Plus + Minus: Uranium At Westminster | Tiny Lavras Gold & Other Summer Stars
Better late than never; better never late.
Shareholders of EMX Royalty Corporation were hoping for a 0.25% or so slice from Zijin Mining Group in Serbia. This gets the Colorado roy-co 0.3625%.
Bonus is China miner’s strategy to go deeper at Timok for copper, hundreds of meters deeper.
Right now, relatively shallow copper at 300 meters deep has put Cukaru Peki in eastern Serbia on track for 1.2 million tons in 2 years. Going 450 meters and more deep could add 2 million or more tons of copper. See related article please.
Some $3.5 billion or more of Zijin’s money through its Europe subsidiary is seen preparing the mine for those depths.
Our interest here at The Calandra Report/TCR is EMX’s share visa net smelter royalties, those having been arbitrated for well more than a year. EMX will get $6.6 million of royalties from 2021 through first half 2023 (June).
Payments, based I calculate on 6-month periods in this p.r., look to be growing at approx. 11% each 6 months and are currently at $1.89 million for the latest 6 months.
EMX is my third-longest-held nat-resources holding after Ivanhoe Mines IVN IVPAF and Xtra-Gold Resources XTG. Also our three largest here at home.
One hopes EMX will start using the cash to 1. retire debt and-or slim interest rate with its cash-fortified balance sheet; 2. pay a dividend to common shareholders; and who knows, 3, increase its property hunt for royalties worldwide with Franco-Nevada FNV. See August 2023 statement please.
Comments from my trusted shareholders, fund managers and outside roy-co execs:
“This Timok royalty easily worth the current EMX cap.”
“The compromise looks reasonable, all things considered, while the removal of the uncertainty has value, too.”
“Doing the same thing with Caserones (Chile) — via Lundin Mining.
I’ll see EMX’s Dave Cole, CEO, and other selected miners, explorers and developers I take an interest in next week at Precious Metals Summit in Colorado.
EMX: Caserones (effective) royalty distribution for Q1 2023 was received in Q2
and totaled approx. $2.454 million. Lundin Mining completed the
acquisition of 51% of the equity of MLCC, the Caserones mine operator, from JX Nippon.
As we, you TCRs, know as metals equities investors, most miners, explorers, roy-cos and mine developers are in suffer-share mode this summer, this past spring, most of the past year.
Not all, that is. Those that witness sizeable gold-etc. intercepts in legitimate exploration drilling, and additionally are tiny and are valued at $50 million or lower (Lavras Gold LGC in Brazil; Dynasty Gold DYG this month in Ontario), are having their rare days in the sun.
Or, those holding most of their splendid 2023 stock gains: the few sub-$500 million miners-etc with relatively “long-ish” individual investors … and knockout exploration results, such as Snowline Gold SGD SNWGF (Yukon).
Or … physical uranium trusts such as Yellow Cake Plc YCA and two or three others; and select uranium explorers and producers — Cameco in Canada CCJ and Uranium Energy UEC the best examples. Explorer Laramide Resources LAM also is holding its sizeable gains and .
Most uranium execs and government agents are at the annual World Nuclear Association‘s annual symposium in London today through Friday. They will be talking about possibly lighter uranium enrichment by Iran and other uranium-positive developments by several nations.
Also in the mix and seen as positive for spot and contract uranium prices is reduced Cameco output at Cigar Lake in Athabasca Basin
Execs I have reached there: Marc Henderson of Laramide; Jordan Trimble of Skyharbour Resources SYH; Cory Belyk of CanAlaska Resources CVV; Tim Gitzel of Cameco, a speaker at the show. They will send me their observations from Westminster Bridge.
Among ‘For Your Eyes Only’ bottom-basin uranium stocks on my re-purchase list are, surprise, Skyharbour, Canalaska and Laramide. As soon as my personal cash allows.
— Thom Calandra [We here at home own Snowline, EMX, Ivanhoe Mines & Xtra-Gold shares.]
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Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities. Thank you.