Applying a proven business model
Our business model is proven and offers low risk exposure to an increasingly important basket of commodities
Royalty
Primary and secondary
- Primary royalties are a direct investment in the mine and require the royalty company to negotiate the royalty agreement with the mine operator
- A secondary royalty is an existing royalty that the royalty company acquires from the holder of the royalty rights
Benefits of royalty investments
To the mine operator
To the royalty company
Inputs
Internal
Capital
The Group utilises capital from a variety of sources, mainly cash flow from existing royalties, debt and equity, to invest in royalties and streams
Expertise
The team has vast experience in structuring royalty agreements, understanding the commodity markets and completing technical due diligence, all of which inform our capital deployment decisions
External
Mine performance
The ability of the operator to safely execute the mine plan, meeting or beating expectations with regard to annual production volumes, is a key input to the success of the business model
Commodity price
Commodity prices will be driven by macro-economic factors and can have a material impact on the outcome of the investment decisions taken
Value creation
Counterparties
Through providing an efficient form of finance for them to develop or expand mining projects
Shareholders
Return capital to shareholders through a well covered dividend
Sector leading dividend yield
5%
As at 31 December 2022
Employees
Provide a positive working environment with opportunities for professional development and an incentive scheme that ensures employees share in the success of the Company
Employee turnover in 2022
7%
Society
Through funding the production of commodities essential to the energy transition we are playing a small role in enabling the world to lower its carbon footprint