Canada’s top 10 royalty and streaming companies

The Northern Miner presents the top-10, Canadian-headquartered royalty and streaming companies by market capitalization, as of late-June 2020.

1. Franco-Nevada
Market capitalization: US$26.40 billion

Franco-Nevada (TSX: FNV; NYSE: FNV) continues to hold its position as the number one royalty and streaming company by market capitalization. The company has a broad and diversified portfolio of 56 gold and gold-equivalent producing mines, 56 energy-producing assets, 35 advanced-stage gold and gold equivalent assets, 202 gold and gold-equivalent exploration-stage assets, and 25 energy development-stage assets.

The company remains focussed on precious metals – gold, silver and platinum group metals — which generate around 80% of its revenue, with the remaining 20% from energy, in the form of oil and natural gas.

Franco-Nevada’s four core long-life assets are: First Quantum Minerals’ Cobre Panama in Panama, with a US$1.36 billion investment for a gold and silver stream; Teck Resources’ (TSX: TECK.B; NYSE: TCK) Antamina in Peru, with a US$610 million investment for a 22.5% silver stream; Glencore’s (LSE: GLEN) Antapaccay in Peru, with a US$500 million investment for a gold and silver stream; and Lundin Mining’s (TSX: LUN) Candelaria in Chile, with a US$655 million investment for a gold and silver stream.

In 2019, the company generated record revenues of US$844.1 million, up 29.23% on the previous year of US$653.2 million.

2. Wheaton Precious Metals
Market capitalization: US$19.06 billion

Wheaton Precious Metals (TSX: WPM; NYSE: WPM) is one of the world’s largest precious metal streaming companies. It has a diversified portfolio of assets focused on the Americas.

Wheaton has streaming agreements for 20 operating mines and nine projects in development, with over 30 years of mine life based on the assets’ proven and probable mineral reserves. Over two-thirds of its assets fall in the lowest cost quartile.

In April, Wheaton launched a $5 million corporate social responsibility fund to support the efforts to combat the Covid-19 pandemic. The fund is designed to address the immediate needs in community healthcare, food security, and socioeconomic impacts in the communities in which it operates.

In 2019, the company generated revenue of US$861 million, of which US$541 came from gold, US$288 million from silver, and US$32 million from platinum group metals (PGMs).

3. Sandstorm Gold Royalties
Market capitalization: US$1.76 billion

Since its formation in 2008, Vancouver-based Sandstorm Gold Royalties (TSX: SSL; NYSE-AM: SAND) has grown its portfolio to over 200 royalty assets, with nearly half (47%) of them located in North America and over a third (34%) in South Africa. About 41% of the assets are owned by major mining companies and 46% by mid-tier companies with an average all-in sustaining costs (AISCs) of less than US$600 per ounce.

The company it says has “stable cash flow from 23 producing mines and a credit facility of $225 million” and has readily available capital for acquisitions and further growth.

In 2019, Sandstorm generated US$89.4 million in revenue from royalties and streams, an increase of 22.13% from the previous year’s US$73.2 million.

4. Osisko Gold Royalties
Market capitalization: US$1.60 billion

Montreal-based Osisko Gold Royalties (TSX: OR; NYSE: OR) owns over 130 royalty, stream, and precious metal offtakes, primarily in North America, including 20 producing assets, a 5% net smelter return royalty on its cornerstone Canadian Malartic mine, Canada’s largest open-pit gold mine, located in Quebec, and a world-class royalty on Newmont’s (TSX: NGT; NYSE: NEM) Eleonore gold mine in James Bay, Quebec.

The company also holds royalties on 14 development-stage projects. Osisko also owns a portfolio of publicly held resource companies, including interests in Osisko Mining (TSX: OSK) and Falco Resources (TSXV: FPC).

The company also owns the Cariboo gold project, an underground gold mine B.C.’s historical Cariboo mining district. It is proposing to build and operate the project through its subsidiary Barkerville Gold Mines.

Last year, Osisko generated $140.1 million in revenue from royalties and streams, an increase of 9.8% from the previous year of $127.6 million.

5. Labrador Iron Ore Royalty
Market capitalization: US$1.13 billion

Labrador Iron Ore Royalty (TSX: LIF; US-OTC: LIFZF) owns directly and through its wholly-owned subsidiary Hollinger-Hanna a 15.1% interest in Rio Tinto’s (NYSE: RIO; LSE: RIO) Iron Ore Company of Canada (IOC), which operates the Carol Lake mine, near Labrador City in Newfoundland and Labrador, on lands leased by the company.

The company also receives a 7% gross overriding royalty on all iron ore products produced, sold and shipped by IOC from the leased lands, and a 10¢ per tonne commission on sales of iron ore by IOC.

IOC is a joint venture between Rio Tinto (58.7%), Mitsubishi (26.2%), and the Labrador Iron Ore Royalty Income Corporation (15.1%).

In 2019, the company generated $178.9 million in revenue, a rise of 36.2% on the previous year of $130.9 million.

