Interview with Frederick Bell, Managing Director of Elemental Royalties (TSX-V: ELE)
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Elemental Royalties listed at the and of July 2020, having been private for 3 years prior to that. They chose the TSX-V and became part of the Discovery Group of companies. Bell is a young, but intelligent CEO. He recognised that the 6 royalties that they had on listing would not be enough to thrill the market for long, so they have just consummated a deal with South32 for 3 very solid royalties at 1x NAV. So a good price. Total cost $55M. An acquisition of equals which is never easy to do and no small feat. Management are to be congratulated.
They raised some money with Sprott ($25M 2 yr debt facility, not cheap but easily refinanced soon and no doubt on better terms). and then a $12M private placement. Meaningful cashflow starts in 2021 and grows quickly from there. Impressively quick to focus on revenue which will make it easier and cheaper to raise funds in the future, once the remove they security on the Sprott debt.
A live Elemental webinar will take place on Tuesday, December 1st at 9am PST/12pm EST. CEO Frederick Bell will be available to answer questions following the presentation. Online registration and participation details may be found at the following link:
1:53 - Company Overview
3:12 - Transition from Private to Public
4:40 - 6 Royalties: Any Movement in Operating Ones?
5:57 - Doubling in Asset Size: Deal with South32, Structure & Terms
10:00 - Terms of Agreement with Sprott Credit Facility
11:40 - What's Next? Facilitating Growth & Potential Restrictions
19:28 - A Look at the Three Acquired Gold Royalties in Australia
Company page: http://www.elementalroyalties.com/
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