(TheNewswire)
November 23, 2022 – TheNewswire - TORONTO, ON – Star Royalties Ltd. (“ Star Royalties ”, or the “ Company ”) (TSXV:STRR ) , ( OTC:STRFF) is pleased toreport its financial results for the quarter ended September 30, 2022.All amounts are in U.S. dollars unless otherwise indicated.
Q3 2022 Corporate and FinancialHighlights
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Quarterly revenue of $234,854, a 4% increase over theprior-year quarter.
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First quarterly positive cash flow from operations andrecord quarterly revenue from the Keysbrook royalty.
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Continued farmer enrollment into Green Star RoyaltiesLtd.’s (“ GreenStar ”) expanded flagship regenerativeagriculture carbon farming program.
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Appointment of carbon executives at Green Star toaccelerate portfolio growth.
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Ongoing discussions on capital opportunities through acombination of private and public markets to address Green Star’sgrowing pipeline of nature-based carbon investments.
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Financial improvements and initiatives at Sabre GoldMines Corp. ( SabreGold ”) (TSX: SGLD, OTCQB: SGLDF) to facilitatefunding of the fully-permitted Copperstone Gold Mine.
Alex Pernin, Chief Executive Officer of Star Royalties, commented:“The third quarter of 2022 represented meaningful progress acrossthe Company. Keysbrook has delivered once more with its recordquarterly revenue. Our Green Star joint venture has continued to buildits project pipeline and added industry-leading carbon experts tostrengthen its position as a quality leader in the carbon creditroyalty space. Sabre Gold and Gold Mountain have identified clearplans to advance project financing and improve operationalperformance, respectively. Despite these challenging marketconditions, we are encouraged with the progress across our assets, thecontinued investor interest we are receiving with Green Star, and welook forward to generating further value in our green business overthe coming months.”
Summary of Q3 2022 FinancialResults
Quarter ended | Quarter ended | ||
Sept. 30, 2022 | Sept. 30, 2021 | ||
Revenue | $ 234,854 | $ 225,458 | |
Net income/(loss) Basic and diluted income/(loss) per share | (276,496) (0.00) | (457,238) (0.01) | |
Cash flow from operating activities | 58,180 | (92,758) | |
Cash flow from investing activities | (44,019) | (10,312,780) | |
Cash flow from financing activities | - | - |
For complete details, please refer to the CondensedInterim Consolidated Financial Statements and associated ManagementDiscussion and Analysis for the three months ended September 30, 2022,available on SEDAR at sedar.com oron the Company’s website at starroyalties.com .
Significant Portfolio Updates
Green Star Joint Venture (61.9% interest)
On November 7, 2022, the Company announced theappointments of Rina Cerrato as Chief Commercial Officer and TanushreeBagh Mukherjee as Chief Development Officer by Green Star. Theseappointments represent a significant strengthening of Green Star’scarbon market and project development expertise and are expected tofacilitate growth of Green Star’s robust investment pipeline ofpremium, North American, nature-based environmental solutions. Mrs.Mukherjee and Mrs. Cerrato jointly bring to Green Star strong industryrelationships from nearly 40 years of experience in the carbon sector,which includes senior roles at leading carbon project registries suchas Verra, international carbon organizations including South Pole, aswell as advisory roles at the International Emissions TradingAssociation and Environment and Climate Change Canada. They have alsojoined Green Star’s Technical Committee, where together with ourjoint venture partner, they will provide informed recommendations onfuture portfolio investments.
Green Star continues to review new opportunities andremains focused on raising brand awareness as it aims to become aquality leader in the carbon credit royalty space. Through itsparticipation in multiple brokered and industry conferences, GreenStar has identified both new prospective capital providers andinvestment opportunities that mirror its mandate of quality,scalability, longevity and integrity. Star Royalties continues to useits existing management and infrastructure to grow Green Star atminimal cost as a private majority-owned joint venture. Given thegrowing pipeline of investment opportunities, the Company is activelyevaluating capital opportunities through a combination of private andpublic markets, subject to market conditions.
Regenerative Agriculture Carbon Farming Program
Green Star’s flagship regenerative agricultureCarbonNOW® program, in partnership with Anew Climate, LLC(“ Anew ”) and Locus Agricultural Solutions (“ Locus AG ”), aims to create premium, verified carbon offset creditsthat will reward the adoption of regenerative agriculture practices byNorth American farmers. Earlier in 2022, the program’s scope wasexpanded more than fourfold to now target 1.32 million acres offarmland across the United Sates and to increase Green Star’sinvestment to $20.6 million. Farmer enrollment to date has trackedwell with internal expectations and has accelerated in the recentmonths. Green Star is pleased to report that the status of currentfarmer enrollment is now well beyond the program’s original scope of320,000 acres. As such, Green Star’s funding of the programcontinues to advance, with approximately $4.6 million invested as ofthe end of October. The remainder of Green Star’s $20.6 millioncontribution is expected to occur through 2023 and beyond. Green Starcontinues to expect to generate cash flow equivalent to over 200,000attributable carbon offset credits in 2024, increasing to over 400,000attributable carbon offset credits per year starting in 2025.
Elk Gold Mine
Gold Mountain Mining Corp. (“ Gold Mountain ”)( TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA) reported Q2 2022 revenue of C$968,860, which wasnegatively impacted by its interim focus on finalizing its in-filldrill program, improving ore control processes and optimizing its pitdesign.
