Star Royalties — Investor Presentation (March 2022)
38 slides from Star Royalties's investor presentation, March 2022
Slide 1: Carbon Negative Gold
CARBON NEGATIVE GOLD Negat iv e CO 2 Em is s ions per Ounc e March 2022
Slide 2: Cautionary Notes
Cautionary Notes This corporate presentation includes market and industry data and forecast that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that the information therein has been obtained from sources believed
Slide 3: Royalties with a Carbon Negative Footprint
Royalties with a Carbon Negative Footprint Star Royalties (“STRR”) is a precious metals and green royalty and streaming company ▪ World’s first carbon negative gold royalty platform and innovator of carbon credit 1 (“CC”) royalties ▪ Focus on creating royalties and streams with ~US$32M invested in 8
Slide 4: Creation of Green Star Royalties
Creation of Green Star Royalties STRR has created a pure-green CC royalty subsidiary, Green Star Royalties (“GREEN”) to: ▪ Expand green strategy for expedited public offering ▪ Execute on growing pipeline of high-return opportunities ▪ Capitalize on bullish carbon pricing outlook ▪ Leverage rapid gr
Slide 5: STRR: Carbon Negative Gold
STRR: Carbon Negative Gold ▪ Carbon Negative Gold: gold exposure with negative carbon footprint ▪ Expanding net negative CO2 balance through capital allocation mandate ▪ Unique strategy improves investors’ ESG scorecards Corporate CO2 Profile (tonnes) 20,000 0 2021E 2022E 2023E 2024E 2025E -20,000 -
Slide 6: Originating New Carbon Credits to Meet Rapidly Growing Demand
Originating New Carbon Credits to Meet Rapidly Growing Demand
Slide 7: Rapid Growth in Global ESG Fund Assets
Rapid Growth in Global ESG Fund Assets ▪ ESG fund assets to grow to ~US$53T by 2025E ESG: ETF Inflow Projections ▪ Limited investment opportunities creates potential for strong GREEN valuation premiums (1.5-2.0x NAV expected) ▪ +144 Canadian ESG funds available in 2021, +41 since 2020 ▪ C$334M in Ca
Slide 8: Improving the ESG Scorecard Process
Improving the ESG Scorecard Process Carbon negative footprint allows for quantifiable ESG scorecard improvements Sample Corporate ESG Scorecard1 TSX.V: STRR 7 OT CQX: ST RFF
Slide 9: GREEN Royalty Model
GREEN Royalty Model Origination and Cash Flow Focus ▪ Pioneered first CC royalty in 2020 and advancing new green royalties ▪ Generation of over 100,000 CC per annum from existing regenerative agriculture and forest CC royalty projects ▪ Originate premium CC projects in both compliance and voluntary
Slide 10: Existing Portfolio and Current Opportunities
Existing Portfolio and Current Opportunities ▪ GREEN progressing discussions with strategic capital partner to accelerate growth ▪ Collaborating with Bluesource, North America’s leading carbon offset developer, to drive competitive advantage Investment Investment (C$M) Location Total CC Potential Ty
Slide 11: Company Overview
> STRFF |STRR Company Overview TRADED ON LISTED OTCQX TSXV — i» »
Slide 12: Targeting Tier 1 Investment Jurisdictions
Targeting Tier 1 Investment Jurisdictions BAYAN UNDUR EMS FOREST Copper-Silver Carbon Sequestration 2% NSR Royalty 40.5% GR Royalty Exploration Development BAAVHAI UUL ELK GOLD Lithium Gold-Silver MOBISMART 1.5% GR Royalty 2% NSR Royalty Exploration Renewable Tech Production 2.5% GR Royalty Operatin
Slide 13: Growing and Cash-Flowing Asset Portfolio
Growing and Cash-Flowing Asset Portfolio Estimated Revenues1 (US$M) 14 ▪ Expecting 80% CAGR in revenue growth 12 10 (2021E-2025E) 8 ▪ Free cash flowing portfolio in place 6 4 2 0 2021E 2022E 2023E 2024E 2025E Copperstone Elk Gold Keysbrook Regen Ag MOBISMART EMS Forest LSFN Forest Asset NAV2 by Juri
Slide 14: Experienced Management of Capital Allocators
Experienced Management of Capital Allocators Proven Leadership Team with Multiple Industry Experts Tony Lesiak Kevin MacLean Executive Chairman Chief Investment Officer Tony Lesiak, Executive Chairman: Ranked analyst Alex Pernin, CEO: P.Geo., Barrick Gold capital allocation Kevin MacLean, CIO: P.Eng
