EMX Royalty (EMX) AI Stock Analysis

• Market Cap: C$305.73M
• Dividend Yield: N/A
• Average Volume (3M): 36.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 19.37%
• EPS Growth: 31.57%
• Country: CA
• Employees: 49
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -0.04
• Shares Outstanding: 108,800,540
• 10 Day Avg. Volume: 32,435
• 30 Day Avg. Volume: 36,518
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.60
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 16.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.77
• Price Target Upside: 98.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

EMX Royalty's overall score reflects a blend of strong technical momentum and strategic corporate actions that are offset by financial performance challenges and a weak valuation. The company benefits from a solid capital structure and strategic initiatives like share repurchases and acquisitions, yet profitability and cash flow issues remain key concerns.

Positive Factors

Financial Health

Recent share repurchase reflects confidence in the company's financial health and future prospects.

Revenue Growth

Royalty revenue during the quarter increased 38% YoY as the firm continues to grow.

Royalty Acquisitions

EMX announced that it purchased a 0.625% NSR royalty interest from Hayasa Metals, covering all minerals produced from the Urasar gold-copper project in northern Armenia.

Negative Factors

Guidance Reduction

Management expects sales for the year to fall into a range of 10,000 — 12,000 Gold Equivalent Ounces (GEOs), indicating a small decrease compared to previous guidance.

Price Target Reduction

The decreased price target results from updates to reflect increases in discount rates applied across EMX's asset base.

Production Guidance

Management expects sales for the year to fall into a range of 10,000 — 12,000 Gold Equivalent Ounces (GEOs), indicating a small decrease compared to previous guidance.

EMX Royalty Business Overview & Revenue Model

Company Description

EMX Royalty Corporation is a diversified royalty and mineral property company engaged in the acquisition, exploration, and development of mineral properties around the world. With a focus on generating revenue through royalty interests, EMX operates across various sectors including precious metals, base metals, and other resources. The company's core strategy involves acquiring royalties and other interests in mineral properties to create a diversified portfolio of assets that provides exposure to commodities and potential cash flow.

How the Company Makes Money

EMX Royalty Corporation generates revenue primarily through royalty agreements, which provide the company with a percentage of the revenue or profits generated from the mining operations on its properties. These royalty interests are acquired through strategic partnerships, acquisitions, and the company's own exploration efforts. EMX also engages in the sale of mineral properties and earns additional income from option payments and advance royalties. The company's diversified portfolio across different commodities and geographical regions helps mitigate risk and contribute to its earnings potential. Significant partnerships with mining companies and exploration ventures further enhance EMX's revenue streams by securing ongoing interests in a variety of mineral projects.

EMX Royalty Financial Statement Overview

Summary

EMX Royalty shows mixed financial health, with strong asset management and moderate leverage. However, challenges persist in revenue growth and profitability, as indicated by negative net income and declining cash flows.

Income Statement

EMX Royalty's revenue has shown volatility, with a decline observed in the latest year. The gross profit margin improved to 72.07%, up from 45.58% a year prior, indicating better cost management. However, net profit remained negative, reflecting ongoing profitability challenges. The EBIT margin at 4.05% is low but positive, suggesting marginal operational efficiency improvements.

Balance Sheet

The company's balance sheet shows moderate stability with a debt-to-equity ratio of 0.30, highlighting manageable leverage. Stockholders' equity forms a significant portion of total assets, with an equity ratio of 73.59%. These factors demonstrate a solid capital structure, though profitability remains a concern with negative return on equity.

Cash Flow

Operating cash flow decreased significantly, and free cash flow saw a sharp decline of 77.30%. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, free cash flow remains positive, suggesting some capacity to fund operations without additional financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
23.80M	27.38M	16.50M	2.93M	1.16M
	Gross Profit
17.16M	12.48M	1.77M	-7.06M	-6.41M
	EBIT
964.00K	2.95M	-1.97M	―	―
	EBITDA
10.78M	6.92M	3.81M	-9.54M	-8.44M
	Net Income Common Stockholders
-3.29M	-4.63M	3.35M	―	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.12M	26.73M	25.92M	31.85M	54.25M
	Total Assets
156.90M	158.57M	168.83M	164.56M	80.73M
	Total Debt
34.55M	32.75M	40.49M	50.52M	0.00
	Net Debt
8.28M	12.65M	24.98M	30.74M	-41.11M
	Total Liabilities
41.42M	38.13M	45.63M	55.53M	4.06M
	Stockholders Equity
115.48M	120.44M	123.20M	109.03M	76.66M
Cash Flow		Free Cash Flow
3.32M	14.61M	15.55M	―	―
	Operating Cash Flow
6.82M	14.78M	16.73M	―	―
	Investing Cash Flow
6.35M	8.83M	-19.98M	―	―
	Financing Cash Flow
-6.86M	-12.12M	-526.00K	58.65M	1.69M

EMX Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EMX, the sentiment is Positive. The current price of 2.91 is above the 20-day moving average (MA) of 2.72, above the 50-day MA of 2.62, and above the 200-day MA of 2.50, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.59 is Neutral, neither overbought nor oversold. The STOCH value of 76.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EMX.

