Star Royalties — Investor Presentation (June 2021)
33 slides from Star Royalties's investor presentation, June 2021
Slide 1: Corporate Presentation
CORPORATE PRESENTATION June 2021
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: Cautionary Notes
Cautionary Notes To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the potential benefits of the o
Slide 4: Cautionary Notes
Cautionary Notes Technical disclosure regarding the Company’s properties included or incorporated by reference in this presentation has been prepared in accordance with the requirements of securities laws in effect in Canada including Canada's National Instrument 43-101 - Standards of Disclosure for
Slide 5: Why STAR?
Why STAR? TRACK RECORD OF Seasoned Team SUCCESS ■ Respected team with 100+ years of industry experience ■ Track record of successful capital allocation and risk assessment RELATIONSHIP- DRIVEN ■ Pipeline1 of opportunities from relationships and asset knowledge PIPELINE Differentiated Model DISCIPLIN
Slide 6: Snapshot
Snapshot Capitalization Ownership Listings TSX-V: STRR; OTCQX: STRFF Management Share Price (May 28, 2021) C$0.56 Retail, and Board of 46.7% Directors, 7.3% 52-Week High/Low C$0.59 – C$0.45 Market Capitalization C$39.8M Cash (March 31, 2021) US$15.1M Debt (March 31, 2021) Nil COMPANY Enterprise Valu
Slide 7: The STAR Team
The STAR Team Industry Experts Manage STAR 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., Award-winning portfolio manager Peter Bures – C
Slide 8: Board of Directors
Board of Directors STAR Board ■ Strong governance and alignment ■ Majority independent and diverse board 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 COMPAN
Slide 9: ESG Principles
ESG Principles Environmental ■ Carbon credits: reforestation; scalable business with near-term cash flow ■ EV metals: green-focused metal investments to include Cu, Ni, Li ■ Investment policy: no hydrocarbons Social ■ First Nations: committed to partnering on carbon credit and mining royalty opportu
Slide 10: The Differentiated STAR Model
The Differentiated STAR Model Asset NAV1 – Created vs. Existing Underwriting Royalties and Streams ■ Focused on underwriting (originating) new royalties/streams Created ■ Competition (<$50 million transactions) focused on existing 85% 15% Existing royalties and royalty portfolios ■ Optimise counterp
Slide 11: Assets
Assets LSFN FOREST BAYAN UNDUR Carbon Sequestration Copper & Silver 16% GR Royalty 2.0% NSR Royalty Development Exploration PORTFOLIO BAAVHAI UUL Lithium 1.5% GR Royalty Exploration COPPERSTONE Gold Stream1 Construction (Restart) KEYSBROOK Titanium Sands 2.0% GR Royalty Production TSX.V: STRR OTCQX:
Slide 12: Analysis
Analysis Asset NAV1 by Commodity Asset NAV1 by Stage Current Target Current Target 83% 20% 20% 17% 83% 10% 80% 15% 70% PORTFOLIO Precious Metals Other Production Development Exploration Asset NAV1 by Jurisdiction Estimated Gold Equivalent Sales (koz)2 6.0 0.5 0.5 5.0 0.4 4.0 3.0 USA 4.6 5.0 15% 2.0
Slide 13: Current Opportunities (+US$125M)
Current Opportunities (+US$125M) Acquisition Value by Commodity (%) Acquisition Value by Stage (%) 9% 32% 68% 91% INVESTORS Precious Metals Carbon Credits Production Development Acquisition Value by Jurisdiction (%) Acquisition Value by Exclusivity (%) 39% 61% 99% Tier 1 Tier 2 Exclusive (Underwriti
Slide 14: Capital Structure
Capital Structure Shares Outstanding (millions) 38.1 0.4 71.1 24.2 32.6 33.0 33.0 2.5 5.9 8.4 2.5 FINANCIAL FounderRaise Founder Raise March2020 March 2020Raise Raise September 2020 September 2020 Shares for Service Shares for Service Total Total Pre-IPO Pre-IPOShares Shares IPO Shares IPO Shares1 T
Slide 15: The Road Ahead
The Road Ahead Near-Term Catalysts and Objectives Royalty Sector Performance Since August 20183 ■ Executing on robust pipeline of 10+ opportunities ■ Multiple additional carbon credit opportunities – scalable business with strong pricing upside ■ US listing and increased trading liquidity ■ Validati
Slide 16: Appendix | Company
= way A Appendix 1 | Company STRFF 'STRR ROYALTIES LTD. ;
Slide 17: Executive Management
Executive Management Tony Lesiak Kevin MacLean BSc, MBA, MAG P.Eng., CFA Executive Chairman Chief Investment Officer ■ 25+ years in mining equity research and ■ 40+ years in portfolio management (award-winning) investment banking and mining equity research ■ Canaccord Genuity, Macquarie Capital Mark
