7, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9)(the “Company” or “EMX”) is pleased to report results for the three and nine months ended September 30, 2024 (in U.S. dollars unless otherwise noted).
In Q3 2024, EMX continued on a strong uptrend due to robust royalty production and strong metal prices. Strong performance during the quarter was marked from Caserones, Gediktepe, and Leeville. EMX continued to invest capital generating and acquiring royalties around the world while our partners invested significant capital to expand operations at existing mines, advance towards the development of new mines, and explore for new opportunities.
Summary of Financial Highlightsfor the Quarter Ended September 30, 2024 and 2023:
Three months ended September 30,
Nine months ended September 30,
(In thousands of U.S. dollars)
2024
2023
2024
2023
Statement of Income (Loss)
Revenue and other income2
$
7,027
$
12,925
$
19,272
$
19,075
General and administrative costs
(1,537)
(1,364)
(5,379)
(4,662)
Royalty generation and project evaluation costs, net
(3,090)
(3,505)
(8,931)
(8,527)
Net income (loss)
$
1,194
$
2,441
$
(5,055)
$
(6,007)
Statement of Cash Flows
Cash flows from operating activities
$
(187)
$
7,122
$
326
$
2,787
Non-IFRS Financial Measures1,2
Adjusted revenue and other income
$
9,660
$
14,527
$
26,711
$
26,108
Adjusted royalty revenue
$
8,817
$
12,744
$
24,310
$
21,951
GEOs sold
3,560
6,608
10,607
11,358
Adjusted cash flows from operating activities
$
1,760
$
8,863
$
5,762
$
7,880
Adjusted EBITDA
$
5,071
$
10,168
$
12,933
$
13,390
Strong Revenue Growth Excluding $6,676,000 in catch-up payments received in Q3 2023 related to the Timok royalty, adjusted revenue and other income1 increased by 23%3 and adjusted royalty revenue1 increased by 45%3 compared to Q3 2023.
Development of Flagship Assets Significant investment by Zijin Mining Group at Timok through continued development of upper and lower zonesIncreased exploration activity by Zijin Mining Group and Lundin Mining within EMX’s existing royalty footprints.
Exceeding Adjusted Royalty Revenue1 Guidance The Company expects to exceed its 2024 adjusted royalty revenue1 guidance range of $22,000,000 to $27,500,000.
Other Q3 2024 Highlights Excluding catch-up payments received in Q3 2023, adjusted EBITDA1 increased 45%3 compared to Q3 2023.Working capital of $41,825,000 as at September 30, 2024.
Outlook
The Company previously announced 2024 guidance of GEOs sales of 11,000 to 14,000, adjusted royalty revenue of $22,000,000 to $27,500,000 and option and other property income of $2,000,000 to $3,000,000. The Company is currently on pace to achieve the upper end of its annual guidance for GEOs sold, and exceed adjusted royalty revenue, while aiming for the lower end of our option and other property income guidance.
The Company is excited about the prospect for continued growth in the portfolio for 2024 and the coming years. The driver for near and long term growth in cash flow will come from the large deposits at Caserones in Chile and Timok in Serbia. At Caserones, Lundin has initiated an exploration program which is intended to expand mineral resources and mineral reserves while at the same time looking to increase throughput at the plant. At Timok, Zijin Mining Group Co. continues to increase its production rates in the upper zone copper-gold deposit while developing the lower zone, which we believe will be one of the more important block cave development projects in the world. Zijin also highlighted a recently discovered exploration target south of the Cukaru Peki mine and within EMX’s royalty footprint. Analysis of recent satellite imagery over the Brestovac license, which contains the Cukaru Peki Mine and is covered by EMX’s royalty, shows substantial development of new drill pads with numerous drill rigs visible in the images in the southeast corner of the license.
In terms of other producing royalty assets, the Company expects Gediktepe, Leeville, and Gold Bar South to mirror what occurred in 2023. In Türkiye, Gediktepe continues to perform well and is ahead of its production forecast for 2024 (as of the end of Q3) and production rates at Balya North continued to increase in Q3. New and compelling exploration results were announced at the Viscaria copper-iron-silver development project in Q3 and the new owner/operator of Gediktepe highlighted potential for additional oxide gold and polymetallic sulfide mineralization beyond the currently defined resources. We are also excited about the advancement of Diablillos in Argentina by AbraSilver Resource Corp. where the company continues to expand the mineral resource. These developments are all examples of the remarkable optionality that exists through EMX’s global royalty portfolio.
