Established foundational royalty portfolio in the Golden Triangle through partnership with the Nisga’a Nation located in Northwest British Columbia, Canada.
Expanding the portfolio by strengthening Indigenous partnerships, acting as financial advisor, and increasing the scale and diversity of royalty assets.
As the portfolio grows, the P/NAV multiple may rise, aligning with trends seen in other successful royalty companies, creating new royalty financing opportunities in high-quality mining assets.
Achieving competitive P/NAV valuation backed by the substantial Indigenous royalties and utilizing scale to provide royalty financing for development stage assets.
Canadian Indigenous peoples have secured substantial Benefit Agreement payments (royalties) with natural resource companies representing hundreds of millions of dollars worth of annual cash payments. We look to partner with Indigenous groups by exchanging all, or a portion of, those future royalty payments for equity (and/or cash) in Nations Royalty.
Typically, as mining royalty companies grow their royalty portfolios and become larger, their relative valuation to their assets rises in the form of a higher Price-to-Net Asset Value (“P/NAV”) multiple. As we create more partnerships with new Indigenous groups and develop our portfolio, our P/NAV multiple can rise as exemplified by other royalty companies. With Indigenous peoples of Canada receiving hundreds of million of dollars worth of cash payments annually as shown in public ESTMA filings, we believe there are enough existing Benefit Agreement payments to achieve a competitive P/NAV valuation by pooling the royalties that already exist.
As we partner with Indigenous groups that have existing Benefit Agreement payments, we are building relationships with key groups by offering to act as a financial advisor during their Benefit Agreement negotiation processes. While we build our portfolio through existing royalty payments, we look to assess royalty financing opportunities on new development-stage assets to deploy our capital into high quality mining assets while partnering with the local Indigenous groups. This will be a critical strategy for the next stage of Nations Royalty’s growth as we work towards building the next top royalty company.
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