Vancouver, British Columbia–(Newsfile Corp. – August 20, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) congratulates AbraSilver Resource Corp. (“AbraSilver”) on its recent updated Diablillos mineral resource estimate (“MRE”) that increased total open pit constrained, oxide mineral resources to 199 million ounces of contained silver (+34%) and 1.72 million ounces of contained gold (+27%) in the measured and indicated (“MI”) categories.1,2 AbraSilver is also further enhancing project economics with ongoing drilling, advancing other priority initiatives (e.g., engineering optimization, investment incentives, among others), and is expected to receive EIA approval in the latter half of 2025 and on schedule to deliver a definitive feasibility study (“DFS”) for the Project in Q1 2026. EMX retains a 1% NSR royalty on the Diablillos Project, and all known mineralization occurs within EMX’s royalty ground.
The updated Diablillos MRE reports tank leach resources, which previously was the sole metallurgical processing assumption for the Project, as well as contributions from a maiden heap leach MRE. The additional heap leach resources represent a milestone advancement in converting near surface and peripheral lower grade “waste” material within the constraining open pit configuration to mineralization potentially recoverable via a low-cost processing route. AbraSilver reported total (i.e., tank and heap leach) oxide MI resources as 104 Mtonnes averaging 59 g/t silver and 0.51 g/t gold. The tank leach MI resources account for approximately 70% of the tonnes and over 90% of the contained silver and gold, with the heap leach resources contributing the balance which provides the potential to reduce the strip ratio and enhance project economics.
There were significant MI increases across all five resource deposits (i.e., Oculto, JAC, Fantasma, Laderas and Sombra) (see Figure 1 reference map), with the largest tonnage and contained metal increases driven by the JAC deposit, which is characterized by high-grade, near-surface silver-gold mineralization, as well as the Oculto deposit. The Sombra deposit, a recent discovery immediately south of Oculto and JAC, represents a first-time addition to the Project MRE totals.
There is significant district scale exploration upside at Diablillos with an ongoing Phase V 20,000 meter drill program scheduled for completion by early 2026. This program includes step-out drilling at Oculto East, JAC, and Sombra, as well as exploration drilling at the Cerro Viejo and Cerro Blanco porphyry targets.
EMX congratulates AbraSilver for its success in rapidly building value at the Diablillos royalty property. In addition to the significant increases in silver-gold mineral resources via drilling and metallurgical advancements, AbraSilver is currently evaluating other initiatives to further enhance project economics as inputs to the H1 2026 DFS (e.g., connecting to national grid for power, upgrading the fleet size, outsourcing waste movement, and optimizing TSF design to co-locate waste with tailings).3 Moreover, Diablillos is eligible for Argentina’s Incentive Regime for Large Investments (i.e., RIGI), which includes lower tax rates, elimination of export duties, and accelerated depreciation; an investment decision by Q2 2027 is required to fully qualify. Clearly, AbraSilver is on a fast track in advancing Diablillos to a production decision, and thereby unlocking the value of EMX’s royalty interest.
Comments on the Updated MRE. The updated Diablillos MRE reports total (i.e., tank and heap leach) measured resources of 33,218 Ktonnes @ 98 g/t Ag (105,050 Koz contained) and 0.59 g/t Au (634 Koz contained) and indicated resources of 70,686 Ktonnes @ 41 g/t Ag (93,593 Koz contained) and 0.48 g/t Au (1,081 Koz contained). In addition, the updated MRE includes total inferred resources of 19,628 Ktonnes @ 21 g/t Ag (13,427 Koz contained) and 0.38 g/t Au (241 Koz contained).
Comments on the December 2024 PFS. AbraSilver’s PFS study updated in December 2024 outlined an average 14 year life of mine with annual production of 7.6 Moz of silver and 72 Koz of gold yielding an NPV(5) of US$747 million, 28% IRR, and a two year payback using base case prices of $25.50/oz silver and $2,050/oz gold. Importantly, the PFS production profile over the first five years of full mine production averages 11.7 Moz silver and 59 Koz gold which underlines the Project’s early-stage potential for strong cash-flow generation and corresponding royalty payments to EMX. AbraSilver’s ongoing initiatives and sustained silver and gold bull market prices suggest significant additional Project upside.
About the Diablillos Silver-Gold Royalty Property. Diablillos is a high sulfidation silver-gold project located in the Puna region of Salta Province, Argentina. There are multiple mineralized zones in a district scale area covered by EMX’s uncapped 1% NSR royalty ground. Of note, in April of this year the Company received an early final property payment from AbraSilver totaling US$6.85 million.
Michael P. Sheehan, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.
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 statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter June 30, 2025 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2024, 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.
Figure 1. Diablillos Project Plan View of Mineral Resource Estimate (taken from Figure 2, AbraSilver news release dated July 29, 2025).
1 See AbraSilver news release dated July 29, 2025 and Appendix 1 of this news release 2 Increases referenced to the November 2023 MRE 3 See AbraSilver “August 2025” Corporate Presentation 4 See AbraSilver news release dated December 3, 2024
Vancouver, British Columbia–(Newsfile Corp. – August 19, 2025) – Questcorp Mining Inc. (CSE: QQQ) (OTCQB: QQCMF) (FSE: D910) (the “Company” or “Questcorp“) is pleased to announce they have completed 25% of the planned drilling program on its La Union Project in northwest Sonora, Mexico. This work is being carried out by property vendor and operator Riverside Resources Inc. (TSXV: RRI).
Highlights
The Company has completed 300 metres of the planned drill program of 1200 to 1500m.
Drilling to test the carbonate-hosted replacement deposit (CRD) style of mineralization, with gold associated with mantos, chimneys, and along structural zones.
Angled drill holes are aimed at cutting perpendicular to stratigraphic targets and some structural targets which is typical in CRD systems
Structural features may have served as mineralizing conduits and are key targets in the current drill program.
Questcorp is capitalizing on the recent exploration work over the past three months by Riverside that improved the understanding of the structural geology and stratigraphy that is guiding current exploration efforts at La Union. The exploration target focus is for a large potential gold discovery that expands from previous smaller scale mine operations on the property. The drill program will begin to test the new concepts and expand past previous mining.
Saf Dhillon, President & CEO states, “Questcorp is pleased with the progress being made at this first ever drill program at La Union. The Riverside team has been able to work throughout these hot summers months to enable the successful completion of this Maiden drill.
Earlier this year, Questcorp entered into a definitive option agreement with Riverside’s wholly owned subsidiary, RRM Exploracion, S.A.P.I. DE C.V. to acquire a 100% interest in the La Union Project. As part of the agreement, Questcorp issued shares to Riverside, making Riverside a shareholder and aligning both parties’ interests in the Project’s success. With funding provided by Questcorp, an initial C$1,000,000 exploration program is now underway. This marks the first phase of a larger, C$5,500,000 work commitment, contingent on exploration results and Questcorp’s continued participation.
The Drill Program Targets include more than four different areas, beginning with this early-stage stratigraphic and orientation phase of drilling exploration aimed at evaluating the scale of alteration and indications of a mineralized system. This will be the first drilling ever conducted on most of the targets, despite past mining having occurred in the majority of these areas. The initial program will consist of one to three holes per area, primarily for orientation purposes. Follow-up drilling is planned and can be expanded based on initial results, which will help verify the stratigraphy, lithologies, and structural features allowing for improved modeling and next-stage discovery targeting. The four areas are listed below:
Union Main MineArea – The program will use angled drill holes to test limestone and other carbonate stratigraphic hosts within the Clemente Formation, with the potential to reach the underlying Caborca Formation. These units are considered the primary hosts for replacement-style mineralization.
