March 2021 has been a much stronger month for mining royalty and streaming companies with the average share price up 2.2% and 58% of mining royalty and streaming companies having a positive share price movement over the month. This is the biggest monthly percentage of companies having a positive share price movement since November last year.
The majors were the strongest performers this month up an average of 9.6%, recovering from their big fall last month, and finally bucking the down-trend that they have been in for the past eight months.
Franco-Nevada Corporation (TSE:FNV) was the best-performing major, up 18% on the month (0.0% 3-months) following the announcement of its annual results. Franco-Nevada posted record revenue of over US$1bn and operating cash flow of US$803mln. This was alongside a planned 15.4% increase to its annual dividend for 2021.
Wheaton Precious Metals Corp (TSE:WPM)(LON:WPM), was up 7.1% on the month (↓8.5% 3-months) following its annual results, which reported US$1bn in revenue and operating cash flow of over US$765m, both representing record levels for the company. Wheaton also announced a 30% increase to its quarterly dividends compared to last year and acquired a gold stream on Capstone Mining Corp.’s (TSE:CS) Santo Domingo Project located in the Atacama Region, Chile, for a total upfront cash consideration of US$290mln.
The large-tiers were up 2.3%, continuing the positive movement seen last month. Sandstorm Gold Ltd (TSE:SVC) was this month’s best performing large-tier, up 12.6% (↓5.2% 3-months). Its first positive monthly movement for eight months, despite no news flow.
Deterra Royalties Limited (ASX:DRR) was the worst-performing large-tier this month, down 10.9% (↓17.5% 3-months). Notwithstanding the positive start to public market life following its initial public offer (IPO) in October last year Deterra’s share price is now 13%-below below its IPO price.
The mid-tiers were the worst-performing group of mining royalty and streaming companies this month, down an average of 0.3%. Maverix Metals Inc (CVE:MMX) was the best performing mid-tier this month up 8.0% (↓3.5% 3-months) after being the worst performing mid-tier company last month. The market seemed to wake up to the companies record annual operating and financial results and shrug off its nervousness regarding the company’s guidance for 2021, which was between 6.6%-lower and 3.7%-higher than 2020.
Nomad Royalty Company Ltd (TSE:NSR) was the worst-performing mid-tier, down 6.9% (↓8.7% 3-months), a lack of deal flow at the start of this year appears to be making investors nervous regarding the companies prospects.
The junior end of the mining royalty and streaming market was up an average of 1.4% this month. Uranium Royalty Corp (CVE:URC) was once again the best performing junior, up 30.5% this month and up an impressive 154.8% during the past three months. This month the company exercised the initial tranche of the 10-year supply agreement to acquire US$10mln of physical uranium at US$28.73 per pound from Yellow Cake PLC (LON:YCA), this is below the most recent spot price of US$30.75 per pound.
Empress Royalty Corp. (CVE: EMPR) was once again the worst performing junior, down 23.7% on the month, and it is now 15.1% below its December 2020 IPO price.
Vox Royalty (CVE:VOX) was also down, 21.3% (↓11.6% 3-months), despite announcing a whole slew of deals at the end of the month, including acquiring a producing gold royalty and a pre-production gold royalty in Western Australia, accelerating its Koolyanobbing iron ore royalty and acquiring a royalty over the 3mln oz (moz) Bullabulling Gold Project, as well as completing a C$16.85m financing.
This month also saw the first month of trading for Star Royalties (CVE: STRR). Star had a strong start to public market life, up 9.6%. Star is a precious metals-focused royalty and streaming investment company that also engages in green (carbon credit) and battery metal investment opportunities.
Next month we will see the results of Gold Royalty Corp’s (NYSEAMERICAN:GROY) first full month of trading. Gold Royalty Corp is also a precious metals-focused royalty and streaming company. The company has a portfolio of 18 net smelter return (NSR) royalties ranging from 0.5% to 2.0% covering 12 projects located in the Americas. Of these 12 projects, 11 are owned by subsidiaries of Gold Royalty Corp’s major shareholder, GoldMining Inc. (TSE:GOLD).