EQS-News: Royalty Management Holding Corp Provides Year in Review and Preannounces Estimated Revenue Growth of Over 50%, Year-Over-Year

Company Showcases Strong Operational Execution, Revenue, and Cash Flow Growth With Expectations of Multiple Liquidity and Enhanced Return Events During 2025, Bolstering Capital Available for New Investments

Company’s Cash Flow Supported 100% of the Cash Costs of the Business With Strong Forecasts Going Into 2025 With Transformative Opportunities in Development

FISHERS, INDIANA - January 16, 2025 (NEWMEDIAWIRE) - Royalty Management Holding Corporation (Nasdaq: RMCO) (“Royalty Management” or the “Company”), an innovative royalty company building shareholder value by acquiring and developing high value assets in a variety of resource-driven and emerging technology industries, is pleased to share this year in review with its shareholders, in combination with the preannouncement of estimated unaudited annual revenue growth of over 50% from year-end 2023 to year-end 2024

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:

• 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.

• 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.

• 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.

• 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.

• The Company’s Board of Directors approved a stock repurchase program, which the Company executed upon through open market and private purchases.

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.