Versamet Royalties Reports Q3 2026 Results

Versamet Royalties Corporation reported third-quarter 2026 revenue of $21.1 million, a 160% year-over-year increase from $8.1 million, alongside attributable GEOs of 4,959, up 84% from 2,699. Cash flow from operations before working-capital changes reached $18.1 million, up 196%, while adjusted EBITDA rose 212% to $17.9 million. Net income was $4.1 million, an increase of 23%. The disparity between EBITDA and net income growth was driven by finance and interest expenses of $7.368 million, compared to $1.313 million a year earlier, as well as depletion of $4.241 million and taxes of $1.912 million.

On a sequential basis, the quarter was weaker than the second quarter. Revenue fell from $23.7 million, attributable GEOs declined from 5,255, net income dropped from $4.9 million, and operating cash flow before working capital decreased from $19.5 million. Management reiterated its 2026 guidance for 20,000–23,000 attributable GEOs. With year-to-date GEOs at 15,127, the company requires 4,873 GEOs in the fourth quarter to meet the low end of guidance and 7,873 to hit the high end.

At the Kiaka mine, production set a record at 76,030 oz Au, a 13% quarter-over-quarter increase, on 2.87 Mt milled at 0.9 g/t with 93.1% recovery. The company sold 73,492 oz, holding 20,861 oz of unsold bullion at quarter-end. Rosh Pinah contributed 455 GEOs, with the RP2.0 project in its final construction phase. Greenstone produced 60,596 oz Au, contributing 1,050 attributable oz. Kolpa contributed 744 GEOs on 256,052 t processed, a 10% increase quarter-over-quarter. Santa Rita contributed 416 GEOs and reported record monthly concentrate production of 12,464 t with 86.72% recovery.

Cuiú Cuiú poured its first gold on September 10, 2026, producing approximately 1,130 oz during commissioning and selling 2,400 oz in the quarter, with ramp-up targeting 3,000 tpd. Eskay Creek construction was over 80% complete at the end of October, up from 62% at June 30, with first ore targeted for the second quarter of 2027. Early works at El Pilar began in September, with construction expected in the first quarter of 2027 and production targeted for the second half of 2029.

Versamet Royalties Corporation is to acquire Converse from SSR Mining, with plans to develop it as a Marigold Complex extension producing 150,000–170,000 oz Au/year over 10+ years from 2033. Preliminary Economic Assessments were released for PC Silver and Zuun Mod. The company was added to the GDXJ in September. The release omitted a third-quarter update on Toega, despite a prior early-Q3 2026 ore-delivery target and a Q2 disclosure of delay. It also provided no standalone update on Blackwater beyond a CEO quote, nor any update on Mercedes.

Versamet Royalties Corporation (VMET) released an in-line quarterly update that confirms strong year-over-year growth and continued project progress. The report did not change 2026 GEO guidance and contained no new asset-level surprises that alter net asset value.

The sequential decline in GEOs, revenue, and net income, along with a sharp rise in interest expense, were the primary negative factors. The stock had already fallen 12.7% from $14.15 on the prior Q2 release date to $12.36 on the Q3 release date, positioning the market defensively into the print.

Versamet Royalties Corporation (NASDAQ: VMET), a precious-metals royalty and streaming company listed on the NASDAQ and TSX, launched in June 2022 under the leadership of CEO Dan O’Flaherty, the former CEO of Maverix Metals. According to the company’s November presentation, its portfolio is diversified across gold, silver, copper, nickel, molybdenum, and zinc, with over 90% of asset net asset value (NAV) concentrated in gold and silver and more than 50% located in Canada.

The company’s producing assets include a 1.26% gold stream at Greenstone, a 2.7% net smelter return (NSR) at Kiaka, a 90% silver stream at Rosh Pinah, a 95.8% copper stream at Kolpa, a 2.75% NSR at Santa Rita, a 1.5% NSR at Cuiú Cuiú which is currently ramping up, and a 0.21% NSR at Blackwater, which was referenced in the CEO’s quote.

Development and early-stage holdings feature a 3.52% gold stream at Eskay Creek, a 1% gold gross royalty (GRR) at El Pilar, a 1% NSR at Converse, a 1.2% NSR at PC Silver, a 1.5% NSR at Zuun Mod, a 2.7% NSR at Toega, a 2% NSR at Hackett River, and a 0.4% NSR at Mason. These assets are operated by a range of industry participants, including Equinox Gold, West African Resources, Endeavour Silver, Appian Capital, Cabral Gold, Skeena Gold & Silver, Southern Copper, SSR Mining, Glencore Canada, and Hudbay Minerals.