We have a clearly defined set of investment criteria and screen all assets against these prior to making an investment decision. These are:
Our focus is on providing investors exposure to commodities that will support a sustainable future.
We use a rigorous screening and due diligence process to inform our investment decisions.
What it means?
We focus the majority of our investment in projects that:
- are relatively low cost;
- are in established mining jurisdictions;
- have strong management teams;
- achieve clear IRR targets;
- focus on commodities within our basket; and
- meet our sustainability investment criteria.
We seek diversity of commodities, jurisdiction and asset maturity to balance portfolio risk.
What it means?
As we grow the portfolio we will seek to:
- reduce asset concentration;
- increase the commodity exposure;
- strike a balance between income generating and growth acquisitions; and
- deploy majority of capital into lower risk opportunities.
Our capital allocation framework focuses on growth, maintaining a strong balance sheet and distributions to shareholders.
What it means?
- Acquire high quality royalties to further diversify and grow the portfolio.
- Focus on post-transaction deleveraging.
- Distribute semi-annual cash dividends based on payout ratio of 25%-35% of free cash flow.
- Consider share buybacks in context of market price and estimated NAV.