Executive Summary / Key Takeaways

• Metalla Royalty & Streaming Ltd. ($MTA) operates as a focused precious metals royalty and streaming company, strategically acquiring interests in gold, silver, and copper assets globally, positioning itself for leverage to commodity price appreciation without direct operational risks.
• The company has demonstrated significant asset base expansion, growing from $26,811 in 2016 to $186.58 million by the end of 2024, reflecting an aggressive acquisition strategy that underpins its long-term growth narrative.
• Recent financial performance shows a company in a growth phase, with TTM revenue of $2.41 million and a gross profit margin of 25.10%, though it continues to report net losses, including a TTM net loss of -$10.93 million, indicating substantial investment in portfolio expansion.
• A key strategic move in June 2025 was securing a new revolving credit facility of up to $75 million, significantly enhancing liquidity and providing capital for future accretive acquisitions, while retiring previous debt.
• MTA's competitive edge lies in its regional expertise and agile deal-making capabilities, allowing it to target niche opportunities that larger rivals might overlook, though it currently lags industry leaders in scale and consistent profitability.

The Enduring Allure of Royalties: Metalla's Strategic Foundation

Metalla Royalty & Streaming Ltd. has carved out a distinct niche in the dynamic precious metals sector, operating a business model designed to offer investors exposure to gold, silver, and copper production with reduced operational risk. Incorporated in 1983 as Excalibur Resources Ltd., the company underwent a pivotal transformation in December 2016, rebranding as Metalla Royalty & Streaming Ltd. This strategic pivot solidified its focus on acquiring and managing royalties, streams, and other production-based interests, a model that inherently provides leverage to rising commodity prices and exploration success without the direct capital expenditures and operating costs associated with mining.

The royalty and streaming business model itself serves as a foundational differentiator for Metalla. Unlike traditional mining companies, Metalla does not operate mines; instead, it provides upfront capital to miners in exchange for a percentage of future production or revenue. This structure insulates the company from many of the direct operational risks, such as labor disputes, rising input costs, and environmental liabilities, that can plague mining companies. Metalla's operational and strategic differentiation is further enhanced by its established network of relationships across key regions and its expertise in identifying and acquiring high-quality, long-life assets. This regional acumen and agile deal-making capability allow Metalla to pursue opportunities that larger, more bureaucratic competitors might overlook, potentially leading to faster deal closures and more efficient capital deployment. The company's portfolio spans a broad geographic footprint, including Canada, Australia, Argentina, Mexico, Tanzania, Ecuador, Peru, Chile, Brazil, Venezuela, and the United States, diversifying its exposure across various mining jurisdictions.

Competitive Landscape: A Mid-Tier Player's Ascent

Metalla operates within a competitive landscape dominated by a few large, well-established players, alongside numerous smaller, specialized firms. Key direct competitors include Franco-Nevada Corporation , Wheaton Precious Metals Corp. , Royal Gold, Inc. , and Osisko Gold Royalties Ltd. . While MTA's business model aligns with these peers, its current market positioning is that of a mid-tier player, actively growing its asset base to scale.

Comparing Metalla to its larger counterparts reveals both its strategic advantages and areas for growth. Franco-Nevada and Wheaton Precious Metals (WPM), for instance, boast significantly larger and more diversified portfolios, leading to more consistent revenue growth and robust profitability. For example, FNV's P/E ratio of 27.09 and WPM's P/E of 19.55 in 2025 highlight their established profitability, contrasting with Metalla's current negative P/E ratio of -24.50 (TTM), which reflects its ongoing investment phase and unprofitability. Similarly, Royal Gold (RGLD) with a P/E of 28.28 and Osisko Gold Royalties (OR) with a P/E of 430.21, while also royalty companies, generally exhibit stronger and more consistent financial performance due to their scale and maturity.

Metalla's competitive advantages stem from its focused expertise and agility. Its ability to navigate regional complexities and forge strong relationships in specific markets allows it to identify and secure accretive deals. This strategic flexibility helps counter the global scale of a company like Franco-Nevada , enabling quicker penetration into niche markets and potentially improving pricing power in those segments. However, Metalla's smaller scale and less diversified asset base present vulnerabilities, particularly its reliance on a concentrated geographic footprint and higher exposure to commodity price volatility compared to its more diversified rivals. These factors can lead to greater variability in cash flow and profitability.

