Project Kingdom Rationale and Explanation - August 2020 - Tax Justice Network
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Project Kingdom Rationale and Explanation August 2020 Agyapa Royalties | Investor Presentation
Background to Project Kingdom – Incorporation of MIIF and Agyapa
• Project Kingdom was initiated in June 2018 to (i) to maximise the value that the Republic
derives from its mineral wealth, (ii) to monetise the mineral income accruing to the Republic in
a sustainable and responsible way, and most importantly, (iii) to obtain urgently needed
capital for the development agenda of the Republic through an equity capital market
transaction, as an alternative to conventional debt capital markets transactions
• MIIF was established from the passing of the MIIF Act December 2018 to hold and manage
the equity interests of the Government of Ghana (“GoG”) in mining companies, to receive
mineral royalties due to the GoG from mining operations, provide for the management and
investment of the assets of the Fund, finance further developments in the mining sector and
monitor and improve flows into the mining sector
• The MIIF incorporated Agyapa in November 2019
Agyapa Royalties | Investor Presentation 2Why Project Kingdom Rather Than Traditional Debt?
• Ghana successfully accessed the global capital markets in 2019 & 2020 (Long-term
Sovereign Bond issue) and can service its current debt, however it will be a challenge for any
African country to tap the international markets for future funding and/or the international
community for debt relief due to the current global volatility
• This transaction allows the Government of Ghana to raise permanent non-debt capital from
international & domestic investors
• No re-payment obligations, interest payments or the need for a guarantee
• Ghana retains majority control of the royalties, will receive dividends from Agyapa and
continues to receive royalties on the portion of the royalties it continues to hold
• Helps domestic private sector borrowing by reducing Ghana’s borrowing requirement
• Prudently reduces Ghana’s heavy budgetary risk exposure to adverse movements in the gold
price and fluctuations in mine gold production volumes
• Capital raised from the transaction will finance initiatives that complement Ghana’s
“homegrown” policies - obtaining today a portion of the value of future royalties enables the
proceeds to be invested in capital assets that will endure well beyond the life of the mines - all
mines deplete therefore all associated royalty revenues will also come to an end
• The gold price is at a record high which makes it a highly opportune time for Ghana to take
advantage of this and realize value through the monetisation of a portion of its future gold
royalty revenues
3Spot Gold Price Performance
($/oz)
1,959
____________________
Source: FactSet as of 19 August 2020.
Agyapa Royalties | Investor Presentation 4Project Kingdom MIIF and Agyapa August 2020
MIIF Act
• Passed in December 2018, the MIIF Act established the MIIF to manage the equity interests of the
Republic in mining companies, to receive mineral royalties and other related income due to the
Republic from mining operations (except in relation to Bauxite), to provide for the management
and investments of the assets of the Fund and for other related matters
• Objects of the Fund are to:
o Maximise the value of the income due to the Republic from the minerals wealth of the country for the benefit of its citizens
o Monetise the minerals income accruing to the Republic in a beneficial, responsible, transparent, accountable and sustainable manner; and
o Develop and implement measures to reduce the budgetary exposure of the Republic to minerals income fluctuations
• Powers of the Fund include:
o The creation of a SPV in any jurisdiction in furtherance of its objects (and the SPV shall be free to operate as a regular, commercial entity),
o Procure the listing of the SPV on any reputable stock exchange that it considers appropriate,
o Assign all or any of its rights to mineral income to a SPV in furtherance of the objects of the Fund
• The MIIF Board has been appointed by the Government of Ghana
o Investment Committee and management team in place
o Note Budget Speech for 2019, page 53, paragraph 217 which supports this
6What is Agyapa Royalties About?
