Katusa Research — Special Situations Alert
Versamet Royalties Corp.
Toronto Stock Exchange
TSX: VMET
Nasdaq Stock Market
NASDAQ: VMET
Special Situations Alert
Franco-Nevada. Wheaton Precious Metals. Royal Gold. For decades, three names have owned the gold royalty sector. There has never been a credible fourth.
I was one of the first cheque writers when Versamet was founded in 2022. I have watched this team deploy over $750 million across 29 assets in four years — while Tether, B2Gold, and the Lundin family took strategic positions before a single American institution had access. This morning, the team announced the biggest deal in the company's history: a 3.52% life-of-mine gold stream on Eskay Creek — one of the highest-grade open-pit gold projects on earth — for $360 million. The stock still trades at less than half the cash flow multiple of every peer in the sector. That gap is the opportunity. And the window that creates it is closing.
Paid sponsorship. Katusa Research is extremely biased. See full disclosure above.
† This document refers to certain non-IFRS measures, including (i) Attributable Gold Equivalent Ounces, (ii) average cash cost per Attributable Gold Equivalent Ounce (iii) average cash cost margin (iv) cash flows from operating activities before working capital changes (v) cash flows from operating activities before working capital changes per share (vi) EBITDA and (vii) Adjusted EBITDA (the “Non-IFRS Measures”). The Non-IFRS measures are not standard measures under IFRS and the Company’s method of calculating the Non-IFRS Measures may differ from the methods used by other issuers. Therefore, the Company’s Non-IFRS measures may not be comparable to similar measures presented by other issuers. Please refer to Versamet’s Management’s Discussion and Analysis for the year ended 2025 for more details on non-IFRS measures, available on Versamet’s profile on SEDAR+, on EDGAR, and on Versamet’s website.
In 2016, a former investment banker at one of Canada's largest mining desks walked away from a guaranteed career to co-found a royalty company with almost nothing. Just a thesis: acquire royalty contracts on gold mines, collect a percentage of every ounce produced, and let someone else do the digging.
Six years later, he sold that company — Maverix Metals — for over $750 million. Triple Flag Precious Metals paid a substantial premium to acquire the portfolio he had built, and the deal closed in 2023.
Most founders cash out and disappear. Dan O'Flaherty picked up the phone. He called his VP of Project Evaluation, his VP of Capital Markets, and his Director of Finance. Every key operator from the Maverix team said yes and came back.
Executives do not leave good jobs to rejoin a former boss unless they have seen the playbook work — and they believe the next version will be bigger. Before Maverix, O'Flaherty was EVP at Esperanza Resources, acquired by Alamos Gold, which delivered significant returns for shareholders.
"Two companies. Two exits. He has never once been on the losing side. And this time, the most aggressive gold accumulator on the planet is standing behind him."
— Marin Katusa, Founder, Katusa ResearchBefore that, O'Flaherty executed billions of dollars in transactions at the mining investment bank desk at Scotia Capital. Two companies. Two exits. He has never once been on the losing side.
Since mid-2022, O'Flaherty and his team have deployed over $750 million across 29 assets, building a portfolio of producing royalty and streaming assets across multiple countries. Production hit 9,815 gold equivalent ounces (GEOs) in 2025 — nearly double 2024.
Management has guided 20,000 to 23,000 GEOs for 2026. At a conservative $4,000 gold price — well below current spot — you can do the napkin math on what that cash flow looks like for a company. With eight employees and no mine-level operating costs.
That company is Versamet Royalties Corp. (TSX: VMET | NASDAQ: VMET).
Here is the single most important fact about Versamet: over 75% of the shares are held by people who build, finance, and operate gold mines for a living. This is not a retail-driven story.
The people who know this industry best — who have spent careers evaluating deposits, financing mines, and managing production risk — have already taken their positions. The float is extraordinarily tight. When demand picks up, price moves fast.
| Shareholder | Stake | What Their Position Signals |
|---|---|---|
| B2Gold |
29%
|
One of Africa's largest gold miners sent their own geologists — people who had worked at the specific mines Versamet was evaluating — to join the due diligence. That is the most expensive validation money can buy, and they provided it voluntarily. |
| Equinox Gold |
11%
|
Co-founder and former CEO Greg Smith is Versamet's Chairman. Equinox embedded their own operators in Versamet's due diligence — not passive investors, but active partners. |
| Tether |
~13%
|
The $186 billion stablecoin company now has a seat at the board table. Juan Presa, Tether's corporate execution manager, was appointed to Versamet's board on March 13, 2026 — exercising their right that they received when they first invested. They also hold participation rights in every future equity raise, and they have exercised them every time. |
| Lundin Family |
9%
|
The dynasty behind some of the most successful mining operations in the world. When the Lundin family backs a management team, it is because they have decided these are the people who will build the next great company. |
| Zijin Mining (via Gold Mountain) |
2%
|
The world's fourth-largest gold producer. Strategic validation from the production side of the industry. |
| Orion & Blackstone (via Eskay Creek deal) |
New
|
Two of the most sophisticated mining finance firms in the world sold Versamet the Eskay Creek stream — and took $20 million in Versamet shares as part of the deal. They are now on the register. When the sellers take equity, that is the strongest possible signal about where they think the stock is going. |
| Management & Insiders |
11%
|
The same team that built and sold Maverix for $750M put their own money back in. Alignment at every level of the organization. |
"Tether's gold strategy chief was asked if they have a gold price target. His answer: 'We have it. We're not sharing it. You'd think we're crazy.' That is the man who negotiated board rights at Versamet. Every time he buys more, the float shrinks further."
— Marin KatusaI have been in the resource sector my entire career. I have never seen strategic shareholders embed their own technical people into a royalty company's deal process.
When B2Gold sends a geologist who has previously worked at the exact mine being evaluated, they are not doing Versamet a favour. They are protecting their own 29% position. That is the highest form of due diligence validation available — and it has already been done on every major asset in this portfolio.
Before I show you the numbers, let me explain exactly why the royalty model is the most capital-efficient structure in the resource sector. If you have never owned a royalty company before, this is the most important paragraph on this page.
A royalty company does not mine anything. It holds contracts that entitle it to a percentage of every ounce a mine produces, for as long as the mine runs — no operating costs, no capital expenditure, no labor force to manage, no equipment to maintain, no fuel bills, no environmental liability.
When gold goes up, the royalty company captures almost the entire gain. When costs go up at the mine, the royalty company is completely insulated. The operator bears all the risk. The royalty company collects the upside.
Eight people run Versamet's entire operation. A growing portfolio of royalty and streaming assets across multiple countries, with no mine-level operating costs. Every dollar of revenue flows almost entirely to the bottom line. That is not a margin — that is a machine.
Management has guided 20,000 to 23,000 GEOs for 2026. At a conservative $4,000 gold price — well below current spot — you can do the napkin math on what that cash flow looks like for a company with eight employees and no mine-level operating costs.
In 2024, Versamet produced approximately 5,100 GEOs. By the end of 2025, that number reached 9,815. The 2026 guidance targets 20,000 to 23,000 GEOs — driven entirely by mines that are already built, already operating, and already shipping metal. With Eskay Creek expected to contribute over 10,000 GEOs per year starting in Q2 2027, total production is forecast to push past 30,000 GEOs by 2028 — a 95% compound annual growth rate since the company launched in 2022.
These are not projections based on exploration results or permitting approvals. They are production ramps from operating mines.
Source: VMET Investor Presentation, April 2026. 2028F GEOs based on analyst consensus estimates for other assets and management estimates for Eskay Creek. All production and forecast figures are forward-looking statements. See disclaimer below.
Source: VMET Investor Presentation, April 2026. Production profile based on Skeena Gold & Silver's 2023 Definitive Feasibility Study (NI 43-101 Technical Report, Sedgman Canada Limited, November 14, 2023). Gold equivalent calculated using $1,800/oz gold and $23/oz silver. Actual results may differ materially. See forward-looking statements disclaimer below.
Two years ago, Versamet had 2 paying assets. Today it has 7, with 2 more expected to start paying by year-end.
Versamet's average mine life across its top ten assets sits at 15 years — above the peer average of 14.4 years. That is long-duration, compounding cash flow visibility built on assets that are already in production.
Pull up a list of every precious metals royalty company on earth. You will find a cluster below $1.5 billion — then Franco-Nevada, Wheaton Precious Metals, and Royal Gold above $8 billion. In between? There is nothing.
A $6.5 billion vacuum — no company, no competitor. That gap has existed for years because building a mid-tier royalty company is brutally hard: you need producing assets, not promises; deal flow, not press releases; and a team that has done it before. Versamet is filling that gap. And the market has not priced it in.
The Price-to-Cash-Flow (P/CF) multiple measures how much investors pay for each dollar of cash a company generates. A lower multiple means the market has not yet recognized the cash flow potential.
Versamet trades at approximately 9.7x 2026 forecast cash flow. Peers trade at 15.5x to 42x. The chart below — sourced directly from the company's April 2026 investor presentation — shows the full peer comparison across cash flow, market cap, and P/CF multiple:
Source: VMET Investor Presentation, April 2026. NBF Research cash flow estimates as of March 31, 2026. Market caps as of March 31, 2026. P/CF based on 2026 forecast cash flow. Peer companies shown for comparative purposes only. Forward-looking estimates are subject to change. See forward-looking statements disclaimer below.
Source: VMET Investor Presentation, April 2026; NBF Research cash flow estimates as of Feb 10, 2026. P/CF based on 2026 forecast cash flow. Chart shows relative value per dollar invested — longer bar = more cash flow per dollar paid. See forward-looking statements disclaimer below.
The market is still valuing Versamet on trailing production of roughly 9,800 GEOs. At 20,000 GEOs — the midpoint of 2026 guidance — the cash flow base changes materially.
Production scale alone drives yield normalization. The market has not yet priced in the scale that is already in motion.
"The same market paying a premium for Versamet's assets is pricing the cash flow at less than half the peer average. The assets are already priced right. The earnings growth behind them has not been priced in yet. That gap is where the opportunity lives."
— Marin KatusaVersamet's Price-to-NAV (P/NAV) sits at 1.5x. The market already trusts the portfolio and pays a premium for the assets.
The same investors paying that premium are pricing the cash flow at less than half what they pay for peers. That is not a rational equilibrium. It is a temporary disconnect — and as GEOs scale toward 20,000 in 2026, the gap closes.
I do not need a commodity price prediction. I do not need a drill result or a permit approval or a management shakeup or a miracle.
I just need to count the catalysts already in motion and do basic math. This is one of those setups.
Until March 6th, almost no American institutional investor knew this stock existed. That changes now — every fund, every ETF, every institution in the United States has access.
At current market capitalization, Versamet is on track to potentially qualify for GDXJ — the VanEck Junior Gold Miners ETF — later this year. Inclusion triggers forced passive buying from every fund tracking the index, landing on a float where three-quarters of the stock is locked up by strategics who are not selling. The listing is live. The institutional discovery process is just beginning.
The single largest value driver in the portfolio. Kiaka produced 95,000 ounces in its first year — ahead of schedule, under budget — with nearly 70,000 coming in Q4 alone.
Nameplate: 234,000 ounces per year over a 20-year mine life. Versamet holds a 2.7% NSR. Every quarterly report from here shows accelerating revenue. This catalyst does not require a prediction. It requires patience.
Tether's Juan Presa joined the Versamet board on March 13, 2026. This is not passive capital. This is strategic alignment at the governance level.
Tether owns approximately 13% of Versamet and holds participation rights in every future equity raise. Their gold strategy chief has a gold price target he will not share because, in his words, "You'd think we're crazy." That conviction does not reverse. Every purchase shrinks the already-thin float further.
A 55-year-old silver mine in Namibia. Versamet holds a 90% silver stream. The RP2.0 expansion nearly doubles mill throughput to 1.3 million tonnes per year, with construction 85%+ complete and on schedule for Q3.
