ELY to Break $1 Very Quickly - Read Exactly Why!

Read this alert in full to see exactly why NIA is nearly 100% sure ELY will break $1 very quickly (possibly this month)!

With gold just hitting $1,500 per oz in the U.S., here is how NIA values Ely Gold Royalties (TSXV: ELY):

ELY owns 100% of 22 U.S. gold properties (18 in Nevada) that it currently has optioned to 14 publicly traded gold miners that have a combined market cap of CAD$4.1 BILLION. This year, ELY will receive CAD$1.276 million in option payments from these gold miners. Each year, these option payments will rise. Next year, ELY will receive approximately CAD$2 million from these same option agreements. Almost every gold royalty company trades for between 15 and 20 times revenue. Based on this year's option payments of CAD$1.276 million, ELY's option agreements are worth between CAD$19.14 million and CAD$25.52 million.

ELY owns 100% of 24 U.S. gold properties that are available to option. With the price of gold soaring, look for ELY to rapidly sign many new option agreements in the weeks/months ahead! Conservatively, we expect ELY to generate approximately $1 million from its 24 available U.S. gold properties over the next twelve months. Based on a valuation of 15-20X revenue, we give these available properties a valuation of between CAD$15 million and CAD$20 million.

ELY owns a Per Ton Royalty Interest on Eric Sprott's Jerritt Canyon Processing Facilities. At $1,500 per oz gold, ELY will receive CAD$0.30 per ton processed. When gold breaks $1,600 per oz, this fee will rise 33.33% to CAD$0.40 per ton. When gold breaks $2,000 per oz, this fee will rise 33.33% more to CAD$0.5332 per ton. The facility processes 180 tons per hour or 4,320 tons per day. This is equal to 1,576,800 tons on an annual basis and ELY's current royalty rate of CAD$0.30 per ton will earn ELY an annual royalty of CAD$473,040. Therefore, we estimate its fair value at between CAD$7.1 million and CAD$9.46 million.

ELY owns a 1% royalty in Coeur Mining (CDE)'s recently acquired Lincoln Hill property, which is directly adjacent to CDE's Rochester mine, which produces 5 million oz of silver and 54,388 oz of gold per year generating annual revenue of CAD$224 million. Lincoln Hill has 4X higher grades than Rochester and we expect CDE to begin mining ore from Lincoln Hill in the near-future to extend Rochester's mine life while improving cash flow. If CDE replaces 25% of Rochester's production with production from Lincoln Hill, thereby generating annual Lincoln Hill revenue of CAD$56 million, ELY's royalty will earn CAD$560,000 per year. We estimate ELY's CDE royalty to be worth between CAD$8.4 million and CAD$11.2 million.

ELY owns a 0.75% royalty in Gold Resource Corporation (GORO)'s Isabella Mine, which just entered production in April. It has a proven/probable gold reserve of 214,000 oz grading 2.28 g/.t and will produce an average of 40,000 oz of gold per year. GORO has just launched a major drilling campaign at the immediately adjacent Civit Cat North target where surface samples have shown very encouraging gold grades of 2.1 g/t. GORO believes that Civit Cat North will allow it to greatly extend the mine life of Isabella, which is HUGE for ELY because it has a 2.5% royalty in Civit Cat North, which is 3.33X larger than ELY's Isabella reserve royalty! GORO has also announced that it will begin exploring its Scarlet target located approximately 100 meters north west of Isabella. ELY also holds a 2.5% royalty in Scarlet, which means any news of high grade gold discoveries at Scarlet will be a MASSIVE game-changing catalyst for ELY that could immediately send ELY to $2-$3 per share!

In valuing ELY's GORO royalties, we have decided to average together ELY's 0.75% royalty for the Isabella mine reserve area now in production and ELY's 2.5% royalty covering the immediately adjacent exploration areas that will greatly extend Isabella's mine life - perhaps to 20 years or more, in NIA's opinion! An average ELY royalty for GORO's Isabella mine and immediately adjacent exploration areas of 1.625% based on average annual gold production of 40,000 oz and USD$1,500 per oz gold will earn ELY an average annual GORO royalty of CAD$1.3 million. This values ELY's GORO royalties at between CAD$19.5 million and CAD$26 million!

ELY owns a 2% royalty in Wallbridge Mining (TSX: WM)'s Fenelon Mine, which has been making the world's highest grade gold discoveries. WM's market cap is now up to CAD$215 million with 100% of its value for the Fenelon Mine. Typically, owning a 2% royalty is equal in value to owning 20% of a gold mine because with a royalty you don't pay any development costs/mining expenses. ELY's Fenelon Mine royalty of 2% deserves a valuation equal to 20% of WM's market cap, which would value it at CAD$43 million.

Later this year, ELY will receive its first Fenelon Mine royalty based on WM's recent bulk sample of 33,233 tonnes that shocked the world by containing an unbelievable 18.49 g/t of gold therefore producing 19,755 oz. WM sold this gold for proceeds of CAD$34.128 million and therefore owes ELY its first royalty payment of CAD$682,555. Any gold mine with grades of 18.49 g/t is 100% guaranteed to be rushed into production ASAP, especially when gold prices are exploding!

After WM's early 2020 reserve update, Fenelon's reserve will likely support a 60,000 oz per year mining operation. NIA expects Fenelon to enter production in 2020 and with initial annual gold production of 60,000 oz that it ramps up to 100,000 oz by 2022. At $1,500 per oz gold, WM will initially generate annual revenue of CAD$120 million, thereby earning ELY an annual royalty of CAD$2.4 million. A valuation of 15-20X an annual royalty of CAD$2.4 million would value ELY's Fenelon royalty between CAD$36 million and CAD$48 million. Interestingly, the midpoint of CAD$36-$48 million is CAD$42 million, almost exactly in line with our other estimation of CAD$43 million based on 20% of WM's market cap!

ELY owns DOZENS of additional royalties that we estimate are worth a MINIMUM of CAD$10 million.

Based on NIA's estimates, ELY deserves a market cap of between CAD$122.14 million and CAD$145.18 million. With about 100 million shares outstanding, this would equal an ELY share price of between $1.22 and $1.45! Therefore, NIA is nearly 100% sure that ELY at $1+ per share will arrive fast!


Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from ELY of USD$30,000 cash for a six-month marketing contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.