 Want to learn about stocks, cryptocurrencies, NFTs, and the metaverse? Join RichTV.io. How's everybody doing today? I'm your host Rich. Here we have a RichTV Live with our very special guest, the CEO of Electric Royalties Limited, Brendan Urik. How are you doing today, Brendan? I'm doing well. Thanks, Rich. I appreciate you having us on. Hey, always a pleasure, very excited having you on the show today. And one of my first questions I want to ask you today, very excited to learn about your company. So maybe you can tell us a little bit about yourself and how you got involved with Electric Royalties Limited. Yeah, well, I'm one of the founders of Electric Royalties. I'm also the CEO. My first year, 10 years in the mining market, were really spent in a bear market. I spent a lot of time on the gold into copper base metals more later. But it was a very, very tough market. Mining's a unique space. The average development timeline for a project is 15 years, plus nothing go wrong over that time. And most of these companies out there are single asset companies, which means you're really all in on one project. And so as somebody who is helping advise these companies and working and investing in these companies, it's tough to look around the market and see something where you can really kind of guarantee. You can't guarantee success, but we can increase your odds. And so Electric Royalties was really about doing something different. What can we do to really maximize our odds of success in this space? And it was kind of two fronts for that. One, the royalty business model. Let's start there. It's definitely the best business model we've had in mining. Lots of advantages. I'm sure we'll touch on that later on. And then second was the clean energy metal space. Right now, we're the only royalty group out there, folks exclusively, on all the metals you're going to need for this transition to clean energy. But for me, that's the real opportunity. We see two decades of opportunity here. You're looking at exponential growth forecasts across all nine of the metals that we are targeting. And it's the first time in human history something like this has really happened, where you have so many new waves of demand that are going to hit so many different metals all at once. So between the royalty business model and this space, we just felt like we had a really good opportunity to put something together. And my whole background really is financial advisory for junior mining companies. So a fairly easy transition to dealing with these companies and just saying, hey, look, now I have the money. So we can do something. Super excited. And Brandon, can you explain your business model and how royalty companies are different from traditional mining companies? Yeah, for sure. So lots of different advantages for a royalty company. First of all, diversification, right? We've already got 20 assets. That's key, right? We're diversified across all of our target clean energy metals, including lithium, copper, nickel. And so that's one of the big ones. The other is, we're not responsible for development costs. The capital costs actually build out of mine, any cost overruns, any more capital that the company needs to put that into production. We are not responsible for it, right? It costs us nothing to hold these royalties. So our cost essentially is an upfront cost where we give them some capital, a couple of years ahead of production. And then once in production, they give us a percentage of cash flow, really for the life of mine. So yeah, it's a fantastic business model. I mean, this last year, we've had over 400 million raised by operators to go and invest in our assets, which is going to boost the value of those, obviously, help with them production, but at no dilution to us. The other thing is our G&A is really low. If you want to build a very small mine in the mining space, you might have to hire 50 to 75 people full time. And you cost us that with the biggest group in our space, Frank and Nevada, they're about $25 billion company. They only have about 25 employees. So the G&A is much lower, it's diversification. And it's really a long-term play where we're protected against inflation because our capital costs, development costs are nothing. We don't get hit by that inflation cap X, but our operating costs are also lowest in the industry. There's zero, right? On a unit basis, we pay nothing. So once those start to come online, it's really just a long-term recurring revenue stream for, in some cases, our assets have 47-year mine lives predicted. So yeah, it's an exciting space. The other thing I would say about royalties, because we're dealing good jurisdictions, we're actually able to tie those royalties to the project. And so that's another further hedge against management taken on debt at the wrong time, losing the asset or whatever. Whoever takes it forward after that is still gonna have to honor our royalties. So yeah, lots of advantages of the royalty business model. And we love the royalty business model here. Now, electric royalties invests in a diverse portfolio of metals required for the decarbonization of economies. Out of all of these metals, which ones are you the most bullish about? I know you touched base on lithium earlier. Yeah, well, right now our portfolio is about 