EMX Completes Its 5 Million Share Normal Course Issuer Bid Program

EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) has successfully completed its Normal Course Issuer Bid (NCIB) program, which was announced on February 7, 2024. The company has purchased and cancelled the maximum allowed 5 million common shares, representing approximately 4.45% of its issued and outstanding shares before the program's commencement.

The shares were acquired at an average price of US$1.65 per share, with a total investment of approximately US$8.3 million. The final transaction included a block trade of 1,375,600 shares from an undisclosed seller at approximately US$1.64 (C$2.35) per share.

EMX's completion of its $8.3M share buyback program represents a strategic capital allocation decision that directly benefits shareholders. By repurchasing 5 million shares at an average price of $1.65 per share, the company has reduced its outstanding share count by 4.45%, effectively increasing each remaining shareholder's ownership stake in the company.

The recent block trade of 1.375 million shares at $1.64 per share demonstrates institutional-level interest in the transaction and suggests confidence in the company's valuation at these price levels. For a company with a market cap of $186M, this buyback represents a meaningful commitment of capital that could have alternatively been used for business operations or acquisitions.

Share buybacks can be particularly accretive when management believes the stock is undervalued, as they reduce the number of shares while maintaining the same underlying asset value. This move suggests management sees current share prices as an attractive entry point and believes returning capital to shareholders through buybacks offers better value than alternative uses of cash.

EMX's guidance for 2024 suggests a decrease in GEO sales compared to 2023, which could potentially offset the positive impact of the share buyback on the stock price and market capitalization. However, the completion of the NCIB program demonstrates the company's commitment to maximizing shareholder value and enhancing long-term growth prospects.