Impact: Positive
Empress has received the first payable silver ounces from the Tahuehueto Au mine operated by Altaley Mining Corp. (TSXV:ATLY, BUY, C$1.00 target, Taylor Combaluzier). This is a major milestone for the company as it has received its first revenue from the streaming agreement ~15 months after its creation. Projected cash flow from this stream is expected at US$1.68M/year for a period of ten years. Compared to the initial US$5M purchase price, we believe this stream should help boost the company’s P/NAV, closing its gap to peers. It should continue to keep Empress in the black, unlike some of its royalty peers which are anticipating negative EBITDA over the next few years.
