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Elemental Altus Royalties and EMX Royalty are combining to create Elemental Royalty Corp., a mid-tier royalty vehicle led by EMX’s David Cole (CEO) and Elemental Altus’s Frederick Bell (President & COO), with Tether Investments anchoring a US$100m cornerstone financing. In this interview I pressed management on whether this is truly accretive for EMX holders, how the 51/49 split was set, the capital-allocation playbook (buybacks vs. M&A vs. debt pay-down), Tether’s influence and governance, expected cash and credit capacity at close, the fate of EMX’s royalty-generation engine, G&A optics and planned synergies, listing plans and index eligibility, the specific asset-level catalysts that can move per-share value, Caserones in-pit/brownfields growth, Timok’s lower-zone and the new discovery, Gediktepe’s oxide-to-sulphide transition, and Australian levers at Karlawinda and Laverton, alongside a candid assessment of operator, commodity and execution risks.

TLDR

1. Merger math and re-rate thesis.
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   Elemental Altus is acquiring EMX in an all-share deal (EMX holders ~49%, Elemental ~51% post-financing) to form “Elemental Royalty Corp.” with Dave Cole as CEO and Fred Bell as President/COO. The core bet isn’t “bigger for the sake of it,” but a higher P/NAV multiple via the portfolio effect, better liquidity, and a U.S. listing, combining EMX’s long-life copper optionality with Elemental’s nearer-term precious-metal cash flow.
2. Balance sheet, Tether, and capital allocation.
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   Tether Investments anchors the transaction with ~US$100m. Pro-forma the company guides to ~US$50m cash at close and the ability to scale its undrawn credit facility toward ~US$200m. Both CEOs say buybacks remain a tool (especially when P/NAV is deeply discounted), but deployment will flex between NCIB, debt pay-down, and off-market royalty purchases. Tether is framed as a supportive cornerstone, not a control party.
3. Keeping the generator edge.
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   Management insists the merged company will keep EMX’s royalty-generation engine and marry it with selective purchases and strategic investing. The stated “secret sauce” is using technical teams in belt-scale ground to originate or source non-auction royalties, then adding scale capital only when per-share economics beat buybacks. Goal: compounded per-share value, not chasing the arbitrary mithical “major” status.
4. What can actually move the needle next?
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   At Caserones (Chile), in-pit drilling of higher-grade breccias and sulphide work below Angelica. At Timok/Čukaru Peki (Serbia), lower-zone expansion plus the emerging new discovery. At Gediktepe (Türkiye), royalty terms rebalanced (oxide cut, sulphide lifted) as the mine transitions. In Australia, Karlawinda’s 50% throughput expansion and Laverton district activation under Genesis. Secondary but real optionality sits in Sweden (Viscaria copper, Vittangi graphite) and at Sadiola (Mali) where trucking has begun.
5. Risks, costs, and execution bar.
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   The team flags the usual triad, operator/engineering incidents, commodity price volatility, and capital allocation mistakes. They argue portfolio breadth reduces single-asset shocks, while G&A should fall with merger synergies (noting EMX’s generator costs are expensed, inflating optics versus acquirers who capitalize). The 12 to 24-month scorecard is to deliver U.S. listing and liquidity, publish disciplined buyback/use-of-cash rules, avoid over-bid auctions, and convert Caserones/Timok/Karlawinda/Laverton into visible, growing per-share cash.

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