Metalla Royalty (MTA) - Aggressive, Smart, Precious Metals Dealmaking
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- Опубліковано 3 сер 2024
- Interview with E.B. Tucker, NED of Metalla Royalty and Streaming (TSX-V, NYSE: MTA)
FULL ARTICLE FOR THIS INTERVIEW HERE:
cruxinvestor.com/opinions/met...
Royalty companies give investors access to the thrills of mining returns with much less of the risk. Metalla Royalty is a smart precious metals royalty and streaming company that acquires royalties with majors for mostly shares. It's managed to bump its share price up by 700%. Metalla Royalty's focus is on development-stage precious metals properties, because these properties keep their ounces in the ground, thus maintaining the value of the royalty.
Metalla Royalty is making deals that larger royalty companies can't seem to pull off, and now the company appears to be reaching its inflection point when its value might be recognised.
We're fans of this story so far. The plan for the future looks like more of the same, but when the same is leading to so much success, why would investors complain?
What did you make of EB Tucker and Metalla Royalty? Are you a fan of royalty companies as an investment class? Is Metalla Royalty a royalty company that stands out from the crowd? Comment below and we will respond.
00:00 - Introduction
1:43 - "Why Gold, Why Now" Update: Relationship Between Gold and the Dollar
4:20 - Company Overview
6:19 - Foundation of Metalla Royalty: Business Plan and Reasons for Focusing on Precious Metals
8:12 - A Fine Blend of Companies: Is Their Loss of Revenue Linked to the Limited Amount of Producers Held?
9:49 - Agnico Eagle, Barrick Gold, Pan American and Others: How Has Metalla Royalty Been Able to Structure Deals with the Big Names in the Industry?
13:24 - Financing it All
15:45 - Listing in the NYSE: Rollback of Shares and Liquidity Issues
19:26 - Risk Mitigation: Separating Nickel and Copper from Metalla and into Another Company, Considering Jurisdictions and Stages
25:57 - Inflection Point and Timeline for Getting There
29:12 - Impact of Gold Price, Economic Changes and Financings for Exploration on Metalla
32:07 - Why Continue to Pay Dividends Instead of Putting it All Back into the Company?
33:47 - Physical Gold vs Investing in a Royalty Company
35:04 - Gold Royalty vs Lithium-Copper Royalty: Explaining the Logic to Form an Additional Royalty Company
Company page: www.metallaroyalty.com/
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Bought EBs book Why Gold Why Now on Audible- wow, very detailed history lesson without losing me, highly recommend- started it again tonight for round 2
So refreshing to hear a company working hard for their shareholders. EB is on point about everything.
I like EB....he's spikey without being annoying 🙂
Love this guy , he is the best
Clever cat is EBT
@@Alexander-Bunyip what does e.b stand for?
@@littlepaws5947 elderberry
@@Alexander-Bunyip 😆
What a top notch interview and I hope that EB writes the book on copper and nickel. Go batteries,!
Glad to hear it!
E.B. is easy on the ears (and eyes 😉). He knows how to get investors interested. I love Metalla. Stock has had a nice breakout. This could be a monster.
Great interview, but coffee and croissant for barely $20? Where the heck do you go for breakfast?
This is going to be an excellent royalty and success story. Congrats Mr. Tucker, i will enjoy the ride along with MTA
He is back , the legend
Listened to his book on Audible. Good information.
I am loading the truck right now The chart looks AMAZING Thanks for sharing
I liked his distinction between dilution and accretion when it comes to buying royalties with stock. In a way the companies joining become part of their own mutual fund, provided they don't sell the shares. Very much enjoyed your having E. B. on. I did get his new book and read it despite the angle of "beginning gold bug" because it let me learn more about him. Marvelous guests lately!
I appreciated that question also because dilution I've been seeing criticism directed at Metalla for that.
Great interview, very in depth questions. I've listened to a bunch of interviews with E.B. on Metalla, but this one got the most into the weeds on the details of how the company works. Much appreciated.
Glad you enjoyed it Nick
*Very helpful, clarifying interview and thanks for the bookmarks!*
Glad it was helpful!
I've been following Tucker for some time now. I'm buying in before the stock skyrockets!
I really like this EB Tucker guy
Old school value for investors aside, there is another very good reason for MTA to have a steady divided.
Many institutions have dividend requirements for their investments. When the institutional shift occurs to a small PM allotment, this will make MTA very attractive.