On September 14, 2022, Gold Mountain provided acorporate update on the initiatives undertaken to address the start-upchallenges experienced to date at the Elk Gold Mine. Gold Mountaincompleted a 3,700 m in-fill drill program to tighten the in-pitspatial data. The program is expected to define the grade controlmodel for the next 6-12 months. Results to date have shown gold assaysthat align with the drillhole assays used to build the resource blockmodel. In addition, Gold Mountain’s Operations team has improved orecontrol practices through drill and blast designs, extractionstrategies and optimizing pit design. The goal has been to minimizeore loss and improve ore fragmentation while limiting displacement. A total of 87 in-fill holes were completed to better define the mineplan’s tonnes and grade profile over the next 12 months.
Gold Mountain had also begun examiningpre-concentration technologies such as Dense Media Separation whichuses a heavy liquid bath to float low-density waste rock particlesaway from high-density gold-bearing particles. Gold Mountain indicatedthat initial test results had been encouraging and showed thepotential to increase gold grades, reduce trucking costs, and mitigateexternal dilution.
Gold Mountain’s 15,500 m-Phase III explorationprogram at the Elk Gold Mine intersected significant high-gradeintervals that will be incorporated in an updated resource estimate,anticipated in the next six months. Drilling of the 1300 vein extendedits mineralization down-dip another 150 m, reaching a depth of over400 m below surface.
Copperstone Gold Mine
On October 24, 2022, Sabre Gold announced severalfinancial restructuring initiatives and a change in senior leadershipto advance its fully-permitted Copperstone Gold Mine towardproduction. These initiatives included the retirement of an existing4.5% Gross Production Royalty on Copperstone, the retirement of $3.65million in long-term debt outstanding, the extension of remainingoutstanding debt by one year to December 31, 2024, all being drivenfrom sale proceeds of Sabre Gold’s 1% NSR royalty on theKerr-Addison Mine claims owned by Gold Candle Ltd. for totalconsideration of $7.4 million. These initiatives are aimed atunlocking value at Copperstone by improving Sabre Gold’s balancesheet and reducing asset encumbrances for improved operating margins.These initial steps were undertaken to advance ongoing discussionswith potential financial partners to return the fully-permittedCopperstone Gold Mine to production.
Sabre Gold announced the appointment of AndrewElinesky, CPA, as President, Chief Executive Officer and Director. Mr.Elinesky succeeded Giulio Bonifacio, who retired from his role asPresident, Chief Executive Officer and Director on October 23,2022.
CONTACT INFORMATION
For more information, please visit our website at starroyalties.com or contact:
Alex Pernin, P.Geo. DmitryKushnir, CFA
Chief Executive Officer and Director Vice President, InvestorRelations
apernin@starroyalties.com dkushnir@starroyalties.com
+1 647 801 3549 +1 647 287 3846
About Star Royalties Ltd.
Star Royalties Ltd. is a precious metals and carboncredit royalty and streaming company. The Company innovated theworld’s first carbon credit royalties in forestry and regenerativeagriculture through its majority-owned, pure-green joint venture,Green Star Royalties Ltd., and offers investors exposure to preciousmetals and carbon credit prices with an increasingly negative carbonfootprint. The Company’s objective is to provide wealth creation byoriginating accretive transactions with superior alignment to bothcounterparties and shareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute"forward-looking statements", including those regardingfuture market conditions for metals, minerals and carbon offsetcredits. Forward-looking statements are statements that address ordiscuss activities, events or developments that the Company expects oranticipates may occur in the future. When used in this news release,words such as "estimates", "expects","plans", "anticipates", "will","believes", "intends" "should","could", "may" and other similar terminology areintended to identify such forward-looking statements. Forward-lookingstatements are made based upon certain assumptions and other importantfactors that, if untrue, could cause the actual results, performancesor achievements of Star Royalties and Green Star to be materiallydifferent from future results, performances or achievements expressedor implied by such statements. Forward-looking statements should notbe read as a guarantee of future performance or results and will notnecessarily be an accurate indication of whether or not such resultswill be achieved. A number of factors could cause actual results,performances or achievements to differ materially from suchforward-looking statements, including, without limitation, changes inbusiness plans and strategies, market and capital finance conditions,ongoing market disruptions caused by the Ukraine and Russian conflict,metal and mineral commodity price volatility, discrepancies betweenactual and estimated production and test results, mineral reserves andresources and metallurgical recoveries, mining operation anddevelopment risks relating to the parties which produce the metals andminerals Star Royalties will purchase or from which it will receiveroyalty payments, carbon pricing and carbon tax legislation andregulations, risks inherent to the development of the ESG-relatedinvestments and the creation, marketability and sale of carbon offsetcredits by the parties, the potential value of mandatory and voluntarycarbon markets and carbon offset credits, including carbon offsets,risks inherent to royalty companies, title and permitting matters,operation and development risks relating to the parties which develop,market and sell the carbon offset credits from which Green Star willreceive royalty payments, regulatory restrictions, activities bygovernmental authorities (including changes in taxation), currencyfluctuations, the global, federal and provincial social and economicclimate in particular with respect to addressing and reducing globalwarming, natural disasters and global pandemics, dilution, risksinherent to a possible Green Star go-public transaction, the nature ofthe governance rights between Star Royalties and Agnico Eagle in theoperation and management of Green Star and competition. These risks,as well as others, could cause actual results and events to varysignificantly. Accordingly, readers should exercise caution in relyingupon forward-looking statements and the Company undertakes noobligation to publicly revise them to reflect subsequent events orcircumstances, except as required by law.
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