Dan O’Flaherty, CEO of Versamet Royalties (TSX.V: VMET), joins me to provide an update on the recent acquisition of both a silver stream and net smelter royalty on cash-flowing producing assets from Appian Capital. We also take a deeper dive into the value proposition embedded in their portfolio of streams and royalties, and the triple-pronged approach to growth for this newer royalty company, that just listed publicly back in May of this year. Dan previously led Maverix Metals, which sold to Triple Flag in 2023, and now he’s building Versamet to fill the gap between junior royalty players and the multi‑billion‑dollar majors.
Key Highlights from Our Discussion:
- Closed an agreement on September 24th for the acquisition of two long-life, high-quality, producing assets from Appian Capital Advisory; with immediate cash flow for an up-front cash consideration of $125 million.
- Rosh Pinah Zinc – a 90% silver stream an operating underground mine in Namibia with over 55 years of mining history and a long history of resource additions and significant exploration potential
- Santa Rita – a 2.75% net smelter return royalty (NSR) on a top tier nickel sulphide mine located in Bahia state, Brazil, currently producing from an open pit.
- The Stream and NSR Royalty are expected to contribute approximately 5,000 gold equivalent ounces (“GEOs”) in 2026 using analyst consensus metal prices.
- Cash‑flow focus: From ~10,000 GEOs in 2025 to ~20,000 GEOs by 2026, translating to over $70M in annual revenue targeted for next year, using consensus gold prices, and even higher than that at current spot prices.
- Balance sheet strength: Paid off initial debt out of robust revenues, before adding this recent debt on the back of these 2 acquisitions; with a roadmap to paying that back down in an accelerated fashion from quarterly cashflows.
- Rapid portfolio growth: Over US$400M in acquisitions since 2022, growing Versamet’s market cap to over CAD$800 million.
- We review how several key strategic stakeholders got into partnership with Versamet including: B2Gold (33%), Sandstorm (25%), and Equinox Gold (13%) as cornerstone shareholders, providing technical strength and deal flow.
- Investors today can get an early mover advantage before more institutional investors and passive fund investments have entered the story.
- Triple-pronged approach to growth: (1) Near‑term organic growth from within their existing portfolio of royalties and streams, (2) future accretive acquisitions, and (3) the coming U.S. listing for more liquidity, a broader investor base, and the potential inclusion in funds and ETFs.
If you have any questions for Dan regarding Versamet Royalties, then please email those in to me at Shad@kereport.com.
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