Star Royalties Ltd (TSX-V:STRR) has posted second-quarter results with revenue jumping 26% year-over-year as the Elk Gold Mine became the company’s second producing royalty asset.
For the period ended June 30, 2022, the Toronto-based precious metals and carbon credit royalty and streaming company reported revenue of $264,203, compared to revenue of $208,948 in 2Q 2021.
Significantly, the strategic investment by Agnico Eagle Mines Limited into Green Star Royalties was completed in May this year. Star Royalties now holds a 61.9% stake in Green Star, and Agnico Eagle owns a 35% stake, while 3.1% belongs to the company’s management team. Star Royalties said it recognized an $18.6 million gain on the deconsolidation of Green Star.
READ: Star Royalties closes strategic non-brokered private placement of 15,384,620 common shares in Green Star Royalties
Notably, the company reported a net income of $17.82 million or $0.24 per basic and diluted share in the quarter, compared to a loss of $805,293 or $0.01 loss per basic and diluted share in the comparable quarter a year earlier.
In a statement accompanying the numbers, Star Royalties CEO Alex Pernin said: “During the 2Q of 2022, Star Royalties took significant steps towards unlocking the value of both our green and precious metals royalty and streaming platforms. We crystallized the growing value of Green Star through the closing of a private placement by Agnico Eagle and expanded Green Star’s flagship regenerative agriculture carbon royalty more than fourfold.”
He added: “We also achieved record quarterly royalty revenues as the Elk Gold mine became our second producing royalty asset and as Keysbrook continued to generate royalty cash flows greater than our internal expectations.”
Pernin said the company would continue to unlock further Green Star value by building out its pipeline and by enhancing its team with carbon project development expertise.
Elk Gold Mine
In an update on its portfolio, Star Royalties revealed that Gold Mountain Mining Corp reported that for the quarter ending April 30, 2022, it delivered 1,898 ounces of gold and 1,697 ounces of silver to its ore purchase partner, New Gold Inc. (TSX:NGD)
As of June 6 this year, Gold Mountain had completed 15,500 meters (m) of drilling in the Siwash North and Gold Creek zones as part of its Phase III exploration program. An updated resource estimate on the property is expected at the end of Q3 2022.
Copperstone Gold project
Sabre Gold Mines Corp. (“Sabre Gold”) (TSX: SGLD, OTCQB: SGLDF) announced that the Copperstone Gold Project remains on track to advance to production within twelve months from funding with a strategy that remains focused on minimizing dilution to its existing stakeholders.
Investors can read the full update on Green Star and its flagship regenerative agriculture CarbonNOW program here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive