First thing I notice is capital inefficiency for a royalty company. They have 46 employees which is huge for a tiny royalty company with basically no operations.
Compare WPM which has 100x the market cap as this company and has 5 LESS employees.
Do you know the reason for their operational complexity? Or is this just poor management?
I believe they have a royalty generation model, which means they actually have a team of geologists that stake claims and do exploration work to add value, before trying to flip properties for a quick profit and long term royalty. It’s a big team as it’s a different model to most other royalty purchasing companies. Interestingly Franco Nevada bought a stake in EMX last year, as they love the business model, they also have an ongoing JV on larger purchases, to help EMX fund bigger deals if they see great value, cheers,t
First thing I notice is capital inefficiency for a royalty company. They have 46 employees which is huge for a tiny royalty company with basically no operations.
Compare WPM which has 100x the market cap as this company and has 5 LESS employees.
Do you know the reason for their operational complexity? Or is this just poor management?
I believe they have a royalty generation model, which means they actually have a team of geologists that stake claims and do exploration work to add value, before trying to flip properties for a quick profit and long term royalty. It’s a big team as it’s a different model to most other royalty purchasing companies. Interestingly Franco Nevada bought a stake in EMX last year, as they love the business model, they also have an ongoing JV on larger purchases, to help EMX fund bigger deals if they see great value, cheers,t
It's a good point and I'm not sure exactly why. But EMX has been expanding its asset base and that takes labour.
Can't comment on this one. James?
I didn't dig too much after seeing that but it kind of sounds like they're also in the exploration business so not a strict royalty/streaming co.
I used to participate in Zimplats Holdings back in my super fan Crescat days. Would you guys like a full write up on that company?
I like platinum at these prices
Do you like the stock? 😉