Elemental Royalty Corp (ELE) 2024 Q4 法說會逐字稿

So I think everyone is just signing in at the moment, and thank you for coming to this. I can see we've got people dialing in from Australia, Europe, US and Canada. So well represented and really appreciate you all making the time. This is Elemental Altus' Q4 and full year 2024 results presentation.

And with me today, I have myself, CEO, Fred Bell; and our CFO, Dave Baker. And I will do a quick intro to the company and a few of the key points and then really hand over to Dave for the meat of the presentation. So look, over 2024 and then what we're looking forward to in 2025. I think some of the key areas in 2024 was the AlphaStream acquisition, which increased our ownership in three producing royalties in Q4, and that was Bonikro, Ballarat and SKO as well as a portfolio of exploration and development assets across Australia.

We also have the material news from our cornerstone Karlawinda royalty of the expansion project, the Karlawinda expansion project that is underway and expecting to be permitted this year with construction going into operations in 2026, and that would be for a 50% throughput and approximately 30% increase in gold production at one of our two cornerstone royalties kicking in from mid-2026.

We announced the acquisition of the Mactung royalty, which is a tungsten royalty in Yukon. And I think really in December, we had the really positive announcement of US and Canadian government funding to fast track that project through feasibility study in 2026 and final investment decision in 2028, and that came after our acquisition. So pleased to see that project being pushed forward very fast. We had both Raymond James and National Bank initiating coverage on us during the course of 2024.

And we also had RBC joining our credit facility and taking that fully committed facility up to USD50 million. And so we ended the year with a net cash position, which has been the first time for a number of years, having repaid $27 million over the course of the year. And coming into the beginning of this year, we've fully repaid that facility.

So looking forward to 2025, we have our newest producing royalty, Korali-Sud and this is part of Allied Sadiola operations that we sold to them approximately 18 months ago and been very impressed at how they have fast tracked that into production with a very material Q4 last year and coming into Q1 this year, where we'll start to get our first royalty revenue. We are forecasting record revenue and also with that leverage, record free cash flow for 2025.

And that is in addition to what we have on the balance sheet and what we have in available capital we can draw going forward. We also exclude from that revenue guidance about USD13 million to USD15 million that we expect to get in milestone payments over the course of 2025 with the largest payment due this month, about USD10 million.

And so that is going to further bolster our balance sheet and put us in a very strong position. The strongest position the company has ever been financially to continue to acquire opportunistically individual royalties and also look at portfolios and look forward to the news as well from Karlawinda on that expansion project as it progresses over the course of the year. So just two slides really, two-odd slides here before we get into the guts of the financials.

This is the AlphaStream portfolio we acquired in October. I think the key thing here is that this was going to add approximately at the time, I think, we said about $6 million in revenue forecast, obviously, with spot gold price where it is, every week, every month, the gold is where it is, we get a material uplift to that revenue from this portfolio.

And we've also had the updates from (inaudible) at Kalgoorlie ops around the Hercules deposit there, where I think we're expecting an update from them in H1 of this year to give us what we think should actually be a pretty material resource and project there that they'll be feeding into their mine plan.

And the second slide we've got here for the finances is on Korali-Sud and this is our formerly called Diba project, renamed by Allied as Korali-Sud. So really encouraged to see them kick off production in Q4, and they had a very strong Q4, about 49,000 ounces produced just from our royalty area in that quarter. We have a 3% royalty on it for the first a bit over 200,000 ounces of production, and then it steps down to an uncapped 2% royalty.

We also have milestone payments that come following commercial production and then production milestones, and we anticipate some of those to be hit in the course of 2025. So although production was there in Q4, the actual first sales fell into Q1. So this will be our first quarter of revenue coming from Korali-Sud and we're going to have the benefit of it going forward now.

So with that, those two updates, I'll hand over to Dave to run through the rest of the presentation.

Thanks, Fred. Yes. So again, a strong quarter and a strong year. We had already pre-released GEOs and revenue. So that was in line with guidance of just short of 9,000 GEOs, revenue of USD16.3 million and adjusted revenue, $21.6 million.

I know I say this a lot, but adjusted revenue allows us to proportionately consolidate up the Caserones royalty, so including Caserones revenue. So yes, $21.6 million for the year, that's the eigth consecutive year of record revenue.

