Beiträge von Centurion

  • Royalty Companies

    Fortsetzung:


    Vox Royalty (VOXR) reported the Q4 financial results. Its revenues declined from $3.5 million in Q3 to $3 million in Q4, however, compared to Q4 2022, they increased by more than 40%. The operating cash flow increased notably, from $1.7 million in Q4 2022 and $1.4 million in Q3 2023, to $2.3 million in Q4 2023. However, the net income turned into red numbers, as the company recorded a loss of $0.4 million. The loss is attributable to a $1 million impairment charge related to Jaw, Phoebe, Cart, and Colossus royalties, as the operator of the projects did not renew the mining claims. However, based on the deal with the operator, Vox should receive 4 new royalties with a value of at least $1 million, therefore, the company expects the impairment to be reversed in the future. Vox ended Q4 with cash of $9.3 million and debt-free. In 2024, Vox expects royalty revenues of $11-13 million, which should be in line with revenues of $12.3 million recorded in 2023. Vox also increased the quarterly dividend by 9.1%. $0.012 per share will be paid on April 12, to shareholders of record as of March 29.

    On March 18, Vox introduced a dividend reinvestment plan under which, shareholders may receive additional shares of the company at a 5% discount, instead of the cash dividend. The company also announced a $1.5 million share repurchase program.

    The company also provided an extensive portfolio update. The most important news is that De Grey Mining's (OTCPK:DGMLF) acquisition of the Ashburton gold project (Vox holds a 1.75% GRR royalty) should speed up its development. It is also expected that Silver Mines (OTCPK:SLVMF) will release an updated feasibility study for the Bowdens silver project (Vox holds a 0.85% GRR royalty) in H2 2024, and the final investment decision should follow soon after. And Orla Mining (ORLA) expects to obtain the final permits for the South Railroad project in 2025.

    Trident Royalties (OTCQB:TDTRF) announced that Lithium Americas (LAC) received a conditional commitment from the U.S. Department of Energy for a $2.26 billion loan under the Advanced Technology Vehicles Manufacturing Loan Program for financing the construction of the processing facilities at Thacker Pass. This is a huge step on the road to put the Thacker Pass lithium mine into production. The project is supported not only by Ford Motor Company (F) but also by the U.S. government now. This is huge news for Trident which holds an efficient 1.05% Gross Revenue Royalty on the project that should be producing 40,000 tonnes of battery-grade lithium carbonate per year in Stage I, and 80,000 tonnes per year after the Stage II expansion.

    Sailfish Royalty (OTCQX:SROYF) declared a Q1 dividend of $0.0125 per share, payable on April 15, to shareholders of record as of March 31. Sailfish also announced that CMC Metals unilaterally terminated the option agreement to acquire Swordfish Silver Corp.

    On March 27, Sailfish announced that the permitting process for Solidus Resources' Spring Valley gold mine keeps on progressing, with a Record of Decision expected in the winter of 2025. Sailfish holds a 0.5%-3% NSR royalty over the property (a better part of the proposed open pit is covered by the 3% NSR royalty).

    Orogen Royalties (OTCQX:OGNRF) announced preliminary Q4 financial results. The revenues amounted to C$2.3 million ($1.69 million), which is nearly double the revenue recorded during the same period of the previous year. The growth was fueled mainly by the Ermitano royalty. The net income amounted to C$350,000 ($257,000). The audited financial results should be released before the end of April.

    Elemental Altus Royalties (OTCQX:ELEMF) reported its preliminary Q4 financial results too. The company sold approximately 2,800 toz of gold equivalent, generating revenues of $5.6 million. The overall 2023 sales and revenues amounted to 9,070 toz of gold equivalent, and $17.8 million respectively.

    The April Outlook

    The earnings season is more or less over, and the news flow will probably be calmer in April. The early April days indicate that April could be another positive month for the precious metals R&S companies. However, it will be really hard to repeat the great March performance.

  • Royalty Companies

    Precious Metals Royalty And Streaming Companies: The March Report

    The March News

    The majority of news was related to the Q4 2023 financial results. Some companies provided also portfolio updates. The biggest news is probably the Thacker Pass lithium mine receiving a $2.26 billion loan from the U.S. Department of Energy, which is very good news for Trident Royalties.