Slide 15: Board of Directors Focused on Diversity, Governance
Board of Directors Focused on Diversity, Governance Majority Independent, with Strong Alignment to ESG Principles Kylie Dickson Tony Lesiak Belinda Labatte BBA, CPA, CA Executive Chairman MBA, CFA, ICD.D Independent Director Independent Director Alex Pernin CEO and Director Jay Layman Beatriz Orrant
Slide 16: ESG is Core to Founding Principles
ESG is Core to Founding Principles Environmental ▪ GREEN: mandate to invest in pure-green initiatives with no mining assets ▪ CC: regenerative agriculture and forest conservation projects; scalable business with near-term cash flow ▪ Investment policy: no hydrocarbons Social ▪ Indigenous Communities
Slide 17: Investment Snapshot
Investment Snapshot TSX-V: STRR; OTCQX: STRFF Capitalization Ownership Almadex Minerals Management Share Price (March 1, 2022) C$0.53 Ltd., 2.3% and Board, 7.5% 52-Week High/Low C$0.75 – C$0.42 Market Capitalization C$38.6M Cash / Debt (September 30, 2021) US$4.3M / Nil Book Value (September 30, 202
Slide 18: Meaningful Rerating Potential
Meaningful Rerating Potential Near-Term Catalysts and Valuation ▪ Execute on pipeline of precious metals and green opportunities ▪ Elk Gold production ramp-up and continued exploration success ▪ Copperstone advancing towards production ▪ Current STRR valuation at deep discounts on key metrics ▪ Free
Slide 19: Appendix
> STRFF |STRR Appendix TRADED ON LISTED OFC@X TSXV — i» .s
Slide 20: Regenerative Agriculture Pilot Project Highlights
Regenerative Agriculture Pilot Project Highlights Investment Rationale 1 Originating Carbon Offset Credits Pilot project to generate revenues equivalent to over 100k carbon offset credits to GREEN 2 Premium Credits in Tier 1 Jurisdiction Partnering with U.S. growers to create premium, verified credi
Slide 21: Regenerative Agriculture Pilot Project: ~100,000 CC/yr
Regenerative Agriculture Pilot Project: ~100,000 CC/yr Regenerative Agriculture Pilot Project ▪ Regenerative agriculture aims to promote topsoil health regeneration and to rebuild soil organic matter while improving water management, reducing or eliminating nitrogen-based fertilizers, increasing bio
Slide 22: EMS Forest Carbon Offset Project: ~9,000 CC/year
EMS Forest Carbon Offset Project: ~9,000 CC/year Elizabeth Metis Settlement Forest ▪ Government of Canada mandated minimum standards for carbon pricing across Canada and implemented federal program applied to GHG-emitting industrial facilities in several provinces, including Ontario ▪ Reforestation
Slide 23: LSFN Forest Carbon Offset Pilot Project: ~2,500 CC/yr
LSFN Forest Carbon Offset Pilot Project: ~2,500 CC/yr Lac Seul First Nation Forest ▪ Government of Canada mandated minimum standards for carbon pricing across Canada and implemented federal program applied to greenhouse gas (“GHG”)-emitting industrial facilities in several provinces, including Ontar
Slide 24: MOBISMART Royalty: High-Growth Renewable Tech
MOBISMART Royalty: High-Growth Renewable Tech MOBISMART ▪ Private, operating company headquartered in Toronto, Canada, specializing in mobile, easily-deployable, off-grid power generation and storage and containerized solutions ▪ Integrated product offering includes mobile trailers (solar and/or win
Slide 25: Elk Gold Royalty Highlights
Elk Gold Royalty Highlights Investment Rationale 1 Imminent Revenue Operations commenced, first revenue generation expected in Q4 2021 2 Tier 1 Jurisdiction British Columbia, Canada 3 Value Accretion and Asset Diversification Accretive on NAV and per-share metrics before considering upside 4 Long Li
Slide 26: Elk Gold Royalty: Wealth Creation in Canada
Elk Gold Royalty: Wealth Creation in Canada Gold Mountain Mining Corp. (TSXV: GMTN, OTCQB: GMTNF, FRA: F5XFA) Operators Ore trucked and processed at New Gold Inc.’s (TSX, NYSE American: NGD) New Afton processing plant under long-term ore purchase agreement Location British Columbia, Canada Stage Pro
