The Northern Miner presents the 10 largest Royalty Companies in Canada. This is the history of mining in the making and the great leadership to follow for our Team at TNR Gold! I fell in love with this business model when I first bought Royal Gold at USD $5 with Gold trading below $300 many years ago. Today Royal Gold jumped to an all-time high of $110 with gold price above $1,400 but still trading below its all-time high of $1,900.
We are building The Green Energy Metals Royalty Company and our holdings with industry leaders like McEwen Mining in Copper and giant from China Ganfeng Lithium will propel our assets portfolio into the future powered by renewable energy.
The Shotgun Gold project in the great state of Alaska provides our company with the exposure to Gold and hedging our potential royalty streams in Copper and Lithium. It is very important that we do not have to contribute any capital to the development of Los Azules Copper and Mariana Lithium and can rely on the technical expertise and balance sheet power of the McEwen Mining under the leadership of legendary Rob McEwen and the largest integrated lithium producer from China - Ganfeng Lithium.
The Shotgun Gold project in the great state of Alaska provides our company with the exposure to Gold and hedging our potential royalty streams in Copper and Lithium. It is very important that we do not have to contribute any capital to the development of Los Azules Copper and Mariana Lithium and can rely on the technical expertise and balance sheet power of the McEwen Mining under the leadership of legendary Rob McEwen and the largest integrated lithium producer from China - Ganfeng Lithium.
I personally own 20% of TNR Gold and our insiders are holding more than 50% of our Company. This year we have achieved very important milestones for our Company, including strong support from our investors who are providing long term investment loan. The main value drivers for TNR Gold in 2019 are:
1. Further development of "the sleeping giant" Los Azules Copper project by McEwen Mining which was granted PAE - special protocol ratifying the mining treaty between Argentina and Chile which is providing the necessary support for the development of the project of with such magnitude.
2. Acceleration of Mariana Lithium development by Ganfeng Lithium with a budget of USD $10 million in the first half of 2019. Ganfeng has announced in its 2018 annual report that they are expecting pre-feasibility and feasibility studies to be produced by the end of this year.
3. In case of the Shotgun Gold project, we are looking for the best partner among the majors to advance this project. Gold price above $1,400 speaks for itself and we have addressed the main catalysts for the gold market in our previous discussions. Gold breaking above $1,400 makes all the difference here and our powerful allies these days are FED who is looking for the growth before the elections by any means and Central Banks who are looking to accumulate as much gold as possible before it is too late.
Please read carefully legal disclaimers. Always DYOR and consult your qualified financial adviser before any investment decisions, you can find more about TNR Gold on tnrgoldcorp.com, SEDAR and SEDI. Do not hesitate to contact us with any questions and subscribe to our updates.
Please read carefully legal disclaimers. Always DYOR and consult your qualified financial adviser before any investment decisions, you can find more about TNR Gold on tnrgoldcorp.com, SEDAR and SEDI. Do not hesitate to contact us with any questions and subscribe to our updates.
InvestorIntel: The TNR Win-win Formula Of Gold + Copper + Lithium.
Building The Green Energy Metals Royalty Company: TNR Gold Investor Presentation April 2019.
LEGAL DISCLAIMER
Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.
InvestorIntel:
No matter what you read or hear about lithium and its supply, within 3 years time (by 2022) the metal will have trouble meeting the battery megafactories surging demand. Copper will also be in high demand for electric vehicles and their charging infrastructure. Electric cars are coming sooner than what most people think, therefore this will put immense pressure on lithium supply as we will need as much as 5x more lithium by 2025, based on my model’s forecasts. And this is based on only 20% electric car share by end 2025, which given electric cars will start being cheaper than conventional cars by 2022, now makes my forecast quite conservative. JP Morgan is forecasting 30% to 35% market share by 2025.
TNR Gold Corp. (TSXV: TNR) is not just a gold company, they are also working to become a green energy metals royalty company, supplying battery materials for the megatrend in electric vehicles. TNR founded International Lithium Corp. (TSXV: ILC), a green energy metals company that was made public through the spin-out of TNR’s energy metals portfolio. ILC holds interests in lithium projects in Ireland, Canada, and Argentina.
TNR’s 3 projects include gold, copper and lithium.
Shotgun Gold (90%) – Alaska
The 90% owned Shotgun Gold Project is an advanced-stage exploration prospect in southwestern Alaska. It is a porphyry gold deposit with potential for a bulk mineable gold resource.