EMX believes it is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties heading into 2025. As the Company continues to generate revenues from its producing royalty assets and from other option, advance royalty and pre-production payments across its global asset portfolio, various opportunities for capital redeployment will be evaluated. Such opportunities may include the direct acquisition of royalties, continued organic generation of royalties through partner funded projects, purchase of strategic investments, share buybacks through the Normal Course Issuer Bid or debt repayment. Through the astute allocation of capital, EMX will seek to build upon its recent years of success and continue creating value for shareholders into the future.
Third Quarter Results for 2024
In Q3 2024, the Company recognized $9,660,000 and $8,817,000 in adjusted revenue and other income4 and adjusted royalty revenue4, respectively, which represented a 23%5 and 45%5 increase, respectively, compared to Q3 2023. The increase is largely due to a 72% increase in royalty revenue from Gediktepe and a 44% increase in royalty revenue from Leeville when compared to Q3 2023.
The following table is a summary of GEOs4 sold and adjusted royalty revenue4 for the three months ended September 30, 2024 and 2023:
2024
2023
GEOs Sold
Revenue (in thousands)
GEOs Sold
Revenue (in thousands)
Caserones
1,063
$
2,633
831
$
1,602
Timok6
499
1,236
3,987
7,689
Gediktepe
1,354
3,353
1,014
1,955
Leeville
449
1,112
401
773
Balya
139
344
295
568
Gold Bar South
42
104
31
59
Advanced royalty payments
14
35
51
98
Adjusted royalty revenue
3,560
$
8,817
6,608
$
12,744
Included in the quarterly revenue for Caserones was a true up of $412,500 (Q3 2023 – $111,000) due to a higher than expected revenue in the prior quarter. The true up in the current period was mainly driven by positive provisional pricing adjustments on prior period concentrate sales, higher than estimated sales and higher than estimate realized copper prices.
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the nine months ended September 30, 2024 and 2023:
2024
2023
GEOs Sold
Revenue (in thousands)
GEOs Sold
Revenue (in thousands)
Caserones
3,232
$
7,439
3,630
$
7,033
Timok6
1,789
4,089
3,987
7,689
Gediktepe
3,569
8,149
2,098
4,056
Leeville
1,374
3,163
1,019
1,971
Balya
367
852
380
730
Gold Bar South
150
346
98
193
Advanced royalty payments
127
272
145
279
Adjusted royalty revenue
10,607
$
24,310
11,358
$
21,951
Net royalty generation and project evaluation costs decreased from $3,505,000 in Q3 2023 to $3,090,000 in Q3 2024. Royalty generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. The decrease in net royalty generation and project evaluation costs was predominately attributable to the timing of the 2024 and 2023 annual share-based compensation grants. The 2024 annual grant occurred in Q2 2024 while the 2023 grant occurred in Q3 2023. This timing difference generated a $472,000 decrease in costs when compared to Q3 2023.
Not inclusive of the net royalty generation and project evaluation cost, EMX earned $345,000 in royalty generation revenue in Q3 2024 (Q3 2023 – $1,507,000).
Third Quarter Corporate Updates
Appointment of Stefan Wenger as Chief Financial Officer
During the three months ended September 30, 2024, the Company announced the appointment of Mr. Stefan L. Wenger as Chief Financial Officer effective October 1, 2024. Mr. Wenger was previously the Chief Financial Officer and Treasurer of Royal Gold, Inc., one of the mining industry’s leading royalty companies, from 2006 to 2018.
Credit Agreement with Franco-Nevada Corporation
In August 2024, the Company entered into a $35,000,000 credit agreement with Franco Nevada Corporation with a maturity date of July 1, 2029. Upon closing, the Company used the proceeds of the loan to repay the outstanding balance of the Sprott Credit Facility and for general working capital purposes.
Normal Course Issuer Bid
During Q3 2024 the Company repurchased and returned to treasury 692,189 common shares at a cost of $1,223,000. The Company then cancelled, pursuant to the Company’s Normal Course Issuer Bid, 684,253 common shares. Subsequent to period end, the Company repurchased 2,156,754 shares for a total cost of $3,322,000.
Qualified Persons
Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America and Latin America, except for Caserones. Consulting Chief Mining Engineer Mark S. Ramirez, SME Registered Member #04039495, a Qualified Person as defined by NI 43-101 and consultant to the Company, has reviewed, verified and approved the above technical disclosure with respect to the Caserones Mine. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Türkiye and Australia.