• Agyapa is a gold royalty company that will offer financing to mining companies that want to
develop their mines in exchange for a royalty or other revenue related stream
• It will focus its activities in Ghana and Africa and in the gold mining sector only
• The current portfolio includes the royalties from 12 Ghanaian gold mines and the expected
royalties from 4 development assets
• It will be the first Africa focused Minerals royalty company and also the first to be listed by an
African government
• This is a pioneering template for Africa on how to achieve value-add on exports
• It is the intention for Agyapa to be an African royalty company and to leverage Ghana’s position
as the leading gold producer in Africa to build an African royalty portfolio
• Agyapa to be listed on the London and Ghana Stock Exchanges
• Government of Ghana through MIIF will be the majority shareholder with at least 51% of the
shareholding
7Directors of Agyapa Royalties
• As a London and Ghana listed company, Agyapa will high international corporate governance
standards
• This includes the requirement for majority of Directors to be independent
• Like all companies, at the AGM shareholders have the ability to vote on directors appointments
• The Government of Ghana will therefore have the opportunity to approve or remove directors by
voting at the AGM
8Change of Name to Agyapa Royalties
• The name Asaase was selected in 2019 and on further investigation on the name, it was
apparent that there are over 21 companies with the name “Asaase”
• The ambition for Agyapa is to be widely recognised as the leading African royalty company and
the name should be set apart of any other organisation
• There is a chance of confusion, especially with those that are within the minerals industry (e.g.
Asaase Metals, Asaase Gold Trading, AsaaseAse Mining Limited and Asaase Group Mining
Limited)
• Changing the Company name to something that is not as widely used was important to ensure
there would be no confusion
9List of Companies Registered under the name “Asaase”
Company Name Registration Number
Asaase Focus Ltd CG078622017
Asaase Metals BN445662020
AsaaseGPS Ltd CS226322018
Asaase Aba Ltd CS050862016
Asaase Gold Trading BN549602014
Asaase Inscriptions BN300582013
Asaase Agro Services BN-62,250C
Asaase Farms Limited CS741972015
Asaase Ghana Limited CA-48,901
Asaase Ghana Projects Ltd
Asaase Mining Services BN203152012
Asaase Survey Services BN6410112014
Asaase Group Association Ltd CG179332018
Asaase Resources Limited CA-71,198
AsaaseAse Mining Limited CS348912018
Asaase Royalties Limited ET000182020
Asaase Group Mining Limited CS269432019
Asaasemu Mining Company Limited CA-38,428
Asaase Transport and Merchandise Enterprise BN352352016
Asaase Refrigeration and Air Conditioning Service BN-19,552C
Asaase Construction and Engineering Services Limited CS416792014
Asaase Broadcasting Company Limited CS191402013
10Flow of Funds From Royalty Portfolio to Agyapa
Government of
§ The MIIF will pay 20% of the Mineral Royalties
Ghana received from the mining companies to the
Minerals Development Fund
100% § The statement that all the traditional
authorities lose rights to their share of
Mineral Royalties MIIF retains
Mining Minerals Income royalty receipts is therefore untrue
Companies Investment Fund royalties from
$ other mines
§ 75.6% of the royalties from the 12 producing
mines will then be transferred to Agyapa
100%
§ Remaining cash on hand can then be used by
the MIIF for:
75.6% of the § a payment of 2.4% of all Mineral
20% of the Allocated
Mineral Royalties Mineral Royalties Royalties to the Ghana Revenue
Minerals Agyapa Royalties Authority as a Revenue Management
Development Fund $ $ (Jersey)
Fee
§ the MIIF’s own purposes including the
payment of salaries and other
expenses (2% of all Mineral Royalties)
Legend
§ 80% of other royalties received will remain
$=Mineral Royalties Ownership with MIIF (i.e. royalties from mines not
included in the Royalty Portfolio)
11Benefits of Agyapa for Government of Ghana
• Benefit from investment of the significant amount of funds received from selling minority stake
in Agyapa
• Government of Ghana will continue to receive meaningful annual dividend from Agyapa
• Government of Ghana will also benefit from the potential capital gains in the Agyapa shares in
the future
• Agyapa has the ability to facilitate the development of mines in Ghana and Africa and hence
develop the sector and economy as a whole
• Government of Ghana will participate in the growth of Agyapa as the company grows its portfolio
of royalties in Africa
• This will all other things being equal also benefit shareholders, including the majority
shareholder - the Government of Ghana
12Tax Considerations
• Royalties are already a tax paid by mining operators and so cannot be further taxed
• Under MIIF Act, Agyapa royalty revenues are exempt from Ghanaian income tax, duties, levies,
withholdings or other like payments
• Any income earned by Agyapa from other activities outside the flows from these specific assets
would be subject to the GRA's tax rules
• Provisions for financial reporting under the PFMA are addressed by listing rules of the Ghana
and London stock exchanges
• High international corporate governance standards, which Agyapa will conform to will also
further address the proper conduct of management and directors
13Specific Tax Considerations for Agyapa Incorporation
• Under MIIF Act, both ARG and Agyapa are exempt from Ghanaian income tax, duties, levies, withholdings or
other like payments in respect of dividends and the realisation of the objects of MIIF
• Given the above expectation of comprehensive Ghanaian tax exemption for the corporate structure,
consideration was given to a structure which would be most efficient from a listing perspective and
providing investors with the necessary protection.