North Union Mine Area – The initial focus of the program will be on testing structural interpretations. Additional drilling is anticipated following this first phase, as results will help guide future drill testing of areas with past mining activity and various structural orientations.
Cobre MineArea – The Clemente Formation is the primary host unit, and structural features combined with areas of past mining provide multiple target zones. Drilling will begin with an initial stratigraphic test hole to help orient around the thickness of the host unit and extend into the lower Caborca Formation, which is also a favorable host for CRD-style mineralization.
Central UnionArea – Structural targets, as possible mineralization feeder zones, are a key focus in this past mining manto area. There are extensive additional target zones in the area, and this initial orientation drilling will provide vectoring for the next stage of drilling and further study of the Clemente Formation, and possibly into the Caborca Formation as currently interpreted.
General Overview of La Union Project
The Project is summarized in a recently published NI 43-101 Technical Report available under Questcorp’s SEDAR+ profile (www.sedarplus.ca). Riverside initially acquired the Project and subsequently consolidated additional inlier mineral claims, building a strong land position. Riverside then advanced the Project through surface access agreements and drill permitting, making it a turn-key exploration opportunity for Questcorp.
The Project was originally identified through Riverside’s exploration work in the western Sonora Gold Belt, conducted in collaboration with AngloGold Ashanti Limited, Centerra Gold Inc., and Hochschild Mining Plc. Earlier research by Riverside Founder John-Mark Staude also contributed to recognizing the district’s potential. Initial work by members of the Riverside team, drawing on more than two decades of geological compilation and analysis, further confirmed the region as highly prospective.
At the Project, historical mining by the Penoles Mining Company targeted chimney and manto-style replacement bodies within the upper oxide zones. As a result, the underlying sulfide zones represent immediate and compelling drill targets for further exploration.
At the La Union Project, immediate drill targets offer the potential for significant-scale discoveries. La Union is well positioned for near-term exploration success, with targets that include both oxide and deeper sulfide mineralization.
The La Union Project
The La Union Project is a carbonate replacement deposit (“CRD”) project hosted by Neoproterozoic sedimentary rocks (limestones, dolomites, and siliciclastic sediments) overlying crystalline Paleoproterozoic rocks of the Caborca Terrane. The structural setting features high-angle normal faults and low-to-medium-angle thrust faults that sometimes served as mineralization conduits. Mineralization occurs as polymetallic veins, replacement zones (mantos, chimneys), and shear zones with high-grade metal content, as shown in highlight grades of 59.4 grams per metric tonne (g/t) gold, 833 g/t silver, 11% zinc, 5.5% lead, 2.2% copper, along with significant hematite and manganese oxides, consistent with a CRD model (see the technical report entitled “NI 43-101 Technical Report on the Union Project, State of Sonora, Mexico” dated effective May 6, 2025 available under Questcorp’s SEDAR+ profile). These targets also demonstrate intriguing potential for large gold discoveries potentially above an even larger porphyry Cu district potential as the Company’s target concept at this time.
Questcorp cautions investors that grab samples are selective by nature and not necessarily indicative of similar mineralization on the property.
The technical and scientific information in this news release has been reviewed and approved by R. Tim Henneberry, P. Geo (BC), a director of the Company and a “qualified person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Questcorp Mining Inc.
Questcorp Mining Inc. is engaged in the business of the acquisition and exploration of mineral properties in North America, with the objective of locating and developing economic precious and base metals properties of merit. The Company holds an option to acquire an undivided 100% interest in and to mineral claims totaling 1,168.09 hectares comprising the North Island Copper Property, on Vancouver Island, British Columbia, subject to a royalty obligation. The Company also holds an option to acquire an undivided 100% interest in and to mineral claims totaling 2,520.2 hectares comprising the La Union Project located in Sonora, Mexico, subject to a royalty obligation.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Riverside’s arrangements with geophysical contractors to undertake orientation surveys and follow up detailed survey to confirm and enhance the drill targets. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include but are not limited to: the ability of Riverside to secure geophysical contractors to undertake orientation surveys and follow up detailed survey to confirm and enhance the drill targets as contemplated or at all, general business, economic, competitive, political and social uncertainties, uncertain capital markets; and delay or failure to receive board or regulatory approvals. There can be no assurance that the geophysical surveys will be completed as contemplated or at all and 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 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
In his monograph “A Short History of Financial Euphoria”, economic historian John Kenneth Galbraith observed, “For practical purposes, the financial memory should be assumed to last, at a maximum, no more than 20 years. This is normally the time it takes for the recollection of one disaster to be erased and for some variant on previous dementia to come forward to capture the financial mind.”
For those afflicted by FMDS, we prescribe defensive positioning including high levels of cash and gold bullion.
It has been almost 20 years since the Global Financial Crisis restored a measure of sobriety to the financial markets. It is our thinking that the current cycle of market mania is due for a comeuppance. Resistance to a reality check is baked into the “buy the dip” conventional wisdom. Galbraith writes in “The 1929 Parallel” (Atlantic, 1987), “There is a compelling vested interest in euphoria, or perhaps especially, when it verges, as in 1929, on insanity.” As noted by Walter Bagehot in Lombard Street (1873), “All people are the most credulous when they are the most happy.”
Timing a financial market reversal, while imprecise, is aided by the historical fact that ebbs and flows of mass psychology are repetitive, go to extreme levels and reverse under the weight of their exhaustion. The markers of what constitute a “danger zone” are consistent. The forgotten champions of mortgage-backed securities (2007), dot-com startups (late 1990s), the “nifty fifty” stocks of the 1970s or investment trusts of the 1920s have much in common with today’s proponents of the MAG 7, crypto and the AI revolution. The signs include extreme market concentration, leverage and delusional extrapolation of the benefits of whatever happens to be the current craze.
In the following note, we prescribe for those afflicted by financial market derangement syndrome, or FMDS, a healthy dose of contrarian thinking and defensive positioning including high levels of cash and gold bullion. For those wishing for stronger countermeasures to generate positive investment returns from FMDS, we suggest significant exposure to precious metals mining equities.
Gold Equities: Still Undervalued and Under-Owned
Despite the strong year-to-date performance for gold bullion (25.35%)1 and precious metals shares (52.65% with dividends reinvested),2 investor participation remains scant. To measure current investor participation and positioning, we look to the number of shares outstanding in the VanEck Gold Miners ETF (GDX), which has declined 20.37% year-to-date and 32.86% since 2020. Mining stocks, despite an 85.47% increase in the gold price over the past five years and an even greater rise in profit margins, have lagged gold conspicuously, gaining only 51.82% over the same period.
For gold miners, the approximate industry-wide profit margin has increased from $647 per ounce in Q1 2024 to approximately $1,700 in Q2 2025, a gain of 168%.
Figure 1: Gold Miner Profitability Has Risen Significantly (2024-2025E)
Sources: (1) Average Gold Price: Bloomberg XAU Curncy, (2) AISC: Bloomberg Intelligence (BI METG: Precious Metal Mining Dashboard), (3) Q2 2025E for AISC is based on Sprott’s estimate.
Gold miners are generating record profits and cash flow. Their balance sheets are flush. Industry leaders, including Newmont and Agnico Eagle, are promising to return surplus capital to shareholders. Share buyback announcements and dividend hikes are listed in Appendix A. At the recent Rick Rule Symposium in Boca Raton, Agnico Eagle CEO Ammar Al Joundi stated that he “would rather give money back” than chase marginal deals.3 Newmont Mining has generated proceeds of $3 billion after tax from asset divestitures over the past year and announced share buybacks of $3 billion in July 2025.
The lack of interest in precious metals miners seems as inexplicable as it is unsustainable.
Blockbuster earnings reports are becoming commonplace, in many cases well above sell-side research consensus. We strongly believe there is more good news to come as the third quarter average gold price (quarter-to-date) already exceeds the second quarter average gold price by $54 per ounce. Fear of a sustained drop in the metal’s price, if that is the reason for the absence of investor enthusiasm, is misplaced.
Sell-side analysts continue to play catch-up with their earnings forecasts and price targets. Ingrained “bunker mentality” from a decade of poor performance in the mining sector seems to be preventing forceful advocacy of a pro-miners investment thesis from those who should be its champions.
While not standard, attention to shareholder accountability in terms of per-share metrics is increasingly evident. Useful per-share stats would include earnings, cash flow, reserves and production. Investor presentations that disclose per-share information include Wesdome, Alamos, Kinross and Dundee Precious Metals, to name a few. The key investment rationale for gold mining equities is leverage to the movement in the gold price. In a bull market for the metal, gold bulls want a quantification of that torque. Discussion of that connection was virtually non-existent five years ago.
The lack of interest in precious metals miners seems as inexplicable as it is unsustainable. Strong fundamentals, along with extreme investor disinterest, suggest that mining stocks are likely to continue to outperform all other S&P sectors, as they have over the past twelve months. It is the table we have been pounding, endlessly it seems, since the most recent leg of the gold bull market commenced during the throes of the COVID-19 pandemic.
Figure 2: Gold Miners Have Outperformed All S&P Sectors over the Past 12 Months as of 6/30/2025
Source: Bloomberg. Data as of June 30, 2025.
Gold Bullion vs. Miners
The investment case for gold bullion, in its least controversial form, rests on the prudence of portfolio diversification. Those benefits are amply demonstrated by dispassionate historical analysis. It is a sensible argument that appeals to conservative, adult instincts. Accessibility, once challenging, has been eased for equity investors by the profusion of ETF wrappers.
Mining stocks, a logical subset of the diversification tool kit, get failing grades when it comes to judicious exposure. The bad rap includes a (now ancient) history of juvenile capital allocation decisions, volatility, illiquidity and a business model that disturbs the planet’s surface, not to mention mainstream aversion to the rationale for a gold bull market’s very existence. Bullion is to gold miners as hamburgers are to abattoirs. “Portfolio diversification” is just a polite euphemism for protection against currency depreciation and bear markets. While bullion may provide a safe haven, the miners could provide torque to events for which the markets are improperly positioned.
The Next Gold Price Catalyst: Financial Market Dysfunction
A token gold allocation of 2% to 3% is, in our opinion, just a “CYA” acknowledgement of the possibility of market adversity while remaining asleep as to any likelihood or timing. Predicting the precise turning point in the bull equity market is, of course, a hazardous exercise with many past misfires by well-regarded observers. In our opinion, however, there is strong evidence suggesting the onset of a bear market is nigh including extremes of valuation, technical analysis, investor psychology and behavior, and hyperactive retail participation.
A token 2% to 3% gold stake is just hitting the snooze button on a looming bear market alarm.
A multitude of valuation red flags is covered here (Grant’s, 7/16/25):
The charging-bull crowd can surely use such continued operating momentum, with the S&P 500 changing hands at 22.3 times forward earnings, compared with 5-year and 10-year average valuations of 19.9 and 18.4 times, respectively. Other indicators point to an historically stretched market, with the index perched at 3.29 times trailing sales, the highest since at least 1990 and nearly one full turn above that seen at the peak of the dot-com bubble. The free cash-flow yield crouches at 2.76%, near February’s post-Lehman Brothers low of 2.71% and compared with a 4.19% average reading over the past 10 years, while the 1.23% dividend yield undercuts the 1.26% yield seen during risk appetite on record. In turn, average cash levels have ebbed to 3.9% from 4.2% in June, approaching February’s 3.5% (which marked the lowest reading on record dating to 2010) and triggering a sell signal from BofA’s in-house trading model.”
More broadly, the FT Wilshire 5000 Index4 commands an aggregate market value near $62 trillion, equivalent to just over 208.1% of U.S. GDP. Famously dubbed the Buffett Indicator,5 that metric elicited the following commentary from the Oracle of Omaha to Forbes in December 2001: ‘If the ratio approaches 200%—as it did in 1999 and a part of 2000—you are playing with fire.’ The stock market’s sterling post–Liberation Day rebound has given a new boost to market morale, as Tuesday’s release of the latest Bank of America Global Fund Manager Survey shows the biggest three-month rise in Don’t look down.
A valuation red flag not mentioned in Grant’s is depicted in the Zero Hedge chart in Figure 3.
Figure 3. Return to Historic Heights The percentage of global stocks trading above 10x EV/Sales has reached the highest level in history, surpassing both the Dot-Com Bubble and the 2021 meme mania.
Source: Barchart/Man.
Thanks to David “Haymaker” Hay for the above chart and the context provided. Stocks trading at 10 times sales are generally considered to be in bubble territory. The illogic of paying this type of valuation for most, but not all, equities was famously articulated by Sun Microsystem’s co-founder and then-CEO Scott McNealy in March 2002.* This was after its stock price had been obliterated in the wake of the first tech bubble’s implosion.
*McNealy quoted in BusinessWeek, 2002:
At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?
There is a good case based on technical analysis that the equity market is skating on thin ice. Highly respected chartist Carter Worth suggests that the S&P 500 Index has run out of upside potential based on well-defined historical trend lines:
Figure 4. S&P 500 20-Year Trendline (2006-2025)
Source: Worth Charting as of July 31, 2025.
As to the danger signals emitted from euphoric psychology, special thanks go to Bitcoin Magazine (August 1, 2025) for this gushing explanation of the rationale for crypto trusts:
Strategy (formerly MicroStrategy)6 delivered a second-quarter earnings call that demonstrated more than financial results; it revealed a robust and deliberate treasury architecture designed to make Bitcoin the centerpiece of shareholder value creation. The call was dense with insight into how a public company can re-engineer its balance sheet, capital structure, and market signaling to outperform traditional fiat-based treasuries.
An excellent discussion of the proliferation of bitcoin trust issuance (Bitcoin Treasury Cos: Lessons from the 1929 Crash) suggests analogies to the investment trusts of the 1920s or mortgage-backed securities that preceded the 2007-2008 Global Financial Crisis (GFC).
Additional grist for the bearish mill includes the recent preponderance of insider selling. The Kobeissi Letter (@KobeissiLetter) posted on X at 3:28 PM on Tuesday, Aug 05, 2025:
Yet another sign of a market top is hyperactive retail trading in zero-day options. Zero-day options are options contracts that expire on the same day they are traded. These have become increasingly popular among traders due to their potential for quick profits and high leverage. Retail investors account for over half of all zero-day options trading flow, and recently, zero-day options surged to an all-time high, comprising 61% of total S&P 500 volume.7
What, Me Worry?
For all but the few investors that pay close attention to gold macros, it seems the consensus expectation is for minimal upside versus considerable downside risk. Figure 5 depicts Wall Street’s bearish consensus expectation. Investor hesitation to position gold stocks most likely is directly connected, in our opinion, to the resolute bullishness that props mainstream equity positioning. Until real economic adversity sets in, interest in gold and gold stock exposure will likely continue to be a case of “who needs it?” Alfred E. Neuman is alive and well.
Figure 6. Consensus Forecasts on Gold Prices to 2028
Source: Bloomberg. Data as of 6/30/2025.
Is gold nonetheless a “crowded” trade? As reported by the June Bank of America (BofA) Global Fund Manager Survey, 41% of respondents think so. However, BofA also reported that investors had allocated just 3.5% of their portfolios to gold. Sentiment is bullish, as reflected by Market Vane (Figure 6), but below the “Tariff” Peak of Q1 ’25 and the COVID Peak of 2019. The steady liquidation of GDX gold mining shares suggests investor aversion to gold exposure.
Figure 7. GDX Shares vs. Market Vane Sentiment Index8 (2018-2025)
Sources: Bloomberg and Market Vane. Data as of 8/13/2025.
In our view, gold is consolidating its April 2025 spike to $3,500 per ounce. The many factors that launched gold to that temporary peak, including central bank buying, de-dollarization, concerns over the U.S. fiscal situation and geopolitical risk have continuing latency and explain why gold is trading effortlessly in the current range of $3,200 to $3,400. They have been extensively discussed, however, and one might say already “priced in” to the current trading range. What we believe has not been priced in, however, is a significant decline in equities.
Mainstream Support for Gold
In The Strategic Case for Gold and Oil in Long-Run Portfolios (5/28/2025), Goldman Sachs co-head of Commodity Research Daan Struyven states:9
Following the recent failure of U.S. bonds to protect against equity downside and the rapid rise in U.S. borrowing costs, investors seek protection for equity-bond portfolios. During any 12-month period when real returns were negative for both stocks and bonds, either oil or gold has delivered positive real returns
It is one thing for those already convinced of gold’s merit to suggest, but quite another for Goldman Sachs, that the time-honored risk mitigation portfolio strategy provided by a 40% weighting in bonds no longer functions.10 Even more attention-grabbing is Goldman’s call to substitute gold for bonds. Words from Goldman amount to gospel for investment fiduciaries managing assets of trillions that have little or no gold exposure. The message has been delivered, but the investment response has barely started, in our opinion. Even a slight reallocation as a percentage of global financial assets would have a disproportionate percentage impact on the gold price.
Goldman says gold, not bonds, is the safe haven now.
The catalyst least discussed but, in our view, most likely to power gold’s breakout into new high territory would be a general loss of confidence, either sudden or gradual, in financial assets. Gold is under-owned and highly illiquid relative to potential capital market flows. That limited illiquidity was discussed at length in our previous Sprott Gold Report, The Return of Exter’s Inverted Pyramid.
Exter’s Pyramid, conceived by economist and Fed Governor John Exter in the 1960s, is a visual representation that categorizes assets based on their liquidity and risk. The assets at the bottom of the pyramid are considered more liquid and less risky, while the assets at the top are less liquid and more risky. During times of prosperity and high confidence, capital flows towards riskier assets at the top of the pyramid, such as equities, corporate bonds and derivatives. By contrast, during times of financial crises, investors seek refuge in “safer” assets toward the bottom of the pyramid, including cash and gold.
However, Exter in all likelihood did not imagine that his pyramid would become sufficiently top heavy with derivatives and debt to nullify the liquidity of gold that he posited. We would, with respect, add to Exter’s conception the proviso that: “Where there is liquidity there is no value, and where there is value there is no liquidity.” During periods of high confidence, risky assets appear highly liquid, an illusion that rapidly dissipates when the music stops.
A swing in the pendulum of confidence, as it seeps into investment psychology, has the potential to destroy illusory wealth, disrupt the economy and possibly destabilize political order. The case for allocating a meaningful slice of liquid assets to unlevered positions in physical metals has never seemed stronger. Why tip toe around the edges of a plausible reset of macro expectations with token exposure? The potential influx of liquid assets into gold could, in our opinion, double the U.S. dollar price within a year or two. Should this occur, profits of many mid- and small-capitalization miners could exceed their current equity market capitalization. Gold mining equities are still stuck at bargain basement valuations. We unabashedly continue to pound the table for precious metals equities and bullion alike.
Gold bullion is measured by the Bloomberg GOLDS Comdty Index.
2
Gold mining equities are measured by the NYSE Arca Gold Miners Index (GDM), a rules-based index designed to measure the performance of highly capitalized companies in the gold mining industry.
The FT Wilshire 5000 Index Series is a comprehensive, float adjusted measure of the U.S. stock market, designed to reflect the performance of all U.S. equity securities that have readily available prices.
5
The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio) is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time.
6
Strategy is the world’s first and largest Bitcoin Treasury company, and the largest independent, publicly traded business intelligence company.
7
The Cboe Volatility Index® (VIX® Index) is considered by many to be the world’s premier barometer of equity market volatility. The VIX Index is based on real-time prices of options on the S&P 500® Index (SPX) and is designed to reflect investors’ consensus view of future (30-day) expected stock market volatility. The VIX Index is often referred to as the market’s “fear gauge”.
8
Market Vane is a sentiment trading indicator used by traders to gauge market direction based on the collective investor sentiment of individual and institutional traders.
Explore the Union Project with Riverside Resources! ⛏️ The team is on-site in Sonora, Mexico, showcasing their gold exploration efforts and the potential of the old Union Mine. 🗺️ Check out the drilling process, core samples, and drone footage of the site. 👷♂️ 🔗 https://youtu.be/_O6AKIkW_1c
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
As the digital economy accelerates and generative AI becomes more deeply embedded in business and daily life, the physical infrastructure supporting these technologies is undergoing a transformative explosion.
In this graphic, we use data from McKinsey to show current and projected energy demand from data centers in the United States. Data is from October 2023.
U.S. Data Centers Could Quadruple Power Demand by 2030
Today, data centers account for roughly 4% of total U.S. electricity consumption. But by 2030, that share is projected to rise to 12%, driven by unprecedented growth in computing power, storage needs, and AI model training.
In fact, U.S. data center energy demand is set to jump from 224 terawatt-hours in 2025 to 606 terawatt-hours in 2030.
Year
Consumption (TWh)
% of Total Power Demand
2023
147
4%
2024
178
4%
2025
224
5%
2026
292
7%
2027
371
8%
2028
450
9%
2029
513
10%
2030
606
12%
Meeting this projected demand could require $500 billion in new data center infrastructure, along with a vast expansion of electricity generation, grid capacity, and water-cooling systems. Generative AI alone could require 50–60 GW of additional infrastructure.
This massive investment would also depend on upgrades in permitting, land use, and supply chain logistics. For example, the lead time to power new data centers in large markets such as Northern Virginia can exceed three years. In some cases, lead times for electrical equipment are two years or more.
A Strain on the U.S. Grid
The U.S. has experienced relatively flat power demand since 2007. Models suggest that this stability could be disrupted in the coming years. Data center growth alone could account for 30–40% of all net-new electricity demand through 2030.
Unlike typical power loads, data center demand is constant, dense, and growing exponentially. Facilities often operate 24/7, with little downtime and minimal flexibility to reduce usage.