    Franco-Nevada (FNV) released its Q4 financial results. The company sold 152,351 toz of gold equivalent, generating revenues of $303.3 million, which is in line with the previous quarter and slightly less than in Q4 2022. The operating cash flow amounted to $283.5 million, which is 20% more than in Q3, but only 1.5% more than in Q4 2022. Franco-Nevada reported a net loss of $982.5 million, attributable to the $1.17 billion impairment charge related to the Cobre Panama stream. The adjusted net income equals $172.9 million. Franco-Nevada ended Q4 with cash of $1.422 billion and debt-free. In 2024, Franco-Nevada expects sales of 480,000-540,000 toz of gold equivalent. By 2028, the sales should increase to 540,000-600,000 toz of gold equivalent. During the quarter, Franco-Nevada acquired an additional 1% NSR royalty on Skeena Resources' (SKE) Eskay Creek gold project for $41.8 million, additional royalties on the Haynesville natural gas project for $125 million, and an additional 1% NSR royalty on Argonaut Gold's (OTCPK:ARNGF) Magino gold project for $28 million.

    Wheaton Precious Metals (WPM) reported its Q4 financial results too. The gold equivalent sales amounted to 162,360 toz. The revenues grew to $313.5 million, which is 40% more than in Q3 and 33% more than in Q4 2022. The operating cash flow jumped up too. It grew by more than 40% to $242.4 million. The net income equaled $168.4 million, which is in line with Q4 2022, but 45% more than in Q3 2023. Wheaton ended Q4 with cash of $546.5 million, and a symbolical debt of $6.2 million. During Q4, Wheaton acquired a 100% silver stream on Waterton Copper's Mineral Park project for $115 million. It also agreed to pay up to $530 million to acquire a 62.5% gold stream and 5.25% platinum and palladium stream on Ivanhoe Mines' (OTCQX:IVPAF) Platreef project, 6.875%-7.375% gold and silver stream on BMC Minerals' Kudz Ze Kayah project, and 3.05% gold stream on Dalradian Gold's Curraghinalt gold project. Wheaton also paid $20 million for a royalty on Vista Gold's (VGZ) Mt. Todd gold project. In February, Wheaton acquired a 1.5% NSR royalty on Integra Resources' (ITRG) DeLamar project.

    The company also adopted a progressive dividend policy according to which, as much as 30% of average cash flows for the previous four quarters should be distributed in the form of dividends. The Q1 2024 dividend was set at $0.155 per share which is 3.33% more than in Q4. It will be paid on April 15, to shareholders of record as of April 2.

    Sandstorm Gold (SAND) provided an extensive portfolio update. The most important news is that Ivanhoe Mines (OTCQX:IVPAF) decided to accelerate the Platreef Mine Phase 2 development and also to increase the projected capacity of the Platreef mine, where Sandstorm holds a 37.5% gold stream. Phase 1 production should start in early 2025, an updated feasibility study for Phase 2 is scheduled for H2 2024. Teck Resources (TECK) announced that the Antamina mine life was extended until 2036. Sandstrom holds a 1.66% silver stream and 0.55% net profit interest from Antamina. Worth mentioning is also Lundin Gold's (OTCQX:LUGDF) decision to expand the Fruta del Norte mine throughput by 10% and recoveries by 3%. Sandstorm holds a 0.9% NSR royalty on Fruta del Norte. Less positive is the information that following the mining disaster at its Turkish mine, SSR Mining (SSRM) retracted all its guidances regarding the Turkish assets, the Hod Maden project included. Sandstorm expects that the project will be delayed by 1 year.

    The company also declared another quarterly dividend. Sandstorm will pay C$0.02 per share on April 26, to shareholders of record as of April 16.

    Gold Royalty (GROY) announced its Q4 2023 financial results. The company recorded revenues of $1 million, operating cash flow of -$1.7 million, and net loss of $19.4 million. The loss is attributable to a $19.76 million impairment charge related mainly to the Jerritt Canyon, Beaufor, McKenzie Break, and Swanson royalties. As of the end of Q4, Gold Royalty held cash of $1.8 million and debt of $33.1 million. What is important, in 2024, the company expects an approximately 100% growth in attributable production, to 5,000-5,600 toz of gold equivalent. The growth is attributable mainly to the Cote, Odyssey, Cozamin, and Borborema royalties.

