Interview with Dan O’Flaherty, CEO of Maverix Metals Inc. (TSX, NYSE: MMX)
Royalties: a way to make mining-level returns without mining-level risks?
O'Flaherty certainly believes so. He is the CEO of Maverix Metals Inc., an emerging precious metals royalty and streaming company listed on the TSX and NYSE.
One of the main areas of volatility in mining is in the mining process itself: just what will come out of the ground? Gold royalties companies offer much of the leverage to precious metals prices and exposure to exploration and expansion potential, but without the risks and costs associated with mining programs.
Royalty companies are a unique category of investment and are a top-line revenue-based model. A gold royalty is a contract that gives royalty companies the right to a percentage of gold production or revenue in exchange for an upfront payment; they have the right to purchase gold at a significant discount to the current gold price and can create a deal to purchase gold at a set price regardless of gold spot price.
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