Slide 27: Elk Gold Offers Meaningful Exploration Upside
Elk Gold Offers Meaningful Exploration Upside ▪ Extensive brownfield and greenfield exploration upside on royalty-covered land package ▪ Current resource envelope open in multiple directions ▪ Historically low finding costs of ~C$8/oz ▪ C$1M of exploration expenditure implies ~C$4.5M of payable gold
Slide 28: Copperstone Gold Stream Highlights
Copperstone Gold Stream Highlights Investment Rationale1,2 1 Tier 1 Jurisdiction Arizona, USA 2 Expertise at Sabre Gold Experienced underground mine developer 3 Lower Risk Restart Fully permitted with significant (+US$100M) infrastructure on site 4 Short Timeline to Production Restart and commercial
Slide 29: Copperstone Gold Stream: Near-Term US Cash Flow
Copperstone Gold Stream: Near-Term US Cash Flow Operator Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: AGAUF) Location Arizona, USA Stage Construction (2022E restart) Commodity Gold < 21,000 oz 21,001–27,200 oz > 27,200 oz Stream Terms1 9.9% 3.3% 1.2% of gold produced of gold produced of gold produced S
Slide 30: Keysbrook Royalty: Cash Flow in Australia
Keysbrook Royalty: Cash Flow in Australia Operator Keysbrook Leucoxene Pty Ltd Location Western Australia, Australia Stage Production Commodity Mineral Sands (Titanium, Zircon) Terms 2.0% Gross Revenue Royalty ▪ Open pit mineral sands mine located 70 km south of Processing Facilities Perth, WA, Aust
Slide 31: Exploration
Exploration Bayan Undur Baavhai Uul Operator Aranjin Resources Ltd. Operator Ion Energy Ltd. Location Mongolia Location Mongolia Stage Advanced Exploration Stage Early Exploration Commodity Copper, Silver Commodity Lithium (brine) 2% Net Smelter Return Royalty (with ROFR on any future Terms 1.5% Gro
Slide 32: Targets: Paris Agreement
Targets: Paris Agreement ▪ Signed in 2016 by 196 nations to reduce 2030 Emissions Gaps (CAT projections and resulting emissions GHG emissions gaps in meeting the 1.5°C Paris Agreement target) ▪ Objective: limit global temperature increase to below 2°C above pre-industrial levels; secondary aggressiv
Slide 33: Markets: Compliance
Markets: Compliance Compliance (Mandatory) Map of international, national or regional compliance carbon pricing initiatives ▪ Created and regulated by international, national or regional carbon reduction regimes; goal of mandating emitters to account for and achieve legal compliance with GHG emissio
Slide 34: Markets: Compliance
Markets: Compliance ▪ Global compliance carbon offset prices (driven IHS Markit Global Carbon Index (global weighted average by EU ETS) currently at all-time highs carbon credit price in US$/tCO2e) ▪ Consensus forecasts see significantly higher carbon offset pricing (in both compliance and voluntary
Slide 35: Markets: Voluntary
Markets: Voluntary Voluntary Global demand for voluntary carbon credits could increase ▪ Trading of carbon credits by corporations, institutions by 15x by 2030 and 100x by 2050 and individuals to offset GHG emissions on voluntarily basis with no compliance requirements ▪ Significant expected increas
Slide 36: Copperstone Technical Disclosure
Copperstone Technical Disclosure Mineral Resource Statement Mineral Reserve Statement Mineral Au Grade Contained Metal Mineral Au Grade Contained Metal Tonnes (kt) Tonnes (kt) Resources (g/t) (koz Au) Reserves (g/t) (koz Au) Measured 806 7.6 196 Proven 347 7.3 81 Indicated 502 6.8 110 Probable 455 6
Slide 37: Elk Gold Technical Disclosure
Elk Gold Technical Disclosure Mineral Resources Tonnes (kt) Au Grade (g/t Au) Ag Grade (g/t Ag) Contained Metal (koz AuEq) Measured 169 10.3 10.9 56 Indicated 4,190 5.4 11.0 750 M&I 4,359 5.6 11.0 806 Inferred 1,497 5.3 14.4 262 TSX.V: STRR 36 OT CQX: ST RFF
Slide 38: Alex Pernin, P.Geo. Dmitry Kushnir, CFA
| Alex Pernin, P.Geo. Dmitry Kushnir, CFA Chief Executive Officer & Director Head of Investor Relations M. +1 647 801 3549 M. +1 647 287 3846 apernin@starroyalties.com dkushnir@starroyalties.com 37