What you need to know: • Mining royalties and streams have performed well over the last few years as rising commodity prices led to increased margins and ROIC. • Government support for the mining industry is fast-tracking projects in Canada, the U.S., and Australia, unlocking value for royalty firms faster. • There has been significant M&A over the last year, providing higher valuation benchmarks for assets. • We highlight key small/mid-cap players in the space, including companies under coverage, FISH, ECOR, and KLD. This report serves as an update to our original Mining Royalties Primer, which provided a foundational overview of royalty and streaming structures, investment rationale, and a summary of key industry players. For a full breakdown of the sector, check out our last note here. Growth drivers include: • Further ROIC expansion as royalty-linked projects reach full throughput and new projects move forward faster due to government support • Increased margins driven by rising commodity prices • Multiple expansion as generalist capital is attracted to the space • M&A as a value creation driver for small-caps Investment Thesis Summary Elite Investment Structure. As mentioned in our last report, royalty and streaming companies offer de-risked exposure to high-margin resource assets with no direct operating or capital cost exposure. This structure enables superior returns on invested capital and predictable cash flow generation across cycles, especially as more projects enter production and metals prices rise. Increased Commodity Prices Leading to Margin Expansion. Rising prices for gold, silver, and copper (amongst other commodities) directly boost top-line revenue for royalty firms without increasing operating costs. This provides additional capital, which can be returned to shareholders or redeployed into new projects. Furthermore, the higher metal prices lead to previously uneconomic projects moving forward to production, unlocking value for royalty firms. Government Support for New Projects. Regulatory and policy changes are fast-tracking permitting and mining investment in jurisdictions such as Canada, the U.S., and Australia. These efforts accelerate development timelines for projects under royalty agreements, unlocking value sooner than expected.