Financial Performance: Fueling Growth Through Strategic Investment

Metalla's financial trajectory reflects a company in an aggressive growth phase, prioritizing asset acquisition and portfolio expansion. Historically, the company began generating revenue in 2018, reporting $5.71 million, which increased to $5.86 million in 2019. While revenue has fluctuated, reaching $4.08 million by the end of 2024, the company has consistently reported net losses during this period, ranging from approximately -$158,454 in 2016 to -$3.80 million in 2024. These losses are characteristic of a royalty company actively building its portfolio, where upfront acquisition costs and ongoing general and administrative expenses often outpace early-stage royalty revenues.

More recently, Metalla reported its operating and financial results for the three and six months ended June 30, 2025, following its first quarter 2025 results for the period ended March 31, 2025. For the trailing twelve months (TTM), Metalla generated $2.41 million in revenue, with a gross profit margin of 25.10%. However, operating expenses have led to a TTM operating profit margin of -255.25% and a net profit margin of -452.81%, culminating in a TTM net income of -$10.93 million. This indicates that while the company generates gross profit from its royalties, its overhead and investment activities significantly outweigh current revenues, a common characteristic for growth-focused royalty companies.

Despite these losses, Metalla has demonstrated remarkable growth in its asset base, with total assets expanding from a modest $26,811 in 2016 to $186.58 million by December 31, 2024. This substantial increase in assets underscores the company's commitment to building a robust portfolio of royalty and streaming interests. Cash and cash equivalents stood at $6.75 million at the end of 2024, down from $10.61 million in 2023, reflecting capital deployment. Operating cash flow for the TTM period was -$35,038, with free cash flow at -$1.50 million, further illustrating the capital-intensive nature of its growth strategy.

A significant development in June 2025 was the announcement of a new revolving credit facility of up to $75 million with Bank of Montreal (BMO) and National Bank Financial (NA). This facility, which includes an accordion feature for an additional $35 million, significantly bolsters Metalla's liquidity and provides crucial capital for future acquisitions, while also facilitating the retirement of its previous Beedie facility. This strategic financial move enhances the company's flexibility to pursue accretive deals and manage its debt profile, which stood at $8.81 million in 2024.

Outlook, Risks, and the Path Forward

While specific quantitative guidance figures are not publicly detailed, Metalla's outlook is intrinsically tied to its continued strategy of acquiring high-quality royalty and streaming assets and the broader performance of the precious metals market. The company's recent portfolio updates, including Franco-Nevada's (FNV) acquisition of an existing Côté & Gosselin gross margin royalty, highlight the value embedded within the assets Metalla targets and the potential for future monetization or increased revenue streams from its own interests. The enhanced credit facility positions Metalla to capitalize on market opportunities, suggesting an expectation of continued portfolio expansion.

However, investing in Metalla is not without its risks. The company's financial performance is highly sensitive to fluctuations in gold, silver, and copper prices. A sustained downturn in commodity markets could significantly impact its revenue and the value of its underlying assets. Furthermore, as a royalty and streaming company, Metalla relies on the operational success and financial health of the third-party mining companies that operate the properties on which it holds interests. Any operational disruptions, permitting delays, or financial difficulties faced by these operators could directly affect Metalla's cash flow. Geopolitical risks are also a consideration, given Metalla's diverse international footprint. The company's current unprofitability, while a function of its growth strategy, also represents a risk, as it requires continued access to capital to fund operations and acquisitions until a critical mass of cash-generating assets is achieved.

Conclusion

Metalla Royalty & Streaming Ltd. presents a compelling, albeit growth-oriented, investment thesis for those seeking leveraged exposure to the precious metals sector. The company's strategic pivot in 2016 to a royalty and streaming model, coupled with its consistent asset base expansion, demonstrates a clear path toward building long-term value. While current financial metrics reflect a company in an intensive investment phase, characterized by ongoing net losses, the substantial growth in its asset base and the recent strengthening of its liquidity through the new revolving credit facility underscore its commitment to future profitability.

Metalla's competitive differentiation, rooted in its regional expertise and agile approach to deal-making, allows it to effectively compete for niche opportunities within the broader royalty landscape. The company's future success hinges on its ability to continue identifying and acquiring accretive assets, effectively managing its capital, and benefiting from a favorable precious metals market. Investors should monitor the company's progress in converting its growing asset base into sustainable cash flow and profitability, as well as broader trends in commodity prices and the operational performance of its underlying mining partners. Metalla's journey from a nascent royalty player to a more significant force in the precious metals streaming and royalty space remains a story of strategic growth and the potential for long-term value creation.