Empress Royalty (TSXV:EMPR) Rapid Revenue Growth on Gold and Silver Stream, Scaling to Larger Deals

Sep 19, 2024

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Interview with Alexandra Woodyer Sherron, President & CEO of Empress Royalty Corp.

Our previous interview: https://www.cruxinvestor.com/posts/empress-royalty-tsxvempr-pure-play-precious-metals-royalty-5499

Recording date: 17th September 2024

Empress Royalty Corp. (TSXV:EMPR) is emerging as an attractive investment opportunity in the precious metals sector, offering a unique approach to gold and silver streaming. Founded in 2020, the company has quickly established itself as a focused player in the royalty and streaming space, with a clear strategy of investing in revenue-generating or near-term revenue-generating assets.

The company's portfolio currently consists of four revenue-producing assets spread across Mozambique, South Africa, Peru, and Mexico. This geographical diversification helps mitigate country-specific risks while providing exposure to a variety of promising projects. Empress Royalty's revenue growth trajectory is particularly impressive, with CEO Alexandra Woodyer Sherron noting, "Our revenue last year was $3 million. We're expecting $6 million in US this year, and after that, it should be $12 million." This rapid growth demonstrates the effectiveness of the company's investment strategy and its ability to select projects with strong potential.

One of Empress Royalty's key differentiators is its hands-on approach to investments. Unlike some royalty companies that simply acquire existing royalties, Empress directly invests in mining companies. This approach allows for a deeper understanding of the projects and closer relationships with the operators. The company receives regular reports from its investees, enabling it to stay closely involved and work collaboratively to overcome challenges and drive success.

Having proven its concept with smaller investments, Empress Royalty is now setting its sights on larger deals. The company is looking to scale up to investments in the $10-15 million range, with the potential for even larger strategic opportunities. This scaling up represents a natural progression for the company and could lead to even more significant revenue growth in the future.

Empress Royalty maintains a strict focus on gold and silver, setting it apart from some competitors that diversify across various commodities. This specialization allows the company to leverage its expertise in these metals and capitalize on their potential for price appreciation. As Alexandra Woodyer Sherron states, "Right now, we're pretty much the only pure gold and silver royalty company, and we plan on staying that way."

The current market environment presents opportunities for companies like Empress Royalty to provide alternative financing options to miners, especially as traditional funding sources may be constrained. The company's flexibility and willingness to adjust to market conditions is a key strength, allowing it to capitalize on opportunities in various market scenarios.

For investors, Empress Royalty offers a way to gain exposure to gold and silver without the operational risks associated with mining. The company's rapid revenue growth, plans for scaling up, and focused strategy position it well for future success. However, as with any investment in the mining sector, there are risks to consider, including the performance of partner mining companies and overall precious metal prices.

As Empress Royalty continues to grow and prove its business model, it could become an increasingly attractive option for those seeking exposure to precious metals through a royalty and streaming model. The company's potential for value creation, experienced management team, and strategic positioning in the gold and silver sector make it a compelling consideration for investors looking to diversify their portfolios with precious metals exposure.

View Empress Royalty's company profile: https://www.cruxinvestor.com/companies/empress-royalty