When it completes, Versamet's silver revenue from this single asset is expected to increase meaningfully. Someone else paid for the entire expansion. Versamet collects the upside. This is the royalty model working exactly as designed.
Gold hit 45+ all-time highs in 2025. Central banks are buying at the fastest pace in modern history. Versamet's 93% cash cost margin means every dollar gold rises flows almost entirely to the bottom line — no rising fuel costs, no labor inflation, no capex requirements.
Analyst price targets average C$18.10 per share across 5 analysts (ATB Capital Markets, National Bank Financial, Canaccord Genuity, Raymond James, and BMO Capital Markets — 4 at C$18, 1 at C$18.50, consensus Buy). At current spot, those estimates are conservative.
On April 6, 2026, Versamet announced the acquisition of a 3.52% life-of-mine gold stream on Eskay Creek — one of the highest-grade open-pit gold projects on earth, located in BC's Golden Triangle. The deal: $360 million ($340M cash + $20M in VMET shares), fully financed through an expanded credit facility with BMO and National Bank. No equity dilution.
Eskay Creek is expected to produce over 300,000 ounces of gold per year in its first five years, with an all-in sustaining cost of $684 per GEO. Versamet's 3.52% stream — uncapped, no step-downs, no buyback provisions, with a 10% delivery payment — is expected to contribute over 10,000 gold ounces per year to Versamet starting in Q2 2027. Construction is 49% complete. The seller? Orion Resource Partners and Blackstone — who took $20M in Versamet shares as part of the deal. They are now on the register.
I do not believe in one-sided promotional material. Every investment has risks, and every thesis has vulnerabilities.
Here are the four hardest questions about Versamet — and my honest answers to each.
Let me be direct. I was one of the first cheque writers when this company was founded. I am a shareholder, and I have a financial interest in this story — I have disclosed that fully above. You should weigh everything I say with that in mind.
With that said — in over two decades in the resource sector, I have never seen the following combination in a single junior royalty company at the same moment:
A CEO who has never failed to sell a company, running a team that has done this before. The world's fourth-largest gold producer holding 29% and sending their own geologists to validate the portfolio. The most aggressive private gold accumulator on earth holding 13% with a board seat and still buying.
A NASDAQ listing achieved, opening the door to American institutional capital for the first time. A 4x GEO growth trajectory driven by mines already in production. A 93% cash cost margin that turns every gold price increase directly into free cash flow. And a valuation at less than half the cash flow multiple of every comparable company on earth.
Markets do not treat 20,000 GEO companies the way they treat 5,000 GEO companies. Liquidity improves. Institutional screens start picking it up. Analyst coverage follows. Index inclusion triggers forced buying. Mispricings do not survive increased attention.
Versamet Royalties is about to get a great deal of attention.
If this is the Fourth Major gold royalty company — and I believe it is — Mr. Market will not be offering it at this price for much longer. Do your own due diligence. Read the filings. Run the comps. Then decide.
The Bottom Line — Versamet Royalties Corp.
The NASDAQ listing is live. Tether has a board seat. Eskay Creek adds 10,000+ GEOs per year starting Q2 2027. The Kiaka ramp is accelerating. The Rosh Pinah expansion completes in Q3. And the stock still trades at 9.7x cash flow while peers command 15x to 42x. That window does not stay open.
This content is disseminated for Versamet Royalties Corp. pursuant to a paid marketing services agreement between New Era Publishing Inc. and Versamet Royalties Corp. Pursuant to Section 17(b) of the Securities Act of 1933, compensation of $1,300,000 has been received for the distribution of this material. This is NOT a solicitation to buy or sell securities. Marin Katusa is a founding shareholder of Versamet Royalties. Past performance is not indicative of future results. Investing in securities involves significant risk, including the possible loss of all principal. This publication contains forward-looking statements — see the disclaimer above. Always conduct your own due diligence and consult a qualified financial adviser before making any investment decision. © 2026 New Era Publishing Inc. / Katusa Research. All rights reserved.
