Interview with Brendan Yurik, CEO of Electric Royalties

Our previous interview: https://www.cruxinvestor.com/posts/opportunity-in-volatility-lithium-projects-poised-for-rebound-5610

Recording date: 29th of November, 2024

As the world accelerates its transition to a low-carbon future, the demand for clean energy metals is set to soar. Electric Royalties (TSX-V:ELEC), is a unique royalty company focused exclusively on critical minerals essential for clean energy technologies.

Electric Royalties offers investors a diversified portfolio of 73 royalties across 9 key metals including lithium, graphite, manganese, tin, zinc and copper. This broad asset base spans 4 continents, mitigating operational and geopolitical risk. Importantly, the company focuses on securing royalties in stable mining jurisdictions like Canada, the US, Europe and Australia. With the US and its allies increasingly prioritizing security of clean energy metal supply, Electric Royalties' assets in these regions could become increasingly strategic.

While the company is early-stage, it is poised to enter a period of significant growth as its portfolio advances. Management expects up to 35 of its assets to potentially generate revenue in 2025, setting the stage for meaningful cash flow growth. Near-term catalysts include revenue from lithium properties under option agreements, as well as the potential restart of more advanced-stage assets like a European tin mine and a US zinc project.

Electric Royalties also recently announced the transformative acquisition of a cash-flowing copper-gold royalty in Chile. This asset provides immediate revenue to the company, derisking the story for investors. The company was able to secure this royalty on accretive terms thanks to its first-mover status in clean energy metals and its strong industry relationships.

The royalty model is highly attractive for investors. It offers direct leverage to rising metal prices with no cost inflation. Electric Royalties' portfolio provides this commodity price torque with significantly lower risk than investing in individual mining projects. 

Electric Royalties is led by a highly experienced management team with a proven track record of value creation in the royalty space. CEO Brendan Yurik and his team were early to recognize the opportunity in clean energy metals and have spent the past five years painstakingly constructing a portfolio of royalties on the most attractive projects globally.

Electric Royalties trades at a substantial discount to producing royalty peers. As its assets begin to generate cash flow, there is significant potential for valuation upside.

Learn more: https://www.cruxinvestor.com/companies/electric-royalties

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