The EU is looking for domestic sources of copper, zinc, and strategic metals to secure its industrial base. Recent analyses by the European Court of Auditors show a dependence on imports for 10 of 26 critical minerals needed for the energy transition and modern defense systems. Despite the Critical Raw Materials Act, which aims to increase domestic production to 10% of demand, auditors identify bottlenecks in the financing and practical implementation of the requirements. At the same time, consultancies such as McKinsey are forecasting a significant increase in demand for materials for the energy transition, with annual growth rates in the single-digit percentage range through 2035. In this environment, specialized players are positioning themselves to provide access to deposits and manage capital risks for investors. We present three companies with a focus on Avrupa Minerals.
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Exciting business models for project developers
Companies such as Avrupa Minerals, Altius Minerals, and Elemental Royalty Corporation, formed through the merger of EMX Royalty and Elemental Altus Royalties, operate across the spectrum of the prospect generator and royalty model. The core of this approach is to prepare land packages through initial exploration work and outsource the capital-intensive phases of drilling to financially strong partner companies. In return, the developers retain minority interests or convert them directly into royalties. This mechanism reduces the dilution of equity that is commonplace in traditional junior exploration, thus securing a share in future discoveries. While EMX Royalty and Altius Minerals demonstrate how a diversified portfolio of these contracts minimizes risk for investors, Avrupa Minerals focuses on Europe as a geological door opener, striking a chord with investors.
Avrupa Minerals as a strategic door opener in Europe
Avrupa Minerals (TSXV:AVU) focuses on historically significant mining districts in Europe to reduce the risk of technical failure by utilizing known geological data and existing infrastructure. The company’s flagship project is the Alvalade copper-zinc project in the Portuguese part of the Iberian Pyrite Belt, a region known for volcanogenic massive sulfide deposits and located on the Neves-Corvo trend. Until about a year ago, this area was being developed by joint venture partner Sandfire Resources, which financed the drilling work. After Sandfire returned its 51% interest in March 2025, Avrupa now regained full control of a project defined by drilling programs with the proven Sesmarias discovery.
The company recently submitted an application for a mining license for Sesmarias in order to position the area for new investors or develop it independently. The discovery extends over a strike length of 600 to 1,000 meters and remains open in several directions. At the same time, Avrupa Minerals is pushing ahead with its expansion in Scandinavia and has secured eight permits in the Vihanti-Pyhäsalmi district of Finland through its partner company Akkerman Finland. Management’s goal in Finland is to discover approximately 10 million tons of ore near the Pyhäsalmi mine, ideally using existing infrastructure to reduce investment risks.
Altius Minerals proves the maturity of the licensing model
One step further along the value chain, Altius Minerals demonstrates what the final stage of a prospect generator looks like in practice. The company manages a portfolio and holds interests in 10 producing mines ranging from potash to iron ore to base metals and renewable energy. In the fourth quarter of 2025, Altius recorded attributable royalty revenue of CAD 20.6 million, resulting in total annual revenue of CAD 69.7 million. While revenue from the iron ore segment was under pressure due to lower dividends, the company offset these declines with growth in base metals and renewable energy. The broad positioning across different commodity classes gives the business model stability against price fluctuations in individual market segments.
EMX Royalty becomes Elemental Royalty Corporation
The well-known industry representative EMX Royalty used a combination of active project generation and targeted acquisitions in the past and managed a portfolio of over 140 royalties worldwide. The company generated positive free cash flow for eight consecutive quarters, underscoring the profitability of its approach. A relevant milestone was the merger with Elemental Altus Royalties completed in November 2025, which created a company with a market capitalization of approximately CAD 1 billion under the name Elemental Royalty Corporation. The new company expects adjusted royalty revenue of approximately CAD 70 million for 2025 and also intends to bid on larger transactions in the royalty segment in the future. CEO David Cole sees royalties as the most effective financial instrument in mining, as they offer the option of future discoveries without the holder having to bear additional capital costs.
Conclusion: Avrupa in an exciting position
le Elemental Royalty and Altius are already major players in the royalty business, the smaller company Avrupa Minerals offers investors strategic positioning in the European commodities sector. The prospect generator model reduces its own capital risk through partner-financed drilling programs. At the same time, the company has regained operational control over advanced assets such as the Sesmarias project in Portugal. Those who are committed to building sovereign supply chains within the European Union will find Avrupa Minerals to be a promising player with direct leverage on future discoveries. The combination of historically proven geology, proximity to existing infrastructure, and a clear focus on essential base metals in Europe makes the explorer a pragmatic building block for the continent’s future commodity security.
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