 Are you tired of watching boring old press releases? Then you've come to the right place, the right channel, the number one channel for CEO interviews and company overviews. Welcome to Rich TV Live, subscribe to our channel and make sure to hit the like button on our videos to help with the YouTube algorithm for more information and in-depth discussions and analysis. Join our trading club at richpigsdaily.com and don't forget to subscribe and hit the bell for notifications to get alerted when our next CEO interview is released so you can discover the next 10-bagger. Hi, how's everybody doing today? I'm your host, Rich, here and we have a Rich TV Live and I'm here with our very special guest, Frederick Bell, the CEO of Elemental Royalties. How are you doing today, Fred? All right, you're good, thank you. Fantastic, excited to have you here and learn more about your company. Why don't you start off by telling me a little bit about yourself and how you got started with Elemental Royalties. So Elemental was a start-up in every regard. Our first deal was a million dollars in 2017. We were a private company and you've sort of fast-forward to today and we listed in Canada on TSXV in 2020 and I think our last acquisition was 55 million. So it's been a good growth from, you know, sitting at home, you know, planning a business and saying, you know, I've got a great idea to actually coming all the way through and then going through the really odd experience of listing during COVID. Again, sitting in your living room when you never thought you'd be doing that, sort of marketing into people online. So it's been a really good experience and I think one that's actually, it gets more enjoyable the longer you do it. That's fantastic. We're excited to learn more and have our community which is all over the world, learning more about your early stage company. And why don't you tell me a little bit about what your goals are for the second half, the last six months of 2021? So as a Gold-focused Royalty company, you know, one of our main drivers is acquisitions and we've bought some really good quality royalties that we see as multi-decade assets. You know, it's a bit like a music royalty. We don't have to do anything and every time the song plays, we get paid. And so if that keeps going for 10 years, for 20 years, for 30 years, it's a really, really great business model. And so there's a few acquisitions that we're always looking at and one or two that we'd really like to do in the second half of this year. And then the other step, and it's one that's probably underrated, but I think it's a sign of the level of maturity of a company is refinancing our credit facility that we have with some of the senior Canadian banks. And I think that will be a pretty big step for us because it's, you know, we're a 100 million market cap company now and there is no, you know, the next company that's done it is 500 million market cap. So I think for us to be ticking off some of these boxes, it's something that really differentiates our standards out from the crowd. And, you know, is a level of maturity that, you know, is not easy to achieve. Yeah, that brings me to my next question. Can you talk a little bit about your management team? It's important to have a management team that has experience. Can you talk a little bit about some of their experience, especially in the gold sector? Well, funnily enough, two of our directors have actually owned rural teams personally. Oh. You must. So definitely experienced on that side. And I think if you look across the board and management team, John Robbins, who's part of Discovery Group in Canada, very well known, I think they've probably sold a dozen companies for more than 200 million over the last decade. You know, one of the most recent great bear, you know, probably went from 20 million to 800 million over the last two years or so. But you know, very good track record. And one thing I've learned in my career is if you, you know, work with good people, they tend to introduce you to all the good people. And I was really lucky when we started Elemental, Peter and Richard, who are both Australian and careers in the mining industry. And both at Western Mining, that was one of Australia's biggest mining companies, 20 years and 30 years there with technical backgrounds. And so they've had a whole host of companies that have worked for, you know, similar in many ways to John that have been very successful that they've sold on involved in early days. And I think for us, you know, having that kind of experience on the board is really helpful because, you know, when you walk into a room, you know, if people know some of your directors and, you know, if you look at me today, I'm relatively, you know, mid 30s as CEO, relatively young. And so, you know, to be able to go in the room and have people on the board who have been doing this for 20 years, for 30 years, and have a really, really good track record of success is so helpful in terms of opening doors and reputations. Absolutely. Now, Fred, we know that gold mining has a lot of capital costs involved, especially as an exploration company. How does Elemental royalties look to lower the risk for investors who are interested in gold but are looking for a safer way to get involved? I think that's a really good point. And, you know, one of the big risks with exploration and it's similar to, you know, pharmaceuticals. We saw over the last year the race to develop, you know, a drug for COVID and, you know, billions and billions being invested. And everyone knows about the successful ones, but you don't hear about the ones that didn't work. Yes. And, you know, they spend billions on it. And mining, similar, if you think about it, you've got dozens of