As a result of us streamlining costs, monetization of the exploration business and obviously, an increasing revenue profile. That's led to adjusted EBITDA for the quarter of $4.8 million, that's a record, and that's up 72% on this time last year. We're also seeing that flow into cash flow from operations.

So again, that's the cash flows from our operating business, plus dividends from Caserones of USD3.3 million, and that's up 54% on this time last year. So we're really seeing the benefits of a stable cost base and then that full exposure to gold prices and the great assets. And look, the future looks bright. So we previously announced GEO guidance for this year of a record [11,600 to 13,200] ounces. That's a 38% increase in GEOs alone on 2024.

Gold prices changed a lot since we put out our guidance. So when we are using, which looks like now a very conservative $2,600 gold price, that was going to lead to 2025 adjusted revenue of a record USD30 million to USD34 million. Obviously, that's going to be quite a lot higher now for plugging in plus-$3,000 gold or more.

So yes, at least at 50% year-on-year increase in adjusted revenue based on our guidance, potentially more if gold holds up. And then on top of that, as Fred says, so not included in our revenue guidance is this $13 million to $15 million expected from portfolio payments. Expect those are weighted to the front of the year we're imminently expecting that USD10 million from the Ming settlement that Fred talked to.

In terms of where we are, we are debt free. So we have $3 million on the facility at the end of the year. We paid that back and paid that down in February, which means we have the full $50 million facility available immediately for drawdown for new transactions. And that with cash generation through the year means considerable amounts that we can spend without diluting our shareholders even a little.

Completing that AlphaStream transaction, I said, Fred, that just gives us our full exposure to gold prices on producing assets. And I'll tell you the pipeline has never been as busy as we are now exploring both the individual acquisitions portfolios.

And as we always say, we're a firm believer of consolidation in the royalty space. As you know, our portfolio is really underpinned by two very high-quality assets, operated by high-quality operators. So Karlawinda operated by Capricorn Metals, an Aussie listed company had a good quarter, nearly 28,000 ounces of production. It looks like they're on track for that June year-end guidance of 110,000 to 120,000 ounces. I think critically and we've announced this before, that major expansion has been announced, so getting to 150,000 ounces of production. We obviously see as a royalty company. I don't have to pay for any of that.

So we've got that full exposure to increasing throughput and increasing ounces, obviously, at record of US and Australian dollar gold prices. I think most encouragingly, even post expansion, mine life is still more than 10 years with significant potential to increase beyond that. It's a very homogenous ore body. Caserones is a little bit lighter than we thought in the period.

Some hydrogeological issues there in their Phase 5 pushback impacted grades and recoveries. But we're going to expect those tonnes to come through later this year. And also there was a small delay in concentrate 20,000 tonnes of concentrate sales. Obviously, we are paid on sales not production. So we'd expect to see that picking up in Q1.

Encouragingly, strong production guidance from the Lundin in 2025 of 115,000 to 125,000 tonnes of copper. So -- and then so really where does the growth come from? The key growth asset in 2025, as Fred said, is Korali-Sud, which we used to call Diba. Allied has resolved the differences with the Malian government. They have sold those nearly 40,000 ounces that were produced in Q4 last year.

So that will be reflected in Q1 sales plus, of course, all the Q1 production as well. So we're expecting a significantly large bump in Q1 from Korali-Sud and then obviously, ongoing production. And then the other real kicker is obviously the AlphaStream acquisition. So we then double our exposure to that 4.5% royalty over Bonikro. And we get full exposure to both production, 90,000 ounces plus of production from Bonikro at obviously, increasing gold prices.

I think encouragingly, what we've seen from Allied is they said that they're expecting high-grade materials over 2025 and 2026 because of the high-quality stripping work they've been doing. Likewise, Wahgnion has been an excellent performer. And again, looking forward to seeing record numbers out of Wahgnion at the gold prices that we're seeing now.

Spoken to Bonikro and Korali-Sud in terms of the other assets, again, Ballarat, we also doubled our exposure to as part of the AlphaStream transaction. I've been really happy with the new management team there, really focused on getting costs down, increasing production, looking at some capital expenditure there to increase throughput.

