Diamond Equity Research Initiates Coverage on The Metals Royalty Company Inc. (Nasdaq:TMCR)
New York, June 02, 2026 (GLOBE NEWSWIRE) -- Diamond Equity Research LLC, an equity research firm with a focus on small capitalization public companies has initiated coverage of The Metals Royalty Company Inc. (Nasdaq:TMCR). The research summary below is from a report commissioned by The Metals Royalty Company Inc. and produced by Diamond Equity Research.The in-depth 54-page initiation report includes detailed information on The Metals Royalty Company’s business model, services, industry overview, financials, management profile, and risks.
The full research report is available below.
The Metals Royalty Company Initiation Report
Highlights from the report include:
- TMCR Offers Royalty Exposure to Large-Scale Critical Minerals and Strategic Iron Ore Assets Without Mine-Build Capital Risk: TMCR’s portfolio is anchored by a 2.0% gross overriding royalty on the NORI project, providing direct participation in project revenues without exposure to the substantial capex, operating execution, and sustaining capital requirements borne by the operator. This remains the central asymmetry in the investment thesis, offering exposure to a potentially world-scale critical minerals project through an asset-light royalty structure. Based solely on the NORI-D area and under a no-buyback scenario, we estimate TMCR could generate approximately $1.4 billion of life-of-mine royalty revenue, or $70–75 million of average annual royalty revenue over a 19-year mine life. Even under a buyback scenario at NORI, TMCR would receive cash proceeds upon exercise of the repurchase rights, partially offsetting the reduction in long-term royalty exposure. In May 2026, the company also announced the acquisition of a 1.0% royalty on the Mesabi Metallics iron ore project, adding anticipated near-term royalty cash flow exposure tied to premium DR-grade iron ore pellets while further diversifying the portfolio. The royalty includes a $1.50/t revenue floor for downside protection, alongside an option to acquire an additional 1.0% royalty interest and a right of first offer (ROFO) on an additional 2.0% royalty retained by the seller.
- The Company’s Lean Cost Structure Creates Unusually High Operating Leverage if NORI Reaches Production: TMCR’s reported results reflect its pre-revenue status, lean royalty-focused structure, and recent transition to a public company. For FY 2025, the company reported an operating loss of approximately $6.71 million, largely driven by general and administrative expenses of $6.07 million and share-based compensation of $0.64 million. In Q1 2026, reported expenses increased following the listing, with general and administrative expenses of $4.66 million, including $2.61 million of direct listing expenses, and share-based compensation of $6.10 million, indicating that a meaningful portion of headline costs was either listing related or non-cash in nature rather than purely recurring operating spend. As of March 31, 2026, cash and cash equivalents increased to $31.3 million, following the receipt of subscription receipt proceeds. This liquidity position combined with the absence of direct mine development, operating or processing cost obligations underlined the operating leverage, embedded in TMCR’s royalty model. If NORI-D reaches commercial production, royalty revenue could flow through a largely fixed corporate cost base, allowing even moderate revenue generation to materially improve operating income and cash flow once production commences.
- Regulatory and Policy Tailwinds from U.S. Critical Minerals Strategy: U.S. industrial and energy policy is increasingly focused on securing stable supplies of critical minerals essential for electrification, advanced manufacturing, and defense technologies. Net U.S. import reliance remains substantial, estimated at approximately 48% for nickel (nearly 100% excluding alloy scrap), 76% for cobalt, 45% for copper, and 100% for manganese, highlighting structural supply vulnerabilities. In response, legislation such as the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law has introduced financial incentives, tax credits, and financing support to accelerate critical mineral supply chains across the U.S. and allied jurisdictions. Additional policy initiatives, including the March 2025 directive to increase American mineral production and the April 2025 initiative to develop offshore critical mineral resources, further emphasize government support for diversified sources of battery metals. Given TMCR’s royalty exposure to nickel, cobalt, copper, manganese, and iron, these policy developments could enhance the strategic relevance of such resources while supporting broader investment across the critical minerals sector.
- Platform Strategy to Build a Scaled Critical Minerals and Strategic Materials Royalty Portfolio: TMCR is positioned to evolve beyond its cornerstone NORI royalty into a dedicated royalty and financing platform focused on critical minerals and strategic industrial supply chains. The broader mandate is to acquire royalties, streams, and similar interests across assets linked to electrification, industrial infrastructure, steel decarbonization, and defense supply chains, aligning with ongoing U.S. re-industrialization efforts. The recently announced Mesabi Metallics royalty acquisition represents an important step in this diversification strategy by adding exposure to a large-scale domestic DR-grade iron ore pellet project with anticipated near-term cash flow potential. This strategy reflects an early-stage portfolio build anchored by high-quality long-life assets, with the intention to diversify exposure across multiple projects and commodities over time. Within the public markets, there are limited pure-play royalty companies focused specifically on critical minerals and strategic industrial commodities tied to supply-chain security, positioning TMCR as a differentiated capital partner for developers seeking non-dilutive financing solutions in these sectors.
- Valuation: TMCR provides royalty-based exposure to two strategically important mineral platforms, the large-scale NORI polymetallic nodule project and the near-production Mesabi Metallics DR-grade iron ore pellet project. NORI offers critical minerals exposure to nickel, copper, cobalt, and manganese through a 2.0% GORR, supported by an estimated 164 Mt of recoverable nodules at NORI-D. Mesabi adds nearer-term cash flow visibility through an effective 1.0% index-priced GORR on a U.S. green steel-linked asset with a 23+ year mine life, and first production targeted for H2 2026. TMCR has also exercised its option to acquire an additional 1.0% royalty interest in Mesabi, which, if completed, would increase the company’s total royalty exposure to 2.0% and further enhance long-term royalty cash flow potential. Our valuation approach uses a blended approach, combining an NPV of projected NORI-D and Mesabi royalty cash flows at 7.0% discount rate with a discounted EV/Sales-based GPCM. Based on this blended methodology, we arrive at an illustrative valuation of $20.35 per share, contingent on successful execution by the company.
About The Metals Royalty Company Inc.
The Metals Royalty Company Inc. is a British Columbia-based royalty company focused on critical metals and minerals. Its principal asset is a 2.0% gross overriding royalty (GORR) on NORI polymetallic nodule project located in Clarion-Clipperton Zone (CCZ) of the Pacific Ocean.
About Diamond Equity Research
Diamond Equity Research is an equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC (“DER”) is being compensated by The Metals Royalty Company (the “Company”) for producing research materials regarding the Company and its securities, which is intended to subsidize the costs associated with the preparation of the report and the ongoing monitoring of the security; however, the views expressed in the report reflect those of Diamond Equity Research. As of 06/02/26 the issuer had paid us $50,000 for our company sponsored research services, which commenced 02/13/26 and is billed annually upfront.Additional compensation may be received in future years if the engagement is renewed. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 06/02/2026. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences.This report is based on information we consider reliable, including the subject of the report.This report does not explicitly or implicitly affirm that the information contained in this document is accurate and/or comprehensive, and as such should not be relied on in such capacity. All information contained within this report is subject to change without any formal or other notice provided. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete potential loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for The Metals Royalty Company, which may not be comprehensive. Please review initiation report attached for full disclosures.
Attachment
Diamond Equity Research research@diamondequityresearch.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
