EMX Royalty Announces Fourth Quarter and Year End 2023 Results and 2024 Guidance

2024-03-25

TSX - Toronto Stock Exchange · Gold · Silver · Canada

Vancouver, British Columbia--(Newsfile Corp. - March 25, 2024) - EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9)(the"Company" or"EMX")is pleased to report results for the fourth quarter and year ended December 31, 2023 (in U.S. dollars unless otherwise noted).

The 2023 year was a pivotal one for EMX as we amicably resolved the issues with the Timok royalty; increased our (effective) net smelter return ("NSR") royalty in the Caserones property to 0.7775% and subsequent to year end to 0.8306%; saw strong performance from our gold royalty portfolio anchored by Leeville and Gediktepe; continued to invest capital generating and acquiring royalties around the world while our partners continued to invest significant capital to expand operations at existing mines, advance new mines, and explore for new opportunities.

As previously announced, the Company is providing guidance for 2024 (see below). In conjunction with providing guidance, the Company has adopted the use of Gold Equivalent Ounces1("GEOs") as a metric to better understand our business. GEOs is a non-IFRS financial measure that is based on our adjusted royalty revenue and does not include Option payments and Other Income coming from our royalty generation activities.

Summary of Financial Highlightsfor the Fourth Quarter and Year EndedDecember 31, 2023:

| | | For the three months ended December 31, | | | For the year ended December 31, | | | | | | | | | | | 2023 | | | 2022 | | | 2023 | | | 2022 | | | | | | | | | | | | | | | | | Statement of Income | | | | | | | | | | | | | | Revenue and other income | $ | 7,546 | | $ | 2,288 | | $ | 26,621 | | $ | 18,277 | | | General and administrative costs | $ | 1,272 | | $ | 1,682 | | $ | 5,606 | | $ | 6,149 | | | Royalty generation and project evaluation costs, net | $ | 2,392 | | $ | 1,610 | | $ | 11,245 | | $ | 8,636 | | | Net income (loss) | $ | 1,374 | | $ | 950 | | $ | (4,633 | ) | $ | 3,349 | | | | | | | | | | | | | | | | | Statement of Cash Flows | | | | | | | | | | | | | | Cash flows from operating activities | $ | 4,273 | | $ | 3,357 | | $ | 7,059 | | $ | 16,487 | | | | | | | | | | | | | | | | | Non-IFRS Financial Measures1 | | | | | | | | | | | | | | Adjusted revenue and other income | $ | 10,921 | | $ | 3,535 | | $ | 37,028 | | $ | 25,397 | | | Adjusted royalty revenue | $ | 8,744 | | $ | 2,793 | | $ | 30,694 | | $ | 14,033 | | | GEOs Sold | | 4,425 | | | 1,615 | | | 15,784 | | | 7,875 | | | Adjusted cash flows from operating activities | $ | 5,444 | | $ | 4,093 | | $ | 14,072 | | $ | 21,711 | | | Strong Revenue Growth

Adjusted revenue and other income1 increased by 46% in 2023 Adjusted royalty revenue increased by 119% in 2023

Development of Flagship Assets

Significant investment by Zijin Mining Group at Timok through continued development of upper and lower zones | | Sufficient and Available Capital

Strong and consistent operating cash flows enabled the early repayment of $10,000,000 of debt

Continued Optionality with Generative Business

Generated $5,462,000 in revenue and other income Entered into 20 new partnerships agreements in 2023 Over $39,000,000 in partnership expenditures in 2023 | | | | | | | | | | |

1Refer to the "Non-IFRS financial measures" section below or on page 53 of the Q4 2024 MD&A for more information on each non-IFRS financial measure. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

2024 Guidance

Please see our MD&A for the year ended December 31, 2023 for more details on our guidance and see "Forward-Looking Statements" and "Future-Oriented Financial Information" below.

Based on the Company's existing royalties and information available from its counterparties, we expect GEO1sales to range between 11,000 and 14,000 GEOs1in 2024 compared to 15,784 in 2023. Timok royalty revenue for 2023 included 2,483 GEOs1sold for 2021 and 2022 production.

| 2024 GuidanceA | | | GEOs sales1 | 11,000 to 14,000 | | Adjusted royalty revenue1 | $22,000,000 to $27,500,000 | | Option and other property income | $2,000,000 to $3,000,000 |

A.Assumed commodity prices of $1,939/oz gold and $3.89/lb copper based on CIBC Global Mining Group's Consensus Commodity Price Forecasts published on January 2, 2024.

Guidance in 2024 is based on public forecasts, other disclosure by the owners and operators of our assets, historical performance and management's understanding of the underlying producing assets. Additionally, the Company may receive information from the owners and operators of the properties, which the Company is not permitted to disclose to the public pursuant to the underlying agreement or the information has not been prepared in accordance with Canadian disclosure standards, including National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

More specifically, Leeville's guidance is based on historical performance as the Company has no rights to data and must rely on publicly available information delivered by Nevada Gold Mines. Gediktepe's guidance contribution is based partly on 2023 actual results, as well as a confidential 3-year mine plan provided by the operator for the 2024 year. Timok's guidance contribution is based on 2023 actual results only given the limited access to operational data and forward-looking plans. Caserones' guidance is based on 2023 actual results and guidance disclosed by the operator, which has been increased slightly by EMX due to the higher percentage ownership of our effective royalty. Balya and Gold Bar South are based on 2023 historical performance only, given limited access to information.

Outlook

The Company is excited about the prospect for continued growth in the portfolio for 2024 and the coming years. The driver for near and long term growth in cash flow will come from the large deposits of Caserones in Chile and Timok in Serbia. At Caserones, Lundin has initiated an exploration program which is intended to expand mineral resources and mineral reserves while at the same time looking to increase throughput at the plant. At Timok, Zijin Mining Group Co. continues to advance the upper zones while developing the lower zone, which we believe will be one of the more important block cave development projects in the world.

Regarding the gold royalty portfolio, we expect Gediktepe, Leeville, and Gold Bar to mirror what occurred in 2023. In Türkiye, the operator of Sisorta is nearing completion of construction of the mine and we look forward to seeing the plant commissioned. We are excited about the advancement of Diablillos in Argentina by AbraSilver Resource Corp. where the company continues to expand the mineral resource. In Sweden the Viscaria copper-gold deposit (operated by Copperstone Resources AB) continues to advance through the environmental permitting process with a final decision expected by mid-year 2024. Pending approval, Copperstone expects to commence development with initial production from Viscaria slated for 2026.

The Company will continue to evaluate and work to acquire mineral rights and royalties in 2024. The Company expects it will invest similar amounts as in 2023 towards the royalty generation business. As in previous years, production royalties will continue to be supplemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio. Efforts and programs are underway to optimize and control costs as the Company continues to grow. EMX believes it is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.

1Refer to the "Non-IFRS financial measures" section below and on page 53 of the Q4 2024 MD&A for more information on each non-IFRS financial measure. With respect to forward-looking non-IFRS financial measures, there are no significant differences with the calculation of historical non-IFRS financial measures.

The Company will also strive towards continuing to strengthen its balance sheet over the course of the year. As part of this effort we will look to refinance our outstanding debt of $34,660,000, which comes due at the end of 2024. The Company has actively been engaged with several parties and believes that it will be in a position to provide an update to this process in Q2 2024.

Assumed commodity prices are from CIBC Global Mining Group's Consensus Commodity Price Forecasts published on January 2, 2024, which the Company believes to be reliable for the purposes of guidance.