So I think there's real potential to grow there. And then yes, I just would highlight that we're expecting that 30% production at Karlawinda to really land in 2026. So that's a real near-term catalyst for the company. So I guess, how does that translate into financials? So revenue for the quarter and revenue for the year, adjusted revenue for the year up 21%.

And that's really just a strong performance in gold. Gold GEOs are flat for the year, but we're really expecting an uptick on that immediately and really weighted towards the first half of the year. The leverage of this flat cost base that we have with an increasing revenue profile as you really do see that incredible margin expansion.

So looking at a 72% increase on EBITDA quarter-on-quarter, over 50% increase in EBITDA. And then we're seeing that reflected in operating cash flows there as well, some pretty remarkable growth of over 50% on the quarter, 42% on the year on adjusted operating cash flows and really would expect that trend to continue.

In terms of how that cash flow, that $3 million free cash flow builds up over the quarter, as you say, really reflect the revenue and Caserones dividends. G&A, again, we had some one-offs in Q4 relating to the AGM and timing of some costs. I expect that to be lower quarter-on-quarter. Have to pay a little bit of tax in a growing revenue business. We will have some working capital buildup because again, we get -- we report revenue on an accrual basis, but get paid in the following quarter.

And so that's the bridge there to $3 million of free cash flow for the quarter. I would also note that now that we're fully repaid on the credit facility is that, that interest period will be near zero and the -- in the following quarters, and actually will have a net positive interest as we're earning cash in the bank.

So through the cash build up through the quarter itself, as you say, started the quarter with $6 million in cash. La Mancha followed their right -- anti-dilution right as part of the AlphaStream transaction for $12.8 million private placement, $12.7 million after costs. And then what that allowed us to do was we paid $17 million of debt in the quarter. That left us with $3 million on the facility at the end of the year.

As I said, that left us obviously, then with the net cash position at the end of the quarter with $4.5 million in the bank. And then as Q1 -- sorry, Q4 revenue started to come in, we repaid that last $3 million to leave us debt free.

Just there's a bit of -- I won't spend too much time on this, but this just sort of reflects where -- how we account for Caserones and then back that out for EBITDA. So I would just know there that number three is where we pick up the equity contribution from Caserones rather than trading it in total revenue, that's just accounting treatment and equity accounting that we have to do for Caserones.

Obviously, the cash comes in the bank the same way. This is just accounting standards. And then we back out the depletion and tax that we pay down there in Chile to get to an adjusted EBITDA number. As Fred has said, our material -- expecting material one-off payments in the quarter. Key one there is the $1 million on 90 days after commercial production at Korali-Sud.

That has occurred. So we're expecting that imminently. The key one also there being nearly $10 million expected from that final settlement on Ming, which will have our total claim at the circa USD13 million. We're also expecting that planned $1.9 million buyback of the Cactus royalty. We are also expecting Korali-Sud to hit 100,000 ounces of production this year.

So when that happens, if that happens, whether it happens this year or next, will be $2 million in the bank. And then we've obviously got that $1.5 million deferred to the Cornish Metals for the tungsten portfolio. So yes, $13.2 net proceeds on buybacks expected for the year. Growth has been excellent in the portfolio. So absolutely record revenue for the quarter, I'd say on broadly flat GEOs but again, expecting both GEO growth and then revenue growth into 2025.

I think this slide will look very, very interesting over the next couple of quarters, where we'll see both the benefits of increasing GEOs and significant increases in gold price reflecting outsized revenue growth. Likewise, we do get that EBITDA boost with this flat profile.

As I said, there were a couple of one-off costs in the quarter. Slightly reducing EBITDA margin, but I'd expect that EBITDA margin to track higher, which is the way the trend is going into the 80% or higher EBITDA margin. As you say, we have reasonably flat costs and higher revenue.

So I expect this chart to improve over time as well. And as we say, the operating cash flow plus our Caserones dividends trending in the right direction there, so $3.3 million of operating cash flow plus the (inaudible) over the quarter, expect that to trend higher as well.

Yes. So in terms of the capital structure, I say we're backed by supportive shareholders, most notably, La Mancha and AlphaStream. But notably, there's some shareholders in there that have been there since our private days, and extremely strong, extremely supportive. Share price recently, performance has been strong. So I think yesterday, we closed at [139]. So that's a market cap of nearly USD250 million. As of yesterday, we have $5 million in the bank. No debt.

