What you need to know: • Sailfish Royalty reported Q4 and 2024 financial results that missed our estimates due to weak silver production from Mako Mining. • The Spring Valley Project is advancing ahead of schedule, and thus, we have pulled our first production start date forward by three quarters. Please refer to our Spring Valley Updates section. • Combining this with the takeout of Orogen Royalties by Triple Flag at 1.8x NAV, we are increasing our target multiple on FISH from 0.7x to 0.9x, resulting in our target price increasing to C$2.50/share. Yesterday after market close, Sailfish Royalty (FISH:TSXV, SROYF:OTC) announced its financial results for Q4/24 and 2024. The financials missed our expectations due to poor silver production from Mako, however, the focus should be shifted to the advancement of Spring Valley and valuation benchmark from the takeout of Orogen Royalties. We are maintaining our BUY rating and increasing our target price to C$2.50/share target price on FISH (prev. C$2.00/share). Key Highlights • Q4 revenue came in at $0.7M (+2% YoY) compared to our expected $1.7M. This miss was driven by Mako Mining reporting 14.6Koz of produced gold and 13.1Koz of produced silver, compared to our estimates of 11.0Koz and 40.5Koz, respectively. 2024 revenue came in at $2.8M (+22% YoY). o Mako also reported Q1 production results of 11.5Koz of gold and 12.0Koz of silver, which is now reflected in our model. • Gold ounces earned for the quarter came in at 111 compared to 243 in Q4/23. 2024 gold ounces earned came in at 782 compared to 1,078 in 2023. • Adjusted EBITDA for the quarter of breakeven compared to our expected $1.0M. Full-year EBITDA was ($0.1M) vs. our estimates of $1.0M. • Q4 net income was ($0.6M) vs. our estimate of $0.9M. 2024 net income came in at $0.6M vs. our estimate of $2.1M and ($1.1M) last year. • FISH ended the quarter with $2.2M in cash and $4.0M in debt.