Ely Gold Royalties Inc ELYGF

RE:New shareholder

[Bobwins]

Ely is a royalty gold company.  They generate revs from operating mines after the mines go into production.  They are typically very small, low overhead companies that just wait for their royalties to start paying.  Once in production, royalty companies are cash cows.  They get the contracted revs regardless of operating costs, need for additional capital,etc.  If the operating mine needs to expand or buy  more equipment to grow more profitably, the royalty company gets the benefit of the new equipment/process but doesn't have to pay for it.  The biggest danger is that none of the royalty properties ever go into production OR that operating mines aren't economic and shut down.  A portfolio of non producing royalties isn't worth a lot.  

So Ely is a tiny royalty company with 3 operating mines in it's portfolio.  Good for a tiny royalty company.  But the big advantages that Ely has are in personnel, location of royalties and near term catalysts.  

1. Ely has two of the best experts on Nevada mining properties on staff.  They are veteran geologists and prospectors who know the best properties in the best Gold jurisdiction in North America, Nevada.  They brought their portfolio of properties with them.  They didn't have to buy the royalties from existing owners.  In many cases, they staked the properties and then held onto a royalty when they sold the property to an explorer.  

As a secondary advantage, with their knowledge, Ely has taken the time to assemble exploration properties from multiple properties.  Big miners don't like divided ownership and don't have the patience to pursue multiple owners over time.  Ely's veterans have been around Nevada mining forever and are well known.  They can approach private owners of small parcels and get them to agree to join properties with neighbors in larger parcels that are more likely to yield operating mines.

2. Nevada is the biggest gold mining region in North America.  Home to friendly governments that approve of mining and encourage the industry.  Also home to the biggest successful mines and companies.  This is where most of Ely's properties and royalties reside.  Great place for future mines.

3. Ely has a 2% royalty on the Fenelon property being drilled out by Wallbridge Mining in Quebec.  It is high grade and large.  IF/WHEN Fenelon becomes a mine, Ely will have a nice sized royalty and move up in revenue and notoriety.  Originally Ely thought Fenelon would be in production by late 2020 but that's unlikely now.  Probably a 2021 event though and that is the biggest near term catalyst for Ely besides a general bull market in gold mining companies, which is happening as we watch.  

Ely is one of the smallest gold royalty stocks but Fenelon should give it respect and revenues in the next couple of years.  Institutional investors like royalty companies MUCH better than explorers or miners.  Once they turn profitable, Ely should gather a lot of institutional money.  Fenelon is the key to near term profitability.  Watch for news from Wallbridge if you hold onto Ely.  Good luck.