40% lithium. We've got one of the top lithium portfolios out there in terms of royalties. And lithium prices are up 300% this last 12 months. So the crazy thing for us is our revenues expected are directly proportional to metal prices. So if lithium prices go up 300%, we're expecting 300% more revenue on a direct basis. So that's good. Look, lithium's had a good run. I think all of the metals are pretty exciting that we're targeting. I think copper long-term is always gonna be, definitely a bellwether of this transition. And unlike the other clean energy metals, we've already scattered the planet for everything copper we can find. We've mined out a lot of the best deposits. And so I think long-term copper definitely has the brightest future. But right now we've been, heavy lithium, lithium's doing very well. But all these commodities that we target, we're all gonna be a short supply and very big increasing demand as we move forward. Can you tell us what are some of the milestones electric royalties limited has for the last quarter of 2022, which shareholders can look forward to? Yeah, well, it's already been an exciting year. I mean, a lot of that, operators do all this work. So a lot of it, we expect it, but when it actually comes out, comes as sometimes a surprise. But we've already had about 25 plus updates this year alone across about 13 assets. And so, we'll definitely have some more as we move forward. We had the PFS just completed on our OJ lithium royalty. They're looking at integrating that into an existing operation in 2023. So that was a big milestone in coming forward here of the next quarter. We'll see, we've had just had a resource update on our Seymour Lake Lithium asset. They just doubled the resource. So stay tuned. You'll definitely see a couple of things come together here as we move forward to this last quarter. Can't wait to see you guys hit your goals and see what it's gonna look like in the next three to six months. The company recently announced electric royalties, announces filing of preliminary economic assessment for Monts-Sorcier, Magnetite, Iron, and Vanadium project. Can you go through this for us and what it means? Yeah, so that's the second, of that exact type of news release that we've had in the last month and a half here. We had another one come out about a month and a half ago on our battery hill assets. Basically a very big technical report that's put online for everybody to go out and review, look at the assumptions that are being made. But it basically attaches economics to these projects. And so the one that we had about a month and a half ago, it's on our battery hill royalty. It's the only manganese district in all of North America being developed for the EV space, if you can believe it. But there's just not that many of these manganese deposits in North America, but they outlined 47 year mine life. And we have a 2% gross royalty on that. And so essentially, once in production, we're looking at on the base case, the lower end case, about US three and a half million a year, cash flow to us once production and showcasing a 47 year mine life. I mean, that one, for me, that royalty alone makes us undervalued, where we are today. The one that we just put out there was on Montsocier. It's a fantastic iron ore development project, probably the top in North America. They have Blancor as a partner. They just put economics out on that. And on that one, we're expecting it to be about US 750,000 to 1.5 million a year US in cash flow back to us. And they were showcasing a 21 year mine life. And that was only on the indicated resources there. So now they had a PEA come up previously, a much higher life of mine, including some of those other resources. But yeah, that's just updates that are coming from our operators. We've got 18 more assets on top of that. And so this good news comes as projects are moved forward. When you add it all up, it's going to look really, really nice. Can you also tell us about electric royalties closing Zonia Copper royalty acquisition? Yeah, so that was a new royalty we created. We're one of the few junior royalty companies out there that actually is capable and has experience going creating new royalties. It's really great because they cover the whole project. You can do things like we did here. We add an option in to increase that royalty over time. But in our view, this is one of the top three copper development projects that we think will make it in production in North America over the next kind of five years. And it's a copper oxide development project. Most of those have already been mined out because it's it right of service. Easily found, fairly easy to mine. And so yeah, they've already got about 500 million pounds of copper on the ground there, our money, our capital that we're giving them for this royalty. You get them due to feasibility study within about 18 months, two years. And it's kind of perfect example of where we like to play. The big private equity groups still pay about 10 times what we pay, 12, 18 months down the road to get the same royalty, but nobody's really competing in that kind of space where we come in. So yeah, a real sweet spot type deal and great copper exposure. It's in Arizona, great mining jurisdiction. So excited to close that one out. Now, if electric royalties