I have zero confidence in the management at this company, the way they handled Narrabi was outrageous. They do not have a shareholder mindset. Selling a very profitable royalty at a loss just to score "ESG points" is mind-blowing stupid, borderline criminal.
Yeah I must say the management is my least favourite part of this play. Think they could have generated the entire amount they sold Narrabri for in CY22 alone if they had just held it.. truly foolish decision. But I do give the new (ish) guy some leeway.. at least he now holds some stock.
Great explainer on why royalties are a better bet than mining companies. A further benefit, as they grow, is very significant mine risk diversification.
Interesting royalty play. The fact that s32 had these royalties for so long without disclosing them is fascinating.
Begs the question why BHP even gave them to s32 in the spin-off if: a) the market didn't know about it, b) couldn't incorporate it in the market valuation. BHP would have been better off keeping them? I could't find anything in the s32 prospectus detailing the royalty portfolio.
Yeah I don’t think the likes of BHP or S32 would have even looked twice at these royalties when doing the demerger, don’t move the dial (or didn’t in 2015). I’m sure they just moved a bunch of subsidiaries over and perhaps the royalties sat in some of the subsidiaries that went to S32… I kind of recall the west Musgrave one belonging to WMC originally 🤷♂️..
Another convert. My work is done. Haha jokes - great piece mate
All hail the king 🤴🏼.. thanks mate! I am just a royalty peasant at this stage..
You might want to look at evolve royalties: early stage but has base exposure and a nice tin royalty (where else do you see that?)
Good read. The vanadium royalty is interesting.
$4 CAD pt here: https://cutt.ly/myuEYnO7
Thx. This look a bit low too…
I have zero confidence in the management at this company, the way they handled Narrabi was outrageous. They do not have a shareholder mindset. Selling a very profitable royalty at a loss just to score "ESG points" is mind-blowing stupid, borderline criminal.
Yeah I must say the management is my least favourite part of this play. Think they could have generated the entire amount they sold Narrabri for in CY22 alone if they had just held it.. truly foolish decision. But I do give the new (ish) guy some leeway.. at least he now holds some stock.
Great explainer on why royalties are a better bet than mining companies. A further benefit, as they grow, is very significant mine risk diversification.
Interesting royalty play. The fact that s32 had these royalties for so long without disclosing them is fascinating.
Begs the question why BHP even gave them to s32 in the spin-off if: a) the market didn't know about it, b) couldn't incorporate it in the market valuation. BHP would have been better off keeping them? I could't find anything in the s32 prospectus detailing the royalty portfolio.
Yeah I don’t think the likes of BHP or S32 would have even looked twice at these royalties when doing the demerger, don’t move the dial (or didn’t in 2015). I’m sure they just moved a bunch of subsidiaries over and perhaps the royalties sat in some of the subsidiaries that went to S32… I kind of recall the west Musgrave one belonging to WMC originally 🤷♂️..
Makes sense. probably more of a pain in the butt to carve them out from the subsidiaries pre merger than to just keep them in.
I guess kinda similiar to De Beers’ Iron Ore royalty in WA - although in this case De Beers desperately needed the cash so they sold them 🤣