The all-in-one critical metals play

Please find below a special message from our advertising sponsor, Electric Royalties. Golden Opportunities is a free service that gives you valuable investment intelligence all year long at no charge, and advertisements allow us to continue sending these reports.

Contact Us | Privacy Policy | View in Browser | Forward to a Friend

The All-In-One Play On Critical Metals

The electrification trend that was putting pressure on critical metals like copper, zinc, lithium, graphite, manganese, tin and vanadium was already one of the top investing themes in today’s world.
 

Now the tariff war has turbocharged the entire sector, sending investors scrambling for the best plays.
 

They’ll find one perfectly positioned, all-in-one, critical metals bet — Electric Royalties (ELEC.V; ELECF.OTC) — a company that also happens to be severely undervalued in light of its upcoming cash flow.

The clean energy revolution is a long-term trend that will drive demand for critical metals for decades to come.

From copper to zinc, to graphite to vanadium, critical metals face either looming or ongoing supply deficits.
 

The price pressure that these deficits will put on these metals creates opportunity for investors.
 

As luck would have it, there’s a unique and undervalued way to play the clean energy trend.

It’s called Electric Royalties (ELEC.V; ELECF), the under-the-radar company that has quietly built its royalty portfolio in clean metals from 11 royalties to 43 royalties over the past five years.

If you want critical metals exposure and diversification, it’s hard to imagine anything better:

Electric Royalties’ portfolio is spread across no less than nine critical metals and five continents. It also includes another 17 optioned properties that could be converted into royalties.

And then there’s this: Despite the rapid-fire growth of this portfolio...and despite significant cash flow on the way...Electric Royalties is currently trading below its IPO levels five years ago.
 

As you’re about to see, that’s a valuation mismatch that could soon resolve in a lucrative re-rating for nimble investors.

Significant Cash Flow On The Way

How undervalued is Electric Royalties and how much money could this royalty company produce?
 

Consider that just a fraction of the company’s projects could generate about as much annual cash flow as the company’s current market cap.
 

They include (1):

• Punitaqui (0.75% Gross Revenue Royalty): A copper-gold project that could produce between 19 million and 23 million pounds of copper a year. Electric is entitled to 0.75% of the annual revenues from the mine.
   
• Bisset Creek (1.5% GRR): This graphite project is projected to generate 33,183 tonnes of graphite annually. Once the project is in production, Electric is entitled to 1.5% of annual revenues.
   
• Battery Hill (2% Gross Metal Royalty): Battery Hills is a manganese project that could produce 68,000 tonnes of the metal a year. Once the project is in production, Electric is entitled to 2% of annual revenues.
   
• Kenbridge (0.5% GRR and 1% GRR on Kenbridge North): With projected annual production of 7.3 million pounds of nickel equivalent, Electric’s Kenbridge royalty entitles it to 0.5% of annual revenues from the project.
   
• Mont Sorcier (1% GMR on vanadium): This project could produce five million tonnes per year of vanadium. Once Mont Sorcier is in production, Electric is entitled to 1% of the annual revenues from the project’s vanadium sales.

Click image to enlarge.

Electric Royalties has several royalites in its portfolio that could soon generate cash flow for the company.

These projects are in advanced stages of development and could come online anytime from this year to just a few years down the road.
 

In addition to Punitaqui, Electric Royalties has another four royalty projects (the Middle Tennessee Zinc mine, the Gramphada Graphite mine, the Penouta tin mine and the Authier Lithium Project) that could either recommence production or enter production for the first time this year.

The Big Advantage Of Royalty Companies

In providing one-stop exposure to nine critical metals, Electric Royalties offers investors all the advantages that come with being a royalty company.

Royalty companies do not operate mines or need large and highly specialized teams to operate.
 

Royalty companies offer turnkey diversification.
 

They offer lower risk than mining companies, as royalties are typically based on revenues and paid irrespective of profitability. Once the company buys the royalty, no further capital outlay is required.

And, most importantly for investors, the royalty/streaming business model has been proven to outperform mining companies during metals bull markets.

Management With Skin In The Game

If you want proof that the company’s management truly believes Electric Royalties is undervalued, consider that it and high-net-worth investors have a ton of skin in the game.
 

The company’s Founder and CEO, Brendan Yurik, and his extended family own 18% of Electric’s outstanding stock.
 

Noteworthy investor Stefan Gleason owns 28% of the company, and Globex Mining owns approximately 11%.

Just between Yurik and his family, Mr. Gleason and Globex Mining, these players account for roughly 57% of stock outstanding.

When you invest in a company in the junior mining sector, you want to do so with an investment group that’s on your side. That’s very much the case with Electric Royalties.

Getting In Cheap Increases Profit Potential

Once again, despite the value Electric Royalties has added to its portfolio in the past five years, the company’s shares have never been so heavily discounted.
 

This is true even though the company has a wealth of catalysts that could soon move its share price higher.

Click image to enlarge.

Electric Royalties has numerous upcoming catalysts that could drive its share price considerably higher over the next 12-15 months.

Those include immediate cash flow from Punitaqui, options payments from Electric’s lithium portfolio and advanced royalty payments from Bissett Creek.
 

They also include the near-term catalysts of the aforementioned mines that could come online this year, and the potential longer-term cash flow of a series of projects well along the development curve.

Bottom line: One of the hottest sectors in the market just got hotter...yet one of the single best and most leveraged plays is temporarily mired in near all-time lows.

Opportunities like this come rarely. If you want to make a diversified wager on the growing global demand for critical metals, you’ll want to start doing your homework on Electric Royalties now, before the upcoming catalysts can spark a rerating.

CLICK HERE
To Learn More about Electric Royalties and the Projects Referenced