Star Royalties Ltd (CVE:STRR) ended its first full year as a royalty and streaming company with nearly US$2 million in cash, according to its year-end financial results.
The company is expecting to see a number of catalysts in 2021 that will help advance its portfolio of streaming interests see near-term cash flow, CEO Alex Pernin said in a statement.
Toronto-based Star Royalties is targeting 80% of its capital allocation to precious metals, with up to 20% available for predominantly green investments, with 70/20/10 split between cash flowing, near-term cash flow and non-cash flowing assets.
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The firm has a handful of standout assets in its portfolio: the Copperstone gold project in Arizona; Keysbrook, which is a mineral sands project in Western Australia, and a unique royalty on a carbon offset project in Ontario.
“2020 represented our first full year as a private company,” Pernin told investors.
“During 2020, we established our team and differentiated business model, successfully raised over C$17 million, underwrote the Copperstone gold stream with Arizona Gold, with the first two of three tranche payments occurring in 2020 and the beginning of 2021, respectively, acquired the cash flowing Keysbrook royalty from Resource Capital Fund VI LP, and were one of the first pioneers in carbon sequestration royalties, in our first instance, on the Lac Seul First Nation forest.
Subsequent to the end of the year, Star transitioned to a public company and completed an upsized and oversubscribed IPO, raising an additional C$26.8 million.
Pernin added that the group is expecting “several re-rating catalysts” throughout 2021 as it deploys IPO funds and executes on both its precious metals and green pipelines.
The company is currently reviewing a number of new potential acquisitions.
Contact Angela at angela@proactiveinvestors.com
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