EMX Royalty initiated with an Outperform at National Bank

National Bank analyst Shane Nagle initiated coverage of EMX Royalty (EMX) with an Outperform rating and C$3.75 price target as part of a broader research note for mining companies. The firm is initiating select junior miners while citing gold prices near record highs and expectations for global monetary policy easing to continue. National Bank also notes that with origination of new royalty deals set to remain competitive/challenging, it is ascribing more value to growth-oriented names with support for consolidation of Junior royalty portfolios. For the company, National Bank states that EMX continues to generate baseline proceeds from its royalty origination business and can “punch above its weight” in adding new assets thanks to its exploration partnership agreement and $35M debt facility provided by Franco-Nevada (FNV), the analyst tells investors in a research note.