Skeena Resources – More Information On The strategic Investment With Franco-Nevada and Catalysts For 2022
Walter Coles, President and CEO of Skeena Resources (TSX:SKE – NYSE:SKE) joins us to recap the December 13th news reporting a strategic investment from Franco-Nevada for a total of C$30.9million. Franco-Nevada invested at $21/flow-through share.
We have Walter outline what the finds will be used for in 2022. We also discuss the right of first refusal (ROFR) granted to Franco-Nevada for a 0.5% royalty on the project. There are some nuances to this deal so be sure to listen and send us any further questions you have for Walter.
To wrap up the interview we have Walter outline the key catalysts for 2022.
For any follow up questions please email us at Fleck@kereport.com or Shad@kereport.com.
Click here to read over the full news release on the Franco-Nevada investment.
Click here to watch the video update on the recent high grade drill results.
+1 Mark S. Skeena has been consistently delivering on company milestones and market guideance for a few years now, and it one of the standout success stories in the gold explorers/developers subsector.
Gold Royalty Bids For Elemental Royalties: A Generous Premium
Dec. 20, 2021 – Taylor Dart – Seeking Alpha
“Gold Royalty Corporation has announced its intent to acquire Elemental Royalties at a 37% premium, valuing the company at ~$104 million.”
“This premium implies a price paid for Elemental of roughly ~1.40x P/NAV, a massive premium to where other junior royalty companies are trading, and to where deals are being completed.”
“While this deal pushes Gold Royalty to the 200 royalty mark, it doesn’t add much breadth to the portfolio, with Elemental having a relatively small development pipeline.”
“Based on another acquisition completed at very generous terms with shares, I continue to see several better ways to play the sector than with Gold Royalty Corporation.”
Gold Royalty Announces Intention to Acquire Elemental Royalties Corp.
20 Dec 2021
Gold Royalty Corp. (NYSE American: GROY) announces its intention to pursue an offer to acquire all of the outstanding common shares (the “Elemental Shares”) of Elemental Royalties Corp. (TSXV: ELE) for consideration consisting of 0.27 common shares of Gold Royalty in exchange for each Elemental Share.
“The Offer values Elemental at C$1.78 per share and represents a premium of 37% to Elemental shareholders based upon the closing prices of the Elemental Shares on the TSX Venture Exchange and the Gold Royalty Shares on the NYSE American on December 17, 2021, being the trading day immediately prior to this announcement. The Offer implies a total equity value for Elemental of approximately C$130 million on a fully diluted, in-the-money basis, and Elemental shareholders are expected to own approximately 12% of the combined entity upon completion of the transaction.”
As a result of this new today, (ELE) Elemental Royalties was the biggest winner in my portfolio, up 26.9% on the day.
It is really interesting to see the flurry of activity in the royalty sector lately, with many companies offloading royalties into the royalty company vehicles to daylight more value (as we’ve seen recently with some transactions from Nomad, Metalla, and Maverix).
In addition, this is the 3rd royalty company I’ve held this year that Gold Royalty Corp has taken over, with the first being Ely Gold, then Golden Valley Mines, and now Elemental Royalties. (GROY) also took over Abitibi Royalties in tandem with Golden Valley as their assets and companies were tied together in many ways. So 4 acquisitions for Gold Royalty Corp since they launched, and it has been lucrative for me to have been in so many of these takeovers as the space continues to be consolidated.
Many of the other royalty companies better wake up get on the stick or GROY will end up consolidating the whole space. Haha! GROY has sure grown faster than most were expecting, and now that they have the other 4 company’s portfolios inside of 1 larger portfolio of near 200 royalties, I’m starting to like the company a whole lot more than I did when they first launched with simply a number of Amir’s company’s long-dated royalties. Now they’ve picked off the low-hanging fruit in the royalty sector that other companies should have snagged and consolidate with.
The only smaller royalty companies left for the taking now are Sailfish, Trident, Anglo Pacific, Empress, and Star Royalties. Most of the larger companies like Franco Nevada, Royal Gold, Wheaton Precious Metals, Osisko Gold Royalties, and Sandstorm Gold have their hands full, but maybe we’ll see some of the other mid-tier royalty companies like Maverix, Metalla, Nomad, EMX, Altius, and Triple Flag snatch up a few of the remaining Jr companies over the next year or so.
(ELE) Elemental Royalties Provides Statement on (GROY) Gold Royalty’s Intention to Make Unsolicited Bid
– 20 Dec 2021
“The Company’s Board of Directors cautions shareholders that no formal offer has been made by Gold Royalty, and as such there is no need for shareholders to take any action at this time. When and if a formal offer is made, it will be reviewed by the Board with its legal and financial advisors, and a formal recommendation by the Board will be made to shareholders in due course.”
“The Company confirms that it previously received unsolicited, non-binding and conditional proposals from Gold Royalty to acquire all of the issued and outstanding common shares of the Company.
Great Interview…Cant wait for 2022 news flow, should be able to drive shares much higher even in the face of stagnant or a decline in gold price. Can’t be more impressed with Skeena over the years