projects out there and, you know, they will all have tens, if not hundreds of millions, of capex and exploration, which is high risk money going into the ground. And you're not sure in the early days which will be the successful one and which won't. And so if you want exposure to exploration projects, you get the high risk side of it. If you want exposure to a less risky one, you might go for a gold miner that has a project in Mexico. And that's fine, but then you need to be a bit of an expert in Mexico. You need to understand the region, the community, you know, even the weather, which can be a big factor in mining, all these different factors. And I think, you know, for a royalty company, you know, what a royalty company is doing is it's taking a very small percentage stake in a lot of different projects. And so actually your strength is your diversification. And so as a more generalist investor looking for exposure to gold, with a royalty company, you get more leverage than holding the physical metal, but you get the diversification of not needing to be an expert in Ecuador or in South Africa or in five different countries because you have a, you know, a small stake of the gross revenue top line in multiple different projects and you can't get diluted at the asset level. And that's one of the key parts. You can't get diluted. So if I give you 1% in my mind as a royalty, you'll have 1% whatever happens. And maybe the shareholders in that company get diluted over time, but you as a royalty holder don't. And that's a really important principle that, you know, has led to the royalty space really outperforming the mining space as a whole over the last 10 or 15 years. And it's also the reason why the royalty space was go back to 2006. It was a $5 billion industry in mining and it's now a $50 billion plus industry in mining. And that is because it's actually, you know, delivered really superior adjusted risk adjusted returns for investors. Gold is a very competitive sector. Obviously there's everyone knows about gold. You know, it's not a new sector. Everyone knows about gold. It's been a very strong sector for the last few years. So with that competition, what separates you guys from your peers and from your competitors in this really competitive landscape? Look, the key differentiator for us is that, you know, our portfolio is extremely mature. So it is, it's predominantly 80% producing assets. So you go to a junior royalty company, you might typically expect a portfolio to be exploration assets, development assets, like the type we talked about. So they might turn into something great, but they might not. And they might also take five years or 10 years to mature. And what we've managed to do, which is sort of the hardest thing is we have bought the producing high quality assets at the beginning of the outset. And so it gives us a really asymmetrical risk profile. We have diversified revenue from day one, but we've actually been able to grow that revenue doubling it year on year since we started in 2017. And so that is, you know, you've got the lower risk profile of a major, but you've got the growth of a smaller royalty company that can be doubling in size year on year. And that is, that's, I think, the really important sort of distinction when you consider Elemental. That sounds incredible. And I know our community and our investors are gonna love to hear that. And so far, I love what I hear. And here at RichDB Lab, we like to identify undervalued, underexposed, underappreciated early stage companies. And we love to understand the share structure. We love to understand the fundamentals of the company. Can you break down the company share structure and how you intend to attract more institutional and retail investors? So in terms of the share structure, it's fairly straightforward. We have approximately 69 million shares outstanding. And there are no warrants. And there's, I think, in the order of about four million options at various prices that are outstanding. And of that, the biggest shareholder, South32. So that was spun out from the world's biggest mining company. And they actually took 19% of us at the end of last year when we announced the transaction with them. And which closed in Q1, 2021. And they put a director on the board as well. So there are 19% shareholder management have about 16%, which is really important because skin in the gate. Yes. I wouldn't be here if I didn't have a material equity stake in this from the beginning, because I know that if I make this work, it's actually really gonna make my career as well. So I think really important that management board have really material stake in this. And I think each of the last fundraisings we've done, probably contributed a million dollars between the board and directors in each one. In terms of other shareholders, we have about 30% held by institutional shareholders. So that gets us up to about 66%. And then there's probably about another five or 10% that's held by five or 10 individuals. So it's pretty tightly held that 70, 75% or so, where we sort of know who holds those shares. And then the rest is public, private investors. Sounds great. We love, like the share structure that I look for is a hundred million or less. You guys are sitting at 69 million, that's great. And is that fully diluted 69 million? So it's about four million options that come in at various prices. And that's all to management and team. So we've never issued a warrant in any external financing. Great. And actually we did it, I think the opposite way to what a lot of people in the US and Canada do, which is we did almost 10 for one instead of a consolidation, we did the other way. We actually increased the shareholding. You did a forward split. Forward