Episode Details

Interview with David Rhodes, Executive Chairman of Empress Royalty Corp.

Our previous interview: https://www.cruxinvestor.com/posts/empress-royalty-tsxvempr-cash-flow-positive-streamer-hits-8m-revenue-eyes-16m-in-2025-6809

Recording date: 29th September 2026

Empress Royalty Corp. (TSXV:EMPR) is a precious metals royalty and streaming company with four producing interests in Mexico, Peru, South Africa and Mozambique. It has agreed its largest deal to date, a US$62 million gold stream on the Tongon mine in Côte d'Ivoire. The transaction had not closed at the time of the interview and remains subject to confirmatory due diligence, lender requirements and several approvals, including from the TSX Venture Exchange.

The stream was sourced through Endeavour Financial, Empress's investment manager and a significant shareholder, which has a long-standing relationship with the seller, Appian. Empress will receive 3.58% of payable gold until 400,000 cumulative ounces are delivered. The rate then falls to 2.93% and later to 0.81% for the rest of a roughly 29-year term. The ongoing payment is 0.5% of the gold price per ounce delivered. Executive Chairman David Rhodes contrasted this with conventional streams where buyers often pay around 20% of spot.

Tongon is an established open-pit mine that produced about 125,600 ounces in 2025 and more than 3 million ounces since late 2010. It was developed by Randgold, later held by Barrick and sold to Atlantic Group in 2025. Rhodes argues that majors tend to under-invest in exploration at assets below around 200,000 ounces a year, and that the new owner is now reinvesting in the land package. He cited three further deposits at the exploration stage. Empress's own technical review was led by David Laing, a former chief operating officer of Endeavour Mining.

Financing comes from Appian itself. A US$75 million facility provides a US$55 million initial draw and US$20 million more for future use. It carries interest at 7.50% plus three-month Term SOFR, with a 3.50% SOFR floor, over 36 months. No principal is due in the first year, and Appian receives warrants equal to 2.2% of fully diluted shares. Rhodes presents this as a way to limit dilution and preserve the company's cash. Empress held US$21.1 million in cash and liquid metals at 30 June 2026.

The existing portfolio provides a growing base. Revenue reached a record US$17.2 million in 2025 and US$17.3 million in the first half of 2026 alone. Guidance for 2026 is 7,045 to 7,430 GEOs. In July, Empress added 14 North American NSR royalties from Almadex Minerals for US$2.5 million.

Rhodes emphasised that Empress waited until seller price expectations became realistic, and that it rejects many deals on technical, financial and ESG grounds. He confirmed Appian has further assets to sell and expects private equity firms to approach Empress with streams to monetise. The company cites more than US$50 million of deals under review.

The key risks are closing, the new debt load relative to a market capitalisation of about US$98 million, increased concentration in one asset and sensitivity to gold prices. Catalysts to monitor include confirmation of closing, updated GEO guidance that includes Tongon, exploration news from Atlantic Group and any follow-on transaction.

View Empress Royalty's company profile: https://www.cruxinvestor.com/companies/empress-royalty

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