I wrote this article myself, and it expresses my own opinions. I am not convinced that Coeur made a good decision to buy this project as the price looks steep in my opinion, but what is important for us to retain is that Coeur will almost certainly try to bring this project into production and if this happens, Maverix is poised to profit from it. There are only three other companies with a market capitalization of more than $1 billion, and five companies with a market capitalization below $100 million. The company also holds a 3.7% stream onLundinMinings (TSX: LUN) Chapada open-pit copper-gold mine in Brazils Goias state and a royalty onExcelsiorMinings (TSX: MIN) Gunnison copper mine in Arizona. The best performance was recorded by Elemental Royalties; its share . Agnico Eagle Mines ( TSX:AEM ) Large gold mining company with cost . Sandstorm Gold(TSX: SSL; NYSE-AM: SAND) has a portfolio of royalty assets on over 220 precious metal, base metal, and diamond assets, including 24 producing mines, 25 development stage projects, 19 projects at the advanced exploration stage, and 152 at the exploration stage. Iron ore products are transported via its wholly owned Quebec North Shore and Labrador Railway, a 418 kilometer rail line that links the mine to a year-round port facility. About 44% of these assets are owned by major mining companies and 43% by mid-tier companies. It staked a 5,800 square kilometer land package in northern Quebec -- the emerging James Bay region, to be more precise (pictured below). Orogen Royalties (OTCQX:OGNRF) announced that First Majestic Silver started production from the Ermitano deposit, over which it holds 2% NSR royalty. Vox Royalty (VOXCF) provided some updates regarding its assets portfolio. Maverix Portfolio. Please. In this article we will cover three relatively new small cap precious metals focused royalty companies: Abitibi Royalties, Almadex Mineral, and Maverix Metals. Almadex is the result of a spin off from Almaden Minerals and has properties in Mexico and Canada. Each property is managed and operated by stable counterparties such as Potash Corp, Teck, Agrium, and Mosaic. To fund the deal, Altus made a $26.1 million equity financing. Portfolio values are computed using monthly closes for stocks from Alpha Vantage. The attributable gold equivalent of all streams and royalties is around 13500 oz Au per year for a revenue (using gold at $1225) of C20m in 2017. Top Canadian Royalty Stocks for Passive Income in June 2023, PO Box 16018 Lower Mount Royal, Calgary, Alberta, T2T5H7, Canada, The Best NASDAQ ETFs to Buy in Canada for June 2023, The Best Canadian REITs to Buy in June 2023, The Best Nuclear Energy Stocks To Buy in June 2023, How to Buy Stocks in Canada Start Investing Wisely in June 2023, 11 of the Best Canadian Stocks to Buy in June 2023, The Top Canadian Wheat Stocks to Look at in June 2023. It is a core asset for Pan American (PAAS). To report a factual error in this article. Join today and enjoy a free trial! Start Investing. My article focused on this deal can be found here. The silver counterpart to Franco is Silver Wheaton (TSX: SLW)(NYSE: SLW), Canada's largest royalty company. The portfolio should generate cash flows of $13.3 million, as soon as next year. Save my name, email, and website in this browser for the next time I comment. Osisko Gold Royalties (OR) acquired additional royalties on the Bralorne, Ladner, and Golden Hornet properties owned by Talisker Resources (OTCQX:TSKFF) for C$7.5 million ($5.93 million). Nomad Royalty(TSX: NSR; US-OTC; NSRXF) joins the top ten list for the first time. Before the pandemic, this company had grown royalty revenue and restaurants in the royalty pool for multiple decades. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. While higher iron prices are good for all parties involved (Rio Tinto owns the majority of IOC), Labrador's royalty is taken "off the top." So if you're looking for income outside of the gold or restaurant industry, this could be a solid option. This made the company's dividend skyrocket to over 16% in 2021, and the fall in iron ore prices will likely put the company's dividend back into the single-digit range again. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Market Cap: $6.17 Billion. Its dividend structure is unique in that it aims to pay a set distribution no matter what revenues are generated by the IOC, and then it pays out more depending on cash flow. The company profits from not only net royalties but also things like net profit agreements and net smelter return royalties. Wheaton Precious Metals (WPM) made two big deals in December. Market cap: C$764.85 million ($633.99 million). The combined weight of these 5 companies on the old index was around 95%; therefore, the small companies had only a negligible impact on their performance. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. The measured and indicated resources increased to 806,000 toz of gold equivalent, and the inferred resources to 262,000 toz of gold equivalent. They can be set as a fixed sum (e.g., $300/toz gold) or as a percentage (e.g., 20% of the prevailing gold price), or a combination of both (e.g., the lower of a) $300/toz gold and b) 20% of the prevailing gold price). There are a wide variety of royalty companies and structures here in Canada. The effective 2.3752% gold stream will be reduced to an effective 1.5832% gold stream after 120,333 toz gold is delivered. However, in early December, Orogen surrendered a big portion of the gains. We are looking for valuations for the 10 largest silver mining and exploration companies trading on the Toronto Stock Exchange or TSX Venture Exchange. Currently, the company has operations in Mali, the Philippines, and Namibia, with future expansions planned into Colombia and Burkina Faso. Required fields are marked *. Published on Thursday, July 12 2018. The last company that we will peruse in this article is Abitibi Royalties. In May, the company acquired a 0.28% NSR royalty on the producing Caserones copper mine in Chile, operated by Minera Lumina Copper Chile, which is indirectly owned by JX Nippon Mining and Metals. However, after 131,250 toz gold is delivered, the stream will decline to 30%, and after 256,980 toz gold is delivered, the stream will decline to 5%. The majority of its revenue is generated right here in Canada. In layman's terms, the company licenses its brand to franchisors and takes an "off-the-top" fee. 1. 