November was a fairly stagnant month for the mining royalty and streaming sector, with the average share price down 0.6%, and 58% of the sector experiencing negative share price movements.
The Mid-Tiers were the best performing subset of the sector during the month of October but were reduced to the worst-performing subset during November, down 2.3%. The other subsets of the market were largely flat with the Majors up 0.2%, Large-Tiers up 0.1% and the Juniors down 0.4%.
Majors
Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM) was the best-performing major, up 3.7% on the month (↓5.7% 3-months) following the publication of its Q321 results. Wheaton reported record revenue (US$923 million), adjusted earnings (US$460 million) and cash flow (US$650 million) for the first nine months of 2021. The Company also declared its fourth quarterly dividend of $0.15 per common share, a 25% increase relative to the prior year.
As a result of its Q321 performance, the Company has narrowed its annual guidance to 735,000 to 765,000 gold equivalent ounces (GEOs), consistent with the midpoint of previous guidance. Looking to the longer term, Wheaton expects to increase production to 810,000 GEOs by 2025 and 830,000 GEOs by 2030.
Franco-Nevada Corporation (TSX:FNV) was the worst-performing Major, down 3.7% on the month (↓7.3% 3-months) following the publication of its Q321 results. Franco reported revenue for the nine months to date of US$972.3 million, with US$512.8 million in adjusted earnings and cash flow of US$676.4 million. The Company also declared a quarterly dividend of $0.30 per share, which is level with the previous quarter. Franco remains on track to meet its previously announced GEO guidance of 590,000 to 615,000 GEOs for 2021.
Large-Tiers
Deterra Royalties Limited was the best performing Large-Tier this month, up 4.5% month (↓3.0% 3-months) following the publication of its Q122 revenue update. Deterra generated revenue of A$59.7 million during the first quarter of its financial year, up from A$54.9 million the previous quarter.
Osisko Gold Royalties (TSX:OR), was the worst-performing Large-Tier, down 3.3% on the month (↓0.1% 3-months), despite reporting record revenue of US$174.2 million for the first nine months of the year. Adjusted earnings for the period totalled US$17.9 million, with cash flow of US$93.3 million. Osisko declared a quarterly dividend of $0.055 per share, a dividend increase of 10%.
Mid-Tiers
Altius Minerals Corporation (TSX:ALS) was this month’s best performing Mid-Tier, up 2.0% (↓1.0% 3-months), following its Q321 results. Revenue for the first nine months of the year totalled C$60.5 million, 33%-higher compared to the same period last year. Earnings were up 40% from the previous year, to C$49.2 million while operating cash flow for the period totalled C$33.5 million. Altius declared a quarterly dividend of C$0.07 per share.
Nomad Royalty (TSX:NSR) Company Ltd was the worst-performing Mid-Tier this month, down 7.7% (↓1.9% 3-months) after a large gain last month. Nomad also announced its Q321 during November, the Company generated US$18.3 million in revenue during the first nine months of the year, with earnings US$0.9 million and cash flow of US$9.2 million. Nomad declared a quarterly dividend of C$0.05 per share.
Juniors
Orogen Royalties Inc. (TSX-V:OGN) was not only the best performing Junior this month, but it was also the best performing mining royalty and streaming company overall, up a huge 56.5% on the month (↑54.3% 3-months), following initial production at the Ermitaño Deposit operated by First Majestic Silver Corp. (TSX:FR)
Orogen holds a 2% net smelter return royalty on the Ermitaño Deposit where the first doré gold-silver pour occurred on 11 November and commercial production is expected in Q122. A recently completed preliminary feasibility study indicated that over the next seven years Orogen could see revenue of US$12.25 million from Ermitaño.
At present only 35% of the total resources has been converted to the currently defined reserves, so there is significant potential to increase the reserves alongside the potential for new gold and silver discoveries on 120 square kilometres of surrounding royalty covered ground.
Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF) was up 4.1% on the month (↑5.5% 3-months), following the publication of its updated corporate presentation, which reflected the significant growth in Electric Royalties’ royalty portfolio.
Morien Resources (TSX-V:MOX) was the worst-performing junior and royalty and streaming company, down 31% on the month (↓23.1% 3-months) again on the back of no news flow.