THE MODEL

• The royalty business model has been successfully deployed in the mining space (e.g. Franco Nevada, Wheaton Precious Metals) and has outperformed traditional mining companies and the underlying commodities they are associated with

• Royalty companies do not operate mines nor need large and highly specialized teams to carry on their regular course of business

• Diversifies investments and mitigates risk

• Royalties are generally registered against mineral title hence “secured”

• Lower risk - royalties are typically based on revenues and paid irrespective of underlying profitability, with no further capital outlay required