No dividends now lol
I really like Metalla, and have stock.... so im invested and see a bull somewhere down the line... where I don't get or don't understand the disconnet is the numbers... when metalla hit NYSE the market hit about 30,000... Gold 1260/oz and Metalla was going 4.96Eur...fast forward 6months later NYSE 26,000...Gold 1784/oz ( second highest price since 2012?) and Metalla is 4.60Eur....If I had bought a couple of 100g gold bars for that money.. I might feel better today....im uneasy but hopeful because I think the modell might work.. but the numbers are not what I would expect by the higher gold price... I just don't really understand it.
I have the same exact question as you. Seeing as you posted this 8 months ago, were you able to find your answer? If so, I would like to ask the same question to you.
@@Tony99410 Well, I cut my position in half and moved that money to other stocks for now to earn better gains.. I am still impressed by the work Metalla has done.. CEO Brett is really finding( Mining) Royalties.. from the third parties, and they made it in to a Etf, that’s great work.. so I could care less about the small Dividend not being paid out.. they are putting that money to work.. instead of paying it out...if they go below 7 a share I‘ll buy back in and wait it out.. gold is going to hit higher.. just when is the question.. so im buying physical gold at the time..
Good insight. Thanks a lot!
LOVED THIS!!!
Another great interview. Thank you
Glad you enjoyed it
Great interview. Very useful. Thank you.
Glad it was helpful!
Core mining "very close to Mt. Rushmore..were not talking about a warzone with lots of problems" 🤔 ........no, not yet anyways. lol!
Thanks I am Late Getting Her Watching and reading But You are a Gentleman and You Really Seem to Care Thanks
I appreciate that
Good stuff matt👍any chance you could pin down international hill tower mining ceo and put him through the ringer☘👍
since the end of dec. 2019 the share prices of my portfolio 7 pm co. Gained from 59 to 7.7%. Metalia was purchased at 6.59 for a ga-in of only 7.7%.
I bought Metalla in Jan 2020 and it’s in the red by 8%, meanwhile ELY is up 238% and EMX 63%. MTA is underperforming to say the least.
George Cranston any idea why?
Great interview ! When ELY?
I have the book, own the stock and so far I'm quite impressed. For idiots like myself just do what the smart fellas do. I find no interest in the technicals and all that stuff to be honest, I rather invest into books or listening/watching what the smart ones do and try to do that. So far that approach is starting to work well
The money comparison is humorous. When I was a kid in the 60s, McDonalds advertised a big Mac, coke and fries for a dollar but you get a quarter back. Now I don't think you could get that for less than $10.
I have recently put a position in Gold Terra Resource. It was between Banyan Resource and GTR. GTR won out because of its geographic location and the head of the company.
I got into Geomega Resource but it seems to be going sideways...plus my GR Silver and Minera Alamos is doing quite well. MTA is one I wish I would have bought two years ago. My buddy told me about it at work but I was reluctant. Omg am I regretting this one. Oh...you can't win them all. It was a dollar a share........shoot.
I think they did a reverse share......just looked it up and the price is different.
Great company, good interview. Could u please invite warren irwing from rosseau asset management?
Excellent.
What broker do you have to use to get MTA? None of the guys I'm signed up with have them... hardly anything in the precious metals sector apart from a couple of big ones. Cheers
Alex Swan you can use IBKR
E.B. said he spend a lot of time modeling and referenced the move from $1775 to $2000 in Gold would have a dramatic impact on MTA's stock price.
A good follow-up question would have asked him for a specific target as Gold moves up to $1800, $1900, $2000 and beyond.
Its impossible give that target,the stock is market sentiment based
This was 😎 Awesome!!!
Hi, I'm an investor in Metalla, I have been listening to Marin Katusa from Katusa research,
Have you heard about central banks in different country's having swap line with the federal reserve?
And if you have your mines in country's without swaplines, do you know about the risks that Katusa mentions?
Not sure it was ever a real thing. Good marketing only. Normal course of business. See FT articles.
Central banks’ demand for dollars is running below levels experienced in the financial crisis, signalling that the Fed's move to flood the markets with funding has eased fears that the global lockdown could trigger a financing crunch.
The Fed opened dollar swap lines with more than a dozen other central banks in March as the dollar surged and demand for the currency created severe shortages in the early stages of the crisis triggered by the pandemic. As the dollar is the world’s reserve currency, investors in times of stress seek shelter in the currency and dollar-denominated assets.