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter-than-expected inflation soured expectations of a large rate cut in September and Treasury Secretary Scott Bessent signaled the US won’t be purchasing bitcoin for its strategic reserve.
On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July’s Producer Price Index came in much higher than expected.
During an interview with Fox Business, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today’s prices.
“We’ve also started to get into the 21st century — a bitcoin strategic reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up,” he said.
Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasuries, have driven up the price of the asset this year.
The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows.
In my Q2 Barchart Precious Metals Report on July 8, 2025, I concluded with the following:
Silver, platinum, and palladium formed powerful bullish formations in Q2, with each metal falling below its Q1 low and closing the quarter above the previous quarter’s peak. The bullish key reversal patterns could indicate that the bullish trend in the precious and industrial metals will continue over the coming months and quarters, as silver, platinum, and palladium catch up with gold.
Nearby NYMEX palladium futures moved 10.63% higher in Q2 and were 21.69% higher over the first half of 2025. The futures settled at $1,107.10 per ounce on June 30 and rose to over $1,370 in July. At over $1,150 in August, palladium was higher than the Q2 closing level and remains in a bullish trend.
Palladium rises to the highest price since June 2023
After trading around the $1,000 pivot point from late 2023 through June 2025, palladium prices took off on the upside in July.
The monthly continuous NYMEX palladium futures chart highlights palladium’s rise to $1,373.50 per ounce in July 2025, the highest price since June 2023. Palladium moved above the critical technical resistance level at the October 2024 high of $1,255, ending the bearish trend since the March 2022 record high of $3,425 per ounce.
Tariffs and geopolitics can impact palladium- Production comes from only two countries
Total palladium mine production in 2024 was approximately 190 metric tons or just over 6.1 million ounces.
Source: Statista
The chart shows that the two leading palladium-producing countries, Russia and South Africa, accounted for 147 tons or 77.4% of the world’s annual 2024 palladium output.
Sanctions on Russia and U.S. tariffs on South Africa could potentially impact palladium imports into the United States. However, the April 2025 announcement excluded bullion, including palladium. Meanwhile, recent developments in the copper market, where President Trump imposed a 50% tariff on some copper imports, could be impacting the palladium market as the U.S. administration could change its current trade barrier policy with an executive order.
On the other hand, deteriorating relations between Moscow and Washington, DC, could cause Russia to ban palladium exports to the U.S. The bottom line is that trade barriers, including sanctions and tariffs, have caused significant uncertainty for the palladium market. Palladium remains a critical ingredient for automobile catalytic converters and other industrial applications.
Liquidity could cause lots of price variance in the palladium futures market
The four precious metals trading on the CME’s COMEX and NYMEX divisions are gold, silver, platinum, and palladium. Palladium is the least liquid of the four. On August 8, 2025, total open interest, the total number of open long and short positions in the NYMEX palladium futures market, stood at 19,677 contracts or 1,967,700 ounces. At $1,155 per ounce, the futures market’s total value was $2.273 billion, far lower than the gold, silver, and even platinum futures markets. The average daily trading value runs around half the open interest level.
Palladium’s low liquidity in the futures and physical market in London can exacerbate price volatility. The rally to the March 2022 record high of $3,425 per ounce was an example of how low liquidity can ignite high volatility. When Russia invaded Ukraine, the price palladium surged higher due to supply fears.
After falling to a low of $813.50 in August 2024, palladium futures are now trending higher, with the price just over $1,150 per ounce. Low liquidity can cause bids to purchase disappear during bearish trends, as the palladium market experienced from March 2022 through August 2024. Conversely, offers to sell can evaporate during bullish trends, which caused palladium futures to explode to the March 2022 high.
Levels to watch in the palladium futures
The weekly continuous futures chart highlights the critical technical support and resistance levels in the NYMEX palladium market.
Technical resistance is at the most recent mid-July 2025 high of $1,373.50 per ounce, with technical support at the late January 2025 high of $1,077.50 level. At around the $1,150 level on August 5, palladium was below the midpoint of the support and resistance levels.
PALL is the palladium ETF product
The most direct route for a risk position or investment in palladium is the physical market for bars and coins. However, illiquidity can cause wide bid/offer spreads with premiums or discounts for the physical metal. The NYMEX futures contract size is 100 ounces. At $1,150 per ounce, each contract’s value is $115,000. NYMEX’s original margin requirement is $13,750, meaning that market participants can control $115,000 worth of palladium on the long or short side of the market for an 12% good-faith deposit. If the risk position’s equity slips below $12,500 per contract, the exchange requires posting maintenance margin.
The Aberdeen Physical Palladium ETF (PALL) is a liquid product that holds physical palladium bullion. At $14.75 per share, PALL had over $575.55 million in assets under management. PALL trades an average of 302,737 shares daily and charges a 0.60% management fee. The expense ratio covers storage, insurance, and other related administrative expenses.
Nearby palladium futures rallied nearly 49%, moving from $922 on April 30, 2025, to $1,373.50 per ounce on July 18, 2025.
Over the same period, PALL rallied 40.5%, moving from $84.90 to $119.30 per share. One of the ETF’s drawbacks is that while palladium futures trade around the clock, PALL is only available during U.S stock market hours. Therefore, the ETF may miss highs or lows that occur when the stock market is closed.
Palladium broke out of its bearish trend in July 2025. Tariffs and sanctions create the potential for higher highs over the coming weeks and months. However, investors and traders must realize that palladium’s liquidity can exacerbate price rallies and corrections. Expect lots of volatility in the palladium futures market, and you will not be disappointed.
On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Vancouver, British Columbia–(Newsfile Corp. – August 11, 2025) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (the “Company” or “EMX”) is pleased to report results for the six months ended June 30, 2025 (in U.S. dollars unless otherwise noted). EMX delivered revenue and other income of $14.7 million, adjusted royalty revenue[1] of $19.0 million and adjusted EBITDA1 of $12.1 million.
Dave Cole, EMX CEO, commented, “For the first half of 2025 we achieved growth in adjusted royalty revenue and adjusted EBITDA, and strengthened our financial position through disciplined capital management and opportunistic share buybacks. With rising commodity prices and growing revenue, we have increased our 2025 revenue guidance as we continue our momentum into the second half of 2025.”
Q2 2025 Financial Highlights
Adjusted royalty revenue1 of $8.2 million, similar to comparative quarter;
Adjusted cash flows from operating activities1 of $9.0 million, up 570% from the comparative quarter primarily due to the collection of $6.9 million and $1.5 million in deferred payments from AbraSilver Resources and Aftermath Silver, respectively;
Adjusted EBITDA1 of $4.9 million, similar to comparative quarter, demonstrating strong cash flow conversion; and
Cash and cash equivalents as of June 30, 2025 of $17.2 million and working capital1 of $30.2 million, demonstrating financial flexibility for growth.