Annual Results for 2023:

In 2023, the Company recognized $37,028,000 and $30,694,000 in adjusted revenue and other income1and adjusted royalty revenue1, respectively, which represented a 46% and 119% increase, respectively, compared to 2022. The significant increase is due to the commencement of royalty payments from the Timok royalty property, which resulted in $8,632,000 in royalty revenue in 2023, as well as an 80% increase in royalty revenue from Gediktepe and 46% increase in attributed royalty revenue from Caserones. Timok royalty revenue for 2023 included $4,790,000 in revenue (2,483 GEOs1sold) for 2021 and 2022 production.

The following table is a summary of GEOs1sold and adjusted royalty revenue1for the year ended December 31, 2023 and 2022:

| | 2023 | | 2022 | | | | | | | | | | GEOs Sold | | | Revenue (in thousands) | | GEOs Sold | | | Revenue (in thousands) | | | | | | | | | | | | | | | Caserones | 5,352 | | $ | 10,407 | | 3,995 | | $ | 7,120 | | | Timok | 4,439 | | | 8,632 | | - | | | - | | | Gediktepe | 3,442 | | | 6,694 | | 2,081 | | | 3,709 | | | Leeville | 1,612 | | | 3,135 | | 1,318 | | | 2,348 | | | Balya | 498 | | | 968 | | - | | | - | | | Gold Bar South | 139 | | | 270 | | - | | | - | | | Advanced royalty payments | 302 | | | 588 | | 480 | | | 856 | | | Adjusted royalty revenue | 15,784 | | $ | 30,694 | | 7,875 | | $ | 14,033 | |

Net royalty generation and project evaluation costs increased from $8,636,000 in 2022 to $11,245,000 in 2023, while executing 20 new royalty partnerships (2022 - 10 new royalty partnerships). The increase in costs was due to increases in the USA, Eastern Europe and Morocco. In the USA, the Company executed drilling activities through its wholly owned subsidiary Scout Drilling LLC on partnered projects in exchange for future reimbursement or royalty opportunities. Scout Drilling LLC was sold during the year along with certain mineral properties to Scout Discoveries Corp ("Scout") in exchange for deferred compensation payments, shares in Scout and royalty rights on the properties, which exceeded the costs incurred. The increase in Eastern Europe and Morocco was attributed to the expansion of the generative business into Morocco and the Balkan region. EMX expects the costs in Morocco and the Balkan region to decrease in the coming years once it solidifies partnerships within the regions. Not inclusive of the net royalty generation and project evaluation cost, EMX earned $5,462,000 in royalty generation revenue in 2023 (2022 - $6,447,000).

1Refer to the "Non-IFRS financial measures" section below and on page 53 of the Q4 2024 MD&A for more information on each non-IFRS financial measure.

Fourth Quarter Adjusted Royalty Revenue and GEOs Sold by Asset:

For the fourth quarter of 2023, the Company recognized $8,744,000 in adjusted royalty revenue, which represented a 213% increase compared to Q4 2022. The significant increase is due to the commencement of royalty payments from Timok, Balya and Gold Bar South in 2023, combined with significant increases from Caserones, Gediktepe and Leeville. Revenue in Q4 2023 at Caserones included a year-to-date true-up of revenue due to higher than expected performance in Q3 2023.

The following table is a summary of GEOs1sold and adjusted royalty revenue1for the fourth quarter of 2023 and 2022:

| | | 2023 | | | 2022 | | | | | | | | | | | GEOs Sold | | | Revenue (in thousands) | | | GEOs Sold | | | Revenue (in thousands) | | | | | | | | | | | | | | | | | Caserones | | 1,708 | | $ | 3,375 | | | 721 | | $ | 1,247 | | | Timok | | 477 | | | 943 | | | - | | | - | | | Gediktepe | | 1,335 | | | 2,638 | | | 341 | | | 590 | | | Leeville | | 589 | | | 1,164 | | | 343 | | | 593 | | | Balya | | 120 | | | 238 | | | - | | | - | | | Gold Bar South | | 39 | | | 77 | | | - | | | - | | | Advanced royalty payments | | 156 | | | 309 | | | 210 | | | 363 | | | Adjusted royalty revenue | | 4,425 | | $ | 8,744 | | | 1,615 | | $ | 2,793 | |

