November was a very interesting period royalty and streaming companies, though interesting isn’t perhaps how the three major royalty and streaming companies would describe it!
Wheaton Precious Metals Corp (LON:WPM) (TSE:WPM) was down a staggering 16.2% on the month and a shocking 26.1% down over three months. While Royal Gold Inc. (TSE:RGL) was down 9.0% on the month and 17.0% over three months, and Franco-Nevada Corporation (TSX:FNV) was down 3.9% on the month and 10.7% on three months. These substantial falls in the share price of the Majors is a result of the sharp reduction in the gold price from US$1,900/oz Au at the start of the month, to its current level of US$1,779/oz Au.
You might expect all the negativity associated with the Majors and the lower gold price, to weigh down on the junior’s royalty companies but that hasn’t been the case. The Juniors were up an average of 9.0% on the month, buoying the average share price movement for mining and royalty companies, up by 3.6% on the month.
In its second month of trading Nova Royalty (CVE: NOVR) rocketed, up an eyewatering 38.9%. The acquisition of an existing 2.4% net smelter return royalty on a portion of Antofagasta PLC (LSE: ANTO)’s Twin Metals Copper-Nickel-PGM project, located in Minnesota, combined with the upscaling of a placing to C$12.5 million, lead to the unprecedented demand for the Company’s shares this month.
Elemental Royalties Corp. (TSX-V: ELE) also has a strong month, up 18.9% (↓6.6% 3-months) on the back of the proposed US$55m acquisition of a portfolio of three gold royalties in Australia from South32 Limited (ASX, LSE, JSE: S32; ADR: SOUHY) and a upscaled placing, to raise C$15 million.
Deterra Royalties Limited (ASX:DRR) made an impressive start as a public company, up 13.3% during its first month of trading, following its demerger from Iluka Resources Ltd (ASX:ILU) and IPO on the Australian Stock Exchange.
Metalla Royalty & Streaming Ltd (CNSX:MTA) was up 12.7% during November (↓8.0% 3-months), after the purchase a portfolio of royalties in Nevada and Utah, for an aggregate of US$4.125 million.
Vox Royalty (CVE:VOX) also had an active month, acquiring a portfolio of royalties in North America and also acquiring a 1.75% gross sales royalty on Bushveld Minerals Limited's (LON:BMN) Brits Vanadium Project, located within the North West Province of South Africa. This resulted in a two fold increase in our valuation of the Company, in a note published on 10th November and another note published 25th November, but both these exciting developments failed to get recognition from the market, with the Company down 1.3% on the month (↓21.4% 3-months).
Next month we are anticipating the closure of a number of acquisitions announced by several royalty companies. Osisko Gold Royalties Ltd (OR: TSX & NYSE) (↓6.7% 1-months & ↓10.7% 3-months) spin out, Osisko Development Corp (ODV: TSX-V), is also expected to begin trading on the TSX Venture Exchange during December. While Anglo Pacific Group PLC (LON:APF) (↓6.0% 1-months & ↑2.2% 3-months) is anticipated to have a strong Q420 with activity resuming at the McClean Lake Mill leading to a full quarter of tolling receipts in Q4 2020 and increasing iron ore prices which means that the LIORC Q42020 dividend could be higher than previous quarters.