Ridgeline Royalties Inc.

Exciting news for Ridgeline today with Rio Tinto formally closing its $6.7bn acquisition of Arcadium (now known as Rio Tinto Lithium) and becoming the new owner of the world-class Galaxy lithium project in Quebec. Ridgeline owns a 0.5% royalty on Galaxy, and with Rio's clear focus on lithium, we look forward to a potential accelerated timeline for Galaxy (including potentially bringing forward Galaxy's Wave 2 expansion). Rio Tinto Lithium plans to grow the capacity of its Tier 1 assets to over 200kt LCE by 2028. In today's press release, Rio Tinto CEO Jakob Stausholm said, “...we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto’s scale, financial strength, operational and project development experience with Arcadium’s Tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations." #lithium #batterymetals #EVs #RidgelineRoyalties https://lnkd.in/gRmy2zqu

Global supply chains are set to change (again) with newly introduced tariffs and export restrictions. In response to the additional 10% tariffs on Chinese goods imposed by the U.S., China announced today it is restricting exports of five critical minerals used in EV batteries and other technologies. This is the latest in a series of Chinese export restrictions since 2023 - China previously restricted the export of rare earths magnet technology and graphite. At Ridgeline, our strategy remains to provide capital to critical minerals companies outside of China, to diversify production and create stable supply chains.? #RidgelineRoyalties #criticalminerals #lithium #graphite #cobalt #nickel #EVs #energytransition https://lnkd.in/gX7PMR8i

On Wednesday, December 4th, our President & CEO, Jonathan Beigle, was a panelist on the Financing & Valuation Panel at the 9th Annual Virtual Lithium Battery Supply Chain Conference hosted by Deutsche Bank. Jonathan was joined by Ernie O. from Lithium Royalty Corp (TSE: LIRC), Chris Berry from House Mountain Partners and Howard Klein from RK Equity. Topics included the current status of the lithium market, our expectations for the market in 2025, receptivity of royalty/stream financing in the lithium industry, consolidation in the lithium industry and the impact of President Trump returning to the White House in 2025. Thank you to Deutsche Bank for allowing us to participate in this distinguished panel.

As battery metal prices continue to fall, battery prices for electric vehicles continue to follow suit. While demand in the US and Europe has been weaker than expected in 2024, this decline in prices should translate to EVs becoming cheaper and incentivize more consumer demand. Since the founding of Ridgeline Royalties Inc., our thesis has been that EV penetration will improve as consumers make an economic decision to purchase electric vehicles over a gasoline or diesel-powered car. Subsidies are a short-term driver of demand, but over the long term, car purchases should be made based on comparing the total cost of ownership between two vehicles. #electricvehicles #evs #batterymetals #batteries #lithium #cobalt #nickel #graphite https://lnkd.in/gEbpeqac

Exciting news in the world of lithium today with Rio Tinto announcing a blockbuster acquisition of Arcadium Lithium for $6.7 billion, representing a 90% premium to Arcadium's closing price on October 4, 2024, and a 39% premium since the formation of Arcadium on January 4, 2024. While many observers are surprised by the move and the deal size, we at Ridgeline are not. Lithium remains among the fastest growing commodities and there is potential for significant supply deficits in the coming years, and it's clear Rio Tinto is positioning for that future at a time when lithium prices appear to have bottomed (in their own words, the acquisition represents a "counter-cyclical expansion").?? ? Ridgeline owns a 0.5% royalty on the Galaxy (formerly known as James Bay) lithium project in Quebec that will now be in the hands of one of the largest mining companies in the world, Rio Tinto ($114 billion market cap). We are excited to have Rio Tinto as a counterparty on the royalty and look forward to a potentially accelerated timeline for the project. https://lnkd.in/eCH6h-JF ? #lithium #batterymetals #royalties #ridgelineroyalties

According to EY's annual?survey?of mining executives (https://lnkd.in/g_Fsd8js), the top risk and opportunity for mining companies in 2025 is Capital, followed by Environmental Stewardship, and Geopolitics to round out the top 3. On Capital, mining companies "continue to face increased scrutiny from investors on how capital is deployed, with a strong focus on capital discipline and returns." Organic and inorganic growth also remain a focus, and companies are expanding their financing options - on average, they are considering four sources of capital. Increasingly, mining companies are exploring partnerships, JVs, and other options to mitigate the risk on large-scale projects. At Ridgeline, we continue to aim to support the mining sector - specifically battery metals - with the necessary capital for companies to grow. We agree with the EY survey results that mining companies are looking at more financing options today, including royalties and streams. Our team has certainly been busy with more inbounds and a full deal pipeline across our targeted commodities: lithium, graphite, cobalt, and nickel.

According to TechMet, a U.S. government backed investment vehicle, current low prices for critical minerals - including lithium, cobalt, and rare earths - are slowing down investments by Western mining companies. As a result, China, which tends to take a long-term view, remains the dominant player in the sector. From TechMet's CEO: "A lot of the players outside of China are very subject to market moves and sentiment and are therefore slowing down or scrapping projects, but the Chinese are not slowing down their investment.” At Ridgeline, we see the current price environment as ideal to make countercyclical investments in lithium, graphite, nickel, cobalt, and other critical minerals. We remain bullish on the sector long term and are ready to support mining companies with the capital they need to build their projects. https://lnkd.in/gJu4Qq3w #criticalminerals #rareearths #lithium #graphite #nickel #cobalt #ridgelineroyalties?

According to Bloomberg, EV battery prices in China have declined significantly over the last year, to the point that nearly two-thirds of EVs available in China are cheaper than their internal combustion engine counterparts. LFP and NMC batteries in China are now priced below $100/kWh, driven mainly by lower raw material costs, overcapacity, and margin compression. Outside of China, many cheaper EV models are expected to launch in 2025 and 2026, and this could mark a step change in adoption rates. At Ridgeline, we view battery prices below $100/kWh as key to improving EV affordability and adoption globally. https://lnkd.in/gc4YrYna #electricvehicles #EVs #lithium #ridgelineroyalties

Last week, our President & CEO, Jonathan Beigle, CFA, was a panelist at the Fastmarkets Lithium and Battery Raw Materials Conference in Las Vegas. The panel was focused on investing in the lithium industry over the long term. Jonathan explained that Ridgeline continues to believe that, while currently undergoing a cyclical downturn, lithium is a long-term winner in the energy transition. Ridgeline is focused on becoming the global leader in stream financing to support the industry and ensure supply can keep up with the rapid demand growth over the next two decades. #lithium #batterymetals #fastmarketsbrm

According to Bloomberg, Indonesian nickel supply - which is roughly half of global supply - comes at the high cost of "fatal accidents and ecological damage." Without a marked improvement in mining practices in Indonesia, we could see "a bifurcation of clean and tainted metal," with a price premium for the former. At Ridgeline, we prioritize sustainable mining practices by focusing on jurisdictions with strong safety and environmental regulations. #nickel #batterymetals #sustainability #ridgelineroyalties https://lnkd.in/gBzUAeeA