In 2013 a resource estimate was produced for the property with an Inferred Resource of 20,734,313 tonnes at 1.06 grams per tonne (“g/t”) gold for a total of 705,960 ounces gold (“Au”) using a 0.5 g/t Au cut-off grade. The estimate is based on 34 diamond drill holes totalling 4,932.3 meters. The mineral resource is located from surface to a depth of 150m, and appears to be open at depth, and along strike meaning there is exploration upside. The Company strategy is to attract a joint venture partnership and is actively introducing the project to interested parties.
Los Azules Copper Project (0.36% NSR royalty) – Argentina
100% owned by McEwen Mining, TNR holds a 0.36% net smelter return (NSR) royalty on the Project. The Los Azules Preliminary Economic Assessment (PEA) uses commodity price assumptions of $3.00/lb copper, $1,300/oz gold, and $17/oz silver, resulting in an un-discounted net smelter return over the life of the mining project of $35.2 billion, and $10.6 billion using an 8% discount rate. This means TNR’s 0.36% NSR royalty equates to ~$38m life of mine value after applying the 8% discount rate, based on the PEA’s assumptions.
Mariana Lithium Project (1.8% NSR royalty) – Argentina
TNR retains a 1.8% NSR royalty on the Mariana Lithium property that is currently being advanced in a joint venture between International Lithium Corp. and Ganfeng Lithium International Co. Ltd. Ganfeng is the world’s second largest lithium producer and China’s largest lithium producer, so the project is very likely to make it to production one day.
Kirill Klip, CEO and President of TNR, stated in an interview with Investorintel: “I am really in this game because I believe that all cars will be electric much sooner that a lot of people are anticipating. It means that we will have to produce, moving from today’s level of just 217,000 tons of lithium carbonate as a market total in sales, to 1 million tons annually.”
TNR are focusing on the new energy metals as they believe they are at the very beginning of a megatrend that will have to produce a total 12 million tons of lithium by 2030, to have 200 million electric cars on the road worldwide The total global fleet is forecast to reach 2 billion vehicles by 2030, so 200 million electric cars on the road by 2030 is very possible but will need a large number of new EV metal miners in production.
TNR offers investors the safety of gold, and the growth potential of copper and lithium at a lower risk using royalties. The EV revolution is now unstoppable and embraced by all car companies, even Volkswagen are now saying EVs will go mainstream in 2022. If you want to be part of the new green future with some safety of gold then investors should consider TNR Gold Corp."
The Northern Miner:
The Northern Miner presents the top 10 Canadian-headquartered royalty and streaming companies by market capitalization, as of early July 2018.
1. FRANCO NEVADA
$20.5B market capitalization
$20.5B market capitalization
Franco-Nevada (TSX: FNV; NYSE: FNV) stands head and shoulders above the rest of the royalty and streaming pack with a market cap of $20.5 billion — or $3.5 billion higher than last year and $6.5 billion more than its closest current competitor.
The company has a portfolio of 51 producing gold and gold-equivalent assets plus 55 producing energy assets. The portfolio also holds 37 advanced gold and equivalent assets, 202 gold and equivalent exploration assets, and 25 energy exploration assets.
Primary crushers and a conveyor at First Quantum Minerals’ Cobre Panama copper mine under construction in Panama. Credit: First Quantum Minerals.
Some of its notable long-life assets include: Cobre Panama in Panama, with a US$1.36 million investment for a gold and silver stream; Antapaccay in Peru, with a US$500 million investment for gold and silver stream; Antamina in Peru, with a US$610 million investment for 22.5% silver stream; and Candeleria in Chile, with a US$655 million investment for a gold and silver stream.
During the first quarter of 2019, Franco posted new quarterly records for revenue, at US$179.8 million and net income, at US$65.2 million.
For 2019, the company is guiding 465,000 to 500,000 gold equivalent ounces, plus energy revenue of US$70 million to US$85 million.
Franco Nevada has had 12 consecutive years of dividend increases, and has paid out more than US$1.1 billion since its initial public offering in December 2007.
Co-founder and chairman Pierre Lassonde announced in May that he would be retiring as chairman at the next annual meeting in May 2020.