EMX Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSL	70 Outperform	C$3.11B	160.94	1.00%	0.76%	0.80%	137.87%
ALS	69 Neutral	C$1.15B	11.51	19.20%	1.45%	-27.13%	987.10%
ELE	60 Neutral	C$317.03M	109.32	1.18%	―	43.84%	―
EMX	58 Neutral	C$305.73M	―	-2.79%	―	19.37%	31.57%
OR	56 Neutral	$5.58B	250.50	1.33%	0.89%	1.62%	-232.31%
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%

EMX Royalty Corporate Events

EMX Royalty Corporation Grants Security-Based Compensation to Align Interests

EMX Royalty Corporation has announced the grant of security-based compensation, including incentive stock options, restricted share units (RSUs), and deferred share units (DSUs) to its officers, directors, employees, and consultants. This move is part of the company’s equity incentive plan and aims to align the interests of its team with the company’s performance and growth objectives. The issuance of these securities is subject to certain restrictions and approvals, reflecting EMX’s strategic focus on enhancing shareholder value and operational milestones.

EMX Royalty Corporation Initiates New Share Repurchase Program

EMX Royalty Corporation has announced the commencement of a new Normal Course Issuer Bid (NCIB) following the successful completion of its previous NCIB. The new program allows the company to repurchase and cancel up to 5% of its issued and outstanding shares over a twelve-month period, aiming to enhance shareholder value and increase liquidity. The company will fund these purchases from available cash and has appointed National Bank Financial Inc. to facilitate the transactions. This move is expected to positively impact EMX’s market positioning by potentially increasing the value of its shares.

EMX Royalty Reports Record Revenue and Positive 2025 Outlook

EMX Royalty Corporation reported strong financial results for the year ending December 31, 2024, with record adjusted royalty revenue of $33.1 million, marking a 28% increase from the previous year. The company anticipates a positive outlook for 2025, driven by successful royalty expansions and a reduction in cash operating expenditures, positioning it for continued growth and financial flexibility.

EMX Royalty Expands Stake in Chapi Copper Mine

EMX Royalty Corporation has acquired an additional 1% Net Smelter Returns (NSR) royalty interest in the Chapi Copper Mine Property in Peru for $7 million, bringing its total NSR royalty on the property to 2% for a total investment of $10 million. This strategic acquisition, involving a 26,000-hectare area and additional rights within a two-kilometer perimeter, enhances EMX’s position in the copper mining sector, potentially increasing revenue streams from processed minerals, and solidifying its market presence.

EMX Royalty Corporation Strengthens Financial Position with Key Transactions

EMX Royalty Corporation has announced a significant financial update, closing the year with $27 million in cash and equivalents and $35 million in long-term debt maturing in 2029, under an agreement with Franco Nevada Corporation. This financial position was strengthened by a series of transactions, including the sale of its shares in Ensero Holdings for $5.6 million, an early property payment from Aftermath Silver Ltd totaling $2.9 million, and a $500,000 royalty buy-down at the Park Salyer Property in Arizona. These developments indicate EMX’s strategic maneuvers to bolster its financial stability and optimize its royalty portfolio, potentially enhancing its market position and shareholder value.

EMX Royalty Sells Projects to Pacific Ridge, Secures Future Royalties

EMX Royalty Corporation has entered into agreements with Pacific Ridge Exploration to sell four mineral projects located in Arizona, Nevada, Utah, and Wyoming. This move, structured through option agreements, allows EMX to retain a 3% net smelter return royalty and receive cash payments, shares, and milestone payments, thereby enhancing its future financial prospects and strengthening its project generation business model.

EMX Royalty Acquires Stake in Armenia’s Urasar Project

EMX Royalty Corporation announced the acquisition of a 0.625% net smelter returns (NSR) royalty interest in the Urasar gold-copper project in Armenia, marking its first co-investment with Franco-Nevada Corporation under their Joint Acquisition Agreement. This strategic investment underscores EMX’s belief in Urasar’s potential for significant discovery based on historical data and recent exploration efforts, positioning EMX to benefit from Armenia’s favorable mining conditions and contributing to the region’s mining industry development.

EMX Royalty Acquires Royalty Interest in Peru’s Chapi Copper Mine

EMX Royalty Corporation has acquired a royalty interest in the Chapi copper mine in Peru, which is managed by Minera Pampa de Cobre S.A.C. The agreement allows EMX to receive up to a 2% net smelter return royalty on minerals produced from the 26,000-hectare property, with additional royalties from minerals processed at the Chapi mine facilities. This acquisition strengthens EMX’s portfolio with high-quality copper royalties in a region known for its rich copper-molybdenum deposits, bolstering its position in the mining industry.