Portfolio Construction

Star Royalties is unique in that we provide investors exposure to both carbon credit and precious metals. While both segments share an emphasis on Tier 1 jurisdictions with low geopolitical risk, we believe the diversification of two different asset classes lowers our overall risk profile and our cost of capital.

Net Asset Value by Commodity: 74% Precious Metals, 23% Green, 3% Other.
Aerial view of an open pit mining operation.

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 we continue to have a focus on precious metals, we have been committed to funding sustainable environmental solutions for a carbon neutral 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, the numerous origination opportunities, and the superior potential returns. Green Star Royalties was created with the sole purpose of accelerating our green portfolio and leveraging our first-mover advantage in the carbon credit royalty space, 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.

A vista of green farmland.

Green Star Royalties

Green Star Royalties prioritizes North American investments that fund nature-based carbon credit projects (agriculture and forestry) and green technology opportunities (diesel usage displacement).

The strategic investments by Agnico Eagle Mines and Cenovus Energy provided Green Star Royalties with two cornerstone shareholders, a validation of the business model and investment pipeline, recognition of value accretion, and a pathway to continue Green Star Royalties’ rapid growth.

We believe that abiding by these portfolio constructs will result in a robust, cash flowing, sustainable portfolio that will provide attractive risk-adjusted returns to our shareholders.