Royalty Holder……...Maverix Metals
Revenue……………..…..……............$9m
Mine Life...………............8 to 14 years
Commodity……………….................Gold
Operator..................................multiple

#2 Maverix Metals

In July, Pan American Silver, led by mining entrepreneur Ross Beaty, spun-off a basket of royalties and streams to create Maverix Metals, listed in Toronto.

The two companies share many of the same insiders, including geologist Chris Emerson and Rob Doyle, Pan American's CFO. Maverix has a gold stream over Pan American's La Colorada mine, plus a 1.5 per cent royalty over Fortuna Silver's San Jose mine, both in Mexico. It also has several earlier-stage royalties in Canada, Peru and Argentina.

In total, they totted-up to revenue of C$955,000 last quarter, versus the company's admin expense of C$705,000. At that rate, it would have taken Maverix twenty years to pay off its listing fees of C$5m.

But Ross Beaty's ventures are ever-serious about M&A. In December, the company swallowed a royalty portfolio owned by Gold Fields, getting 11 new royalties in gold, nickel and diamonds in exchange for a third of Maverix's stock. The portfolio adds around $6m to its royalty receipts each year, turning the company into a plausible takeover target.

 

 

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