Q: Can you explain what this royalty company does and what, if any, the reason to buy it would be? It doesn’t seem comparable to other royalty companies.
5i Research Answer:
Its royalties will be typical, being net interest in mining projects. However, it has an indigenous focus, helping First Nations with their mining projects, and transferring some royalties to the public company. It has only been public for a year. 77% of the company is owned by the Nisga'a Nation, and this limits investor interest due to thin trading. It has no analyst coverage. It is early days here, and the company needs to build out its portfolio. Its small size, sector and liquidity add significant risks. Still, it has done well with the sector, but we would like to see a more-diversified portfolio. We do expect this over time as new deals are signed.