• Jersey was considered a suitable jurisdiction for the listing vehicle given that it is a well-established
jurisdiction for holding company purposes and a familiar listing vehicle for investors on the London Stock
Exchange (“LSE”).
• Furthermore, Jersey was regarded as a more attractive jurisdiction for investors given that shareholders will
not be subject to any stamp duty on the trading of shares in Agyapa and dividends declared to shareholders
will not be subject to withholding tax.
• From a tax risk and administrative perspective, Jersey was regarded as a less burdensome jurisdiction
compared to the UK, having regard to aspects such as UK controlled foreign company (“CFC”) regulations.
• In this specific regard, as Agyapa will be receiving passive-type income, a detailed analysis and monitoring
of the potential application of the UK CFC regulations would have been required.
• This would likely have included a time-consuming process of engaging with the UK tax authorities to provide
clarity and certainty on this area.
• From a Jersey corporate law perspective, a benefit exists in that Jersey law does not require a distribution to
be paid from profits or distributable reserves.
• In addition, the company does not need to have any profits or distributable reserves as long as the directors
have reasonable grounds for making the solvency statement.
• The only evident disadvantage of Jersey is the fact that it does not currently have a bilateral investment
treaty (“BIT”) in force with Ghana
Agyapa Royalties | Investor Presentation 14Use of Minerals Development Fund Proceeds
• Funds to MDF are unaffected by the flows to Agyapa
• The funds allocated to MDF will continue to be allocated as follows:
o 50% to the Office of the Administrator of Stool Lands;
o 20% to the Mining Community Development Scheme;
o 4% to supplement the Ministry of Lands and Natural Resources;
o 13% to supplement the Minerals Commission;
o 8% to supplement the Geological Survey Department; and
o 5% for research, training and projects aimed at the promotion of sustainable development through mining.
15Legal Agreement Key to the Transaction and Approved by Parliament
• Protects all investors, including the Government and Ghanaian investors
• Assigns and allocates a portfolio of Gold Mineral Royalties by the MIIF to Agyapa
• Provides protection against any adverse changes that may affect royalty rates
• This is because the investor buying the shares, is paying upfront for royalty flows from these mines for the life of the
mining leases, at a specified royalty rate.
Investment • If the royalty rates are increased by the government, Agyapa shareholders will not benefit.
Agreement
• If they are decreased, they are protected against that.
• Royalty rates in Ghana are 5% for some mines and 3 to 5% for others depending on the gold price.
• Shareholders are not protected against any movement in the share price of Agyapa, gold price, production from the mines
or anything that affects the production from the mines.
• The royalties are not paid in perpetuity – they are linked to the life of the lease
• Regulates MIIF’s continued shareholding in Agyapa and ensures that the relationship between Agyapa and the MIIF is on
Relationship a fully commercial basis
Agreement • The company does not destroy value when dealing with MIIF. It also prevents the MIIF from abusing its majority
shareholding. It does not preclude MIIF from exercising any of its rights as a shareholder or majority shareholder.
Operations • This governs the relationship between the Bank of Ghana which acts as the custodian of the royalty flows, that are kept in
Management a separate account, and distributes it to the various parties
Agreement • This ensures flows can be audited properly monitored by all parties.
16Legal Agreement Key to the Transaction and Approved by Parliament
Revenue
• Governs the relationship between GRA and MIIF with respect to the collection of royalties.
Management
Agreement
• The amendments enable SPVs to function as regular, independent, commercial entities as contemplated by Section 3(a)
of the MIIF Act by allowing exemptions to PFMA and SIGA
• This is to ensure the independence of the Board. For example under PFMA, the company's dividend policy and other
MIIF Act policies can be determined by the government as PFMA allows this
Amendments • The board will therefore not be independent and investors will not invest in the company.
