By David Morgan , The Morgan Report
- The electrification trend that was putting pressure on critical metals like copper, zinc, lithium, graphite, manganese, tin and vanadium was already one of the top investing themes in today’s world.
- Now the tariff war has turbocharged the entire sector, sending investors scrambling for the best plays.
- They find one perfectly positioned, all-in-one, critical metals bet b Electric Royalties (ELEC.V: ELECF.OTC) is a company that also happens to be severely undervalued in light of its upcoming cash flow.
The clean energy transition is not a passing trend—it’s a decades-long shift that will dramatically increase demand for critical metals like copper, zinc, graphite, vanadium, and more. Many of these metals are already facing persistent or looming supply deficits. For investors, that means growing pressure on prices—and compelling opportunities for returns.
One company positioned at the heart of this trend is Electric Royalties Ltd. (TSXV: ELEC | OTCQB: ELECF)—a lesser-known but highly strategic royalty firm that offers diversified exposure to the critical metals powering the global energy transition.
An Expanding Portfolio Across 9 Metals and 5 Continents
Electric Royalties has grown its portfolio from just 11 royalties to 43 royalty interests in under five years, spanning nine critical minerals across five continents. The company also holds 17 additional optioned properties that could be converted into royalties in the future.
Despite this rapid growth—and several royalty assets nearing production—Electric Royalties is still trading below its IPO valuation. This disconnect between market price and intrinsic value presents a potential re-rating opportunity for forward-looking investors.
High-Impact Projects Poised to Deliver Cash Flow
Several projects in Electric Royalties’ portfolio are approaching or already in advanced stages of development and are expected to generate meaningful cash flow soon. Here are a few standouts:
Projected Annual Production and Sources
- Punitaqui (Copper-Gold – Chile): Projected annual copper production is between 19 million and 23 million pounds of copper in concentrate.
➤ Source: Battery Mineral Resources Corp. news release (May 13, 2024) and company website: https://bmrcorp.com/projects/projects-map/ - Bissett Creek (Graphite – Ontario): Projected to produce 33,183 tonnes of graphite annually.
➤ Source: PEA by Northern Graphite Corporation, effective December 6, 2013. More details at https://www.northerngraphite.com and via SEDAR+ at https://www.sedarplus.ca - Battery Hill (Manganese – New Brunswick): Projected output of 68,000 tonnes of manganese annually.
➤ Source: “NI 43-101 Technical Report on the Preliminary Economic Assessment of the Battery Hill Manganese Project”, effective May 12, 2022. Available under Manganese X Energy Corp. on SEDAR+ - Kenbridge (Nickel – Ontario): Projected annual production of 7.3 million pounds of nickel equivalent.
➤ Source: “Preliminary Economic Assessment of the Kenbridge Nickel Project”, effective July 6, 2022. Available under Tartisan Nickel Corp. on SEDAR+ - Mont Sorcier (Vanadium – Quebec): Projected to produce five million tonnes per year of vanadium-bearing magnetite concentrate.
➤ Source: “Preliminary Economic Assessment (PEA) for the Mont Sorcier Project”, effective September 8, 2022. Available under Voyager Metals on SEDAR+
In addition to these, Electric Royalties holds interests in five other advanced-stage assets—including the Middle Tennessee Zinc Mine, Gramphada Graphite Mine, Penouta Tin Mine, and the Authier Lithium Project—that are either restarting or expected to enter production within the next year.
Why Royalty Companies Win in Bull Markets
Electric Royalties stands out not only for its asset base but also for its business model. Royalty companies benefit from:
- Reduced Operational Risk: They do not build or operate mines, meaning no capital or operating cost overruns.
- Revenue-Based Income: Payments are typically made based on top-line revenue, not profitability.
- Diversification: Exposure to multiple assets and jurisdictions reduces single-project risk.
- Superior Leverage in Bull Markets: Historically, royalty and streaming companies have outperformed producers during metal price rallies.
Management Ownership = Aligned Interests
Insider ownership in Electric Royalties is remarkably high. Founder and CEO Brendan Yurik and his family collectively hold 18% of the company. Prominent investor Stefan Gleason owns 28%, and Globex Mining holds another 11%.
Combined, these three groups control approximately 57% of the outstanding shares—indicating strong conviction from insiders and long-term stakeholders.
Near-Term Catalysts: Why Timing Matters
Despite a growing and cash-generative portfolio, Electric Royalties continues to trade at depressed levels. That may change soon, as multiple near-term catalysts could drive a re-rating:
- Initial revenue from the Punitaqui project
- Option payments from the lithium portfolio
- Advance royalty payments from Bissett Creek
- Production ramp-ups at several other assets
Over the next 12–15 months, a steady stream of developments could draw significant investor attention—and potentially rerate the stock from its undervalued levels.
Conclusion: A Rare Window for Exposure
Few opportunities offer diversified, low-risk exposure to critical metals across so many commodities and jurisdictions. Fewer still are trading below IPO price despite growing near-term cash flow and insider conviction.
Electric Royalties may not stay off the radar for long. For investors seeking a single, leveraged bet on the clean energy supply chain, now may be the time to take a closer look.
Click here to learn more about Electric Royalties and its portfolio of royalty projects.
David Morgan
Founder, TheMorganReport.com
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This content is for informational purposes only and should not be considered investment advice. Trusted Causes LLC has not independently verified the information provided by Electric Royalties. The author and publisher may hold positions in securities mentioned. Always conduct your own due diligence or consult with a financial advisor before investing. This content may contain forward-looking statements, which are subject to risks and uncertainties.
Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Because individual investment objectives vary, this Summary should not be construed as advice to meet the particular needs of the reader. Any opinions expressed herein are statements of our judgment as of this date and are subject to change without notice. Any action taken as a result of reading this independent market research is solely the responsibility of the reader.
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