Lithium Royalty (LIRC) Corporate Presentation summary

Strategic positioning and market overview

• Positioned at the center of the global energy transition, focusing on decarbonization and electrification through lithium supply for EVs and energy storage.

• Lithium demand expected to grow 42x by 2040, driven by EV adoption and energy storage needs.

• Lithium is considered irreplaceable for the electric era, with major automakers investing heavily in EV production.

• EVs require six times more mineral inputs than conventional vehicles, with lithium as the key charge carrier.

• Global battery plant expansions in Europe and North America are set to further boost lithium demand.

Portfolio, diversification, and business model

• Holds 35 royalties across 7 countries, with 58% of NAV in OECD jurisdictions and 51% in Canada and Australia.

• Portfolio diversified by geography, operator, and project stage, with 17% of assets in production and 50% in evaluation/exploration.

• Focuses on hard-rock lithium assets, which offer lower capex and faster ramp-up compared to brine projects.

• Business model emphasizes risk management, capital-light structure, and high-margin, free cash conversion.

• Maintains a proprietary deal flow and targets double-digit returns on conservative underwriting.

Financial performance and valuation

• Achieved 228% revenue growth in 2023, reaching US$5.5M with only three assets in production.

• Net asset value stands at C$681M, with a market cap of C$391M and price-to-NAV ratio of 0.6x as of May 2024.

• Q1 2024 royalty income was $631K, with a gross profit margin of 77%, but reported a net loss of $1.05M.

• Cash balance of US$9.3M and no debt, supporting future acquisitions.

• Trades at a significant discount to peers, whose P/NAV multiples range from 1.1x to 2.2x.