• It is necessary to assert the government's influence through the independent board than the government
• If this exemption is not in place, the valuation of the company that we seek to list will be lower ask greater risk will be
ascribed to the company
17Other Notes
• Project Kingdom is a landmark transaction for Ghana and the region and will result in the
Government of Ghana raising USD400 million to USD500 million non-debt, permanent
capital
• In addition, MIIF will retain a majority stake in Agyapa Royalties and will benefit from the
meaningful annual dividend which is expected to be distributed by the Company
• The cost of capital through this transaction is therefore lower than any other debt capital
raise, with the added advantage of being permanent capital with no repayments
• The gold price is at a record high which makes it a highly opportune time for Ghana to take
advantage of this and realize value through the monetisation of a portion of its future gold
royalty revenues
Agyapa Royalties | Investor Presentation 18Project Kingdom Jersey August 2020
Why is Agyapa Royalties Listed in London?
• London is one of the major stock markets for listing mining companies. In order to realise
maximum value for the shares that are being sold, London is therefore the ideal way to achieve
this
• Given the amount of funds the government wants to raise, this amount cannot be raised on the
Ghanaian stock market
• A listing on the London Stock Exchange allows Agyapa to access a large pool of international
investors
• There will be a listing of Agyapa Depository Receipts on the Ghana Stock Exchange
20Why Jersey?
• Jersey has a reputation as a leading and reputable international finance centre of substance committed to
developing and maintaining the highest international standards of regulatory compliance.
• In part, it is a jurisdiction of choice for many listed companies around the world such as Glencore and WPP.
• Jersey has never formed part of the EU blacklist for 'non-compliant' jurisdictions.
• Advantages of using Jersey Holding Company as Listing Vehicle:
• 0% corporation tax
• Free of withholding tax on dividends, interest and royalties
• Shares in Jersey incorporated Holding Companies are free of stamp duty in Jersey
• Three CREST enabled share registrars
• Ability to trade shares directly through CREST (the UK share settlement system)
• Mind and management can be based on island
• Efficient management of share capital via treasury shares
• A Jersey Public Holding Company is comparable to a UK PLC
• With at least 79 companies listed on worldwide stock exchanges from London to New York and a combined
market capitalisation of over £300 billion, Jersey is a leading international finance centre for listing
vehicles.
• The greatest number of FTSE 100 companies registered outside the UK
• 9 companies listed on the FTSE 250
• The greatest number of AIM companies registered outside the UK
• 37 companies listed on the Main Market of the LSE
Agyapa Royalties | Investor Presentation 21Jersey Registered Companies – International Listings
Jersey Listed Companies on Global Exchanges (as at 30 June 2020)
Territory Exchange Market Number of Companies Market cap (£bn)
UK LSE UK Main Market 37 98.060
AIM 29 8.590
SFM 1 0.280
Europe Euronext Amsterdam 2 1.840
Luxembourg Euro MFT 1 0.00
Asia HKEx HK Stock Exchange 2 5.470
North America NASDAQ NASDAQ 3 7.940
NYSE New York Stock Exchange 2 204.240
TSX Toronto Stock Exchange 2 204.240
Total 79 326.480
