Portfolio Construction

Star Royalties

We are focused on creating bespoke royalties and streams with the intent of optimizing our counterparties’ cost of capital and allowing us to achieve above-threshold returns. Our management team, as capital allocators, constantly reviews new opportunities to sustainably and responsibly grow Star Royalties’ portfolio with a strict emphasis on:

1. Value and quality over quantity
2. Risk management with focus on Tier 1 jurisdictions
3. After-tax internal rate of return metrics
4. Relative return on invested capital
5. Free cash flow per share accretion
6. Net asset value per share accretion

While our primary focus continues to be on precious metals, we have been committed to funding sustainable environmental solutions for a net-zero economy since inception. As a result, we continue to view ESG-related investments as a highly scalable business model with attractive returns. In late 2021, we created a separate corporate entity, Green Star Royalties, to address the overwhelmingly positive response to our innovative green royalty model, numerous origination opportunities, and superior potential returns. Green Star Royalties was created with the purpose of accelerating our green portfolio and leveraging our royalty model into carbon and cleantech markets, and is supported by strategic investments by two senior Canadian natural resources and ESG leaders – Agnico Eagle Mines (March 2022) and Cenovus Energy (December 2023). As a result, the Green Star Royalties joint venture is currently owned 46% by Star Royalties, 26% by Agnico Eagle Mines, 26% by Cenovus Energy, and 2% by management.