6. Maverix Metals
Market capitalization: US$540.15 million

Maverix Metals (TSX: MMX; NYSE-AM: MMX) is a gold and silver focussed streaming company headquartered in Vancouver. Since its founding in 2016, the company has completed 10 transactions to acquire a globally diversified portfolio of over 100 royalties and streams across 18 countries, of which 16 are advanced-stage projects and 13 are paying assets.

The company’s portfolio includes four major royalty portfolios, including projects held by Pan American Silver (TSX: PAAS; NASDAQ: PAAS), Gold Fields (NYSE: GFI), Newmont (TSX: NGT; NYSE: NEM) and Kinross Gold (TSX: K; NYSE: KGC).

Around 81% of Maverix’s assets are located in top mining jurisdictions: Australia (29%), Mexico (20%), U.S. (16%) and Canada (15%).

Major shareholders in the company include Newmont (23%), Pan American (2%), and Kinross (9%). Management and insiders hold about 10%.

In 2019, Maverix generated $44.73 million in revenue, a rise of 31.36% over the previous year of $34.05 million.

7. Altius Minerals
Market capitalization: US$304.85 million

Altius Minerals (TSX: ALS; US-OTC: ATUSF) holds royalty interests on 16 producing assets throughout the Americas. In Canada, these interests include a 4% net smelter return royalty on Hudbay Minerals’ (TSX: HBM; NYSE: HBM) 777 copper-zinc mine in Manitoba, five potash mines owned by Nutrien (TSX: NTR, NYSE: NTR) and a number of coal mines in Western Canada, and a royalty on Vale’s (NYSE: VALE) Voisey’s Bay nickel-copper-cobalt mine in Labrador.

The company also holds a 3.7% stream on Lundin Mining’s Chapada open-pit copper-gold mine in Brazil’s Goias state and a royalty on Excelsior Mining’s (TSX: MIN) Gunnison copper mine in Arizona.

In 2019, Altius generated $78 million in revenue, a 16.42% year-on-year increase from 2018’s $67 million.

8. Abitibi Royalties
Market capitalization: US$202.26 million

Abitibi Royalties’ (TSXV: RZZ; US-OTC: ATBYF) flagship royalty is a 3% net smelter return (NSR) royalty on the eastern portion of the Canadian Malartic mine, owned and operated by Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and Yamana Gold (TSX: YRI; NYSE: AUY).

The company’s NSR royalties cover portions of East Malartic (3% NSR), Odyssey (3% NSR), Sladen (3% NSR), Sheehan (3% NSR), Jeffrey (3% NSR), Barnat Extension (3% NSR), Gouldie Zone (2% NSR) and the Charlie Zone (2% NSR).

In addition, Abitibi Royalties holds a 1.5% NSR royalty on the Midway project, located east and south of the Canadian Malartic mine; and a 15% carried net profit interest on the historic Radium property, immediately west of the Canadian Malartic open pit.

In 2019, Abitibi generated total revenues of $3.47 million, an increase of 1,039% on revenues of $329,112 in the previous year.

9. Metalla Royalty and Streaming
Market capitalization: US$184.31 million

Vancouver-based Metalla Royalty and Streaming (TSXV: MTA; NYSE-AM: MTA) describes itself as a pure-play gold and silver streaming and royalty company.

The company holds a portfolio of three producing assets: Pan American Silvers’ (TSX: PAAS; NASDAQ: PAAS) Joaquin and COSE mines in Argentina and Silverback’s New Luika gold mine in southwest Tanzania. The company’s portfolio also includes 17 assets at the development-stage and 26 at the exploration stage.

On June 22, Metalla acquired an existing royalty on Coeur Mining’s (NYSE: CDE) producing Wharf mine in South Dakota.

In 2019, the company generated revenue of $7.85 million, up 6.51% from the previous year of $7.37 million.

10. EMX Royalty
Market capitalization: US$174.87 million

Vancouver-based EMX Royalty (TSXV: EMX; NYSE-AM: EMX) is focussed on precious and base metals assets and holds a diversified portfolio of royalty properties and early-stage exploration projects located on five continents.

The company’s portfolio includes 57 royalty and royalty generation properties in the U.S. and Canada, 38 in Scandinavia, three in Serbia, six in Turkey’s Western Anatolia and Eastern Pontides mineral belts, and three in Australia.

In 2015, EMX sold all its joint ventures to Newmont (TSX: NGT; NYSE: NEM) for $5.3 million in cash but retains a 0.5% net smelter return royalty on 49 research permits covering designated exploration areas in northern Haiti’s Massif du Nord mineral belt.

The company has also made strategic investments that include a 19.9% interest in Rawhide Acquisition Holding’s Rawhide gold-silver mining operation in Nevada and net smelter royalty interests on 18 properties in northern Chile operated by Revelo Resources (TSXV: RVL).

In 2019, EMX generated US$5.08 million in revenue, an increase of 43.77% from the previous year of US$3.54 million.