We are building a leading royalty company focused on copper and nickel – the building blocks of clean energy substitution of fossil fuels. We do not develop projects or operate mines. Through owning and continuing to grow a diversified portfolio of strategically important royalties we offer our shareholders a unique risk/reward adjusted way to benefit from investing in electrifying and decarbonizing our planet.
Royalties give us exposure to copper/nickel price and optionality on production, while at the same time protect us from any direct operating, carrying, exploration or development costs. In fact, royalties are based on revenue line of operations and paid regardless of underlying economics of a project and cost structure of an operator.
Nova buys royalties mostly from third party sellers (not the miners themselves). A typical royalty mechanism transaction is the following:
Advantages of a royalty model:
- Free of any cash calls to fund operating, capital or closure costs.
- We participate at the revenue line of operations and are not directly impacted by cost inflation. This allows our margins to fully benefit from rising commodity prices.
- Extremely low overhead with ability to scale and generate cash flow through the cycle.
- Scalable allowing for the acquisition of more interests than an operating company can effectively manage. A more diversified portfolio reduces overall risk.
- No responsibility for day-to-day operational or development decisions, allowing us 100pct focus on growth.
(1). Nova Royalty is a pure play royalty company in copper and nickel. Mining companies are diversified and have exposure to numerous commodities. As such they don’t offer the same clean and direct exposure to copper and nickel – the building blocks of clean energy substitution of fossil fuels.