Summary of Financial Highlights for the Period Ended June 30, 2025 and 2024:
Three months ended June 30,
Six months ended June 30,
(In thousands)
2025
2024
2025
2024
Statement of Income (Loss)
Revenue and other income
$
6,239
$
6,005
$
14,661
$
12,245
General and administrative costs
(1,616
)
(1,694
)
(3,786
)
(3,842
)
Royalty generation and project evaluation costs, net
(2,176
)
(2,907
)
(4,678
)
(5,841
)
Net income (loss)
$
642
$
(4,022
)
$
1,902
$
(6,249
)
Statement of Cash Flows
Cash flows from operating activities
$
6,892
$
(514
)
$
8,181
$
513
Non-IFRS Financial Measures1
Adjusted revenue and other income
$
8,686
$
8,758
$
20,114
$
17,051
Adjusted royalty revenue
$
8,214
$
7,836
$
18,965
$
15,493
Adjusted cash flows from operating activities
$
8,978
$
1,341
$
11,884
$
4,002
EBITDA
$
3,065
$
(981
)
$
7,957
$
268
Adjusted EBITDA
$
4,949
$
4,639
$
12,050
$
7,862
GEOs sold
2,505
3,352
6,261
7,047
Key Strategic Developments
During the three months ended June 30, 2025, and the period subsequent to quarter end EMX completed several key transactions that demonstrate our strategy of incremental revenue growth and disciplined capital management. These key developments include:
In April 2025, the Company made a $10.0 million early repayment towards the Franco-Nevada credit facility, decreasing the principal outstanding from $35.0 million to $25.0 million;
In April 2025, the Company received an early Diablillos property payment from AbraSilver Resource Corp. totaling $6.9 million;
In June 2025 the Company received an early Berenguela property payment from Aftermath Silver Ltd. totaling $1.5 million;
The Company announced the sale of its Nordic operational platform to First Nordic Metals Corporation, a current partner of EMX and operator on multiple EMX royalty properties in Sweden and Finland. This strategic divestment included EMX’s infrastructure, exploration equipment and employees in the Nordic countries;
The Company executed an exploration alliance agreement in the country of Morocco with Avesoro Morocco Limited (“Avesoro”), a wholly owned subsidiary of Avesoro Holdings LTD, a privately owned, West Africa-focused mid-tier gold producer. In Morocco, EMX and Avesoro will work together to advance a portfolio of exploration projects that EMX has assembled and will cooperatively explore for new opportunities. Avesoro will fully fund the alliance activities, which will include the advancement of certain projects in the EMX Moroccan portfolio, as well as new projects identified by the alliance for acquisition; and
The Company commenced a new NCIB program during the quarter which allows for the repurchase and cancellation of 5,440,027 common shares over a 12-month period. We repurchased and cancelled 1,202,168 shares during the quarter for a total cost of $2.6 million. Subsequent to the end of the period, the Company repurchased 400,929 common shares under the new NCIB for a total cost of $1.2 million.
Outlook
Updated 2025 Guidance
Please see our “Forward-Looking Statements” below for more details on our guidance.
Updated 2025 Guidance[2]
Original 2025 Guidance[3]
GEO sales[4]
10,500 to 12,000
10,000 to 12,000
Adjusted royalty revenue3
$30,000,000 to $35,000,000
$26,000,000 to $32,000,000
Option and other property income
$1,000,000 to $2,000,000
$1,000,000 to $2,000,000
Based on the Company’s existing royalties and information available from its counterparties, we now expect GEO sales3 to range from 10,500 to 12,000 GEOs and adjusted royalty revenue3 to range from $30,000,000 to $35,000,000 in 2025. The noted increase in expected adjusted royalty revenue compared to the original guidance is due to the significant increases in metal prices to date in 2025.
Guidance is based on public forecasts, other disclosure by the owners and operators of our assets, historical performance and management’s understanding of the underlying producing assets. Additionally, the Company may receive information from the owners and operators of the properties, which the Company is not permitted to disclose to the public pursuant to the underlying agreement or the information has not been prepared in accordance with Canadian disclosure standards, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
Capital Management
For 2025, EMX continues to believe that capital management is critical to the success of the business and therefore maintain the following capital allocation goals for 2025:
Approximately 20% decrease in operating expenditures when compared to 2024, primarily resulting from a decrease in generative expenditures, weighted toward the second half of 2025;
Continued return of capital through our renewed Normal-Course Issuer Bid program in 2025;
Implementation of a measured and consistent debt repayment strategy; and
Evaluation of a potential revolving credit facility available to EMX to fund royalty acquisitions.
Portfolio Growth
The drivers for near and long term growth in cash flow will come from the material producing assets at Caserones in Chile and Timok in Serbia. At Caserones, Lundin Mining Corporation (“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. (“Zijin”) continues to develop the Lower Zone copper porphyry block cave project while continuing to produce from the high-grade Upper Zone. Zijin also announced the recently discovered high-grade Malka Golaja Copper-Gold Deposit 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 where Malka Golaja is located.
We anticipate the recently announced $10,000,000 acquisition of a royalty on the Chapi Copper Mine property in Peru will begin contributing to royalty revenue in 2026. We are excited by the addition of a high-quality copper royalty to the portfolio that has excellent upside development and exploration potential located in the prolific Paleocene-Eocene copper-molybdenum porphyry belt of Southern Peru.
AbraSilver Resource Corp. continues to advance Diablillos in Argentina, announced that it expects to complete its definitive feasibility study by Q1 2026 and make a construction decision in the second half of 2026 and released an updated MRE in Q2 2025.
At the Vittangi Graphite development project, an appeals review process was recently concluded for the issuance of an Exploitation Concession, a key step in the mine permitting process in Sweden. Talga Group now has all major permits in force for their Nunasvaara South Mine, which is part of Europe’s largest and highest grade JORC classified natural graphite resource. At the Viscaria copper-iron-silver development project in Sweden, the Supreme Court of Sweden announced in April 2025 it will not grant leave to appeal Viscaria’s environmental permit. This decision means that Viscaria’s environmental permit can no longer be appealed and thus gains legal force. Viscaria now has all permits in place to start the construction of the industrial area including the enrichment plant, and to start operations in the mine. These developments are all examples of the upside optionality that exists throughout EMX’s global royalty portfolio.
EMX is well positioned to identify and pursue new royalty and investment opportunities, while continuing to grow a pipeline of royalty generation properties for partnership. As the Company continues to generate revenues from its producing royalty assets as well as 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 and select strategic investments.
Results for the Three Months Ended June 30, 2025
In Q2 2025, the Company recognized $8.7 million and $8.2 million in adjusted revenue and other income1 and adjusted royalty revenue[5], respectively, which represented a 1% decrease and a 5% increase, respectively, compared to Q2 2024. The noted decrease in GEOs compared to 2024 is due to EMX’s heavy exposure to copper-based assets, specifically, Caserones and Timok. With copper prices being relatively stable, a significant increase in gold prices will have a negative impact on the GEOs of a copper-based asset.
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the three months ended June 30, 2025 and 2024:
2025
2024
(In thousands)
GEOs Sold
Revenue (in thousands)
GEOs Sold
Revenue (in thousands)
Gediktepe
588
1,928
772
1,806
Caserones
746
$
2,447
1,178
$
2,753
Timok
496
1,625
678
1,586
Leeville
431
1,412
508
1,187
Other Producing Assets
221
725
204
478
Advanced royalty payments
23
77
11
26
Adjusted royalty revenue
2,505
$
8,214
3,352
$
7,836
Results for the Six Months Ended June 30, 2025
In 2025, the Company recognized $20.1 million and $19.0 million in adjusted revenue and other income1 and adjusted royalty revenue1, respectively, which represented a 18% and 22% increase, respectively, compared to 2024. The increase is largely due to a $1.4 million increase in royalty revenue from Gediktepe and a $0.6 million increase in the Company’s share of royalty revenue from Caserones when compared to 2024.
