Star Royalties (STRR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 42% year-over-year to $266,306, driven by higher sales volumes at Keysbrook.

• Green Star expanded its North American portfolio with a $5.6M acquisition of U.S. IFM carbon offset royalties and received its first carbon offset delivery.

• CarbonNOW regenerative agriculture program advanced to late validation phase, with verification expected to start later in 2024.

• Gold Mountain Mining implemented corporate improvements and debt restructuring to enhance Elk Gold's production potential.

Financial highlights

• Quarterly revenue reached $266,306, up from $188,033 in Q2 2023.

• Net loss for Q2 2024 was $567,350, compared to $1,048,574 in Q2 2023.

• Basic and diluted loss per share remained at $(0.01) year-over-year.

• Cash flow used in operating activities was $253,271, compared to $177,332 in Q2 2023.

Outlook and guidance

• Monetization of carbon offsets from the NativState IFM portfolio is ongoing, with a second issuance expected by year-end 2024.

• CarbonNOW's first offset issuance and royalty revenues anticipated in 2025 after completion of verification phase.

• MOBISMART's telecom division may see a large rollout commitment before year-end 2024.

• Record gold prices present a catalyst for near-term value at Elk Gold and Copperstone.