'Royalties are phenomenal financial instruments' - EMX Royalty's David Cole

Optionality is a key upside to the royalty and streaming business, said David Cole, president and CEO at EMX Royalty. On Thursday Cole spoke to Kitco Mining at THE Mining Investment Event of the North in Quebec City.EMX Royalty (TSX-V:EMX, NYSE AMERICAN:EMX) is a precious and base metals royalty company. The company's two flagship operations are Caserones in Chile operated by Lundin Mining, and Timok in Serbia operated by Zijin Mining. In 2024 the company expects to have 11,000 to 14,000 of gold equivalent ounces and between $22,000,000 to $27,500,000 in revenue. "I've said for years that we're going to become a cash cow. We have actually done that, and it's great to see the assets populating and moving up towards the top of the pyramid and establishing that recurring cash flow," said Cole. Cole said exposure to quality assets gives the company upside. "Royalties are phenomenal financial instruments," said Cole. "It's because of their embedded optionality. We all want to be exposed to commodity price optionality.Cole said the biggest driver of optionality upside is exploration and discovery. "If you own a royalty on a deposit, and it's getting near the end of its life, and [the operator] find a whole other deposit of equal size or greater, you know you're in the money, and that happens repeatedly throughout the world."Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.