Star Royalties (STRR) Q4 2024 earnings summary

Executive summary

• Mining royalty portfolio outlook improved due to asset de-risking and gold price exceeding $3,200/oz.

• Copperstone Gold Mine acquisition by Minera Alamos accelerates production timeline to 2026, with key development milestones expected in the next 12 months.

• Green Star joint venture acquired U.S. forest carbon offset royalties and received first carbon offset delivery; monetization underway.

• Decision made to terminate future capital commitments to the Carbon NOW carbon farming program due to worsening market conditions and risk profile.

Financial highlights

• 2024 revenues declined 14% year-over-year, primarily due to operational challenges at Elk Gold Project.

• Net loss for 2024 was $24.1 million, compared to net income of $5.6 million in 2023.

• Basic and diluted loss per share were $(0.31) in 2024, versus earnings per share of $0.08 and $0.07, respectively, in 2023.

• Cash flow from operating activities was $(1.47) million in 2024, compared to $1.15 million in 2023.

Outlook and guidance

• Anticipates several de-risking events in 2025, including Copperstone construction updates, Elk operational normalization, and continued strong performance from Keysbrook.

• Expects meaningful free cash flow generation in 2025 and revenue from key mining royalty assets in 2026.