The Metals Royalty Reports Earnings Per Share of $0.07 in the Third Quarter
Key Facts
The Metals Royalty reported basic and diluted earnings per share from continuing operations of $0.07 for the three months ended September 30, 2026, compared with a loss of $0.04 per share in the same period a year earlier. The company posted net income of $4,479,008, after a net loss of $1,261,638 in the third quarter of 2025. The swing reflects an improvement in the quarterly result, but does not mean the metals business has begun generating operating income. The company said in its filing with the U.S. Securities and Exchange Commission that its metals and industrial minerals segment recorded no revenue, operating expenses or gross profit in the quarter. Chief Financial Officer Donald Sewell signed the report on November 9, 2026.
The main driver of the result was an accounting gain of $21,797,381 in the quarter from revaluing derivative instruments at fair value. In contrast, the company recorded net finance costs of $7,651,207 and share-based compensation expenses of $7,477,908. These items show that quarterly net income was affected by the valuation gain, alongside financing and compensation costs, while metals operations contributed no operating revenue. Positive earnings per share therefore coincided with the segment’s reported lack of operating activity. This mix shaped the shift from a loss in the comparable period to a profit in the current quarter.
For the first nine months of 2026, the company recorded a net loss of $12,354,751, compared with a loss of $1,197,444 in the corresponding period of 2025. Cash used in continuing operating activities totaled $10,265,647 in the nine months ended September 30, up from $1,181,642 in the prior-year period. The cumulative period therefore followed a different path from the standalone quarter, which swung to net income after a loss in the comparable quarter. The contrast shows that the quarterly figure does not erase the loss accumulated since the start of the year. It also puts operating cash flow in a separate context from the derivative revaluation gain that supported the quarterly result.
On the balance sheet, cash fell to $10,623,939 on September 30, 2026, from $18,366,604 on December 31, 2025, while total assets rose to $297,353,315 from $32,948,313. The carrying value of the term loan facility was $22,859,418, and convertible notes totaled $74,130,292 at the end of September. The company said it was in compliance with its financial covenants on that date and also reported cash of $10.6 million. The increase in assets coincided with the company’s expansion of its royalty holdings, while its cash balance contracted from the end of 2025. These figures show the financial position at quarter-end alongside quarterly profitability and the cumulative loss.
The company completed the purchase of an additional royalty interest in the Masabi project on August 24 for a total of $132.5 million, raising its total interest in the asset to 2%. The interest is tied to a royalty on an iron ore project, but the company said it had not received royalty revenue from Masabi or the NORI project as of the filing date. The lack of revenue is consistent with the company’s statement that metals operations recorded no operating revenue during the quarter or the first nine months. The acquisition’s effect on future results therefore depends on the development of the two projects and their reaching production, rather than revenue realized in the third quarter. The investment provides context for the expansion of the royalty asset base as development continues.
The company is targeting first production at the Masabi project in the fourth quarter of 2026, after pilot operations had been targeted for the second half of the year. The project covers more than 16,000 acres, according to the company’s website. The NORI project remains under development and was not in commercial production at the time of the filing, with first production in the NORI-D area targeted for the fourth quarter of 2027, subject to obtaining the required permits. These dates are the next operational milestones that could precede the start of royalty revenue from the two assets. The Masabi date appeared on the project page, while the company’s filing tied the NORI target to obtaining the required permits.
The company’s stock closed at $2.01 on November 9, 2026, according to EL7 data. The close came on the day Sewell signed the financial report, after quarterly earnings per share turned to $0.07 from a loss of $0.04 a year earlier. The trading data used here does not include documented details on the stock’s session range. The price is a snapshot of the filing session, while the financial figures show a quarterly profit against a loss for the nine-month period. Targeted production developments at Masabi and NORI are expected to be later milestones tied to the potential emergence of royalty revenue.