Slide 18: Board of Directors
Board of Directors Tony Lesiak Executive Chairman See Executive Management slide for information Alex Pernin CEO and Director Kylie Dickson ■ 14+ years of mining industry experience as CPA, CA across exploration, mine development and operations BBA, CPA, CA ■ Currently Director and Audit Committee C
Slide 19: Royalties vs. Streams
Royalties vs. Streams Royalties Streams In exchange for an initial payment, Star Royalties In exchange for an initial payment, Star Royalties is given the right to receive a percentage of is given the right to purchase all or a revenue, profit or value of metal produced from a predetermined percenta
Slide 20: STAR Business Model
STAR Business Model Royalty and Streaming Model Our differentiated and uniquely aligned royalty and streaming business model provides: Star Royalties Producers Bullion/ETFs Commodity price leverage ✓ ✓ Counterparty and shareholder alignment ✓ Expansion and optimization upside ✓ ✓ COMPANY Mineral res
Slide 21: Appendix | Investors
Appendix 2 | Investors 20
Slide 22: Sector Performance
Sector Performance Due to an attractive business model, royalty and streaming companies have outperformed gold bullion, the S&P/TSX Global Gold Index as well as the S&P500 over the last five years 400 350 300 203% 156% INVESTORS 250 200 100% 78% 150 100 50 0 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Slide 23: A Track Record of Royalty Outperformance
A Track Record of Royalty Outperformance Rising Gold Price1 Falling Gold Price1 Since December 20151 Since August 20181 Dec-20-20072 to Sep-5-20113 Sep-6-2011 to Dec-17-20154 Dec-18-2015 to Present Aug-17-20185 to Present 299% 221% 195% 189% 136% 80% 111% 100% 55% 61% INVESTORS (39%) (45%) (79%) Mid
Slide 24: Appendix | Portfolio Assets
Appendix 3 | Portfolio Assets 23
Slide 25: Copperstone
Copperstone Operator Arizona Gold Corp (TSX: AZG) Location Arizona, USA Stage Construction (Restart) Commodity Gold < 21,000 oz 21,001 – 27,200 oz > 27,200 oz Stream Terms1 9.9% 3.3% 1.2% Surface Infrastructure of gold produced of gold produced of gold produced PORTFOLIO Mineral Grade2 Contained Ton
Slide 26: Copperstone Highlights
Copperstone Highlights Investment Rationale 1 Tier 1 Jurisdiction Arizona, USA 2 Reliable Counterparty1 Experienced underground mine developer 3 Lower Risk Restart PORTFOLIO Fully permitted with significant infrastructure on site 4 Short Timeline to Production Restart expected in Q4 2021 with commer
Slide 27: Copperstone Potential
PORTFOLIO Copperstone Potential Definition RC Drilling Highlights Step-out and Infill Drilling ■ 18-21-06 grading 40.0 g/t Au over 16.8m1 ■ 10,000m drill program ongoing1 ■ 18-21-04 grading 17.49 g/t Au over 10.7m2 ■ 18-08A-02 grading 11.70 g/t Au over 12.2m3 ■ 18-08A-03 grading 8.25 g/t Au over 16.
Slide 28: Keysbrook
Keysbrook Operator Keysbrook Leucoxene Pty Ltd Location Western Australia, Australia Stage Production Commodity Mineral Sands (Titanium, Zircon) Terms 2.0% Gross Revenue Royalty Processing Facilities PORTFOLIO ■ Open pit mineral sands mine located 70 km south of Perth, WA, Australia ■ Mine owned and
Slide 29: LSFN Forest Carbon Pilot Project
LSFN Forest Carbon Pilot Project ■ Government of Canada has 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 ■ Reforestation and conservation of boreal fo
Slide 30: Exploration
Exploration Bayan Undur Baavhai Uul Operator Aranjin Resources Ltd. Operator Ion Energy Ltd. Location Mongolia Location Mongolia PORTFOLIO Stage Advanced Exploration Stage Early Exploration Commodity Cu, Ag Commodity Li (brine) 2% Net Smelter Return Royalty (with ROFR on any Terms 1.5% Gross Revenue
Slide 31: Appendix | Disclosures
STAR ROYALTIES LTD. bd Appendix 4 | Disclosures STRFF TRADED ON OTCQX
Slide 32: Technical Disclosure
Technical Disclosure Mineral Resource Statement Mineral Reserve Statement Grade Contained Metal Grade Contained Metal Tonnage Tonnage Category Gold Gold Category Gold Gold (kt) (kt) (g/t) (koz) (g/t) (koz) Measured 478.1 8.33 128.0 Proven 346.7 7.30 81.4 DISCLOSURES Indicated 646.7 7.12 148.0 Probab
Slide 33: Contact
| Alex Pernin, P.Geo. Peter Bures Chief Executive Officer & Director Chief Business Development Officer M. +1 647 801 3549 M. +1 437 997 8088 apernin@starroyalties.com pbures@starroyalties.com 32