2. WHEATON PRECIOUS METALS
$14.0B market cap
$14.0B market cap
Vale’s Salobo copper-gold mine in Para state in northern Brazil, where Silver Wheaton holds a 75% gold stream. Credit: Vale.
Based in Vancouver and led by president and CEO Randy Smallwood, Wheaton Precious Metals (TSX: WPM; NYSE: WPM) is one of the world’s largest precious metals streaming companies.
Wheaton has streaming agreements for 19 operating mines and nine development projects. Its portfolio of low-cost, long-life assets, including a gold stream on Vale’s Salobo mine in Brazil, and silver streams on Glencore’s Antamina mine in Peru and Newmont Goldcorp’s Penasquito polymetallic mine in Mexico.
In the first quarter of 2019, Wheaton generated almost $120 million in operating cash flow, driven by record gold sales volumes of 93,585 oz. gold, up 22% from a year earlier. During the first quarter, Wheaton posted net earnings of US$47.3 million on US$225 million in revenue, versus US$68.1 million and US$199.3 million in the year-ago period.
Wheaton says the increase in attributable gold production was primarily due to the start of its San Dimas gold stream effective May 10, 2018, and its Stillwater precious metals stream effective July 1, 2018, as well as higher production at Sudbury.
A decrease in attributable silver production was primarily due to the termination of the San Dimas silver stream effective May 10, 2018, and all deliveries from the Lagunas Norte, Veladero and Pierina mines ceasing effective March 31, 2018, in accordance with the Pascua-Lama precious metals purchase agreement.
3. LABRADOR IRON ORE ROYALTY
$2.2B market cap
$2.2B market cap
Haul trucks with a shovel in the background at Iron Ore Co. of Canada’s Wabush 3 iron ore mine in Labrador. Credit: Rio Tinto.
Low-key Labrador Iron Ore Royalty (TSX: LIF; US-OTC: LBRMF) uniquely derives all its revenue from Rio Tinto’s Iron Ore Co. of Canada (IOC) and related operations. Labrador Iron holds 182 sq. km of mining leases near Labrador City. IOC leases some of this land, and pays Labrador Iron a 7% gross overriding royalty on sales of its iron ore products.
In 2018 the company recorded net income of $128.5 million on revenue of $130.9 million, versus $157.3 million on $158.6 million in 2017. All of this was before the Vale iron ore tailings disaster in Brazil in early 2019, which has sharply cut global iron ore production and caused iron ore prices to rise substantially.
On June 18, the company declared a regular quarterly cash dividend of 25¢ per common share plus a special dividend of 65¢ per common share, payable to holders of record at the close of business on June 30 and to be paid on July 25, 2019.
In March, William H. McNeil stepped down as president and CEO, and was replaced in both positions by John F. Tuer. McNeil subsequently was appointed chairman at the company’s annual meeting with the resignation of William J. Corcoran from that position.
4. OSISKO GOLD ROYALTIES
$2.1B market cap
$2.1B market cap
Trucks in Agnico Eagle Mines and Yamana Gold’s Canadian Malartic gold mine in Malartic, Quebec. Photo by John Cumming.
Montreal-based Osisko Gold Royalties (TSX: OR; NYSE: OR) bills itself as an “intermediate precious-metal royalty company focused on the Americas” that started activities in June 2014.
Osisko holds a North American-focused portfolio of over 130 royalties, streams and precious metal offtakes.
It describes its portfolio as being anchored by five cornerstone assets, including a 5% net smelter return royalty on Canadian Malartic in Quebec, which is the largest gold mine in Canada. Osisko also owns a portfolio of publicly held resource companies, including a 15.5% interest in Osisko Mining, a 33.4% interest in Barkerville Gold Mines and a 12.7% interest in Falco Resources.
Osisko picked up a 5% net smelter return royalty on Victoria Gold’s newly producing Eagle Gold mine in Yukon for $98 million in early 2018.
5. SANDSTORM GOLD ROYALTIES
$1.3B market cap
$1.3B market cap
Nolan Watson
Vancouver-based Sandstorm Gold Royalties(TSX: SSL; NYSE: SAND) was founded in 2008 by Nolan Watson and David Awram, and has since grown to encompass a portfolio of over 185 royalties assembled through more than $3 billion in royalty acquisitions.
Today, Sandstorm says it has “stable cash flow from 21 producing mines and a credit facility of $225 million, providing readily available capital for new acquisitions and further growth.”
For the second quarter of 2019, Sandstorm sold 16,400 attributable gold equivalent ounces — a record for the company.
Sandstorm’s most high-profile asset is its 30% net profits interest and 2.0% net smelter return royalty on the advanced Hod Maden gold project in Turkey, which is being developed by majority owner Lidya Madencilik with an eye to first production perhaps by late 2022.
6. MAVERIX METALS
$621M market cap
$621M market cap
Vancouver-based Maverix Metals (TSX: MMX; NYSE-AM: MMX) got its start as royalty and streaming company in 2016, when it changed its name from MacMillan Minerals and acquired a 13-asset royalty and stream portfolio from Pan American Silver and then an 11-asset portfolio from Gold Fields. More recently it added a 50-royalty portfolio from Newmont Mining.
Today, Maverix has a portfolio of 80 royalties and streams in 16 countries, of which 13 of the underlying mines are producing, and says its “strong, cash-generating asset base and experienced team makes Maverix an opportunistic new vehicle to grow with.”
Maverix graduated to the Toronto Stock Exchange and NYSE American in June 2019, after having previously traded on the TSX Venture Exchange and over-the-counter in the United States.
7. ALTIUS MINERALS
$545M market cap
$545M market cap
A jumbo at Hudbay Minerals’ 777 zinc-copper mine in Flin Flon, Manitoba. Credit: Hudbay Minerals.
Altius Minerals (TSX: ALS; US-OTC: ATUSF) directly and indirectly holds royalties and streams that generate revenue from 15 operating mines in Canada and Brazil that produce copper, zinc, nickel, cobalt, iron ore, potash, and both thermal and metallurgical coal.
The portfolio also includes development-stage royalties in copper, renewable energy, and a large portfolio of exploration stage projects.
Altius’s royalty interests in Canada include a 4% net smelter return royalty on Hudbay’s 777 copper-zinc mine in Manitoba, 6 potash mines and 5 coal mines in western Canada, and a royalty on the Voisey’s Bay nickel-copper-cobalt mine in Labrador.
In Brazil, it has a 3.7% stream interest in the Chapada copper-gold mine.
Altius also receives regular dividend income from is equity ownership in Labrador Iron Ore Royalty Company, which is treated as iron ore royalty revenue, being a pass-through vehicle.
Altius says that collectively these royalties are anticipated to generate between $67 million and $72 million in royalty revenue in 2019.
8. ABITIBI ROYALTIES
$156M market cap
$156M market cap
Ian Ball-led Abitibi Royalties (TSXV: RZZ; US-OTC: ATBYF) was spun out of Golden Valley Mines and listed as a public company in 2011.
Abitibi’s flagship royalty is its 3% net smelter return royalty on the eastern portion of the Canadian Malartic mine — owned and operated by Agnico Eagle Mines and Yamana Gold — which includes the Jeffrey Zone and the Barnat Extension, where production activities were expected to start in 2018 and 2020.
The royalty includes the Odyssey North discovery and other portions of the Odyssey project, as well as portions of the East Malartic property, which was a historical gold producer.
9. EMX ROYALTY
$131M market cap
$131M market cap
IGC’s crew and visitors at the Malmyzh copper-gold project in Far East Russia in 2016. Photo by Salma Tarikh.
David M. Cole-led EMX Royalty (TSXV: EMX; NYSE-AM: EMX) is a precious and base metals royalty company based in Vancouver.
Its royalty and property portfolio spans five continents, and consists of what it calls a “balanced mix of precious metal, base metal, and other assets” in countries including the U.S., Norway, Haiti, Serbia, Sweden, Turkey, Australia, and Chile.
Notably, the sale of the Malmyzh copper asset in Russia’s Far East by IG Copper for US$200 million in October 2018 translated to EMX’s strategic stake in IG being converted into a US$65 million initial cash payment and up to US$4 million from escrow.
10. METALLA ROYALTY & STREAMING
$124M market cap
$124M market cap
Vancouver-based Metalla Royalty & Streaming (TSXV: MTA; US-OTC: MTAFF) says it has several positive characteristics: experienced managers; the most-active royalty company as measured by material acquisitions; positive cash flow that delivers dividends and increasing growth; the greatest exposure to silver of any publicly listed royalty company; a focus on acquiring royalties on projects operated by large producers; and a share valuation that is at a “significant discount to its peers despite recent outperformance.”
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