Talk us through the current cash flow and royalty assets and update us what you can say on operations from those assets.

Absolutely.

So I'll start with Madsen.

Madsen is a one percent royalty we hold.

It is a high-grade gold mine in Ontario that's declared commercial production in January.

We acquired it in September of last year.

They are dr- shooting the lights out with the drill bit and hitting basically unbelievable widths and grades.

Walk us through how you're seeing the development royalty portfolio through, why don't we say, to the end of 2027? What do we have on the books for operating asset growth on that front?

Talk me through the genesis of the company, how it came about, why you're now heading a royalty company.

If we go really far back, so about three years ago this time, I was still working at a company called Metalla.

I left the company to start my own business.

And starting from scratch, when you start a royalty business, there's a couple of things you want to check off.

But one of them is you want cash flow at the beginning, and you need a little bit of scale just to have something to build around.

And that is what led us to the transaction with IAM Gold.

That brought in nine assets, and we'll touch on some of them in a little bit.

And as you're acquiring assets, how do you typically pay for those assets? Are you using cash, stock, combination of the both? Is part of the deal price you're giving the opportunity to the vendors to participate in your share price appreciation?

So six of the 46 should be coming on and just correct me if I'm wrong, if I didn't hear you correct over the next 12 months, is that correct?

Yeah, so right now we have the Westwood Lake Madsen mine, which is in production.

We got a 1% on that.

It's ramping up this year.

It's 2 million ounces of high grade in Ontario.

The mill is undersized.

They're talking about expansion.

What else, I guess, what do you see in the next, I'll push it out really next 18 months to three years for assets that are hitting, are they going to provide more value to the shareholders?

There'll be deals that you looked at day one, which will look cheap now, but back then maybe not so much because you've got to make that call, right? So how do you kind of factor that in to kind of give yourself a little bit of flexibility on the price that you will go in at?

I think inevitably you have to be somewhat disciplined at all times.

But I think the one thing I would suggest that we're, at least I would say I'm a little different about is, I hear other royalty companies, and we'll not name names, be like, market's hot right now, market's frothy, it is not your job to decide where the gold price is going.

We are all bullish, we're all naturally bullish.

Your job is to provide passive precious metal revenue to shareholders in a sustainable and a creative way whenever you can.

If gold's at $4,000 and we do a deal and it goes to $3,000, the next deal will be cheaper.

If gold's at $4,000 and gold goes to $5,000, we're all geniuses.

They're not going to give away unnecessary royalties.

So walk us through this asset.

Yeah, no, and they're doing a great job.

And Pan, their primary mine that they operate in Nevada and the nearby state is doing a good job for them as well.

So they're exceeding their operating parameters at that asset.

But Copperstone, since we announced the acquisition of Star, between sort of announcing the acquisition of Star and closing it, they announced a new PFS, a board-sanctioned construction decision, and they raised $75 million of debt to put this asset into production.

So very excited just to see those check marks, like the capital going in, the permits are there, they're ready to go.

And I'd say, you know, we're not sitting back and waiting for them just to execute in the mine plan, which will certainly create a lot of value for some of the shareholders.

So would you like to address the potential for value creation?

everything.

And I know that's not an answer that's super informative, but we're looking at... uh, MNA, uh, for sure.

Uh, we may be a prey or predator, and then we're also looking at more third-party opportunities within larger companies where there's portfolios, uh, coming in there.

And then we have opportunities coming in all the time on cash flowing and your term cash flowing assets.

We've got us, uh, right now, the flavor of the week seems to be tungsten, uh, tungsten streams are coming in.

So we're seeing a lot of opportunities in space.

And I think What's interesting from our perspective is when we were looking at deploying capital, when gold was up around 4,800, 5,000, um, the Delta between the long-term pricing and its spot was, was so dramatic that it was kind of hard to clear.

You know, your goal for what, for end of 2028 looks like what, you know, in terms of, you know, gold equivalent ounces or annual revenue, you've set yourself some targets? Well,

But what do you see as the value proposition here for this project?

Thanks for having us and appreciate the congratulations.

As smooth as these transactions go and with friendly parties, there's still a lot of work at the end to get it over the line.

But why we acquired the asset is quite simple.

We think there's tremendous value in it That's latent in the asset by itself, just based on what we know today and where it's going tomorrow.

Since we announced the acquisition of the company March 16th, they have fully funded it, started construction and put out a new PFS that shows well over 100% IRR, $3,500 gold.

This is a very robust project.

But just remind people, producing assets, you have any of the key ones you want to highlight, but also any key development projects you want to highlight out of your partner projects.

So do you look at the pipeline and go, oh dear?

Not at all.

I would say we have multiple inbounds, people looking for capital.

The network is very strong, not just through the board, but also just through myself and Connor.

We've added a CIO that's got an unbelievable Rolodex named Kevin McLean.

He's coming in with ideas.

So we say no often.

And I'm wondering, what are the assumptions, not hopes, but assumptions that underpin that forecast? going forwards? Do you know what I mean? I need some sort of robustness to this rather than the theory of how I build a royalty company.

Do you have a new target you're thinking about once some of the legacy star assets ramp up in 2027? Have you talked about that at all?

So the stated goal, we had a portfolio when we came out of the gate that would do $10 million when everything's up and running.

What do you do when you hit your target? you start a new one.

So the next one is 20 million, which we think this portfolio will do by the end of 2028.

If we can find more revenue producing royalties, we'll close that gap sooner.

And then what happens when we get to 20? We try to get to 30.

And the idea here is it's not just about revenue, it's scale.

So what are the major operational catalysts that investors should watch for? What are you looking for that you're most excited to see develop in your portfolio?

You know, when you talk about your peers, you know, what is it, how has this transaction changed that cost of capital? And how do you feel? Do you feel better position to compete with some of the larger royalty companies?

Absolutely.

And that's kind of unique to our opportunity set because we are a little bit smaller, we are a little cheaper and we've got a great capital structure.

But at the end of the day, we are still one of the larger of the small players in the space.

So we're not going to stop here.

We're going to keep maintaining that discipline and growing the portfolio as we go along.

But the ability to compete is going to be augmented by the fact that if you throw in $4,000 gold, we're looking at over $15 million in revenue next year on a market cap that you just highlighted our old market cap, but it's probably around 180 Canadian, so call it 130 US.

Any chance that that potentially helps a re-rate with Summit given just how big of a deals Wheaton Precious Metals and Lunar have done with silver assets in recent weeks?

But what is appropriate valuations here as we kind of look at these numbers and kind of wonder where we're going to be at with the metals prices?

So where are we going with the metal prices or where are we going with the valuations? Because I think, I mean, for me, the $4,300 to $4,000 move was just, it topped up quickly and came back and we've been consolidating around $4,000.

We love this business at $4,000 gold.

Our business works great at $2,500 gold.

All of that is just margin that goes to the bottom line for shareholders and that price participation is right there for everyone.

But ultimately, the royalty companies are a true generalist passive vehicle and we're seeing more and more money come into the space.

According to Scotia, and I did some back of that envelope calculations, this has been the biggest year for capital deployment on streams and royalties combined and the biggest year for M&A in the royalty space.

But is there continuing to be move for more consolidation? I mean, I do kind of hear rumors kind of from dark corners of this sector, but is there more room for more consolidation in the royalty sector?