But demand for the Fed’s supply of dollars has not so far outpaced the levels seen during the financial crisis, the last time the Fed rolled out similar liquidity-boosting measures.
A total of $447bn had been drawn down by other central banks by the end of the first week in June, Fed figures show - below the $583bn taken up in December 2008 at the height of the financial crisis. Fed chair Jay Powell noted on Wednesday that “market functioning has improved since the strains experienced in March” while insisting the Fed would continue to support financial markets for many months to come.
The majority of dollar funding has gone to the European Central Bank and the Bank of Japan but Mexico and South Korea have also tapped the Fed for dollars - the first time central banks in emerging markets have done so.
Central banks’ demand for dollars is running below levels experienced in the financial crisis, signalling that the Fed's move to flood the markets with funding has eased fears that the global lockdown could trigger a financing crunch.
The Fed opened dollar swap lines with more than a dozen other central banks in March as the dollar surged and demand for the currency created severe shortages in the early stages of the crisis triggered by the pandemic. As the dollar is the world’s reserve currency, investors in times of stress seek shelter in the currency and dollar-denominated assets.
But demand for the Fed’s supply of dollars has not so far outpaced the levels seen during the financial crisis, the last time the Fed rolled out similar liquidity-boosting measures.
A total of $447bn had been drawn down by other central banks by the end of the first week in June, Fed figures show - below the $583bn taken up in December 2008 at the height of the financial crisis. Fed chair Jay Powell noted on Wednesday that “market functioning has improved since the strains experienced in March” while insisting the Fed would continue to support financial markets for many months to come.
The majority of dollar funding has gone to the European Central Bank and the Bank of Japan but Mexico and South Korea have also tapped the Fed for dollars - the first time central banks in emerging markets have done so.
Now, as the first of these contracts begin to mature, central banks must decide in the coming weeks whether to replace them or return to the financial markets for dollar funding, as they normally do. The first ECB and BoJ swap contracts mature on Thursday; those signed by South Korea and Mexico start to follow two weeks later.
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“It will be important to see if this dollar funding gets rolled [over],” said George Saravelos, global co-head of foreign exchange research at Deutsche Bank, who added that it would be an indication that investors were “getting more confident on dollar funding” and becoming less gloomy about the global economic outlook.
buying MTA in July 2020 not so good
buying MTA now probably very good. I would love to know better whether I should load up on MTA or SAND its hard to work out the better oppurtunity though chart suggests MTA to me
Sandstorm started a non-gold streaming company back in 2011-13 area. It ended in bankruptcy.
I agree completely with E. B. Tucker's thesis and he is always a very good listen. The company Metalla has a great story behind them.
Folks, with Metalla, what happened on 23-Jun-20 ? I have been trawling through the news and I cannot find any reference to events on that day.
Coeur Mining sold 3.9M shares of MTA in a secondary offering for $US5.30 per share
I wish JB was still with the company.
If there was a monetary change soon how would someone benefit from a company like this? Would they pay with a new currency or actual pms later?
What is the nickel and copper company that he is talking about?
Agreed. Good question.
He explains it at 19:43
Nova Royalty
All the mills in my town have been converted to artists' lofts.
i bought some land with gold on it , not sure how much , where do i go to get someone to tell me how much gold i have .
Where is it lol
@@lucapuzzoli8363 arkansas, the man that owned the place before me , would clean out a crack in the flat rock bed of the creek , and find gold every so often in it the crack in the creek runs from one side to the other side about 4 inchs wide and about a foot deep , it is on a earthquake fault line , and i have a old city water well with enough water for 2000 houses , if you need lots of water to mine with . 50 horse pump .
Where to buy it? I'm from Europe.
Still takes $1800 to buy an ounce of gold two years later. Nonetheless, I get it. Wouldn’t have some pm’s and a couple thousand shares of MTA if I didn’t. Go EB!
Current Price/Book 4.19
interesting .
Went to website and still can not but a hat, shirt, cufflinks nor any other bling. What is up with that?!
How about an EB bobblehead?
Why has MTA moved down in the past couple of months while the price of gold has moved up?
DKH 777 I like hearing other people opinions. Do you think it’s a good idea to invest?
I don’t like the price action of MTA at all. I was in the stock for 2 months and it was my worst performer. However if your timeline is 5/10 years they have a nice portfolio. The companies within their portfolio was outperforming in the same timeframe.