Fourth Quarter Corporate Updates

Early Repayment of US$10M of the Sprott Credit Facility

In Q4 2023, EMX made an early repayment of $10,000,000 toward the principal amount of the Senior Secured Credit Facility (the "Sprott Credit Facility") held by a fund managed by Sprott Resource Lending Corp. The remaining principal amount of $34,660,000 of the Sprott Credit Facility is due to be repaid by December 31, 2024. The Company has actively been evaluating alternatives to refinance some or all of the debt. It should be noted that the Company can repay the entire debt without penalties after June 30, 2024.

Acquisition of Additional Royalty Interest on Caserones

Subsequent to December 31, 2023, EMX acquired an additional 0.0531% (effective) NSR royalty interest in the Caserones property, increasing the Company's NSR royalty interest to 0.8306%, for cash consideration of $4,742,000 pursuant to an agreement with Franco Nevada Corporation.

Commencement of Normal Course Issuer Bid

Subsequent to December 31, 2023, EMX announced that it has received approval from the TSX Venture Exchange of its Notice of Intention to Make a Normal Course Issuer Bid (the "NCIB"). Under the NCIB, EMX may purchase for cancellation up to 5,000,000 common shares over a twelve-month period commencing on February 13, 2024. The NCIB will expire no later than February 12, 2025.

Qualified Persons

Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on North America and Latin America, except for Caserones. Consulting Chief Mining Engineer Mark S. Ramirez, SME Registered Member #04039495, a Qualified Person as defined by NI 43-101 and consultant to the Company, has reviewed, verified and approved the above technical disclosure with respect to the Caserones Mine. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Türkiye and Australia.

1Refer to the "Non-IFRS financial measures" section below and on page 53 of the Q4 2024 MD&A for more information on each non-IFRS financial measure.

Shareholder Information

The Company's filings for the year are available on SEDAR at www.sedarplus.ca, on the U.S. Securities and Exchange Commission's EDGAR website at www.sec.gov, and on EMX's website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.

About EMX - EMX is a precious, and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX". Please see www.EMXroyalty.comfor more information.

For further information contact:

David M. Cole President and CEO Phone: (303) 973-8585 Dave@EMXroyalty.com

Scott Close Director of Investor Relations Phone: (303) 973-8585 SClose@EMXroyalty.com

Isabel Belger Investor Relations (Europe) Phone: +49 178 4909039 IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Statements

This news release may contain "forward looking information" or "forward-looking statements" that reflect the Company's current expectations and projections about its future results. These forward-looking statements may include statements regarding the future price of copper, gold and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production, the Company's growth strategy and expectations regarding the guidance for 2024 and future outlook, including revenue and GEO estimates, refinancing outstanding debt and the timing thereof, the acquisition of additional royalty interests and partnerships, the purchase of securities pursuant to the Company's NCIB or other statements that are not statements of fact. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "expects," "anticipates," "believes," "plans," "projects," "estimates," "assumes," "intends," "strategy," "goals," "objectives," "potential," "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect, including disruption to production at any of the mineral properties in which the Company has a royalty, or other interest; estimated capital costs, operating costs, production and economic returns; estimated metal pricing (including the estimates from theCIBC Global Mining Group's Consensus Commodity Price Forecasts published on January 2, 2024), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company's resource and reserve estimates; the expected ability of any of the properties in which the Company holds a royalty, or other interest to develop adequate infrastructure at a reasonable cost; assumptions that all necessary permits and governmental approvals will remain in effect or be obtained as required to operate, develop or explore the various properties in which the Company holds an interest; and the activities on any on the properties in which the Company holds a royalty, or other interest will not be adversely disrupted or impeded by development, operating or regulatory risks or any other government actions.

Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to maintain or receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, copper, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the Company's MD&A for the year ended December 31, 2023, and the most recently filed Annual Information Form ("AIF") for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.caand on the SEC's EDGAR website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.