Categories: General Market Commentary
Topics: General Market Commentary

Empress Royalty (TSX-V: EMPR)(OTC: EMPYF) CEO Alexandra Woodyer Sherron on Record Revenue, Robust Balance Sheet, Looking for New Opportunities

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Empress Royalty (TSX-V: EMPR)(OTC: EMPYF), Ms. Alexandra Woodyer Sherron. Alex, it is so good to have you back on. It's been too long. How are you?

Alexandra Woodyer Sherron: I am doing well. It is so great to be back here giving you an update.

Gerardo Del Real: Well, every time we chat, it seems like you're executing beautifully and reporting record revenue. This not being any different. Congratulations on your Q1 financials. I would love to get into the details, but again, first and foremost, congrats on another excellent record quarter.

Alexandra Woodyer Sherron: Thank you so much. No, it's great to see our vision and the hard work paying off. So, yeah, we put our Q1 2026 financials out as the revenue grows, a significant portion of that growth goes directly to the bottom line. We generated approximately $9 million US in revenue for a gross profit of $7 million adjusted EBITDA at $6 million and $3 million in net income. And what I find even more equally important is the strength of our balance sheet.

At quarter end, we held more than $19 million US in cash, gold, and silver. So these results are really demonstrating the portfolios performing the model scaling and we're continuing to build the financial strength while maintaining a disciplined approach to growth.

Gerardo Del Real: Beautiful. No, look, and then let's chat a little bit because you've had a great past 12 months executing. You're still, however, pretty discounted in terms of your royalty peers. Can you speak to that a bit? Because I think it presents a heck of an opportunity for shareholders that may be wanting to add exposure. We still have gold at $4,500, lots of runway there. We have silver sitting there at the $75 level. Can you speak to that a bit?

Alexandra Woodyer Sherron: Yeah. I mean, we're just getting started. We've created that stability in the portfolio now and now really is the time for us to really grow and scale the model. One of the biggest milestones for us is that we've transitioned from building the portfolio to harvesting the benefits of that portfolio.

Historically, our focus was primarily on producing or near term producing assets, because it was establishing that recurring cashflow, which is critical. And we've reached our objective. We have the producing assets generating meaningful cash flow, which gives us much more greater flexibility than ever before to evaluate new opportunities.

We do have obviously the four producing assets. We have the one development asset. We've got 10 exploration assets currently in the portfolio and we're looking to use some of this additional capital we have that we've been gathering from our revenue to deploy into new opportunities. We have more flexibility and financial strengths and more options than we've had at any point in the history of the company.

Gerardo Del Real: With gold where it's at, with silver where it's at, I got to believe that you're looking as always, right? Just knowing you for some time now, you're likely looking at different opportunities. Are you still seeing options out there? Are you active on that front?

Alexandra Woodyer Sherron: Very, very active. We're seeing more opportunities than ever before. Part of that is obviously the market environments you're referring to, but it's also the evolution of Empress itself. Through our relationship with Endeavor, our network, our approach to regional business development and our growing track record, opportunities are increasingly coming directly to us.

In fact, I just recently returned from a site visit in Africa. We're actively conducting technical due diligence and several potential opportunities. The challenge isn't sourcing them. The challenge is really selecting the opportunities that best fit our criteria and create the biggest value for shareholders. One advantage of being as young and small as Empress is right now is our size. We don't need dozens of transactions to create meaningful growth. A handful of well executed investments can really have a significant impact on our business.

Gerardo Del Real: You reaffirmed full year 2026 guidance. Can you touch on that a bit just for those that may be newer to the story or looking forward here and wondering what the second half's going to look like?

Alexandra Woodyer Sherron: Excellent. So, yeah, after reviewing our Q1 performance operator guidance and underlying assumptions, we remain comfortable with our previously issued outlook. We continue to expect production of about 7,000 to 7,400 gold equivalent ounces for 2026. For us, maintaining guidance after a strong first quarter reflects our confidence in the portfolio and the quality assets that support our business. So I think investors should really view that consistency as evidence that the portfolio is performing largely as expected and continues to provide a solid foundation for future growth.

Gerardo Del Real: Looks to me and sounds like, and I know you've been busy behind the scenes, but it looks to me that you're going to have a very, very publicly busy second half of the year. What's that look like for you?

Alexandra Woodyer Sherron: We hope so. We're working hard on this. The whole team's at full tilt right now. Looking ahead, there's sort of three priorities to focus on. First is the continued growth from the cash flow from our current producing portfolio. Second is the advancement of the development stage assets within our portfolio and also the exploration opportunities that we have. And then third is our discipline capital deployment into new royalties and streaming transactions.

Over these last several years, we've built the foundation of the business. Today, we're beginning to see the benefits of that work through the growing revenue, stronger cash flow, and increased financial flexibility. So it really is building on what we've built to date.

Gerardo Del Real: Well, congratulations again on another record quarter. Excited to see you in Boca Raton at the Rick Rule Symposium here in about a month or so. Anything to add to that, Alex?

Alexandra Woodyer Sherron: No, I'm excited to spend time with you guys down there and Rick as well. It's going to be a very exciting conference. I think there's a lot of things happening and some great speakers there.

From the Empress perspective, I really believe we're entering one of the most compelling periods in Empress' history. We've got a producing portfolio, reoccurring cash, strong balance sheet and a growing pipeline of opportunities. The question really now is, how do we maintain that discipline and the new opportunities we're looking at? And this really makes it an exciting time. So thank you, Gerardo. I look forward to seeing you in person.

Gerardo Del Real: Always an absolute pleasure. Thank you again, Alex.

Alexandra Woodyer Sherron: Thank you so much.

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