I cannot make sense of the supposed superior value of royalty companies. Why pay 1.5-3x+ NAV when you could just own gold itself? Royalties do not provide any leverage to gold as there is no production cost by which the margin expands from during bull markets. A royalty receiving 1 ounce at $1,500 vs. later at $1,700 has the same percent increase as just simply owning 1 ounce of gold. Ignoring what manic Mr. Market does, the way royalty companies outperform merely owning gold is only by:
1) their mines coming on-line and thus bringing in increased production
2) sizable enough jump in gold price leads to currently producing assets expanding their actual production (not merely accountants adjusting categories of resources)
Otherwise its all financial models and accounting that will likely get blown up when the cycle turns against them. Gold price runs up and inferred goes into M&I but won't actually be mined for years and years - this risk is fine if you are an exploration company at 0.5 NAV or developer trading at a slight discount to NAV, but these royalties trade at incredible NAV premiums and even more insane cashflow premiums. The promises and expectations are sky high and I think these will end horribly when the cycle eventually turns.
It's even more frightening when he notes that there are other royalties companies approaching miners carelessly throwing borrowed money in huge amounts. This virtually guarantees that this stuff is all being way overpaid for.
I note royalty companies are being spun out of everywhere imaginable. It's another bubble sign. Miners think they can create magical 2x value by spinning off royalties of their own assets. It simply does not make sense, someone somewhere is getting or going to get burned by this.
In the last cycle everyone ragged on the majors paying stupid prices for mediocre assets and taking huge write-downs a couple years later. I suspect this go around it will be the royalty companies that everyone rags on.
Or am I missing something truly magical about paying 40x cashflow for royalties?
The leverage is still there. What you are getting with a royalty isn't a percentage of a pile of bullion but a percentage on future production of gold from a hugely discounted quantity in the ground. The appropriate comparison is with buying a miner, not buying gold bullion. Also, the royalty runs for the lifetime of the mine including future developments if and when the mine extends out to the side or to greater depth. As the mine expands, that's free money to the royalty owner. It provides less leverage than a miner, but is much less risky, hence the premium price.
Again he goes on about the stock going from $1.20 to 7 bucks without mentioning the reverse split.
Ely is a real growing royalty as well as Sandstorm.. MTA is more of a promo company . Losing money and all its cash flow goes towards paying their dividend. Makes no sense for a growing company. Unless you are using it as an income stream for management. Rob McEwen does the same thing with Abitibi . It is McEwen's largest income stream but it stifles growth.
MTA have a royalty because it's required to do the deals with their corp partners they use the stock in the transaction. It seems they are shifting to buying more cash flow assets now which is good and needed for the company to grow. Ely is really good but has spikes a lot in price, Nomad is something to look into as well.
Out of 8 miners that I have mta is the only one that is in the red. Why is it the only one going down?
This hasn’t aged well. All time high in gold and MTA screwed their shareholders to bail out Nova equity
Americans after they learn about this years $6 Trillion deficit, "You're going to need a bigger boat". Where silver is the boat that Americans want to climb into.
I like to look at the comments first and THIS IS A SHOCKER. You like the short one sentence comments only like "love this guy he is the best". This tells me a lot about your intellect, sir. "He is back the legend" fits your intellect as well. "Another great interview" suits as well. And number four is "MTA lonnggggg! Nice work EB". Well yes, nice work CRUX. Remember, you asked for comments and I do the favour. I am kind of shocked, who you want to be. Maybe just coincidence. I do not use the service of reading answers, so do not bother. I am out at 0:40.
I am not interrested in Royalties as I understand them as cancer on a living body. Thought about listening, but this seems to be a US soap. When you started you cooked my brain, sir. But "love the guy, he is the best" - does not even warm my toe. Have a nice week-end, sir.
You read all the comments but only lasted 40 seconds in the video? Unique method of evaluating an argument. Do you read one line sneers about movies to avoid paying for a cinema trip too?
If you are shocked by UA-cam comments you need to get out more. Form your own opinion for God's sake by evaluating evidence and ideas not by being for or against one line comments from unknown people. You said yourself that you have a prejudice against the idea but then judge the idea by off hand comments rather than listen to the argument itself. I read the comments for perspectives and counter arguments too. I see stupid comments just as you do. Yours was the dumbest of all.
E.B. You have 6 days for silver to hit $50. This was your forecast on Kitco a few weeks ago. Not looking good.....:( 10/25/2020
Inflationary
MTA 👎🏾