limited were to compare itself to its competitors in the sector, what would you say set two guys apart? Yeah, well, we don't have a huge amount of competitors. We did the first graphite royalty financing ever done. We did the second tin royalty financing ever done. We've got the largest public lithium royalty portfolio out there. So we're kind of the only one competing on a lot of these metals. There's a couple of groups out there. One group just does nickel and copper. You know, that's great, but I think they're really missing the boat on say zinc and nickel or sorry, zinc manganese, graphite tin, all these and lithium as well. Obviously lithium has been the best before metal we're having lithium. So our real goal is to not bet on any one commodity. We're not trying to predict where battery chemistries go, what new technologies might come out disrupt supply. We're trying to stay diversified across all of these energy metals, really give you that exposure to the base building blocks of the transition clean energy and tie yourself more into that than anyone, you know, single commodity, but 90% of the royalty companies are precious metals focused, right? So, you know, there it is. So one of the things that's very important to us, Brendan, is learning the structure, your share structure. We love companies that have nice tight share structures and understand that it's important to protect the share structure for the investors. We talked about this earlier, you know, reverse splits and stuff. Our community doesn't like that. So can you go through the capital structure of electric royalties limited for our viewers and how you plan on attracting more institutional investment alongside more retail investors? Yeah, for sure. Well, like we won't be doing any reverse stock splitting anything like that. Thank you. Yeah, look, I'm all in as a CEO. You know, myself and my family are large shareholders for about, you know, 12% of the company. And it's fairly tight today. You know, we have different partners like Fox Royalties, who I know you guys bet on. Yes. Glovex, who are big shareholders. And then the majority of it is, is really high net worth individuals. You know, guys that have been very successful in the industry. You know, guys like Ian Talfor and Paul Matissek. And then, you know, from beyond that, we've got a few institutional shareholders. That really is going to be, you know, a goal of ours. And the problem is, when you're some $50 million company, you can't really get a lot of these big institutions because they need to write, you know, a $5 million check. And if that's going to put them over 9.9%, that's an issue. You know, so it's really a grind at this stage to eke out those. But, you know, between our shareholder base, it's very, very tight. You know, we don't have, you know, much retail. We're probably, you know, 10, 15% retail. But it's, you know, definitely, you know, management as a big stake. And, you know, we've got a lot of good investors, shareholders on the table. No debt, nothing like that outstanding. Love that. No debt, that's music to my ears. If there was one thing you would want shareholders to know about electric royalties limited today, what would that be? Well, how to calculate a gross revenue royalty payment, you know, if you want to go through and check out our assets, we have 20 of them. You know, we get limited sometimes to turn the work and put out there, but a gross revenue royalty income we expect is really our royalty rate, right? Percentage royalty rate times expected production and then times the metal price. That's it. And that's annually what we expect to get from each of these royalties that we own. And if you do that, you know, when you look at the mine life, how many years we'll get that, you can do your own due diligence on us. And, you know, I'm sure you'll be a screaming bye for you. What is the best way for investors to get in touch with the company if they have any questions about electric royalties limited? Yeah, well, you got my email phone number on all of our press releases there or back of our presentation, which is on our website, you know, so reach out and, you know, we're happy to get in touch and answer any questions you guys may have. Thank you so much for your time today. The CEO of Electric Royalties Limited, Brandon Yurick. I must remind everyone that Rich TV Live is strictly for information and education purposes. Please do your due diligence, do your research before you invest in anything we talk about or discuss here on Rich TV Live. In saying that, this is a new pick for our community. We've never talked about it on Rich TV. Put the symbols on your watch list and on your radar right now. E-L-E-C in Canada. E-L-E-C-F in America. And thank you for joining us today, Brandon. We wish you the best of luck in your future endeavors. Thanks for having me on, Rich. I look forward to being back on again in the future. Always a pleasure. If you're not winning, you're probably not watching. We bring you the winners, we bring you the news, we bring you the CEO interviews, we bring you the analysis and we bring it to you first. Thank you for watching us today. You're host, Rich from Rich TV Live with the CEO of Electric Royalties Limited, Brandon Yurick saying, have a nice day, everybody. We'll see you soon.