Star Royalties Ltd (TSX-V:STRR) reported its second quarter results that showed a sequential revenue increase of 46% from its unique portfolio of assets.
The royalty firm posted 2Q revenue of nearly US$209,000 compared to the US$146,000 it put up in 1Q 2021, its first as a public company.
CEO Alex Pernin highlighted the performance of Keysbrook, a mineral sands operation in Western Australia in which Star Royalties holds a 2% gross revenue royalty.
READ: Star Royalties beefs up its green investments with new royalty on carbon offset credits from the EMS Forest Project in Alberta
“Keysbrook’s continued strong operational performance and higher-than-expected leucoxene prices have resulted in better-than-estimated revenue generation in the second quarter of 2021,” Pernin said in a statement accompanying the 2Q numbers.
“Star Royalties remains focused on originating accretive precious metals royalties and streams and we are actively engaged in several cash flowing and near-term cash flowing precious metals opportunities.”
Toronto-based Star Royalties is targeting 80% of its capital allocation to precious metals, with up to 20% available for predominantly green investments, with a 70/20/10 split between cash flowing, near-term cash flow and non-cash flowing assets.
In addition to Keysbrook, the company has a handful of standout assets in its portfolio: the Copperstone gold project in Arizona, and a unique royalty on a carbon offset project in Ontario.
More recently the firm added a new royalty on carbon offset credits from the Elizabeth Metis Settlement Forest in Alberta, Canada – one of a number of green investment opportunities it is currently pursuing.
“Star Royalties also remains committed to sustainable environmental solutions for a carbon neutral economy and continues to view ESG-related investments as a highly scalable business model with attractive returns superior to those currently seen in the precious metals sector,” Pernin added.
The company reported a net loss of US$742,000 or $0.01 per share for the quarter ended June 30, 2021.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas