Evolve Royalties (EVR) Precious Metals & Critical Minerals Virtual Investor Conference summary

Business model and strategy

• Operates as a copper-focused royalty company, investing in mines globally without direct operational involvement, providing exposure to commodity revenues with reduced risk.

• Focuses on cash-flowing assets and mature projects with defined timelines to production, aiming to minimize risk and maximize returns.

• Portfolio is diversified across copper, tin, and lithium, with a strong emphasis on copper due to anticipated long-term demand growth.

• Targets investments in established, lower-risk mining jurisdictions, primarily in the Americas but open to global opportunities.

• Leverages a lean, experienced team with a proven track record in building successful royalty platforms.

Portfolio highlights and growth drivers

• Holds royalties on major Canadian copper mines: Highland Valley Copper, Copper Mountain, and McIlvenna Bay, all operated by reputable companies.

• McIlvenna Bay recently transitioned to production, with ongoing exploration expected to expand resources and future royalty value.

• Uis Tin Mine in Namibia offers long mine life and stable annual royalty income, with potential for resource expansion.

• Lithium royalty in Argentina (Salar de Diablillos) could generate significant annual returns upon commencement of production.

• Portfolio expected to grow from one to up to four producing royalties by the end of 2026, increasing cash flow and value.

Financial position and capital structure

• Free cash flow positive with a growing cash balance and a market cap between $105 million and $150 million USD.

• No debt currently; secured a CAD 50 million revolving credit facility (expandable to CAD 75 million) from Bank of Montreal to fund new acquisitions.

• Simple capital structure with about 51 million shares outstanding and a strong institutional shareholder base, including Orion Resource Partners.

• Management and insiders own a significant stake, aligning interests with shareholders.

• Focus on maintaining low general and administrative costs to maximize investment returns.