Thomas Sauve, Chief Executive Officer of the Company, commented, "As a newly public company, we are thankful for the team's efforts to drive revenue growth and investments into innovative and disruptive technologies and assets over the course of the year. Our focus remains on investing in opportunities that have a high degree of near- and medium-term revenue generation and unlocking the value of our existing investments to drive revenue growth. Over the past year, we have worked to set the Company up for the potential for rapid and meaningful revenue expansion in 2025."
Sauve continued, "Typically when we invest in a project or a company, we structure the investment to provide us with basic monthly income to cover our administrative and corporate expenses, and then we have the royalties structured to provide outsized return potential when the project becomes operational. This low operating cost model ensures that investment returns from a project are spent on creating value for our shareholders by expanding our asset base and leveraging our relationships to drive fundamental growth, and at the same time allowing us to cover our operational expenses so we don't have to tap the equity markets. As the royalties and income from these investments increase, primarily driven by the maturity of the project, we anticipate our cash balance to come to a position of potentially providing additional returns to our shareholders through payment of regular dividends. Building upon our business success over the last year we are well positioned to continue to expand our investments in a number of diverse industries, including gold mining assets, lithium assets, water assets, and agriculture technologies and resources."
Key Highlights for 2024:
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RMC Environmental Services, a subsidiary of the Company, generated strong cash flow from its operations. With very attractive operating margins, the vast majority of the income generated from this subsidiary alone has been able to support the low-cost operations of the parent company. An increase in volume of sales from RMC Environmental Services in the second half of 2024 should translate into continued strong earnings in 2025.
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Advanced Magnetic Labs, a holding of the Company, continued strong execution on reinventing how magnets are created, which the company uses in defense and commercial systems as a more efficient and effective application.
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A majority of Royalty Management's debt was converted into preferred equity that has a conversion price to common stock at a meaningful premium to the current market price, specifically that of $1.70 per share. This was done to further strengthen the Company's balance sheet by reducing debt, thereby positioning the Company better for future growth.
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Company initiated several new and exciting investments in 2024 that have the potential for near- and medium-term returns to the Company, such as its sponsorship and investment in proprietary technologies related to the purification of raw ores from platinum group metals, gold, and silver (for which Royalty Management will receive an ongoing royalty on this production), and the purchase of a royalty on the sale of proprietary greenhouse products.
As a result of the investment activities in 2024, the Company's updated portfolio of key investments in intellectual property, resources, and recurring use assets are summarized below:
Intellectual Property Assets:
Platinum Group Metals, Gold, Silver Refining Technology
Form of Investment: Royalty Interest
Geographic Location: Worldwide
Development Timeline: Intermediate Term
Key Partners: ReElement Technologies Corp.
Summary: Investment in intellectual property that utilizes chromatography to concentrate and purify ores and recycled materials containing the platinum group metals, gold, and silver, more cost-effectively, more efficiently, and with less environmental impact than current methods. Company receives royalty interest on all sales from concentration and purification utilizing the technology.
Permanent Magnet Development Technology
Form of Investment: Royalty Interest
Geographic Location: Worldwide
Development Timeline: Intermediate Term
Key Partners: Advanced Magnet Lab
Summary: Investment in intellectual property to develop the next form of advanced permanent magnet utilizing modified Halbach Array. Used in a variety of high performance industries, such as aerospace and defense. Company has royalty interest on all sales from permanent magnets sold utilizing developed technology.
Fertilizer Capture and Recycling Technology
Form of Investment: Commercialization Rights
Geographic Location: Worldwide
Development Timeline: Intermediate Term
Key Partners: Texas Tech; CASFER
Summary: Sponsored research with the Center for Advancing Sustainable and Distributed Fertilizer Production (CASFER), a center created within Texas Tech University and recipient of a National Science Foundation Award, focused on novel methods to capture and recycle nitrogen and other fertilizer run-off from farms. Company receives commercialization rights from technologies developed from CASFER.
