Analysts' Ideas - Electric Royalties Ltd.(TSXV: ELEC / OTCQB: ELECF)

Our Head of Research talked about Electric Royalties, it is a royalty company set to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel & copper) that will benefit from the drive to electrification (cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications).

Shares of royalty companies (also known as streamers) have outperformed miners in the past decade. Compared to miners, streamers are trading at significantly higher Enterprise Value/Revenue, as they have higher EBITDA margins, higher five-year revenue growth, and lower debt/capital.