RE: Pound Shop4 Dec 2020 18:30
The precious metal royalty players are paying top dollar at the moment for gold royalties. Yes, there's probably opportunities further down the development chain, but whether these would move the needle for APF though is doubtful. JT has said he's not keen to compete with the precious metal peers, however. Trident picked up a nice looking gold development royalty recently - on Apollo's Lake Rebecca deposit. They've also got Calidus' Warrawoona project funded to production in 18-24 months time too, so there's some reasonable looking gold exposure further down the track there. Most of the PM royalty co's are simply sitting on their hands though. The sector is awash with recent equity raises and most are well cashed up. The likes of Sandstorm and Franco have said they're looking at base metal projects that produce a gold by-product, then taking a royalty or stream on that by-product as a source of continued growth.
Still, plenty of opportunities in the base/bulk/battery sectors for APF to be active, though they're not the only name in town any longer. There's a handful of well capitalised recent entrants to the royalty space such as Nova who are focussing solely on copper and nickel. Altius, having spent the last few years developing their renewable energy royalties arm are now switching their attention back to their base/bulk commodity bread and butter as they potentially spin off the renewables arm as a separate listed entity.
Another possibility (which I doubt JT would be keen to entertain at the moment) is potential M&A. There's a handful of prospect generators that are building an attractive royalty portfolio. Many are on exploration or development stage assets, but there's some beginning to come to production. Examples could be Globex and Lara Exploration. Both are building extensive portfolios.
Anyway, looking forward to seeing what JT has in the pipeline here.
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