(Kitco News) A wave of billion-dollar royalty and streaming transactions over the past two weeks is signalling a shift in how large-scale copper projects may be financed going forward, according to Brett Heath, president and CEO of Metalla Royalty & Streaming.
Speaking at the 35th BMO Metals Mining and Critical Minerals Conference in Florida, Heath pointed to a $4.3 billion copper stream as evidence that the industry is entering a new phase. “We’re entering a period of time right now where there’s going to be a new copper build cycle,” he said.
Large copper projects often require several billion dollars in upfront capital and take years to move from planning to production. Heath said that scale creates room for alternative financing structures. “These are very significant operations,” he said, adding that royalty capital can form “a piece of that capital stack” alongside traditional debt and equity.
Gold and silver’s sharp moves over the past few months have lifted the valuations of royalty assets and changed mine planning assumptions, according to Heath, noting that higher prices are extending mine lives as material previously classified as waste becomes economic.
Over the next 18 months, he said, producers are likely to adjust mine plans and processing profiles to reflect the new price environment.
“The royalties get the benefit of all of it,” Heath said, arguing that royalty holders can capture expanded production, longer reserve lives and higher margins without direct exposure to operating cost pressure.
Metalla reported record 2025 revenue of just under $12 million, which Heath described as “a step change” as the company shifts toward higher operating cash flow. He said much of Metalla’s portfolio remains in development, but the company expects additional assets to come online in 2026 and has outlined growth of about 35% in gold equivalent production through the end of the decade.
Heath also argued that market pricing has not caught up with spot gold. While consensus models use just over $3,000 gold, he said Metalla trades closer to 0.6 times net asset value at current prices. “We’re probably trading something closer to 0.6 times NAV,” he said.
Heath said capital flows are also shifting. He pointed out that Tether was the largest buyer of physical gold in the second half of 2025 and has accumulated an ownership position of up to roughly 9% in Metalla through open-market purchases. He added that generalist fund managers are increasingly showing up in meetings and allocating more capital to the sector.
The royalty sector has consolidated over the past five years, Heath said, including the acquisition of Sandstorm by Royal Gold last year, leaving fewer mid-tier competitors between roughly $1 billion and $10 billion in market capitalization.
As large copper projects advance, he said royalties and streams are likely to remain part of how the next generation of mines is funded.
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