Capital Structure and Financial Health

Drew Clark, President and CEO of Summit Royalties Ltd. (TSX.V: SUM), joins me to introduce the value proposition and coming growth catalysts from their portfolio of 47 royalty partner projects, mostly focused on gold and silver.

We discuss how this Company started off privately when closing the IAMGOLD Royalty Portfolio Acquisition for $17.5M on May 30th, then the acquisition of a royalty at West Red Lake Gold’s Madsen Mine on September 4th.  Then on November 5th the company released news of their “go public” transaction with the reverse takeover of Eagle Royalties the prior day on November 4th, and then their listing as Summit Royalties on the TSX Venture exchange on November 10th.

The Corporation's current portfolio is backstopped by 3 cash-flowing production assets, and an additional 44 royalties on development-stage and exploration-stage properties. The Corporation intends to become the next mid-tier streaming and royalty company through future actionable and accretive acquisitions to increase production and cash flow growth. The Corporation currently has no debt and sufficient cash on-hand for use in future acquisitions.

Drew starts off taking us through the growth on tap for 2026 and beyond at their 3 producing royalties and streams.

• Madsen - 1% NSR Royalty focused on gold and operated by West Red Lake Gold Mines in Ontario, Canada
• Bomboré - 50% Silver Stream; operated by Orezone in Burkina Faso
• Zancudo - 0.5% NSR Royalty; operated by Denarius Metals in Colombia

Next we reviewed 2 of their key development royalties:

• Pitangu - $80/oz until 250 Koz produced - 1.5% NSR thereafter; operated by Jaguar Mining in Brazil
• AurMac – 0.5% - 2.0% NSR Royalty Coverage; operated by Banyan Gold in the Yukon, Canada

Drew briefly mentions a few other royalties in their portfolio that he sees as valuable, and also highlights that their Net Asset Value (NAV) is weighted towards Canada after Eagle & Madsen Acquisitions, and is trading at an attractive P/NAV multiple at present.

Wrapping up Drew shares his background in the sector, along with other members of the management team and board, along with the capital structure, key stakeholders, and financial health of the company to keep executing on more deals in the year to come.

If you have any follow up questions for Drew about Summit Royalties, then please email them into me at Shad@kereport.com.

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