Grizzle Hard Money ⛏️ Andrew Clark, CEO
@SummitRoyalties $SUM.V #GOLD
◾️The Star Royalties Acquisition 🌟 The deal is highly accretive on a NAV per-share basis, driving an estimated 28% to 30% growth in cash flow per share. It adds the US-based Copperstone asset—which just entered construction with a >100% IRR—into the portfolio.
◾️Aggressive Revenue Targets 🎯 After blowing past their initial $10M goal, Summit is targeting $20M by the end of 2028. At peer multiples (15x), this implies a $300M business, suggesting significant upside from current trading levels of $1.50
◾️Non-Dilutive Growth Strategy 💸 Summit has successfully raised significant capital without issuing warrants. Moving forward, they plan to utilize debt to acquire future royalties on a non-dilutive basis to protect their per-share metrics
◾️Closing the Valuation Gap 📊 Currently trading at a discount of 0.75x to 0.8x NAV, management expects a re-rating to >1x NAV because their growth is entirely anchored by producing or fully-funded construction assets run by major operators
◾️Major Upcoming Catalysts 🗓️ Watch for continuous progress at Copperstone, commissioning at West Red Lake’s Madsen mine, a PEA for the Banyan project (targeting 300k oz/yr), and a 1,000-ton-per-day mill installation at Zancudo in Colombia.