Royalty Holder……….AuRico Metals
Revenue……………..…..…………..$5.8m
Mine Life...………………10 to 25 years
Commodity…………………………….Gold
Operator……Alamos & Newmarket

#2 Young-Davidson

Toronto-listed AuRico Metals was spun-out of a $1.5bn merger by Alamos Gold earlier this year, boasting three sizeable royalties, including a 1.5 per cent claim over the Young-Davidson underground gold mine in Ontario.

AuRico also has 1 and 2 per cent claims over two gold mines in Australia owned by Newmarket Gold and could carve-out a royalty over its own Kemess copper-gold project in British Columbia, to boost the value of its royalty portfolio on any sale.

In total, at current gold prices, AuRico's royalties generate around $6m per annum. Jacked-up onto a royalty-type multiple and the portfolio comfortably accounts for the company's current share price of C$0.72, according to analysts at Scotiabank. Streaming group Sandstorm Gold agrees, building a 12 per cent stake in AuRico last month.

 

 

BACK                                               NEXT >