VMET is a metal royalty collector that engages in acquiring and managing royalty interests on metals and mining operations in Peru, Africa, and Canada. The company’s projects possess various metals, including silver, gold, copper, uranium, zinc, etc.
The company’s operating track record is quite limited, as it was founded in 2022 and only went public earlier this year. With that said, the business model as a royalty collector is highly attractive, as it requires minimal capital to grow. VMET’s momentum has been solid due to tailwinds from record commodity prices. Consensus estimates revenue to grow meaningfully in FY2026 to around $100M, with expected EBIT of around $65M. Therefore, the near-term outlook looks quite attractive. The company’s debt is relatively high, which investors need to be aware of. But management has good experience and knows the sector. Overall, VMET could be considered a “leveraged bet” on gold and silver prices, and the name could continue to do well if commodity prices remain strong. Consenus calls for $100M in revenue in 2028 and we think that is doable, but aggressive. At that level, it should earn 45c a share or so.