Resource Assets:
Vanadium and Titanium Resources
Form of Investment: Convertible Debt
Geographic Location: South Africa
Development Timeline: Currently Producing
Key Partners: Ferrox Holdings Ltd.
Summary: Investment through convertible debt into Ferrox Holdings, which is a mine located in South Africa that produces a variety of high-value elements, including ilmenite, iron, vanadium and phosphates. Ferrox is located in the long-term mining region of the Limpopo Province in South Africa. Company is able to participate in the success of Ferrox through the ability to convert its debt into equity of the company.
Property Development
Form of Investment: Equity
Geographic Location: Indiana, United States
Development Timeline: Currently Producing
Key Partners: RMC Environmental Services LLC
Summary: Investment in operating company that is a wholly-owned environmental service business line that supports residential, municipal and commercial development in and around Hamilton County, Indiana. Company is wholly owned and managed by Royalty Management and receives income from developers for land conditioning and development.
Metallurgical Coal Ownership
Form of Investment: Equity
Geographic Location: Kentucky, United States
Development Timeline: Near Term
Key Partners: FUB Mineral LLC
Summary: Investment in over 2,200 acres of metallurgical (steelmaking) coal property located in eastern Kentucky covering two coal seams and located within a mining complex that has processing capabilities and rail loadout. Investment into membership interests of FUB Mineral LLC, the property owner, which has mineral leases for royalty payments to the company based on resource production.
Iron Ore, Titanium and Vanadium Resources
Form of Investment: Royalty Interest
Geographic Location: Jamaica
Development Timeline: Intermediate Term
Key Partners: T.R. Mining Ltd.
Summary: Investment in a high quality, Jamaica-based diversified mineral project with an initial focus on producing iron ore, titanium and vanadium. With an initial estimated deposit of 213 million tons of raw feedstock with an estimated 106 million tons of ore body, based on an average of 50% magnetic material. Company is able to participate through a royalty on all resources mined and sold from the special exclusive prospecting license.
Recurring Use Assets
Indoor Controlled Agriculture
Form of Investment: Royalty Interest & Equity
Geographic Location: Worldwide
Development Timeline: Currently Producing
Key Partners: (Confidential) & eko Solutions
Summary: Investment in a manufacturer of an innovative solution for indoor, controlled agricultural farming, deploying their technology within modified shipping containers customized by eko Solutions LLC. Through this combination of technologies, the Company receives a royalty on all sales of the consumable inputs to the controlled agriculture system, in addition to an equity interest in the producer of the novel plant delivery system.
Rainwater Capture and Purification
Form of Investment: Convertible Debt
Geographic Location: United States
Development Timeline: Currently Producing
Key Partners: Heart Water
Summary: Investment in a manufacturer of rainwater capture, purification, and storage systems designed to be placed and installed on roofs of industrial warehouses and other large buildings. Rainwater is captured, stored, and later used for a variety of purposes, including consumption through retail and wholesale channels. Company participates in the success of Heart Water through debt that is convertible into equity of the company.
Royalty Management utilizes a low overhead model to drive EBITDA growth of the business by investing in high value assets and cash flow streams from a diverse portfolio of assets. Our management team and investor base are highly aligned with shareholders that are motivated by the equity value versus standard salaries and cash compensation plans.
About Royalty Management Holding Corporation
Royalty Management Holding Corporation (NASDAQ: RMCO) is a royalty company building shareholder value to benefit both its shareholders and communities by acquiring and developing high value assets in a variety of market environments. The model is to acquire and structure cashflow streams around assets that can support the communities by monetizing the current existing cash flow streams while identifying transitionary cash flow from the assets for the future.
For more information visit www.royaltymgmtcorp.com.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to the initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those that will be set forth in the "Risk Factors" section of the Company's registration statement and proxy statement/prospectus to be filed with the SEC. Copies will be available on the SEC's website, www.sec.gov. The information contained in this release is as of the date first set forth above. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Company Contact:
Thomas Sauve
Chief Executive Officer
tms@royaltymgmtcorp.com
www.royaltymgmtcorp.com
SOURCE: Royalty Management Holding Corporation
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