Star Royalties Ltd (TSX-V:STRR), the precious metals and carbon credit royalty and streaming company, said it was looking forward to continuing the momentum of last year into 2022 as it posted its results for the year to end-December.
The company reported revenue of US$691,621 for the 12 months, compared to US$9,801 in 2020. The net loss came in at around US$2.67 million, versus a loss of US$799,893 the previous year.
"2021 was a transformation year for Star Royalties. In February , we transitioned to a public company with the completion of our upsized and oversubscribed IPO, said Alex Pernin, the CEO of Star Royalties.
"In September, we acquired the Elk Gold royalty which now represents cash flow in a tier-one jurisdiction from a high-margin gold mine.
"Our Keysbrook royalty continues to outperform and exceed our cash flow expectations. More recently, we established our pure-green subsidiary, Green Star Royalties, in order to accelerate our green strategy. With that, we were able to secure a strategic investment from Agnico Eagle, a gold mining giant and a global ESG leader.
READ: Star Royalties subsidiary Green Star Royalties expands carbon credit partnership four-fold with Blue Source LLC
"This allowed us to immediately pursue a fourfold expansion of our flagship regenerative agriculture royalty in partnership with Bluesource, North America's largest and most reputable carbon offset developer and marketer. We look forward to continuing the momentum into what should be a yet-again transformational 2022."
Updating on portfolio highlights, the company cited the above-expanded program with Blue Source, in which Green Star Royalties will be financing a regenerative agriculture carbon program managed by Bluesource for a total contribution of $20,625,000 in cash.
Star expects initial funding of $5,000,000 to commence in the second quarter of 2022, with the remaining $15,625,000 to be invested in 2023. This project investment has a term of 11.5 years and the future financial benefits derived from the monetization of the project's carbon offset credits will be split between the growers, Bluesource, and the company.
The company also highlighted Sabre Gold Mines' Copperstone gold project in Arizona, in which it has a gold stream deal, and where "significant progress" has been announced with detailed mine planning, process engineering and mine-rehabilitation.
"Estimated project capital for the restart of Copperstone remains in line with previous estimates, as they continue to advance discussions with project lenders as well as other key stakeholders, with an update on project funding to be provided in Q2 2022," noted Star.
At the Elk gold mine in British Columbia, where Star has a 2% net smelter return royalty (NSR), Gold Mountain Mining said in February this year that it had completed its first delivery of ore to the New Afton processing plant.
Gold Mountain will deliver to New Gold 70,000 tonnes of high-grade ore per annum in years 1 to 3 and then up to 350,000 tonnes per annum in years 4 to 11. The metal payable split from the ore purchase agreement is 89% to Gold Mountain and 11% to New Gold, noted Star.
In March, Star announced a non-brokered private placing of over 15.3 million shares of its subsidiary Green Star Royalties at C$1 each. Upon completion of this financing, expected in April this year, Green Star Royalties will be owned thus: around 61.9% by Star Royalties; 35% by Agnico Eagle; and 3.1% by the firm's management team and directors, noted Star.
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