RE: TRR23 Aug 2020 09:21
It's difficult to do comparisons. The precious metal royalty players over in North America enjoy much higher multiples. Maybe that'll change as a bull market grows for base/industrial metals. The only real comparison is with the other base metal royalty players.
Anglo Pacific are listed in London, with a secondary listing in Toronto. They have 8 producing royalties (though currently a legacy coal royalty makes up the bulk of their revenue). They also have 4 development stage royalties and 4 early stage royalties. Their current stated goal is to replace their Kestrel coal revenue with green/battery/21st century resources before Kestrel depletes within the next few years. Market cap of circa £200m, and paying a 7%+ dividend.
Then you have the likes of Altius Minerals and EMX Royalty Corp. Both are listed in Canada and in the US.
Altius Minerals market cap is approx £290m. They have 15 paying royalties, but crucially they have a very extensive project generator business, where they develop early stage projects, then ship them out to companies wanting to take the projects forward. In return Altius are usually granted an equity stake in the company, but always a royalty over the project/areas. More recently they've been using their depleting coal royalty income to finance royalties in renewable energy - which they expect to spin out when it reaches critical mass.
EMX is similar to Altius with regards to organic project generation. Their producing royalties are more heavily weighted to precious metals at the moment, but they do have many copper/nickel/zinc development stage stuff that will come online within the short to medium term.
Currently they've got 4 producing royalties, with one or two more to come online within the next 6 months or so. The likes of the Timok project will be transformational for them. Current mcap of approx £180m.
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