Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) continues to see positive developments across its royalty portfolio, notably at its Penouta, Authier and Graphmada royalties where there are potential catalysts for new, near-term cash flows.
CEO Brendan Yurik told investors that the company is anticipating a decision on the Penouta tin-tantalum mine permit appeal by May 31.
Electric Royalties holds a 1.5% gross revenue royalty on the project.
“Because production levels increased by 20% year-over-year before the suspension of mining last November, and with tin prices up over 30% since that time, a resumption in production could yield important revenue for Electric Royalties,” Yurik said.
At the Authier lithium project, on which Electric Royalties holds a 0.5% gross metal royalty, the joint venture partners at North American Lithium are working to ramp up operations to position it as Quebec’s next major lithium producer.
“The feasibility study forecasts 33% of production will be sourced from the Authier deposit, part of which we hold a royalty on, which could add to our lithium-related revenue and push us closer to free cash flow generation,” Yurik said.
At the Graphmada graphite mine, Greenwing Resources is working to attract strategic investment in the complex to re-establish the mine at higher production volumes.
“Greenwing management’s renewed focus on bringing their Graphmada graphite mine back into production is encouraging. Previously the mine operated continuously for over 18 months, and Greenwing is targeting a return to production at a larger scale, pending financing,” the CEO highlighted.
“This 2.5% net smelter royalty could significantly boost Electric Royalties' near-term cash flow once operational.”
The full royalty update can be found here.