split. So when we were a private company, before we listed last year, we had four and a half million shares outstanding. And we decided that that wasn't, we almost needed more. So we sort of did it to try and help on the liquidity front, which was the second part of your question, which was how do you attract investors, both institutional and retail? And I think for us, COVID's been both a challenge and an opportunity. So we've got the team in Australia, the UK and Canada and actually since we listed virtually, we haven't been able to travel to meet anyone in person. And in the Canadian capital markets, not being able to meet people and tell the story face to face is always more challenging the first time. But it also opens the door in terms of, I think doing virtual interviews, media. I mean, what we're doing here today and our core management team, mid 30s and the board, some really good experience on that. I think actually one of the advantages we've got is that we're all, we're sort of of the generation that we're all plugged in online and it comes to us. And sometimes we have some shareholders who struggle to sort of get on a Zoom call or sort of log in online. And I think that that's actually one area where we should be able to do, we should be able to take advantage of modern technology and use the fact that we're all having to work remotely to our advantage and make sure that we actually get the story out there in front of people because we haven't been listed for even a year as of today. And we've probably spent most of that time in our bedroom sort of working from home. So I think it's really important for us to make sure we get our story out there and make sure we tell people both what we've managed to achieve in terms of growing the company in size, scale and also share price, most importantly. And then what our plans are going forward because when I talked to you today, we're a sort of 100 million market cap company. I can tell you it's very different to where we were four years ago when we're a million dollar start-up and that was the valuation we first raised money at. And I know that having taken it from one to 100 was the hardest part by a long way. Taking us from 100 to 500 is sort of the next step. And actually we've got better investors. We've got the track record. We've got a bigger team in every regard with better position to be able to take that next step. And then we were at the beginning. Great sounds like you guys are on the right track. If there was one thing you would want shareholders to know about elemental royalties today, what would it be? I think the most important thing to know and I never knew this enough myself when I was younger and I was investing a bit at university, but knowing the management team and the people involved and what their motivations are. And it's something that when I was younger, I'd look at a company and look at the assets and sort of form a view on it. And I often overlooked who the people are and why they're doing this. And now I'm doing it myself and I'm in the hot chair, the hot seat, I sort of sit the other way around and I think, wow, the most important thing is who are the people? And in our case, you've got a core management team here who are all gonna be in the mining industry for the rest of our careers. And the success that we deliver with elemental will be our CV. And this couldn't be more important to us. This isn't the last job we're going to be doing. This is the peak of our career, right in the middle of it, we want to do the best possible job we can. And we've got people around us on the board and management team who have been serially successful and have proven time and again that actually they don't just deliver for shareholders, but they also deliver, I think really importantly, the right way ethically and doing it, building a company that actually adds value for shareholders and not just management. And I think that if you know that you've got a team that are motivated and looking to deliver the right way, I think that's something that everyone should ask themselves about their investment right from the outside. For us here, we love to identify early stage companies which we talked about that are undervalued, underappreciated, underexposed. There's going to be investors from many different countries that are gonna see this interview, see this video, be interested, and then they're gonna want to get in contact with you. What's the best way for them to reach you? Well, we always say, go on our website and you can email us and you can call us either in London, in the UK or Vancouver, colleague there in Canada, but actually an email is a great first point because we can set up a call if that helps and follow up that way. And actually, I think we often feel we don't get enough emails from shareholders. So great if anyone does want to reach out, please do. Perfect. Well, thank you so much for your time today. Frederick Bell, the CEO of Elemental Royalties. And if you guys liked the video, please smash the like button, comment down below, share the video everywhere and subscribe. Remember, Rich TV Live is strictly for information and education purposes. Please do your due diligence, do your research before you invest in anything that we talk about here on Rich TV Live. In saying that, I do believe this company is an early stage company. Like I've said many times, it is undervalued, underappreciated, underexposed. Put it on your watch list, put it on your radar. And thank you for joining us today, Fred. Much appreciated. Thanks for having us. Always a pleasure. Told you guys, if you're not winning, you're not watching, we bring you the winners and we bring them to you first. Thank you for watching everybody and have a nice day.