The following table is a summary of GEOs1 sold and adjusted royalty revenue1 for the six months ended June 30, 2025 and 2024:
2025
2024
(In thousands)
GEOs Sold
Revenue (in thousands)
GEOs Sold
Revenue (in thousands)
Gediktepe
2,092
6,233
2,216
4,796
Caserones
1,796
$
5,453
2,168
$
4,806
Timok
1,049
3,208
1,290
2,853
Leeville
748
2,322
925
2,051
Other Producing Assets
511
1,555
336
750
Advanced royalty payments
64
194
113
237
Adjusted royalty revenue
6,261
$
18,965
7,047
$
15,493
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 mineral 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 2025 and future outlook, including revenue and GEO estimates, anticipated reductions in operating expenditures, repayment of outstanding debt and the timing thereof, the acquisition of additional royalty and royalty generation interests and other investment opportunities, the purchase of securities pursuant to the Company’s NCIB, exploration and development plans at the Company’s royalty properties and the expected timing thereof 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 March 3, 2025 and July 1, 2025), 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 June 30, 2025, and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2024, 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 “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.
Working capital
Defined as current assets less current liabilities. Working capital does not include assets held for sale and liabilities associated with assets held for sale
Current assets, current liabilities
The Company believes that working capital is a useful indicator of the Company’s liquidity.
Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:
During the three and six months ended June 30, 2025 and 2024, the Company had the following sources of revenue and other income:
(In thousands of dollars)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Royalty revenue
$
5,767
$
5,083
$
13,512
$
10,687
Option and other property income
284
492
587
680
Interest income
188
430
562
878
Total revenue and other income
$
6,239
$
6,005
$
14,661
$
12,245
The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:
Three months ended June 30,
Six months ended June 30,
(In thousands of dollars)
2025
2024
2025
2024
Revenue and other income
$
6,239
$
6,005
$
14,661
$
12,245
SLM California royalty revenue
$
5,727
$
6,442
$
12,762
$
11,247
The Company’s ownership %
42.7
42.7
42.7
42.7
The Company’s share of royalty revenue
$
2,447
$
2,753
$
5,453
$
4,806
Adjusted revenue and other income
$
8,686
$
8,758
$
20,114
$
17,051
Royalty revenue
$
5,767
$
5,083
$
13,512
$
10,687
The Company’s share of royalty revenue
2,447
2,753
5,453
4,806
Adjusted royalty revenue
$
8,214
$
7,836
$
18,965
$
15,493
Reconciliation of Adjusted Cash Flows from Operating Activities:
Three months ended June 30,
Six months ended June 30,
(In thousands of dollars)
2025
2024
2025
2024
Cash provided by (used in) operating activities
$
6,892
$
(514
)
$
8,181
$
513
Caserones royalty distributions
2,086
1,855
3,703
3,489
Adjusted cash flows from operating activities
$
8,978
$
1,341
$
11,884
$
4,002
Reconciliation of EBITDA and Adjusted EBITDA:
Three months ended June 30,
Six months ended June 30,
(In thousands of dollars)
2025
2024
2025
2024
Income (loss) before income taxes
$
1,486
$
(3,430
)
$
3,368
$
(5,665
)
Finance expense
516
1,080
1,197
2,145
Depletion, depreciation, and direct royalty taxes
1,063
1,369
3,392
3,788
EBITDA
$
3,065
$
(981
)
$
7,957
$
268
Attributable revenue from Caserones royalty
2,447
2,753
5,453
4,806
Equity income from investment in SLM California
(1,334
)
(1,411
)
(3,014
)
(2,208
)
Share-based payments
464
1,354
1,691
1,543
Gain on revaluation of investments
(720
)
(1,142
)
(1,466
)
(1,226
)
Loss on sale of marketable securities
550
1,535
896
1,946
Foreign exchange (gain) loss
(413
)
139
(620
)
255
Loss on revaluation of derivative liabilities
400
66
562
107
Gain on revaluation of receivables, net
(176
)
–
(176
)
–
Other losses
31
2,326
31
2,326
Impairment charges
635
–
736
45
Adjusted EBITDA
$
4,949
$
4,639
$
12,050
$
7,862
Reconciliation of GEOs:
Three months ended June 30,
Six months ended June 30,
(In thousands of dollars)
2025
2024
2025
2024
Adjusted royalty revenue
$
8,214
$
7,836
$
18,965
$
15,493
Average gold price per ounce
$
3,279
$
2,338
$
3,029
$
2,198
Total GEOs
2,505
3,352
6,261
7,047
[1] Refer to the “Non-IFRS financial measures” section below and on page 26 of the Q2 2025 MD&A for more information on each non-IFRS financial measure. These non-IFRS measures are not standardized financial measures under the financial reporting framework used to prepare the financial statements to which the measures relates and might not be comparable to similar financial measures disclosed by other issuers.
[2] Assumed commodity prices of $3,033/oz gold and $4.23/lb copper based on CIBC Global Mining Group’s Consensus Commodity Price Forecasts (“Consensus Pricing”) published on July 1, 2025, which the Company believes to be reliable for the purposes of guidance.
[3] Assumed commodity prices of $2,668/oz gold and $4.26/lb copper based on CIBC Global Mining Group’s Consensus Commodity Price Forecasts (“Consensus Pricing”) published on March 3, 2025, which the Company believes to be reliable for the purposes of guidance.
[4] Refer to the “Non-IFRS financial measures” section below and on page 26 of the Q2 2025 MD&A for more information on each non-IFRS financial measure.
[5] Refer to the “Non-IFRS financial measures” section below and on page 26 of the Q2 2025 MD&A for more information on each non-IFRS financial measure.
(Reuters) -U.S. President Donald Trump on Monday said he would not impose tariffs on gold, a move welcomed by global bullion markets and which ended days of speculation that the yellow metal could be caught up in the ongoing global trade spat.
“Gold will not be Tariffed!” Trump said in a statement posted on his social media account. He gave no details.
The U.S. Customs and Border Protection had posted a ruling on its website on Friday saying that Washington might place the most widely traded gold bullion bars in the United States under country-specific import tariffs, which would have rocked the metal’s global supply chains.
In response, a White House official told Reuters on Friday that the Trump administration was preparing an executive order “clarifying misinformation” about tariffs on gold bars and other specialty products.
A U.S. gold tariff would have been especially harmful for Switzerland, a major refining and transit hub for gold. Trump’s Monday post removes that concern.
“Delighted to hear the crisis has been averted,” said Ross Norman, an independent gold market analyst. “It will come as an enormous relief to the bullion markets, as the potential for disruption was incalculable.”
U.S. gold futures dropped 2.4% to $3,407 per ounce after Trump’s post on Monday, reducing a premium over spot gold, the global benchmark, which fell 1.2% to $3,357.
Shares of Barrick Mining fell 2.8% on Monday afternoon after the company posted quarterly results, while shares of Newmont – the world’s largest gold miner – were down slightly to $68.87. Both companies are major U.S. gold producers.
(Reporting by Pratima Desai, Ernest Scheyder and Jasper Ward; writing by Susan Heavey; Editing by Leslie Adler)
In my opinion, there are two general sources of price inflation – money printing and government intervention in the marketplace.
Money printing has two basic components: printing of paper currency, and credit expansion. Government intervention on the other hand contains more moving parts, some of which are hidden—in plain sight. We may not recognize them as causes of inflation, as they are not ‘marketed’ that way by our government. But indeed they are contributors to inflation. They are: 1) Government indebtedness, 2) Government auctioning of our rights and freedoms to big businesses, 3) Import tariffs, and 4) Price controls.