So yes, AV there of -- just shy of $240 million for analysts covering us now, and yet, very, very supportive, very thankful and supportive of our equity analysts.

And on that note, Fred, I might hand back to you just before we have any questions.

So, thank you for that, Dave. And if you do have a question, feel free to type it into the Q&A or alternatively, we can ask some questions on the call. But look, to round it off, where the company is today, I think, we've got peer-leading revenue growth in our space.

Every year, the company has had a record year in terms of revenue. And this year, it's going to be, I think, a standout year, both based on GEOs and where we are before we even get to the current gold price and where that is.

We have two really high-quality cornerstone assets, Karlawinda and Caserones with a major 50% throughput expansion underway. Karlawinda and with the first drilling at Caserones since that mine was built that was undertaken last year and again, a bigger program this year under Lundin Mining.

So we're expecting to continue to see resource growth there. And we have growth both going through 2025, but also looking at 2026 based on operator outlook. We're looking at revenue growth continued over the next 24 months going forward.

And we always make this point, but if you look at the history of the company, there has not been a year in which we have not added to the portfolio, and we have not made acquisitions. But there has never been a year that we have been in a stronger financial position as we are today with a balance sheet that is. I think, for the first time in probably four or five years in a net cash position, but also with the largest credit facility we have undrawn. And we're going to be generating record revenue.

So in a really strong position to deploy non-dilutive capital, and that is adding to the portfolio but not diluting our existing shareholders. And a lot of those shareholders have been with us a number of years and incredibly supportive, both through when we're a private company and through public company on both the Elemental and the Alpha side.

So very grateful for them and looking really to try and add as much value as we can over the course of this year. And as we look at ourselves today, I think we're currently trading on one of the lowest price to revenue multiples in the junior space. We're probably about half what the mid-tiers trade at and close to one-third of what the majors trade at. So, I think that from where we are, we're very attractively valued, and we've also got a really good platform for growth going forward.

So with that, we might move on to the Q&A, and Dave, I'll let you take the lead here.

Yes, absolutely. So first question there, Fred, is any plans to increase trading volumes. And then also when was the last time management bought shares in the open market.

So I think to that point, both Fred and I bought shares in the market in December. This is all public filings on SEDI. You would know that it is increasingly challenging to buy shares. We are often blacked out, whether that's due to financials or material transactions. But Fred and I have been actively purchasing shares in the market.

In terms of increasing trading volumes, look, I mean, we've had a real retail focus recently. I think Fred and I are nearly having a retail call every day, really focusing on marginal buyers of shares and really trying to get attention on the stock.

I would say that's really picked up certainly in the current gold price environment. We're getting a lot more attention on the stock and then certainly our leverage to these rising gold prices. So I'd expect that to trend higher.

I might also add just on that trading volume, Dave, I think one of the topics we have had internally is talking about a US listing at some stage and Dave and our GC, David Gossen, have both been doing some work recently looking at the US listing opportunities and diligence in the work and the costs and the ongoing requirements of that. So I think that is another angle that I think we'll be looking at this year in terms of what we can do on that front.

Yes. Fred, maybe a question that you could take the lead on. Is there any update on the Egypt assets?

So yes, it's a good question. We -- for background for everyone, In2Metals is our partner in Egypt. And they are spending $10 million to earn into 80% of the company. And we will have a 20% equity stake that will dilute after that point. We also have an uncapped 1.5% royalty on all of those projects, and we have milestone payments.

Since that transaction was announced in the second half of 2023, In2Metals have completed two drill programs. And I believe that they're committing now to their third. They have also told us that they expect to hit the $10 million expenditure milestone this year. So we are somewhat limited in what we can say publicly on that until they give us the green light. But look, what I would say is they're on to their third drilling program.

They expect to hit $10 million expenditure, which is all being financed privately on the projects this year. And to do that in that time frame, it suggests that they're getting results that are encouraging and they want to continue to push ahead. So when we're able to put some update on that publicly with our partners in two, we will. But at the moment, we just have to hold fire in the very immediate term until we can get something from there.

