Electric Royalties (TSXV:ELEC) - Acquisition of 1 Million Acre Lithium Portfolio
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Show Notes
Interview with Brendan Yurik, CEO of Electric Royalties Ltd.
Our previous interview: https://www.cruxinvestor.com/posts/electric-royalties-elec-diversified-royalties-in-clean-energy-metals-for-a-sustainable-future-3195
Recording date: 17th November 2023
Electric Royalties (TSXV:ELEC) is a royalty company focused exclusively on clean energy metals. The company currently has 22 royalties in its portfolio targeting projects in North America, Europe, and Australia that could be a domestic source of supply. CEO Brendan Yurik highlights a recently announced deal where Electric Royalties is acquiring a lithium prospect generation business that has staked over 1 million acres and 126 lithium properties in Ontario, around existing lithium projects. 105 of these properties are already being sold off to third parties, with revenue forecast at $1.7 million in 2024 and ramping up to $2 million per year after.
The acquisition provides cash flow to cover Electric Royalties' G&A costs and requires only $3 million upfront, with no ongoing holding costs. The company sees Ontario's growth potential for lithium to be comparable to Saudi Arabia for oil fields as they're forecasting 30% growth annually in Ontario. The company is focused entirely on the upside potential in clean energy metals like lithium, graphite, and tin rather than looking at gold royalties.
Electric Royalties provides a diversified way to invest in the sector without individual project risks. The company has a strong shareholder base that sees the potential. It's noted that the company's valuation does not reflect its portfolio and sees lithium prices having 10x potential like in recent years. Upcoming catalysts include PFS for the manganese project in Battery Hill, a feasibility study, and permitting progress on graphite and lithium projects.
View Electric Royalties company profile: https://www.cruxinvestor.com/companies/electric-royalties
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