EMX Royalty Corporation (EMX) PT Raised to $6.75 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle raised the price target on EMX Royalty Corporation (NYSE: EMX) to $6.75 (from $6.50) while maintaining a Buy rating.

The analyst comments "Agreement to sell Gumsberg project. On October 22, EMX Royalty Corporation (EMX) announced an exploration and option agreement for its Gumsberg Project in Sweden to Alpha Future Funds S.C.S (Alpha). Importantly, we consider the polymetallic site to be a non-core asset for the company. As per the terms of the deal, EMX is to receive a cash payment of $100,000 upon closing. More importantly, Alpha can obtain a 100% interest in the project by fulfilling specific work commitments by the end of the first year of its ownership. In short, upon exercising its option, Alpha is required to make additional cash payments totaling $850,000 to EMX as deferred option payments. The company is also expected to invest a total of $5.0M in the project by the fifth year and initiate annual advance royalty payments once the deferred option payments are completed. We stress that EMX has maintained a 2% net smelter return royalty on the project in addition to various milestone payments tied to key dates and the commencement of commercial production from the site. In our view, this transaction is yet another example of management proving EMX's business model that entails selling off some drill-ready exploration projects in exchange for royalty interests. Reiterate Buy rating and increase PT to $6.75 from $6.50."

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