Royalties Inc. Reports Yearend Results for 2025
Executive Summary
- Royalties Inc. reported record 2025 revenue of $143.9 M (+32%) and a net loss of $38.3 K, driven by a strong dividend from its increased stake in Music Royalties Inc. and higher royalty income.
- The company secured a favorable appellate court ruling confirming its 2% NSR on five Portree claims at Capstone Copper’s Cozamin Mine, estimating over US$10 M owed in past royalties plus an additional US$25 M valuation of the claim.
- Ownership in Music Royalties Inc. was increased by $1.525 M to a total investment of $2.525 M, expected to generate $181.8 K of dividends in 2026.
Key Details
- Revenue: $143,881,000 (up 32% YoY) – comprised of $117,600,000 dividend income from Music Royalties Inc. and $26,278,000 other royalty income.
- Operating Expenses: $316,945,000 (up 28%) – higher legal, marketing, and OTC‑US listing costs related to the Capstone lawsuit.
- Operating Loss: $173,064,000 vs. $139,130,000 loss in 2024.
- Foreign Exchange Gain: Non‑cash gain of $134,776,000 on a US$2 M contingent liability of a Mexican subsidiary.
- Net Loss: $38,288,000 for 2025 (vs. $392,292,000 loss in 2024).
Legal Victory – Capstone Copper Cozamin Mine
* June 16 2025: Minera Portree de Zacatecas (MPZ) obtained a court judgment confirming a 2% NSR on five “Portree” concessions.
November 4 2025: Superior Tribunal of Justice of Zacatecas upheld the ruling, rejecting Capstone’s appeal.
Estimated royalty owed to MPZ: US$10 M (pre‑interest & damages) for production since 2019; independent valuation places total claim value at US$25 M.
Capstone Royalty Payments (Context)
* 2025 Capstone paid US$4.9 M in royalties on US$300 M net revenues (including US$2 M Q4).
* Comparable royalty holders: GROY received US$1.35 M (1% NSR), Bacis received US$3.5 M (3% NSR).
Music Royalties Inc. Investment
* Additional investment of $1,525,000 raised stake to $2,525,000.
Expected 2026 dividend income: $181,800*.
Operational Outlook
* Silver price breakout increases potential value of the Bilbao silver‑zinc‑lead project; company planning a new drill campaign and possible spin‑off.
* Future royalty collection depends on Capstone’s cooperation; valuation could rise further with higher copper/silver prices and additional drilling on remaining 90% of Portree area.
Notable Quotes
- Tim Gallagher, CEO & Director: “Our legal victory solidifies a valuable royalty stream that, together with our growing music royalties portfolio, positions Royalties Inc. for sustained cash‑flow generation despite the short‑term operating loss.”