Agyapa Royalties | Investor Presentation 22Jersey Registered Companies – London Listings Jersey Listed Companies on Main Market of London Stock Exchange (Name and Market Capitalisation in ₤ million) GLENCORE PLC 37,394 TARGET HEALTHCARE REIT LIMITED 0,445 EXPERIAN PLC 21,719 JTC PLC 0,419 FERGUSON PLC 12,959 ABERDEEN ASIAN INCOME FUND LTD 0,386 WPP PLC 12,495 PHOENIX SPREE DEUTSCHLAND LTD 0,283 POLYMETAL INTERNATIONAL PLC 4,686 CQS NEW CITY HIGH YIELD FD LTD 0,257 IWG PLC 3,048 CITY MERCHANTS HIGH YIELD TRUST LTD 0,188 WIZZ AIR HOLDINGS PLC 2,481 INVESCO PERPETUAL ENHANCED INCOME LTD 0,127 3I INFRASTRUCTURE PLC 2,411 MIDDLEFIELD CANADIAN INC PCC 0,103 MAN GROUP PLC 2,396 ASEANA PROPERTIES LIMITED 0,076 PETROFAC LIMITED 1,487 JERSEY ELECTRICITY 0,052 CENTAMIN PLC 1,322 ABERDEEN LATIN AMERICAN INCOME FUND LTD 0,042 GCP INFRASTRUCTURE INVESTMENTS LIMITED 1,119 EJF INVESTMENTS LTD 0,017 SANNE GROUP PLC 1,025 BIGDISH PLC 0,015 FORESIGHT SOLAR FUND LTD 0,664 GEIGER COUNTER LIMITED 0,015 INTEGRATED DIAGNOSTICS HLDGS PLC 0,583 PREDATOR OIL AND GAS HOLDINGS PLC 0,005 GENEL ENERGY PLC 0,539 IQ-AI LIMITED 0,004 TARSUS GROUP PLC 0,528 DAVICTUS PLC 0,001 CVC CREDIT PTNRS EUROPEAN OPPS LTD 0,493 GOLDEN ROCK GLOBAL PLC 0,001 HENDERSON FAR EAST INCOME LIMITED 0,479 EN+ GROUP PLC 0,0000 GCP ASSET BACKED INCOME FUND 0,471 TOTAL 110,735 Agyapa Royalties | Investor Presentation 23
Jersey Registered Companies – London Listings Jersey Listed Companies on AIM (Name and Market Capitalisation in ₤ million) AUDIOBOOM GRP PLC 0.027 BOOHOO.COM PLC 2.461 BREEDON AGGREGATES LIMITED 1.033 CALEDONIA MINING CORP PLC 0.050 CAMBIUM GLOBAL TIMBERLAND LIMITED 0.008 CHINA NEW ENERGY LIMITED 0.006 CIRCLE PROPERTY PLC 0.054 GOLDSTONE RESOURCES LTD 0.004 GREEN & SMART HOLDINGS PLC 0.009 HIGHLAND GOLD MINING LIMITED 0.742 LXB RETAIL PROPERTIES PLC 0.000 MOBILITYONE LTD 0.003 MYSALE GROUP PLC 0.004 QUIZ PLC 0.022 REDT ENERGY PLC 0.010 SAFESTYLE UK PLC 0.054 Serinus Energy Plc 0.028 STANLEY GIBBONS GROUP (THE) PLC 0.009 STARCOM PLC 0.005 STRIDE GAMING PLC 0.111 Jersey Listed Companies on Main Market of SFM (Name and Market Capitalisation in ₤ million) As at June 30th, 2019 BLACKSTONE/GSO LOAN FINANCING LTD 0.293 Agyapa Royalties | Investor Presentation 24
Jersey Registered Companies – NASDAQ, NYSE & Hkex Listings Jersey Listed Companies on Main Market of NASDAQ (Name and Market Capitalisation in ₤ million) As at March 31st, 2019 NOVOCURE LIMITED 4.676 QUOTIENT LIMITED 0.484 RANDGOLD RESOURCES LIMITED - MIMECAST LIMITED 2.175 Jersey Listed Companies on Main Market of NYSE (Name and Market Capitalisation in ₤ million) As at March 31st, 2019 CALEDONIA MINING CORP PLC 52.396 DELPHI TECHNOLOGIES PLC 1.228 Jersey Listed Companies on Main Market of Hkex (Name and Market Capitalisation in ₤ million) As at 30th June 2019 UNITED COMPANY RUSAL PLC 5.13 WEST CHINA CEMENT LIMITED 0.77 Agyapa Royalties | Investor Presentation 25
Jersey Registered Companies – TSx & AMS Listings Jersey Listed Companies on Main Market of TSX (Name and Market Capitalisation ₤ million) As at June 30th, 2019 LYDIAN INTERNATIONAL LIMITED 0.062 MINERA IRL LIMITED 0.012 PETROMAROC CORPORATION PLC 0.000 Jersey Listed Companies on Main Market of AMS (Name and Market Capitalisation in ₤ million) As at 30th June 2019 ATRIUM EUROPEAN REAL ESTATE LIMITED 1.027 YATRA CAPITAL LIMITED - Agyapa Royalties | Investor Presentation 26
Project Kingdom Peers Benchmarking August 2020 Agyapa Royalties | Investor Presentation
Royalty Peers Benchmarking
Senior Royalty Peers Up and Comers Royalty Peers UK Royalty Co.