Thanks, Fred. First question here from Carey. Carey, hope you're well. Just a question firstly on how the pipeline looks?

I think certainly, from my side, I don't think I've seen us looking at more assets. I'd say they're across the space as well. So some smaller things, $2 million to $4 million, also something as large as $50 million or $60 million, generally gold generally near producing.

But yes, that certainly has been the focus and has always been a focus on the company is gold and copper and with good operators as near to production as possible. So think definitely looking to use the powder that we have now to deploy non-dilutive capital.

And then we've had a couple of questions on dividends. So from Carey, Paul and Jacob there. On now that we've got no debt and cash flow, are we thinking of dividends or more growth?

I think specifically around the PDAC, we had a strategy session with the Board, and we looked at various ways to improve liquidity and start to return or contemplate returning cash to shareholders. One of which, as Fred has said, is looking at the New York listing, so we're investigating that heavily. And then obviously returning cash to shareholders would be a key target for us.

As a result of that, we put in the NCIB, the normal course issuer bid. We have been in blackout through our annual financials, and that will sadly roll pretty quickly into Q1 as well. But yes, we'd certainly look to use that NCIB, if we felt like our shares were materially undervalued versus market and internal valuations.

I think, I would also note that royalty company distributions are typically modest, but I think, yes, certainly to have that in the arsenal. And I guess NCIB versus dividends, they are typically a more tax-efficient way to return cash to shareholders. So I think that's going to be the focus in the near term.

I would say as well -- sorry, the question from Paul was, will the Board wait until after, I guess, next year's full year results to make a dividend decision?

I mean I can't speak for our Board, but I'd say no. Certainly, we've already contemplated returning cash to shareholders and implemented the NCIB. And I guess the question would be, if you do that on its own or a hybrid solution?

But no, that's a very live discussion at the moment. I don't know, Fred, if you had anything else to add to that.

No, look, I think it's just worth reiterating for everyone that as a private company from day one, we did actually pay a dividend, and we put that on hold when we listed the company and went public. I think the feedback we received then from shareholders was the priority should be gaining that critical mass and also lowering our cost of capital.

And we have now been through three real iterations of dropping our cost of capital. And to give you an example, when we started, we had a seed shareholder who lent us $4 million, I think, it was at 12%. We then listed and we have a specialty mining lender that lent us funds for another acquisition at approximate 10% cost of capital plus, and we now have a credit facility with three of the banks, National, RBC and CIBC that is giving us a credit facility SOFR plus-2.5% to 4.5%.

So we have, over time, grown that revenue base. We have lowered the cost of capital. And over the last year, having repaid all of that debt, I think, if we are going to be looking at a dividend, it's certainly the time to be having those sorts of conversations alongside buybacks and deploying that capital into new opportunities.

Yes, completely agree. Thanks, Fred. Another question from Paul, again. Paul, hope you're doing well. Which existing royalties are likely to consider expanded production investment in 2025 by the mine operators?

I mean, I think, there's a few off the top of my head. Clearly, our large gold royalty in Karlawinda has already announced that 30% production, putting the work into permitting and the CapEx into now. So we'll see the benefits of that in 2026.

Ballarat would be another key one that are looking for a material capital investment there that would both improve throughput and then production. And to also note that we've seen Western Queen in WA, one of the royalties that we acquired from South32 that they're contemplating some toll milling there of the gold resource there.

And so that's pretty live. Again, we'll guide to that when we get a bit more information from the operator. But those three assets there, Karlawinda, Ballarat and Western Queen, I think, definitely would have near-term production increases built in.

So then a question would be there for Jacob. Do you have any comment on the expected use of free cash flow in 2025? Do you see opportunities in gold royalties or opportunities in other metals e.g. tungsten, like Mactung more attractive and comment on the NCIB.

So I covered off the NCIB. The key is definitely to deploy free cash flow in 2025 and use the credit facility for non-dilutive acquisitions. Certainly, the opportunities we see are mostly gold. We're definitely copper and gold focused. But we will look at everything. First company royalty was a mineral sands royalty that Fred and Richard acquired in 2017.

And that's going to be very returns based. So if we do see a royalty that we think we can buy for $3 million upfront that when it comes into production, should pay us $3 million every year for 20 -- more than 20 years other than that's absolute -- that's a no brainer for us.

