ELEC's Recent Acquisition, Portfolio Expansion, Revenue... The electric vehicle (EV) revolution is driving unprecedented demand for critical metals like lithium, graphite, cobalt, copper, and nickel. Amid this surge, Electric Royalties Ltd. (TSXV: ELEC) stands out with its strategic investments and impressive portfolio.
Key Highlights from the Analysts:
- Recent Acquisition: In May 2024, ELEC acquired the Ontario Lithium Projects (OLP) for $1.87M cash and 2.25M shares. This portfolio includes 18 royalty agreements and 32 lithium properties, with 31 optioned to third parties.
- Portfolio Expansion: ELEC now has royalty investments in 40 projects, including two past-producing mines and seven advanced-stage projects poised for production within the next 4-5 years.
- Revenue Potential: Our analysts believe ELEC’s portfolio could generate over US$10M in royalties by 2028.
Despite lithium prices being down 65% year-over-year, the outlook remains positive as battery and EV manufacturers actively seek reliable supply sources. ELEC’s focus on lithium (25 out of 40 royalties) positions it well in this stabilizing market.
The average sector Enterprise Value/Royalty Investments is 1.98x, whereas ELEC trades at a 41% discount with a ratio of 1.16x. Our analysts anticipate multiple near-term catalysts from ELEC’s investee companies, suggesting significant growth opportunity.
For a deeper dive into Electric Royalties Ltd. and the future of EV metals, read the full report: https://www.researchfrc.com/content/reports/post/113/an-undervalued-royalty-portfolio-in-the-ev-metal-space
Disclaimer: FRC provides issuer-paid coverage. Past performance is not indicative of future results.