M ark et C ap ($ m ) 28,412 23,426 9,054 1,922 1,758 272
EV ($ m ) 27,890 23,661 9,058 1,914 1,661 318
Listing Canada, US Canada, US US Canada, US Canada, US UK, Canada
Portfolio Split by
Geography 20% 15% 10% 10%
19%
30% 25% 31% 22% 37%
(by 2 0 1 9 A revenue) 5% 7%
51% 75% 5% 8% 65% 44% 74%
NA LatAm EMEA 39% 9%
APAC RoW
2 0 1 9 A Revenue ($ m ) 844 861 468 296 89 71
Operational Stats
2 0 1 9 A EBITDA ($ m ) 671 553 347 76 57 62
2 0 1 9 A Operating
29 50 30 22 14 -
C osts ($ m )
2020E 62.9x 49.4x 47.7x 58.8x 74.2x 6.9x
P/E
2021E 50.5x 39.6x 41.3x 31.4x 49.7x 5.4x
Valuation M etrics
Dividend 2020E 0.7% 0.8% 0.8% 1.3% 0.0% 8.0%
Y ield
2021E 0.7% 1.0% 0.8% 1.3% 0.0% 7.9%
P / N AVPS 3.1x 2.9x 2.8x 1.2x 1.5x 0.6x
____________________
Source: FactSet as of 19 August 2020.
Agyapa Royalties | Investor Presentation 28Gold Miners Benchmarking – Market Cap $1.0bn – $10bn
Sibanye-Stillwater Northern Star Resources Evolution Mining B2Gold Yamana Gold Endeavour Mining Saracen Minerals
M ark et C ap ($ m ) 8,756 7,765 7,401 6,618 5,803 3,456 4,429
EV ($ m ) 9,485 7,895 7,590 6,489 6,504 3,669 4,443
Listing South Africa Australia Australia Canada US, Canada Canada Australia
Portfolio Split by
19% 23% 26%
Geography 35%
(by 2 0 1 9 A production) 81% 77% 74% 65%
100% 100% 100%
NA LatAm EMEA APAC
2 0 1 9 A Gold
Equivalent 3,126 813 753 851 960 569 355
Production (k oz )
Operational Stats
2 0 1 9 A Revenue ($ m ) 5,047 1,108 1,148 1,156 1,612 886 475
2 0 1 9 A EBITDA ($ m ) 978 411 579 627 707 356 214
2 0 1 9 A Operating
186 40 26 75 112 42 15
C osts ($ m )
2020E 7.4x 21.4x 23.8x 12.9x 22.3x 11.5x 21.1x
P/E
2021E 4.3x 14.3x 22.9x 12.5x 15.9x 7.9x 15.2x
Valuation M etrics
Dividend 2020E 3.4% 1.5% 2.4% 1.5% 1.0% 0.2% 0.4%
Y ield
2021E 6.1% 1.7% 2.3% 2.6% 1.2% 1.0% 1.3%
P / N AVPS 0.9x 1.2x 1.5x 1.3x 1.3x 1.1x 1.7x
____________________
Source: FactSet as of 19 August 2020.
Agyapa Royalties | Investor Presentation 29Gold Miners Benchmarking – Market Cap $1.0bn – $10bn(Cont’d)
Alamos Gold Centerra Gold Harmony Gold Hecla Mining Centamin SSR Mining Inc Pretium
M ark et C ap ($ m ) 4,142 3,807 3,491 3,131 3,103 4,573 2,248
EV ($ m ) 4,011 3,612 3,764 3,616 2,796 4,404 2,668
Listing Canada US, Canada South Africa US UK, US, Canada US, Canada US, Canada
14%
Portfolio Split by
23% 21%
Geography
(by 2 0 1 9 A production) 77% 86% 79%
100% 100% 100% 100%
NA LatAm EMEA APAC
2 0 1 9 A Gold
Equivalent 495 783 1,440 406 240 422 360
Production (k oz )
Operational Stats
2 0 1 9 A Revenue ($ m ) 683 1,256 1,995 675 652 607 478
2 0 1 9 A EBITDA ($ m ) 291 438 434 155 302 229 208
2 0 1 9 A Operating
29 87 61 56 33 30 18
C osts ($ m )
2020E 27.4x 9.6x 13.1x 1072.9x 15.9x 14.0x 16.1x
P/E
2021E 15.1x 6.4x 5.9x 22.9x 14.9x 8.8x 11.2x
Valuation M etrics
2020E 0.5% 1.3% 0.1% 0.1% 5.2% 0.0% 0.0%
Dividend
Y ield 0.5% 1.4% 0.7% 0.1% 5.3% 6.3% n.a.