But definitely, the focus on the company is gold and copper royalties with a bit of focus on gold as near to production as possible.

Questions on the deal flow and if the higher gold price is making it hard to close deals?

No, I've not seen that. I think consensus is still definitely lagging, is still definitely lagging spot gold, and I think you can have a sensible conversation about what assumptions we use for gold pricing. So no, I've not -- we've not experienced any gold price difficulties closing deals.

And then next question, is the company more focused on gold and copper and more gold royalty companies have been expanding into copper investments? That's a very good point. And why do you believe we haven't seen more junior royalty companies merge or acquire.

So no, they are definitely gold focused. So about 70% of our revenue, possibly more, 75% of our revenue is gold. We have some more excellent copper development projects in the hopper. So our royalty on Arizona Sonoran's Cactus is our material copper development royalty.

So we do target gold and copper as a priority. But yes, we do look across the board there. And yet, have definitely noted that the copper royalties have been targeted across the space from the royalty companies.

Fred, do you want to talk to the -- why we haven't seen more combinations in the junior royalty space.

Yes. And it's a tricky one because I think, a lot of people can see the merits in consolidation in the royalty business model. And I think that we appreciate that where we are and to use the example that we did and we talked a little bit about today on the AlphaStream portfolio that we effectively consolidated in Q4, and that was a portfolio that we owned 50, 50, and we put it together.

And actually, that had, I think, synergies and value for us in doing that. And that is probably an analogy in some ways for the wider junior royalty space, where I think we see that there is merit and I think it's probably widely acknowledged across that space.

But also more generally in the royalty space, the business model is such that scale and critical mass clearly has benefits. And I think that over the course of -- and we said this in September last year, but I think we said in September last year, if we roll forward to September 2025, and we haven't seen deals and consolidation in the royalty space, I think that will probably be -- that would be a missed opportunity.

So I think that -- from our perspective, we continue to think that it will happen. The timing, obviously, a lot of variables into that. But for the moment, what we do is we focus on what we really can control and what we do ourselves. And anything on the side, on the M&A side, that comes on top of it. So really focus on what we can control. We see the logic and the sense in it. And at the right time, hopefully, those opportunities are there.

And then Fred, back to our portfolio, do you see -- another question from Carey. Thank you. At $3,000 plus gold. Fred, do you see any assets that were out of the money that now look more interesting that could move the dial?

Yes. Look, it's a good question. I think we have a number of brownfields, former gold mines in our portfolio in the development stage. And if you took three, you would probably say Laverton in Western Australia. And that's a project that has been effectively warehoused for probably the best part of 20 years.

And the majority owner is Shandong, the Chinese parastatal. And look, that royalty, we have a 2% uncapped royalty on it, in Western Australia that covers just under 2 million ounces has the potential to be a cornerstone royalty for us.

The Lancefield mine that it covers used to be one of the top 10 underground gold mines in West Australia in the 1990s and hasn't been in production since 1997. So I think -- and that region, just in the sort of 30-kilometer radius around that, you've got Goldfields, you've got Genesis Minerals, Mt. Morgans into the south.

You've got Sunrise Dam and AngloGold Ashanti. So it is an area that is, I think, overlooked and it's really ripe for one of -- for development progression. And then we have two also brownfield gold assets. So we have royalties over in Canada, which are Pickle Crow and also Hope Brook. And again, I think, it's a really similar story there.

And that if the economics looked good at $2,000 gold, I think, it looks materially better when we are today -- where we are today. So definitely a few assets that I would expect over the course of the coming three to six months in that development portfolio for us. I think we're going to be looking to get updates across those.

Thanks, Fred. Next question is, can you confirm that the payment from Allied on Korali-Sud production will be received this quarter in Q2?

Yes, yes, that's -- that is the plan. So generally, our royalties we get paid on our royalties and they provide the information within 30 days after the end of the quarter. So that's coming up in the next two weeks. And then payment thereafter. So yes, we've been in contact with the Allied team pretty regularly, both in person and on the phone. So I don't see any changes to that plan.