    Metalla Royalty & Streaming (MTA) released its Q4 financial results. The company generated revenues of $1.4 million, which is in line with the previous quarter, and more than 100% better compared to the same period of last year. The operating cash flow remains low, it declined from $300,000 in Q3 to -$800,000 in Q4. The net income amounted to -$1.9 million, which is only slightly better compared to Q3, however, there is a notable improvement compared to the $4.8 million loss recorded in Q4 2022. Metalla ended Q4 with cash of $14.1 million and the net debt amounted to $1.1 million.

    EMX Royalty (EMX) released its Q4 financial results. The revenues amounted to $7.5 million, operating cash flow to $3.5 million, and net income to $1.4 million. All the numbers are notably worse compared to Q3, as the Q3 results were inflated by the delayed payments related to the Timok royalty. What is positive, the numbers are notably better compared to Q4 2022, due to the Timok royalty that started generating regular cash flows following the resolution of the dispute with Zijin Mining (OTCPK:ZIJMF), and due to the growing Caserones royalty. As of the end of Q4, EMX held cash of $27.3 million and its net debt amounted to $5.4 million. In 2024, EMX expects gold equivalent sales of 11,000-14,000 toz of gold equivalent. This is less than the 2023 sales of 15,784 toz of gold equivalent, however, the 2023 number includes also the delayed Timok royalty payments accumulated during 2021 and 2022.

  • Royalty Companies

    QRC ist im Smart Investor März 2024 erwähnt:


    Queen’s Road Capital (IK) - Smart Investor
    „Unser Geschäftsmodell ist besser als das von Royaltygesellschaften“, sagt Warren Gilman, Chairman und CEO des Minenfinanzierers Queen’s Road Capital (WKN:…
    www.smartinvestor.de


    Auf Stippvisite

    „Unser Geschäftsmodell ist besser als das von Royaltygesellschaften“, sagt Warren Gilman, Chairman und CEO des Minenfinanzierers Queen’s Road Capital (WKN: A2PZYY; IK). Das in Kanada börsennotierte Unternehmen hat sich auf Wandelanleihen für Bergbauunternehmen spezialisiert – ein Sektor, der bislang institutionellen Anlegern vorbehalten war.

    Royalty und Streaming hat zweifellos seine Vorteile. Der große Nachteil: Es kann mitunter Jahre dauern, bis sich ein solches Investment rentiert. Bei einer Wandelanleihe gibt es vom ersten Tag an Zinseinnahmen, die im Fall von Queen’s Road Capital im Durchschnitt bei etwa 9% p.a. liegen. Wird die Anleihe in Aktien des Anleiheschuldners gewandelt, steht und fällt der Erfolg damit, dass diese zu einem Kurs verkauft werden, der den vorher festgelegten Wandlungspreis übersteigt. Gilman erläutert, wie er eine Wandelanleihe des Uranprojektentwicklers NexGen Energy mit Erfolg „recycelt“ hat. Die Anleihe hatte im Jahr 2020 ein Volumen von 15 Mio. USD. Nach dem starken Kursanstieg von NexGen wurden die durch die Wandlung erhaltenen Aktien mit hohem Gewinn verkauft und NexGen erhielt eine neue Wandelanleihe über 70 Mio. USD – ein Win für beide Partner. Das Gleiche soll demnächst – wenn auch in kleinerem Maßstab – mit den Aktien von IsoEnergy (ebenfalls Uran) geschehen. Die Wandelanleihen an Rohstoffunternehmen hat Queen’s Road Capital durch Private Placements und/oder Bankdarlehen refinanziert.

    Aktuell hat Queen’s Road Capital sieben Investments – 64% davon im Uranbereich, für den Gilman besonders optimistisch ist: „Es wird viel mehr verbraucht als gefördert. Es dauert Jahre, bis die benötigten Kapazitäten geschaffen werden.“ Die Unternehmen im Einzelnen: NexGen Energy, IsoEnergy, Adriatic Metals, Los Andes Copper, Contango Ore, Challenger Exploration, Gold Royalty.

    Gilman weist darauf hin, dass seine Aktie trotz des jüngsten Kursanstiegs immer noch mit einem Abschlag auf den inneren Wert gehandelt wird. 2,4% Dividendenrendite gibt es obendrauf. [Blockierte Grafik: https://www.smartinvestor.de/2024/03/22/queens-road-capital-ik/]