's discuss them further in the comment section. The Royalty & Streaming Corner is here to help you to better orientate within this specific stock market segment, to better understand its risks and opportunities, and to make better investment decisions! Suite 1600, Toronto, ON Canada, M5A 0N1. Market cap: C$2.94 billion ($2.44 billion). However, Elemental is resisting and it adopted a shareholder rights plan with a poison pill. With over $40 million in working capital and no debt, Virginia has the ability to advance properties on its own, while simultaneously partnering with Goldcorp, AngloAmerican, IAMGold, and Xstrata to do the heavy lifting. EMX provided also some news regarding its 4% NSR royalty on the Balya North lead-zinc-silver mine that is starting production. Triple Flag Precious Metals (TRFPF) initiated an automatic share purchase plan that supplements its previously announced normal course issuer bid. Is this happening to you frequently? Franco-Nevada Market capitalization: []. My article analyzing the importance of Timok for EMX and the impacts of the dispute can be found here. Maverix has to pay $650 per oz. This can lead to volatile results overall, particularly in climates of volatile commodity prices and inflation. By comparison, Newmont, which employs around 30,000 people, generated . The share price of the company was boosted by Gold Royalty's (GROY) hostile takeover attempt. Different metals contained in different ore bodies are valued differently, not only because of direct mining costs but because of various risks specific to the extraction of said metals. The most important news says that First Majestic Silver (AG) included Ermitano in the Santa Elena mine plan. NSR means Net Smelter Royalty while GRR means Gross Return Royalty (August 2017 Corporate Presentation). And in this article, I will attempt to highlight a variety of them along with some of the strongest options in the country. Market cap: C$26.32 billion ($21.82 billion). Compared to the three royalty stocks mentioned above, Labrador is not diversified. That said, and knowing the risks, I invite the reader to dig deeper into these companies and let's discuss them further in the comment section. Final thoughtsRoyalties are a business model worthy of your consideration. Daniel Cook has no position in any stocks mentioned. While still fairly small today, the subsector has grown to have more than 10 companies with a market cap of $100M USD each, with five surpassing the $1B mark. 4 royalty stocks that aren't Franco Nevada, Royal Gold, or Silver WheatonDigging through the article, you'll notice that each company is traded on the Toronto Stock Exchange. However, it is crucial to understand that the company's low yield is primarily due to a significant increase in share price over that period. EMX Royalty (EMX) initiated arbitration against Zijin Mining (OTCPK:ZIJMF). However, after the value of delivered gold and platinum less the value of ongoing payments accumulates to match the value of the upfront payment, the ongoing payments will increase to 22% of the spot prices. I am not receiving compensation for it (other than from Seeking Alpha). Created in 2016, the company now has a portfolio of 115 royalties and streams across 18 countries, of which 13 are paying and 19 are in the advanced stage. The project sports a 26km access road, 2.7km of underground workings, 86'000m of drilling, two completed bulk sample programs, 20 years of environmental baseline data, with other significant infrastructure already being on site. Osisko also owns a royalty onNewmonts (TSX: NGT; NYSE: NEM) Eleonore gold mine in James Bay, Quebec. Stocktrades Ltd will run advertisements on our posts. Franco-Nevada CEO David Harquail at the 2019 Canadian Mining Symposium, in London, U.K. The company holds a portfolio of 14 royalty, stream, and gold loan assets, of which six are on producing mines. The first company to apply this model to the mining industry was Silver Wheaton , which remains the largest precious metals streamer today with a market cap of roughly $14 billion. Empress Royalty (OTCQX:EMPYF) obtained a $15 million accordion credit facility from Nebari Natural Resources Credit Fund. In February, the joint owners of the mine,Yamana Gold(TSX: YRI; NYSE: AUY; LSE: AUY) andAgnico EagleMines(TSX: AEM; NYSE: AEM), approved the construction of the Odyssey underground mine project. However, this is partly due to the overall volatility of the oil and gas sector. Maverix just became more diversified and now has seven productive assets in the Americas, Burkina Faso and Australia, with a nice growth profile in the 2017-2020 timeframe. Nomad Royalty Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine. '000m of drilling, two completed bulk sample programs, 20 years of environmental baseline data, with other significant infrastructure already being on site. It was one of the success stories of 2016 following the sizable Cu-Au El Cobre discovery in August 2016 in Mexico. These include 51 royalties on projects owned byNewmont(TSX: NGT; NYSE: NEM), 24 royalties fromKinross Gold(TSX: K; NYSE: KGC), 11 royalties and two streams fromPan American Silver(TSX: PAAS; NASDAQ: PAAS); and 11 royalties fromGold Fields(NYSE: GFI). However, some major changes occurred in April 2021. Royalty companies come in two different forms, which should not be confused: the previously outlined lump-sum cases as well as streams. The precious metals miners, as well as royalty and streaming companies, were pushed down by weak gold and silver prices in September. CPPIB is staying in the market, buying equities when equities are selling off, Home prices down 6.6% from last year as sales continue to slump, Series I bond interest expected to fall to roughly 6.48% in November, Site Visit: New discoveries at historic DeLamar gold-silver property in Idaho, Should I take Social Security at 62 or wait? 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