Star Royalties — Investor Presentation (April 2022)
26 slides from Star Royalties's investor presentation, April 2022
Slide 1: Generating Premium Carbon Credit Royalties
T S X . V: S T R R OTCQX: STRFF Generating Premium Carbon Credit Royalties Strategic Investment By Agnico Eagle | April 2022 0
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: Creation of Green Star Royalties
Creation of Green Star Royalties Pure Green Vehicle Created to: ▪ Enhance ESG investor appeal and expedite public offering ▪ Leverage rapid growth in global ESG fund assets and limited ESG investment products ▪ Capitalize on improving carbon pricing outlook ▪ “Greenify” portfolios and improve ESG sc
Slide 4: Growing Portfolio of Premium Carbon Credit Royalties
Growing Portfolio of Premium Carbon Credit Royalties ▪ Originator of premium carbon credit1 (“CC”) projects in both compliance and voluntary carbon markets ▪ Existing royalty portfolio of nature-based projects ~100,000 CC/year ▪ Prioritize North American investments with cash-flow visibility ▪ Excep
Slide 5: Agnico Eagle Strategic Investment to Facilitate Growth
Agnico Eagle Strategic Investment to Facilitate Growth ▪ Agnico Eagle to acquire 35% of Green Star for C$14.1M ▪ Co-investment potential to accelerate larger green pipeline projects ▪ Transaction assigns ~C$40.4M initial value to Green Star with significant growth potential ▪ Validation of Green Sta
Slide 6: North American Focus with Cash Flow Visibility
North American Focus with Cash Flow Visibility EMS FOREST Carbon Sequestration 40.5% GR Royalty Development Estimated Revenues (US$M) 3.0 2.5 2.0 1.5 MOBISMART LSFN FOREST 1.0 Renewable Tech Carbon Sequestration 2.5% GR Royalty 16% GR Royalty Operating Development 0.5 0.0 2022E 2023E 2024E 2025E Reg
Slide 7: Existing Portfolio and Current Opportunities
Existing Portfolio and Current Opportunities ▪ Strategic investment, co-investments with Agnico Eagle to accelerate pipeline, access to larger green projects ▪ Competitive advantage through collaboration with Bluesource, North America’s leading carbon offset developer Investment Investment (C$M) Loc
Slide 8: Regenerative Agriculture In Focus
Regenerative Agriculture In Focus 1 Originating Carbon Offset Credits Project to generate revenues equivalent to over 100k carbon offset credits to Green Star 2 Premium Credits in Tier 1 Jurisdiction Partnering with U.S. growers to create premium, verified credits for voluntary carbon markets 3 Sign
Slide 9: 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 10: 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 9 OTCQX: STRFF
Slide 11: Experienced Management of Capital Allocators
Experienced Management of Capital Allocators Star Management to Operate Green Star While Private 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 12: Star Royalties Board of Directors
Star Royalties Board of Directors 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 Orrantia BSME, MBA, ICD.
Slide 13: ESG is Core to Founding Principles
ESG is Core to Founding Principles Environmental ▪ Green Star: 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 Social ▪ Indigenous communities: existing partnerships on royal
Slide 14: Investment Snapshot
Investment Snapshot TSX-V: STRR; OTCQX: STRFF Capitalization Ownership Almadex Minerals Ltd., Management and Board, Share Price (March 28, 2022) C$0.50 2.3% 7.5% 52-Week High/Low C$0.75 – C$0.42 Market Capitalization C$36.4M Cash / Debt (September 30, 2021) US$4.3M / Nil Institutional Investors, Boo
Slide 15: A Differentiated Carbon Credit Royalties Investment
A Differentiated Carbon Credit Royalties Investment Investment Rationale Summary: ▪ Focus on originating new carbon projects ▪ Strategic investment by Agnico Eagle1 accelerates growth trajectory and access to larger projects ▪ Receiving royalties with no streaming payment (100% exposure to CC price
Slide 16: Asset Portfolio
Asset Portfolio 15
Slide 17: Regenerative Agriculture Project Highlights
Regenerative Agriculture Project Highlights Investment Rationale 1 Originating Carbon Offset Credits 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 credits for volun
Slide 18: Regenerative Agriculture Project: ~100,000 CC/year
Regenerative Agriculture Project: ~100,000 CC/year Regenerative Agriculture 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 biodiversity,
Slide 19: 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 20: LSFN Forest Carbon Offset Project: ~2,500 CC/yr
LSFN Forest Carbon Offset 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 Ontario ▪ R
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 25