2021E
P / N AVPS 1.0x 1.1x NA 1.7x 1.6x NA 0.9x
____________________
Source: FactSet as of 19 August 2020.
Agyapa Royalties | Investor Presentation 30Gold Miners Benchmarking – Market Cap $1.0bn – $10bn (Cont’d)
Regis Resources IAMGOLD Coeur Mining Eldorado Gold Alacer Gold Teranga St. Barbara
M ark et C ap ($ m ) 2,098 2,038 2,045 2,027 1,910 1,899 1,747
EV ($ m ) 2,001 1,706 2,353 2,247 2,289 2,298 1,709
Listing Australia US, Canada US US, Canada Canada, Australia, US Canada, US Australia, US
13%
(1)
Portfolio Split by
36% 28% 28%
Geography
(by 2 0 1 9 A production) 52% 35% 64% 72% 72%
100% 100% 100%
NA LatAm EMEA APAC
2 0 1 9 A Gold
Equivalent 363 710 359 402 391 260 382
Production (k oz )
Operational Stats
2 0 1 9 A Revenue ($ m ) 492 1,065 711 616 470 353 473
2 0 1 9 A EBITDA ($ m ) 240 262 97 209 251 125 190
2 0 1 9 A Operating
4 47 41 40 31 34 21
C osts ($ m )
2020E 11.2x 16.9x 59.0x 10.9x 11.0x 16.1x 12.4x
P/E
2021E 9.2x 7.7x 18.9x 12.3x 9.7x 7.3x 9.7x
Valuation M etrics
2020E 2.8% 0.0% 0.0% 0.0% 0.3% 0.0% 2.3%
Dividend
Y ield 3.2% 0.0% 0.0% 0.0% 1.0% n.a. 2.5%
2021E
P / N AVPS NA 0.5x 1.1x 0.6x NA 0.9x 0.8x
____________________
Source: FactSet as of 19 August 2020. 1. Based on 2019 revenue.
Agyapa Royalties | Investor Presentation 31Gold Miners Benchmarking – Market Cap $1.0bn – $10bn (Cont’d)
Hochschild OceanaGold Torex Gold Resources Perseus Mining New Gold
M ark et C ap ($ m ) 1,728 1,634 1,350 1,275 1,034
EV ($ m ) 1,858 1,799 1,369 1,273 1,325
Listing UK, US Canada, Australia, US Canada, US Australia, Canada, US Canada, US
Portfolio Split by
Geography
US, New Zealand
(by 2 0 1 9 A production)
100% 100% 100% 100%
NA LatAm EMEA APAC
2 0 1 9 A Gold
Equivalent 477 471 455 272 101
Production (k oz )
Operational Stats
2 0 1 9 A Revenue ($ m ) 741 667 641 348 633
2 0 1 9 A EBITDA ($ m ) 303 230 332 130 237
2 0 1 9 A Operating
70 77 18 12 18
C osts ($ m )
2020E 42.1x 178.7x 16.8x 20.2x NM
P/E
2021E 12.8x 7.6x 10.3x 9.4x 9.5x
Valuation M etrics
Dividend 2020E 0.8% 0.4% 0.0% 0.0% 0.0%
Y ield
2021E 1.0% 0.8% 0.0% 0.1% 0.0%
P / N AVPS 1.5x 0.7x 0.7x 0.8x 1.0x
____________________
Source: FactSet as of 19 August 2020.
Agyapa Royalties | Investor Presentation 32Annexures Agyapa Royalties | Investor Presentation 33
Royalty Companies From Around The World
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