Star Royalties Ltd (TSX-V:STRR) has announced that preliminary revenues for its fourth quarter of 2022 increased 30% quarter over quarter to a record US$305,000, which the company attributed to better-than-expected royalty contribution from the Keysbrook Mine and improved operating performance at the Elk Gold Mine over the previous quarter.
The precious metals and carbon credit royalty and streaming firm also said its 61.9% owned Green Star Joint Venture expects MOBISMART Mobile Off-Grid Power Storage Inc, in which it owns a 2.5% gross revenue royalty, to become Green Star’s first revenue-generating royalty in 1Q 2023.
“Star Royalties’ majority-owned subsidiary, Green Star, has made significant progress in the fourth quarter with the addition of two carbon experts and the meaningful expansion of our opportunity pipeline,” Star Royalties CEO Alex Pernin said in a statement.
READ: Star Royalties sees 4% revenue rise in 3Q powered by record contribution from Keysbrook royalty
“Upcoming key catalysts include improving cash flow visibility across our existing mining and green royalty and streaming assets, raising capital for Green Star with the prospect of an eventual IPO, and executing on our significantly expanded portfolio of carbon opportunities,” Pernin added.
Star Royalties noted that preliminary full-year 2022 royalty revenues from its 2% minerals royalty on the open pit mineral sands (leucoxene, zircon) Keysbrook mine in Australia were 38% higher than internal expectations, driven by a combination of strong operating performance and higher-than-anticipated commodity prices.
As well, the company said Gold Mountain Mining Corp’s sequential improvements in operating performance and mined grades at the Elk Gold Mine have resulted in an expected royalty payment to Star Royalties of about C$54,000 for the fourth quarter of 2022.
It added that while the Elk Gold Mine continues to operate below Gold Mountain’s estimated production levels, the latest royalty payment highlighted sequential monthly improvements in both gold and silver mined grades.
Star Royalties is a precious metals and carbon credit royalty and streaming company. Star has created the world’s first carbon credit royalties in forestry and regenerative agriculture through its majority-owned Green Star Royalties joint venture.
Contact Sean at sean@proactiveinvestors.com