Question is, do we have any royalty income hedging policy? Is it attractive to capture some income at $3,300 gold in case there is a short correction in price? We don't. And I don't think -- I've not really seen that in the royalty space. Certainly, we're all strong believers in gold here, and I think we've all been proven exceptionally right in the last few years and longer. Certainly, my personal preference is that full exposure to gold price. And I don't think we're necessarily quite done yet.

I think we certainly did have that question maybe even a year ago or 18 months ago when gold was touching new highs at $2,200 gold, would we consider hedging some and that's certainly not our preference.

Unless, we're required to by our debt facility, but that's never come up with us. No, I think we would definitely want that full exposure to all of the production from our operators at spot gold prices and rising spot gold prices.

And then a question from [Joe Bazungda]. Again, hi, Joe, hope you're doing well. Question is, do we have any concerns about royalties on assets in the sale regions, such as Mali and Burkina? Is there a geographical focus on future acquisitions?

So I'd say no real concerns, I guess, currently with our assets. So Wahgnion's performance has been excellent. And again, we've a strong operator in Mali with Allied Gold.

So I think that really does give us some comfort there. I guess in terms of the geographical focus, yes, I'd say the majority of assets that we're looking at, at the moment are in Australia or North America, South America. I mean we do look at West African assets, of course. But we do know that there's probably an investor preference for Tier 1 jurisdictions. So certainly, in terms of the opportunities we're looking at the moment. I'd say there probably is a preference to the Americas and Australia. But no, we do look at everything globally.

Fred, would you have there anything to.

Maybe just adding to the point from Joe there in terms of Korali-Sud using that as an example. And I think the consensus value for Korali-Sud, that we have from analysts and market, I think, we're probably in the next 3, 3.5 months going to recover maybe as much as 50% of that value in actual royalty revenue and milestone payments from that asset.

So I think in that case, because it is so front loaded, I think, in three months' time, it's actually going to be materially derisked even the value that we have today and for us. Look, there's obvious geographic and sovereign risk in a number of these jurisdictions.

But I think Sadiola has been operating there for in excess of 12 years. And for us, I think, so far, Allied have actually done a very good job of bringing that into production in really record time since we sold them the asset and that notwithstanding all the government negotiations going on in Mali around licenses and permitting.

So I think we're cautious as to our overall weighting in jurisdictions. Australia remains our largest single jurisdiction. And then in terms of our focus going forward, I think, we're just -- we try and be careful, thoughtful not to overweight ourselves too much to any one region or jurisdiction and when we look at new opportunities.

And then I guess, the last question is there thoughts on buying gold or silver with excess cash?

I'd say yes, not at this point. Fred, unless you have anything else to add on that?

Yes. It's an interesting question. We've actually had one or two shareholders who have reached out to us in the past and suggested that as we have a cash build across the business, if we're not actively using it, holding physical gold or gold credits on the balance sheet is a way to give ourselves even more exposure to gold and commodity prices.

So I think, look, clearly, as we have over the next, call it, three or four weeks as we get some of these one-off payments in the Q1 revenues, we're going to have increasing cash on the balance sheet, and then we can make a decision on what we do with it, whether that is putting it in high interest accounts or if we have acquisitions that are ready to go, or even looking at holding some physical as part of that, but not something we have done yet.

Yes. And then last question here and just touching back on the one-off payments expected in 2025.

Yes. So to be clear, it's $1 million from Allied on that first production at Korali-Sud. The key one there is as well as nearly $10 million from the Ming settlement, the Rumble settlement, which is landing imminently. And then on top of that, we have the $1.9 million from Arizona Sonoran for that partial buyback that's due by the middle of the year and then a potential $2 million of payment if Korali-Sud hits 100,000 ounces of production this year.

If it doesn't happen this year, most likely, it will happen early next year. The one-off cash outflows is that $1.5 million deferred payment on our Mactung tungsten royalty. So that's due in Q3 as well.

And Fred, that's it. So I might leave it to you to wrap up.

Yes. Well, thank you very much, Dave, for running us through and thank you to the finance team as well on our side. Jenney, Kate, Bev and Sandra, all contributing to this. And thank you, lastly, for everyone, for attending, giving us your time. As always, please feel free to reach out to us by e-mail directly or by calling us and always happy to speak to shareholders, prospective shareholders, analysts investors. So thank you once again, and everyone, have a good Easter weekend coming up.