STAR ROYALTIES

The Company is focused on creating bespoke royalties and streams with the intent of optimizing its counterparties’ risk-adjusted cost of capital while allowing Star Royalties to achieve above-threshold returns. Management, as capital allocators, constantly review 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 top-tier 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 Star Royalties continues to have a long-term focus on precious metals, it has been committed to funding sustainable environmental solutions for a carbon neutral economy since its inception and continues to view ESG-related investments as a highly scalable business model with attractive returns. To address the overwhelmingly positive response thus far to the Company’s innovative green royalty model, the numerous origination opportunities, and the superior potential returns, Star Royalties announced on October 18, 2021, the creation of a separate corporate entity, Green Star Royalties, with the sole purpose to accelerate the growth of its green portfolio beyond the initial limitations of its original 80/20 allocation framework.

GREEN STAR ROYALTIES

Green Star Royalties aims to prioritize North American investments that fund carbon offset projects (biosequestration and renewable energies) and green technology opportunities (diesel usage displacement).

This unique green strategy will allow Green Star Royalties to take delivery of carbon offset credits and will position Star Royalties to then be carbon negative, by more than offsetting the Company’s direct CO2emissions from corporate activities and attributable CO2 emissions sourced from its gold equivalent ounces.

The Company believes that abiding by these portfolio constructs will result in a robust, cash flowing, carbon-negative portfolio that will provide attractive risk-adjusted returns to its shareholders.