Versamet Royalties Announces Record Operating and Financial Results for the Third Quarter of 2025

Executive Summary

• Versamet Royalties reported record Q3 2025 revenue of $8.1 M (↑155% YoY) and record attributable gold‑equivalent ounces (GEOs) of 2,699 (↑110% YoY).
• Operating cash flow before working capital changes reached $6.1 M (↑206% YoY), driven by strong asset performance and recent acquisitions of a silver stream on Rosh Pinah Zinc (Namibia) and a polymetallic royalty on Santa Rita (Brazil).
• Management reaffirmed guidance to achieve ~10,000 GEOs in 2025 and ~20,000 GEOs in 2026, citing contributions from newly acquired assets and ramp‑ups at existing royalties.

Key Details

• Financial Highlights (Q3 2025 vs Q3 2024):
• Revenue: $8,118 k vs $3,178 k.
• Attributable GEOs: 2,699 vs 1,288.
• Net income: $3,319 k vs $3,864 k (decline due to higher depletion and finance costs).
• Adjusted EBITDA: $5,715 k vs $1,606 k.

• Operating cash flow before working‑capital changes: $6,136 k vs $2,004 k.

• Acquisitions:

• Significant silver stream on the operating Rosh Pinah Zinc mine (Namibia).

• Polymetallic royalty on the operating Santa Rita mine (Brazil). Both transactions executed with Appian Capital Advisory Ltd.

• Asset Performance Updates:

• Greenstone (1.26% Gold Stream): Produced 1,050 GEOs in Q3; mining rates +10%, processing grades +13% vs prior quarter. Entitled to monthly deliveries of the greater of 1.26 % of gold produced or 350 oz Au.
• Kiaka (2.7% NSR): Produced 32,869 oz Au; sold 18,254 oz, with 12,310 oz remaining unsold at quarter‑end. Main grid power connection completed in late Oct.; commissioning underway.
• Blackwater (0.21% NSR): Produced 60,985 oz Au; on track for 2025 guidance of 190–230 k oz Au. Phase 1A expansion (33 % capacity increase) commenced; decision on Phase 2 expected before year‑end.
• Santa Rita (2.75% NSR): Received inaugural royalty revenue post‑acquisition. Funded by a new $1 B partnership announced Oct 21, 2025 (IFC & Appian). Mine transitioning to underground production (~30 kt Ni‑eq/yr, >30‑year life).
• Toega (2.7% NSR): Water storage facility completed Nov 3, 2025; pumping started; earthworks advanced; mining equipment on site; pre‑stripping slated for Q4 2025.
• Cuiú Cuiú (1.5% NSR): Cabral Gold approved financing & board approval to start heap‑leach starter project; advance royalty production payments received. First gold pour targeted end‑2026.

• El Pilar (1.0% GRR): Southern Copper provided capital cost & production profile update: construction starts 2026, first production 2028.

• Guidance: Management expects to meet increased guidance of ~10,000 GEOs for 2025 and ~20,000 GEOs in 2026, supported by the newly acquired Rosh Pinah Zinc, Santa Rita, Kolpa assets and ongoing ramp‑ups at Greenstone, Kiaka, and Blackwater.

Notable Quotes

“Q3 was another record quarter for revenue, GEOs and cash flow…the addition of these expanding cash‑flowing assets has a significant impact to Versamet’s GEOs…we are on track to meet our increased guidance…” – Dan O’Flaherty, CEO