Shareholder Information – The Company’s filings for the year are available on SEDAR+ at www.sedarplus.ca, on the U.S. Securities and Exchange Commission’s EDGAR website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.
About EMX – EMX is a precious, and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Statements
This news release may contain “forward-looking information” or “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding the future price of copper, gold and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production, the Company’s growth strategy and expectations regarding the guidance for 2024 and future outlook, including revenue and GEO estimates, refinancing outstanding debt and the timing thereof, the acquisition of additional royalty interests and partnerships, the purchase of securities pursuant to the Company’s NCIB or other statements that are not statements of fact. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects,” “anticipates,” “believes,” “plans,” “projects,” “estimates,” “assumes,” “intends,” “strategy,” “goals,” “objectives,” “potential,” “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect, including disruption to production at any of the mineral properties in which the Company has a royalty, or other interest; estimated capital costs, operating costs, production and economic returns; estimated metal pricing (including the estimates from theCIBC Global Mining Group’s Consensus Commodity Price Forecasts published on January 2, 2024), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company’s resource and reserve estimates; the expected ability of any of the properties in which the Company holds a royalty, or other interest to develop adequate infrastructure at a reasonable cost; assumptions that all necessary permits and governmental approvals will remain in effect or be obtained as required to operate, develop or explore the various properties in which the Company holds an interest; and the activities on any on the properties in which the Company holds a royalty, or other interest will not be adversely disrupted or impeded by development, operating or regulatory risks or any other government actions.
Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to maintain or receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, copper, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the Company’s MD&A for the quarter ended September 30, 2024, and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.
Future-Oriented Financial Information
This news release may contain future-oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position, GEOs and anticipated royalty payments based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the headings above entitled “2024 Guidance”, “Outlook” and “Forward-Looking Statements” and assumptions with respect to the future metal prices, the estimation of mineral reserves and resources, realization of mineral reserve estimates and the timing and amount of estimated future production. Management does not have, or may not have had at the relevant date, or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects are not, or may not have been at the relevant date of the FOFI, objectively determinable.
Importantly, the FOFI contained in this news release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing of metals, (ii) the future market demand and trends within the jurisdictions in which the Company or the mining operators operate, and (iii) the operating cost and effect on the production of the Company’s royalty partners. The FOFI or financial outlook contained in this news release do not purport to present the Company’s financial condition in accordance with IFRS, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Forward-Looking Statements” and under the heading “Risk Factors” in the Company’s public disclosures, FOFI or financial outlook within this news release should not be relied on as necessarily indicative of future results.
Non-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this press release, as discussed below. EMX believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. These non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation. A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.
The following table outlines the non-IFRS financial measures, their definitions, the most directly comparable IFRS measures and why the Company use these measures.
Non-IFRS financial measure
Definition
Most directly comparable IFRS measure
Why we use the measure and why it is useful to investors
Adjusted revenue and other income
Defined as revenue and other income including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones.
Revenue and other income
The Company believes these measures more accurately depict the Company’s revenue related to operations as the adjustment is to account for revenue from a material asset
Adjusted royalty revenue
Defined as royalty revenue including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones.
Royalty revenue
Adjusted cash flows from operating activities
Defined as cash flows from operating activities plus the cash distributions related to the Company’s effective royalty on Caserones.
Cash flows from operating activities
The Company believes this measure more accurately depicts the Company’s cash flows from operations as the adjustment is to account for cash flows from a material asset.
Gold equivalent ounces (GEOs)
GEOs is a non-IFRS measure that is based on royalty interests and calculated on a quarterly basis by dividing adjusted royalty revenue by the average gold price during such quarter. The gold price is determined based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period.
Royalty revenue
The Company uses this measure internally to evaluate our underlying operating performance across the royalty portfolio for the reporting periods presented and to assist with the planning and forecasting of future operating results.
Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA
EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, finance costs. Adjusted EBITDA adds all revenue from the Caserones Royalty less any equity income from the equity investment in SLM California (Caserones Royalty holder). Additionally, it removes the effects of items that do not reflect our underlying operating performance and are not necessarily indicative of future operating results. These may include: share based payments expense; unrealized and realized gains and losses on investments; write-downs of assets; impairments or reversals of impairments; foreign exchange gains or losses; and other non-cash or non-recurring expenses or recoveries.
Earnings or loss before income tax
The Company believes EBITDA and adjusted EBITDA are widely used by investors and analysts as useful indicators of our operating performance, our ability to invest in capital expenditures, our ability to incur and service debt and also as a valuation metric.
Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:
During the three months ended September 30, 2024 and 2023, the Company had the following sources of revenue and other income:
(In thousands of dollars)
Three months ended September 30,
Nine months ended September 30,
2024
2023
2024
2023
Royalty revenue
$
6,184
$
11,142
$
16,871
$
14,918
Option and other property income
310
1,409
990
3,109
Interest income
533
374
1,411
1,048
Total revenue and other income
$
7,027
$
12,925
$
19,272
$
19,075
The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:
Three months ended September 30,
Nine months ended September 30,
(In thousands of dollars)
2024
2023
2024
2023
Revenue and other income
$
7,027
$
12,925
$
19,272
$
19,075
SLM California royalty revenue
$
6,162
$
4,002
$
17,409
$
17,586
The Company’s ownership %
42.7
40.0
42.7
40.0
The Company’s share of royalty revenue
$
2,633
$
1,602
$
7,439
$
7,033
Adjusted revenue and other income
$
9,660
$
14,527
$
26,711
$
26,108
Royalty revenue
$
6,184
$
11,142
$
16,871
$
14,918
The Company’s share of royalty revenue
2,633
1,602
7,439
7,033
Adjusted royalty revenue
$
8,817
$
12,744
$
24,310
$
21,951
Reconciliation of GEOs:
Three months ended September 30,
Nine months ended September 30,
(In thousands of dollars)
2024
2023
2024
2023
Adjusted royalty revenue
$
8,817
$
12,744
$
24,310
$
21,951
Average gold price per ounce
$
2,477
$
1,929
$
2,292
$
1,933
Total GEOs
3,560
6,608
10,607
11,358
Reconciliation of Adjusted Cash Flows from Operating Activities:
Three months ended September 30,
Nine months ended September 30,
(In thousands of dollars)
2024
2023
2024
2023
Cash provided by (used in) operating activities
$
(187)
$
7,122
$
326
$
2,787
Caserones royalty distributions
1,947
1,741
5,436
5,093
Adjusted cash flows from operating activities
$
1,760
$
8,863
$
5,762
$
7,880
Reconciliation of EBITDA and Adjusted EBITDA:
Three months ended September 30,
Nine months ended September 30,
(In thousands of dollars)
2024
2023
2024
2023
Income (loss) before income taxes
$
1,226
$
4,515
$
(4,439)
$
(2,225)
Finance expense
921
1,298
3,066
3,809
Depletion, depreciation, and direct royalty taxes
2,230
1,595
6,018
3,237
EBITDA
$
4,377
$
7,408
$
4,645
$
4,821
Attributable revenue from Caserones royalty
2,633
1,602
7,439
7,034
Equity income from investment in SLM California
(1,276)
(733)
(3,484)
(2,988)
Share-based payments
359
1,538
1,902
1,763
Loss (gain) on revaluation of investments
(1,778)
160
(3,004)
869
Loss (gain) on sale of marketable securities
307
(39)
2,253
420
Foreign exchange (gain) loss
(51)
401
204
1,366
Loss (gain) on revaluation of derivative liabilities
(283)
(336)
(176)
62
Loss on revaluation of receivables
–
124
–
–
Other losses
–
–
2,326
–
Loss on debt settlement
783
–
783
–
Impairment charges
–
43
45
43
Adjusted EBITDA
$
5,071
$
10,168
$
12,933
$
13,390
1 Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q3 2024 MD&A for more information on each non-IFRS financial measure. 2 Included in Q3 2023 and Q3 YTD 2023 was $6,676,000 (3,462 GEOs sold) and $4,783,000 (2,480 GEOs sold) respectively, in catch-up payments from the Timok royalty that relate to prior periods (2021 – $1,587,000, 2022 – $3,196,000, Q2 YTD 2023 – $1,893,000) 3 Excluding $6,676,000 in catch-up payments received in Q3 2023 from the Timok royalty that relate to prior periods (2021 – $1,587,000, 2022 – $3,196,000, Q2 YTD 2023 – $1,893,000) 4 Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q3 2024 MD&A for more information on each non-IFRS financial measure. 5 Excluding $6,676,000 in catch-up payments in Q3 2023 from the Timok royalty that relate to prior periods. 6 Included in Q3 2023 and Q3 YTD 2023 was $6,676,000 (3,462 GEOs sold) and $4,783,000 (2,480 GEOs sold), respectively, in catch-up payments from the Timok royalty that relate to prior periods (2021 – $1,587,000, 2022 – $3,196,000, Q2 YTD 2023 – $1,893,000)