These combined forces create a whirlwind of inflation over time, but thankfully, there are investment choices we can make, to shield ourselves from the gathering storm.
There are famous pictures from places like Germany, Zimbabwe, and Venezuela of people carrying stacks and stacks of currency notes. Big bricks of paper money wrapped with rubber bands sometimes being burned in a fireplace to stay warm. Printing an ocean of currency notes is clearly an obvious source of inflation.
Author’s Note: Host governments and their central banks may not always be the only culprit when it comes to severe inflation. Throughout history, warring states have used economic warfare techniques against each other. One of those techniques is to undermine your opponent’s currency system by dumping counterfeit currency into their economy. The resulting hyperinflation creates social chaos – a ripe and vulnerable condition, for internal and external attacks.[i]
In addition to over issuance of paper currency, we should also add, expanding credit. This would mean making credit available to anybody with a pulse – mortgage loans, credit cards, business loans, margin loans, personal loans, lines of credit – the interest rate charged doesn’t matter all that much, but rather, it’s the total amount of the credit expansion that is most important.
As people make use of the credit, and spend it into the economy, prices of goods and services go up. And as the credit continues growing like a bubble, prices keep going up in tandem. Technically this process can continue until the money is virtually worthless.
On to government intervention – the first type of intervention is the government going deeply into debt. In simple terms this means the government spending more than earned in tax revenue. As the debt accumulates, so do the interest payments. The government then starts raising taxes and creating new taxes that didn’t exist before. This can be sales tax, food tax, property tax, gasoline tax, income tax, tobacco tax, excise tax, use tax, the list goes on and on.
They may also start requiring you to obtain a license and permit to do things that previously did not require a permit or license to do. And that new permit or license – let’s say to be able to cut somebody’s hair, handle food, or clip somebody’s toenails – those new permits and licenses require new fees to be paid in order to obtain the permit or license. And those fees will go up continuously when the government is deeply in debt. So an indebted government guarantees more future inflation.
The next form of government intervention is taking away the rights and freedoms from individuals and businesses, and selling them back in the form of licenses and permits granting monopoly-style privileges–but in this case they sell those freedoms back in a limited quantity to the highest bidders.
This could take the form of a liquor license that a business must buy to legally sell alcohol where the license may cost a few hundred thousand dollars to purchase. Our neighbor Fred might want to sell beer out of his garage to you and me, but that would be illegal without a license. He may need to spend a few hundred thousand dollars obtaining that license, and then secondly, he may need to spend a few hundred thousand more, to obtain commercial space to be able to get a serving permit, to serve the alcohol. So our neighbor Fred might need to spend $400,000 before he’s able to legally sell, you and me a beer.
The same thing goes with producing and selling milk, food products, or other goods and services that would require spending a few hundred thousand dollars (or more) just to start your business.
This also includes a wonderful man or woman who wants to sell hamburgers, hot dogs, sandwiches, or offer a family recipe from a table, located on the side of the road. Most likely, they’ll receive a warning from law enforcement, to shut that activity down, and if they don’t, they’ll end up in jail.
Imagine how much prices would go down, and how much quality and variety of food options would go up—in the U.S. as an example—if all permitting, licensing, and regulation on food vendors just went away. Those that use the freshest ingredients and have the best recipes, would be rewarded by the market with a growing business. Those who do not sell a clean, fresh, and delicious product would not receive return business from customers.
But fast food franchises, with their expensive commercial space and big bank loans will spend any amount of money they need on government lobbying, to make sure the competition I mentioned never surfaces. That deprives consumers from having extra choices. Big business will spend the money necessary to pay off politicians, requiring new businesses to cough up hundreds of thousands of dollars in startup capital–knowing this will keep many new competitors out of the business. All in the name of protecting the consumer of course.
And so it goes with every industry – the largest companies pay the government to increase fees, licenses, permits, and compliance regulations on small and mid-sized businesses until they’ve all gone out of business. Once the smaller competitors are gone, the large monopoly operators are free to raise prices, and lower quality standards. The government ‘powers’ they’ve purchased, form a protective moat around their own business, protecting them from unwanted competition. All at the expense of the consumer.
Import tariffs and price controls are another form of government intervention that drive up inflation.
Import tariffs are simply a tax added to an imported product from another region. The tariff allows domestic producers to raise their prices on consumers, and it discourages these consumers from purchasing the now, more expensive foreign products. It adds to the moat of protection around domestic producers, with consumers footing the bill.
Price controls are in intervention where the government dictates the maximum or minimum price that a business or person is allowed to sell their product or service for. Throughout history it has been abused, and it always leads to higher prices and shortages of goods and services.
For example, let’s say to combat high inflation – government might announce that loaves of bread cannot be sold for more than $.50 cents each. But if the cost of wheat, salt, water, and baking time requires a cost of production of $1.50 per loaf – producers will simply stop baking bread.
The store shelves will empty, and hidden black markets will develop where the price of bread may skyrocket to $10.00 per loaf. The high price would be exacerbated due to the risk of criminal penalties for anyone caught buying or selling bread for over $.50 cents per loaf.
An interesting example is Jacob Maged of Jersey City, owner of a dry-cleaning shop. In 1934, Jacob was sentenced to jail and paid a $100.00 fine (which in those days was approximately 3 oz. of gold – worth about $10,000.00 dollars today), for the crime of cleaning and pressing a suit for “too low” a price. The government mandated a $.40 price, but he only charged the customer $.35, and was fined and sent to jail. The price control was part of U.S. President FDR’s “National Recovery Act” which mandated a series of wage and price controls across the country.[ii]
The way markets should work, is that government should not intervene in the market to protect the biggest companies.
If shortages develop organically for any product or service – a free market would allow the price of a good or service to rise, and, new producers should be allowed to enter the market freely, without government barriers. This would allow new supply into the market when it’s needed, bringing down prices for consumers.
Additionally, if banks and financial institutions were not allowed to lend money they do not have on hand – known as fractional reserve banking – lines of credit would be substantially reduced, further bringing down prices for consumers.
If our currency was backed by a tangible good which cannot be printed (such as precious metals), that would provide another form of price stability for consumers.
But sadly these types of changes would never occur without a bloody revolution. Continuously high rates of inflation, and government decreed privileges for big businesses are simply too profitable to give up. We’ll just have to plan for more inflation.
However, there are investments individuals can consider today, that perform best under conditions of increasing inflation. They’re generally described as ‘tangible’ investments. They include asset classes such as: precious metals, oil & gas, agriculture, and certain forms of real estate (such as farmland).
The last period of rapid inflation in the U.S. was the decade of the 1970s. During that decade many tangible investments rose in price over tenfold (such as gold), while investments in sectors vulnerable to high rates of inflation such as general equities – languished.
There are two main causes of price inflation: money printing and government intervention in the marketplace.
Money printing as a source of inflation is a fairly straight forward concept. Government intervention on the other hand is never marketed as inflation-creating – but it generates inflation while hiding behind various gimmicks. These gimmicks include government indebtedness, wholesale auctioning of rights and freedoms to big businesses, import tariffs, and price controls.
These combined forces create a whirlwind of inflation over time. However, tangible asset classes perform best during periods of high inflation. Thankfully, investors have the choice to shield themselves from the gathering storm.
